Now Is The Time To Build A Solid Portfolio – Investing with caution is the lesson I want to convey, The need for caution persists, despite the fact that market values, especially in certain pockets, are attractive. Therefore, the investment plan must be revised. The current market environment is favorable for the accumulation of high-quality equity from a medium- to long-term perspective.

It is important to remember that the global macro backdrop continues to exhibit a very high degree of uncertainty. Due to the continuing conflict in Ukraine, prices for crude oil, natural gas and other basic necessities, such as cooking oil, are still quite high. The main macro headwind for equity markets, both domestic and international, continues to be inflation, as well as monetary tightening by the central bank. Most worrying is the fact that the central bank is tightening monetary policy at a time when global economic growth is slowing. The Federal Reserve raised interest rates at its most recent policy meeting by a total of 50 and 75 basis points. In July, there is likely to be a further 75 basis point rate hike. After raising interest rates by 40 basis points in May, the RBI raised them by another 50 basis points in June. There may be further increases in interest rates.

The world market is experiencing a correction. After hitting their highs, the Nasdaq and S&P 500 fell 35% and 21%, respectively. After hitting its peak, Nifty fell nearly 18 percent. The market as a whole has undergone a more violent correction, and a large amount of excess volatility has been eliminated. Due to the correction, the assessments are now realistic, and in certain areas even interesting.

It is not difficult to determine the area in which to invest. Although the fundamentals of financial companies are improving, FII’s intense selling action has caused prices to fall. Therefore, the best option is to invest in the financial sector, especially large banks. However, financial results can take time. Only until foreign institutional investors stop selling will they be able to make a reasonable recovery. Therefore, those who have invested need to be patient. But I have no doubt that you will be rewarded dearly.

After the recent severe downturn, the information technology, telecommunications, automotive, pharmaceutical and other export markets appear to have a bright future. In fact, it is possible to make long-term investments in blue chips in all industries. In these uncertain times, FMCG would be an excellent hedge for you to have.

The results of the first quarter will have an effect on market movements in July. As a result of falling prices, the metal industry will post lower revenues. It is anticipated that margin pressures will be experienced in cement, consumer goods, and certain segments of the FMCG industry. Both finance and information technology will record positive numbers. Cement, consumer durables and metals will probably have disappointing results for the first quarter.

It is very important to build a solid investment portfolio during times of uncertainty and adversity. History lessons teach us that the best way to raise money is to invest over a long period of time in companies that produce high-quality goods or services. Since there are currently too many obstacles and uncertainties, there is a possibility that the market will correct again. However, now is the time to start building a solid, high-quality stock portfolio by buying stocks on a scalable basis. In a perfect world, one would use SIP in mutual funds to make investments in the mid and small market segments.