The S&P BSE Sensex Cracks Below 50000 on Monday while the Nifty50 closed below its crucial support at 14,750 on Monday. Five straight sessions of decline pushed benchmark indices below crucial support levels thanks to weak global cues, and a rise in crude oil prices. The S&P Sensex plunged, and the Nifty50 plunged more than 5 percent each from highs.
Rising US Bond real yields made equity valuations look more stretched in comparison pushing markets Sensex Cracks Below 50000 across the globe. “Yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 basis points,”.
Investors could follow these few pointers as highlighted by Tarun Birani, Founder and CEO, TBNG Capital Advisors:
Returns are the sole factor behind investments. Organizations with low or negligible ROEs are unlikely to offer investors any value on their investments.
Organizations with high profitability and low or no debt are attractive businesses to invest in, considering the growth prospects.
Good Corporate Governance:
The reliability and ethics of an organization over time speak volumes of its future prospects and reliability as long-term investments.
One thing we have learned from COVID-19 is businesses need to adapt to survive. Agility helps businesses traverse through even the toughest scenarios, be it a pandemic, losses, ever-changing business landscapes, and more.
The faith in a company can be derived from the promoters; share in the company. High holding implies the promoter is deeply invested in the future growth of the company.
To reap gain a company’s future potential is derived from its historic path to the current growth, its cash flow, and an analysis of its future performance over the long term.