Markets snap 6 week winning streak

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The out-of-control bull we spoke about last week seems to have been tamed, as sellers overpower the buyers in the market this week. But, like always, before getting to the weekly markets update, let’s learn about an interesting fact this week, shall we? 🙂

Matter of Fact

Up until about 2001, stock prices around the world were quoted in fractions and not decimals. So a stock price of ₹25.75 that you would maybe see today would have been quoted as ₹25 3/4 before ‘decimalization had been adopted as a norm for quoting stock prices.

Major stock exchanges in the US, UK, France, etc moved to this new system so that investors found it easier to interpret stock prices and take decisions accordingly. The use of decimals instead of fractions also resulted in tighter bid-ask spreads.

Up until about 2001, stock prices around the world were quoted in fractions and not decimals. So a stock price of ₹25.75 that you would maybe see today would have been quoted as ₹25 3/4 before 'decimalization' had been adopted. Click To Tweet

Markets Update

Nifty50
11,073.45
1.08% ▼
Sensex
37,606.89
1.37% ▼

Nifty500
9,035.75
0.55% ▼
Nifty Bank
21,640.05
4.72% ▼

Benchmark indices closed the week in red.

The Big Picture

  • The Infrastructure Output measures production in a range of sectors related to infrastructure including coal, electricity generation, crude oil, refinery throughput, finished steel and cement
  • Infrastructure output in India fell 15% year-on-year (YoY) in June of 2020, recovering from a 22% drop YoY in the previous month and a record 37% plunge in April
  • Foreign Portfolio Investors (FPIs) bought ₹7,563 crore worth of shares in July, 2020
  • However, FPIs have sold ₹10,950 crore worth of stock in the Indian equity market so far this year

Investing Insights

Buy Low, Sell High : Can Markets Be Timed?

Professional investors and investment advisors often get asked, “The markets are tanking, should we sell our positions and get back in once markets are expected to rise?”. Basically, investors want to understand if its possible to ‘time’ the markets in such a way that they buy when prices are low and sell exactly when prices are high.

In light of such questions being asked very frequently, we take a stab at understanding whether its possible to time the markets, and successfully so. Read about it, here.

Inside smallcase

How to build a healthy portfolio?

Building and maintaining a healthy portfolio is of utmost importance. A healthy portfolio is one which protects your investments during rough times while also striving to achieve your financial goals in the long run.

In a webinar this weekend, we discussed the different aspects of building a healthy portfolio. We also spoke about how ‘Portfolio Health’ can be used to easily build and maintain a healthy portfolio that aids long-term wealth creation. Watch the video above!

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Naveen K R @https://twitter.com/naveen_khadri

Investment Associate at smallcase Research.

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Tags: bank nifty can markets be timed decimalization FPI healthy portfolio infrastructure output NIFTY50 nifty500 portfolio health sensex smallcase smallcases

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