Here to play the game of Narratives! Opinions are personal ONLY.
Aug 3, 2019 • 6 tweets • 2 min read
In the last 10 years, there have been two distinct lending cycles in the economy. One, which began in 2009 and culminated in 2013. The other, which began in 2014 and culminated in 2018. The first one was capex driven lending by major PSBs to pump prime investments post 2008..
The other being consumption and retail driven by NBFCs..The effects of the first cycle are still being felt to date and we already have the troubles of the second cycle starting to surface. meanwhile, private banks have continued to do their thing without being overly aggressive.
Jul 30, 2019 • 5 tweets • 2 min read
Coming across posts where people are comparing Smallcap index levels from 4 years back and complaining about the lack of returns..My limited understanding here is that this is a classic case of missing the forest for the trees..(1/n)
th fact is that the small cap index is still 25% above Demon levels and still more than 2.5x the low made pre-Modi in 2013..thats still around 13-14% CAGR Cross cycle..
Apr 25, 2018 • 7 tweets • 2 min read
I have come across several investors and research reports that compare the RoE and margins that Nifty companies have clocked in 2008 and the current Aggregate RoE of the Nifty. Though this school of thought has its own merits, there are certain flaws to the same as well..
The sectoral weightage of the index in 2008 and the biggest contributors back then are totally different from what they are at present. Today, the Nifty's weightage is heavily skewed towards financial services whereas back then, it was skewed towards metal and mining