The year 2020 has been more than what we bargained for. From a pandemic called COVID-19 hitting almost the entire world, to the hardships caused by the lockdown to several businesses, to border tensions, and fears of a slump in corporate profitability, to cancellation and/or postponement of major sporting and social events, this has been quite a year so far.
The stock market in India has seen quite a roller-coaster ride. The S&P BSE Sensitive Index had fallen from a high of 42,273.9 in January 2020 to 25,638.9 in March 2020 (a fall of over 39%). This has been one of the sharpest falls in India’s stock market ever. However, the Index has staged a decent recovery, and at the end of June 2020, has risen to 34,915.8, which is a rise of 36% from the bottom of the year.
Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist with advanced economies growth slipping to 1.4% whereas emerging and developing economies expected to grow at 4.1%.
Corona Virus: There will be an impact on global trades considering recent incidences of effected cases of virus in countries other than China and hence broadly global markets will remain volatile including India.
The world economy is afflicted by weak sentiment, trade-related disruptions, and rising downside risks to growth. Central banks leaning towards lower rates reflects growing pessimism on the growth front. The calm that characterised global financial markets in the beginning of 2019 has been dispelled since May, with a combination of trade and geo-political tensions and the worsening global growth outlook imparting heightened volatility.
Interview by Investment Director Mr. Amit Doshi in Moneycontrol.
In the current environment investing in selective big names is because investors are “running for safety” and not for returns, something that should change once the overall sentiment improves, Amit Doshi, Investment Director at Care PMS, said in an interview to Moneycontrol’s Kshitij Anand.
Recent Coverage of Care PMS Strategy in Economic Times
CARE PMS’s smallcap scheme Growth Plus Value (up 16.58 per cent), Unifi Capital’s Hold Co Fund (up 12.80 per cent) and Marcellus’ Rs 456 crore largecap scheme Consistent Compounders (up 11.40 per cent) emerged top performers of the month.
Emkay Investment Managers’ Emkay Lead PMS, Sundaram AMC’s SISOP, Sameeksha Capital’s Multicap equity fund, Marathon Trends’ Megatrends, Accuracap’s Dynamo delivered 10-11 per cent.