Equity Market’s Review and How We Performed in November 2022

Indian equity markets continued to rally during the month of November 2022. Nifty 50 index gained 4.4% during the month to close at a new all time high of 18800 levels. Indian equity markets have been rallying since hitting a low of 15500 levels in June 2022. Since then the inflation and high interest rate scenarios have been largely priced in by the market.

Barring any major negative developments in global markets, or any knee jerk rate hikes by central banks, it seems local factors such as quarterly corporate results, Indian macro economic factors will determine the market direction. While the Indian equity markets have performed better than the global markets, it is likely that going forward we might see a more moderate to range bound movement in major market indices.

Last month was a signature month for our investing strategy PrudentGain. In the sense we were able to showcase our twin objectives of capital growth combined with regular income.

Considering a portfolio size of Rs 20 lakhs invested in Nifty 50 index fund, the market rally meant that the portfolio appreciated by 4.4%. In addition, the short term trading opportunities exploited by us meant there was a decent extra income generated for the client.

In keeping with our approach of low risk, low cost investing, we invest bulk of client funds in an index fund, leaving a tiny component for income generation strategies. This ensures client portfolio performs in line with the market while keeping costs low, as the cost of investing in index funds is negligible.