26 July 2024
RBI and Govt is looking to curb the investment in private crypto currencies in India. Let's understand the impact in a nutshell
1.5 - 2 crores Investors who have invested in crypto will have hard time even making an exit with no potential buyers of the dip. Today Indians have around 40,000 crores worth of investment in Crypto which is huge. Smart investors will likely pull out the money from Crypto even it means to cut down their Portfolio value by 50% in this dip.
With crypto getting sidelined, the only real investment instrument would be to invest in Stock market in India. Other asset classes such as fixed deposits, gold and commodities have modest returns from last few years. Second asset class which can see rise in value would be real estate. We feel the curbing of crypto currencies can prove to be beneficiary to the stock market investors for the next year.
Modi Govt taking aggressive measures to reduce taxes on petrol/diesel would ensure that inflation doesn't bite them in 5 state elections next year. This measures would ease out work at RBI to not increase interest rates in near future.
IPO's will keep on flushing the extra liquidity from the stock market and would ensure that any sector which runs more than the course of fundamentals see a correction. The point would be to invest in businesses which are undervalued and have high growth trajectory to ensure that risk to reward is in favor of the investor. Always ensure that you check the underlying business fundamentals rather than investing in a branded company which sounds familiar.
Here is the list of stocks in PreIPO market which can be bought with next 2-3 year investment horizon -
*Undervalued Great Businesses*
Bazar India
IXIGO
Electrosteel
CSK
TMB
Studds Accessories
Assam Carbon
Cochin International Airport
Lava International
Mobikwik
*Fairly Valued Great Businesses*
Five Star
Capital Small Finance Bank
HDB Financial Services
AGS Transact
NCL Buildtech
Indofil
Elofic
Kurlon Enterprises
ICL Fincorp
Martin & Harris
MKCL
Hexaware
*Overvalued Great Businesses*
Reliance Retail
HDFC Securities
TRL Krosaki
Tata Tech
GKN Driveline
Fincare
Herofincorp
Downtown Hospital