Top agenda of Modi behind not taking steps to improve the stock market sentiments

23^rd August 2019

Top agenda of Modi behind not taking steps to improve the stock market sentiments

Dear Fellow Travellers,

Greetings from Hitesh! Normally it is not possible to remain sensible while thinking with PARADOX. Modi is capable to create PARADOX and live with it. Let me share two of the most PARADOXICAL examples of Modi’s working.

Two Major Paradox of Modi Government: -

Last March, FM declared capital gains tax and kept the target of Rs.20000 CRS as gain tax in the budget. The market tanked and I doubt that collected any worthwhile amount from the capital gains tax last year.

This budget they levied Surcharge on FPIs / increased TAX rates and the market went down further. Talks and N number of views were given to restore the market with positive steps as the government has also kept a disinvestment target for public sector companies. If the market is not proper, they would not be able to sell their shares. But the government is not taking any steps. So, this is another paradox.

What Modi knows that Media is not sharing with us?

This time there was good rains or more rains in most parts of the countries and many people staying, at the ground levels would have seen WATER Logging in their home/office or shops.

What normal people will do when WATER STARTS coming is to shift their things to upper levels where water can’t possibly reach. During that time all things are moved in a hurry and when the water recedes – the first thing they have to do is to clear the MUD in the home and clean it properly so that disease does not happen. Kitchen is the last thing to start as most of the time food items are last to be brought down. Moreover, food items are most susceptible to affect health. In the process, it happens that the family would have to suffer for food for some time or they have to depend on outside food. (I was staying in the ground floor in Mumbai and I have seen much such waterlogging – so I am writing from my experiences).

If you look at the whole of your house – your kitchen items are always a smaller portion then the Bedroom items or Living Room items.

How does this relate to the Indian Stock market?

Just 3-5% of the Indian Population is invested in the market (like kitchen items). These include direct equity and indirect equity-like Mutual funds as well.

Out of this 90 % is done by the BIG guys. When BIG guys play – many times their way and means of investments are questionable like PARTICIPATORY NOTES.   Modi knows this with accuracy and it is hitting where it hurts more.

He is cleaning the MUD and he knows that unless this MUD is not cleaned; he can’t have a clean system for the next generations. If the share market is moving – the forces that created the most MUD will have more and more finances to fight back MODI. So, Modi is simply not attending to the share market issues for the time being, until the people who created the MUD is surrenders or dies.

Why TEENAGE guy/girl is the most difficult to handle?

Ask any psychologist and they will tell you that TEENAGE is the most difficult phase of any child. Why? He is seeing the transformation in his body. He can’t leave his KINDNESS easily and adapt to the ADULT hood during this time.

India is passing through TRANSFORMATION where VESTED interested people of the past are not ready to give up easily and the new millennials are not matured enough to take over the reins.

We have the best of the INFRASTRUCTURE and law for the stock market, though 3-5% of the guys are playing. Just assume if these numbers go to 8-10% where will be the SENSEX. So, when RAKESH and other talks about 125000 SENSEX, they are 100% right in their future reading for the long term.

What it means for SMALL INVESTORS?

From the last year, we are saying – the current market is a PARADISE for investors. All you need is a GUTS to add good quality stocks at the lower levels. Once the Mud is cleared, you will not get much time to buy. Currently, you can buy as per your fund flow and make a sound portfolio for your retirement/future needs or your generations.

If you need guidance in investing or guidance for your personal issues, you can approach us.

Have a GREAT INVESTING.

Follow me on Twitter @hiteshmparikh or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.