After three months of correction, Indian markets got a much needed breather in the month of Nov. Recovery of rupee against the dollar, fall in oil prices and improvement in liquidity were the positives that helped the markets stage a recovery this month.

Smart investment strategy for the current market condition: During the last one year, market valuations have become more reasonable. Some pockets like Small caps have become undervalued as compared to their historical averages. While, there is a possibility for the markets to go down further in the next 6 months,  it is almost impossible to time the markets perfectly. Hence, in the current scenario, it is prudent for an intelligent investor to continue on the path of disciplined investing without getting panic. You should ensure that your asset allocation is maintained as per your risk profile. Kindly take help of your dedicated Financial Advisor to re-balance your portfolio during your reviews. This will help you to buy at current prevailing lower prices.

The Indian markets continued its downward journey in the month of October as well. So far in 2018, the broad markets have corrected to the tune of 25% to 30%. This is a very big correction. Markets have not witnessed such a broad downfall since 2008.

Overall, as we mentioned in the previous monthly update this is the best time to start allocating more towards equity. The market volatility gives a good opportunity to take advantage of cost averaging in the long run. The investor will be buying more units at lower prices and gain benefits when the markets eventually recover. We are monitoring the market conditions very closely and will take necessary actions to increase your allocation to equity as and when required. 

Time to Increase allocation to Equity - The current market volatility provides a good opportunity to increase the allocation to equity in a phased manner. We as your trusted advisers, are watching the market developments very closely. We would be using this volatility to increase your equity exposure over the next few months. This will enable you to gain from lower cost of acquisition of some good mutual funds. This is also the time to increase for SIPs in case you have any additional monthly surplus. SIPs work wonders to average the buying price in a down moving market. Your respective financial adviser will be in touch with you to guide you through the current market conditions and make most of the current opportunity. 

Sensex has gained 14% since the beginning of this year and NIFTY has gained 11.2% during the same period. The Corporate Earnings of April - June quarter led to a better performance of firms in FMCG, Information technology and Pharma sectors. But the trade deficit widened to USD 18.02 and rupee value depreciated to 70.65.

 We will analyze the market condition by understanding the below factors: 

• Trade Deficit

The trade …

The domestic stock indices Sensex & Nifty hit the lifetime high. Sensex reached 37500 level for the first time and NSE Nifty reached a peak of 11300 level. The increased corporate earnings resulted in positive investor sentiments. Also, the rising dollar rates increases the revenues of sectors such as IT and Pharma. This, in turn, results in a chain reaction of growth and positive sentiment in the market. Though the …