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Global sentiments drive markets marginally higher

Global sentiments drive markets marginally higher
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The Indian stock markets ended the week marginally higher, with major benchmark indices – Nifty50 and Sensex – rising about 0.30%. This was mainly due to mixed market sentiments wherein markets swung in both directions throughout the trading week.

The optimists just about outpaced the pessimists in the market this week, mainly on account of stable global cues. Dissapointing Jobs data in the US led the central bank to defer cutting interest rates – which means that easy money (easy money refers to when cost of borrowing, also called interest rates, is low) in the markets will still remain aflush.

Quote of the week

It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.

Charlie Munger
u003cspan style=u0022font-size: revert; color: initial;u0022u003eIt is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligentu003c/spanu003e – Charlie… Click To Tweet

Markets Update

Nifty 50
17,369.25
0.26% ▲
Sensex
58,305.07
0.30% ▲
Nifty 500
14,836.45
0.52% ▲
Nifty Bank
36,683.20
0.21% ▼

The Big Picture

  • Industrial production measures the output of businesses integrated into the industrial sector of the economy. India’s industrial production rose by 11.5% in July 2021 when compared to the same period last year, lower than 13.6% in the previous month, but above market forecasts of 10.7%.
  • Deposit growth, which measures the growth in commercial bank deposits, stood at 9.5% in the fortnight ended August 27th, 2021 when compared to the same period last year.
  • Loan growth, which measures the growth in commercial bank loans, stood at 6.7% in the fortnight ended August 27th, 2021 when compared to the same period last year.
  • Foreign Exchange Reserves in India increased to $642.45 billion as of September 3rd from $633.56 billion in the previous week.

Word with a smallcase manager – Windmill Capital

Windmill Capital introduces the ‘Quality Smallcap — Smart Beta’ smallcase

Windmill Capital, the 1st manager on the smallcase platform, has made its newest fee-based smallcase live on the platform. It’s called the ‘Quality Smallcap — Smart Beta’ smallcase.

This smallcase aims to invest in budding and quality smallcap stocks that are experiencing a positive momentum trend in their price. Stocks are given a quality score on the basis of their financial strength and are weighted to maximize return potential while controlling the risk assumed in the portfolio. Read more about the smallcase, here.

Inside smallcase

SIPs with smallcase

SIP stands for Systematic Investment Plan. As the name suggests, it helps the investor allocate funds in a smart and disciplined manner. Timing the markets is a difficult task, but SIP eliminates that worry. With SIP, you can invest fixed amounts at regular intervals. You, then, stand to have an advantage over market volatility and do not need to monitor the markets constantly.

Buy more when the price is low, less when the price is high. If on the SIP date, the stock price is high, you will be able to buy a lesser number of shares. And vice versa. This ensures that you invest more at lower prices and less at higher prices, and hence your overall cost of acquisition gets averaged out. Try out investing with SIPs in smallcases for passive, long-term wealth creation. Read more about SIPs, here.

And that’s all for this week. Take care, and happy investing! 🙂

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Global sentiments drive markets marginally higher
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