10 facts that we should not forget during current times

Dear Equity Investor,
While your mind could be crowded with mixed emotions owing to the volatility and corrective phase of markets, let us give you a breather by stating a few positive things encircling the economy, making India The place for growth ahead! And it’s not only us stating this; even McKinsey reckons India’s top 600 firms are 11 times more productive than the average.

If what you own is good, it will pay-off; keep the conviction.

Through series of such articles, we intend to re-assure to you that Equities are meant for long-term.

10 FACTS THAT WE NEED NOT FORGET DURING CURRENT TIMES:

1) In 2014, when Narendra Modi began his 1st term as prime minister, India was the world’s tenth-largest economy. In the following seven years it grew by 40%, and according to IMF, with growth this year of 8%, it will be the highest among big countries. It predicts that by 2027 India will be the world’s fifth-largest economy, with a GDP of roughly $5trn at market prices.
2) In terms of the size of its stock market, India has already reached the #4 spot, behind only America, China and Japan.

3) With the start-up culture shaping up, India is now home to 100 Unicorns, third only to America & China.

4) The emergence of a single national market in which more firms and consumers use the modern financial system, expedited by Narendra Modi, is a major growth pillar for India.

5) The growth of India stack is immense. This includes Aadhaar, a biometric identity system for all Indians; a push to make sure everyone has a bank account; and a national payments system known as UPI. Payments via UPI have risen from the equivalent of 13% of monthly GDP in January 2020 to 50% in April 2022.

6) With the inclusion of GST, more businesses are being dragged into the daylight, and a churn of revenues is being generated on an upwards scale and tax evasion is getting harder.

7) Significant deleverage in corporates has been happening. Debt to Equity ratio of 600+ listed non-financial companies has declined from 1x in FY15 to 0.6x now, which is almost half.

8) India’s IT services and outsourcing industry has doubled in size over the past decade. Its annual revenues are now $230bn. That has made India the world’s 5th biggest exporter of services, despite being only 16th in goods.

9) Affordability has improved substantially. Residential Property Price to Household Income has declined from 6x in FY13 to 4.4x now. Residential property sales in the top 7 cities rose by 16% YoY in the first three months of 2022, as a sign of strength.

10) The top conglomerates like Reliance Group, Adani Group, Tata Group, and so on, alone plan to invest more than $250bn over the next five to eight years in infrastructure and emerging industries.

They say all things come to an end—the good and the bad. So, this bearish phase shall pass through, as well. 

And, as far as equity investing is concerned, instead of being fearful, approach should be entrepreneurial, and hence the current phase of fall in prices is more of an opportunity!

With your portfolio in the hands of the right portfolio managers, it’s bound to give returns over a period of time. And we are reviewing and watching this very closely and objectively.

OUR INTENTION IS TO SHARE KNOWLEDGE DURING THE PHASE OF DARKNESS AS KNOWLEDGE IS A TORCH LIGHT TO PASS IT THROUGH!

Do not Simply Invest | Make Informed Decisions