When the upcycle in a sector is very strong
Poorly managed companies also make returns

2021 steel cycle-
SAIL went up from 30 to 120

Now in the current credit upcycle:-
PSU Banks are making money!

But does this mean credit culture has changed for PSU Banks?
No evidence of that

High Copper Prices Are Terrible for EV Makers. This Company Has a Fix. https://t.co/kWu59AUGO1 via @BarronsOnline

How will next 10-15 years be different for India?
In the next 10 years,India will undertake massive infrastructure projects which will propel India to a $5 Trillion economy

A thread🧵on how India is spending big on Infrastructure upgradation like never before

Lets go👇

(1/17)

How big is India's Infra push?

India spent $14 Trillion on infrastructure in the 75 years since its independence.

$7 trillion was in the last 9 years.

Another $7 Trillion will be spent in the next 9 years!

Big Big Spending is coming in!

(2/17)

So where is this money being spent?

1. Roads
There has been an increase in the construction of National Highways (NHs)/roads over
time, with 10,457 km of roads constructed in FY22 as compared to 6,061 km in FY16.

(3/17)

In FY23(until October 2022), 4,060 km of NHs/roads were constructed, which was around 91 per cent of the achievement in the corresponding period of the previous financial year

(4/17)

The ambition is to take the rate of daily highway construction in India to 100km per day

Dubbed India’s ‘highway revolution’,
Rapid highway construction is central to the country’s push to transform itself into a staggering US$5 trillion economy by 2025.

(5/17)

Index Funds have been a red hot equity passive Mutual Fund strategy in the last 10 years!

A thread🧵explaining why index funds should be a part of ur equity MF portfolio!

Hit "Retweet" to educate maximum investors

Let's go👇

(1/18)

Passive vs Active Mutual Fund Strategy

Active Strategy:-

Active investing, as its name implies, takes a hands-on approach and requires that someone act in the role of a portfolio manager.

The goal of active money management is to beat the stock market’s average return

(2/18)

Passive Strategy:-

Passive investing entails a non-active role on part of the investor.

When you invest in a diversified portfolio with low costs and a long-term horizon, it tends to deliver returns comparable to the market average.

(3/18)

What are Index Funds?

Index Fund invests in stocks that imitate a stock market index like the Nifty, Sensex.

These are passively managed funds which means that the fund manager invests in the same securities as present in the underlying index in the same proportion.

(4/18)

The relentless rise of Index funds:-

The assets under management (AUM) of passive products will grow eight times from the current levels of ₹3 trillion to ₹25 trillion by 2025

Passive assets will grow to constitute 37% of the overall assets in the MF industry by 2025

(5/18)

Aadhar
UPI & now
Open Network for Digital Commerce(ONDC)

As ONDC starts testing in Bengaluru!
ONDC is yet another UPI moment(game changer) in e-commerce

A thread🧵on what is ONDC? How will it revolutionize e-commerce in India?

Hit "Retweet" to educate people

Lets go👇

(1/21)

How Big is India's e-commerce market?

In India, the Gross Merchandising Value (GMV) for the digital commerce retail market was ₹2.85 Lakh Crores (US$ 38 billion) in 2020.

(2/21)

Kirana Stores are physical in Nature:-

In India, around 1.2 crore Kirana stores, which are hyperlocal neighborhood provision stores, account for 80% of the retail sector, but most of these stores are digitally excluded.

(3/21)

India had 4.25 crore Micro, Small and Medium Enterprises (MSMEs) that could benefit from the digital revolution, the paper adds.

(4/21)

Currently, only about 20% of internet users in India are online shoppers.
By 2030, we can expect this to grow to nearly 50 crores,

(5/21)

All stocks are cyclical

The question is only of duration

Not fully up to date but still an incredible resource for papers about market efficiency:

@Gurpreetnarang2 @CMungerilal I was pointing out why cyclical stocks trade at low PEs when the earnings are strong, you misunderstood my tweet.

The sector rotation has been so fast in this bull market...

There has been no one clear sectoral leader..

Suddenly Pharma stocks run, then PSUs, then IT comes up, Commodities, Chemicals.. Everyone is having their day in the sun..

Now All of a sudden Power stocks are zooming

Previous Bull markets had few clear leaders - Infra, Real Estate in 2007 or Financials after Demon, IT, Media in 2000s, Capex, Commodities after that

On Cyclicals

All hell breaks loose once the growth slows down; as every investor rushes to exit at the same time. The decline is 5x faster than the rise.