Hello Readers!

Market volatility continues in the month of October 2020, surprising news for the month of October was the back to back moves taken by the regulator, SEBI (Security Exchange Board of India), to improve transparency.

Let us recapitulate all the market events that took place in the month of October 2020.

1. Market volatility continued in the month of October, however, no drastic fall in the market was witnessed. Despite of no drastic fall, the IMF revising their predicted contraction of India’s FY ‘21 GDP from 4.5% to 10.3% from the June forecast of 4.5%. However, the market was indifferent to the Rs.73,000 crore stimulus announced by the government.

2. The rise in inflation continued- 7.34% in September compared to 6.69% in August. However, with the expectation to ease this rise in inflation, the repo rate remains untouched by RBI, in the month of October.

3. The trendy new in the month of October was the back to back moves taken by the SEBI, which continues to be an active regulator and taking measures to improve transparency. Some of the important regulations announced by SEBI are as follows:

• Mutual fund companies now have to rename dividend plans and communicate clearly that a portion of the investor’s capital can be distributed as a dividend, to prevent mis-selling.
• A new category of risk “very high risk” was added to the current five Riskometer depictions that go from low to high risk, to be shown at a category and scheme level.
• It has directed that inter-scheme transfers for liquidity will be allowed only after all other measures like cash, borrowing, and selling securities, have been exhausted.

4. The economy, slowly-slowly is coming back on track.

5. The speed of COVID-19 spread and cases are dropping and, and with this at least we are in a state to say that, although the market will continue to face the volatility for some more months due to the presidential election in America. But one thing can be predicted that we won’t have a sequel to the mad March we had.

6. Market Exports have risen by 5.27%, the first upward trend in six months. India maintains its venture capital luster as investments more than doubled to $3.6 billion in the last quarter, egged on by EdTech.

The market events that took place in October clearly shows that there is nothing permanent in the market, be it a profit or be it a loss. If market fall, they take time but eventually rise.

Thus, it is always advised do not to make your investment decisions rely on short-term volatilities in the market or any fall in the market. Don’t be overconfident when using the past to predict the future.

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).