time to buy?

Markets seem to have entered long term bearish mode - so for NIFTY overall, it is still an INVESTOR STAY AWAKE signal. Trading bets should be the order of the day, if to play.


From a mid-cap, small-cap perspective, a lot of the hit is already taken in. Expect fundamentals to improve based on:

a) Increased bearishness of growth outlook and slowing growth will reduce cost of raw materials

b) Rate cycle should cool down from here - don't see any further rate hikes coming with global growth uncertainty, so RBI will be forced to change its hawkish stance, and at the very least put an hold on any further rate hikes. Maybe even turn dovish and start cutting rates

c) With decreasing disposable income (real), expect consumption to trade for lower brand, less expensive products especially in the middle market range


All three should help companies not overly leveraged, having better control on costs and not dependent heavily on imports (given rate change challenges for INR with widening deficits)

Good time to start accumulating for value stocks. Will try to research and post stock specific ideas over the weekend