Bears return to Dalal Street and wreck havoc
Today, at 0915 hours IST, alarm bells started clanging at the RJ Fan Club (the HQ of the ‘Bulls Army of Dalal Street’ (BADS)), warning that the Bears had re-invaded Dalal Street.
They had sneaked in through an opening near Dwarka Restaurant at Tamarind Lane.
I grabbed my all-time favourite weapon, the RPG Launcher, and rushed to the site of the incursion.
Mukeshbhai joined me, armed with his trusted AK-74 machine gun.
Jigneshbhai came barehanded because he enjoys strangling the Bears with his muscular arms.
After a fierce fire-fight, we managed to subdue the Bears and prevented them from defiling the Sanctum Santorum at Jeejeebhoy Towers.
Rakesh Jhunjhunwala, the Badshah of Dalal Street, was pleased with our Herculean efforts.
“Well done boys, keep it up,” he said, patting each of us on the head.
However, we did suffer losses.
The Sensex plunged a massive 500 points and investors lost a fortune of lakhs of crore.
Sensex, Nifty Drop Over 1% A Day Ahead Of September F&O Expiry.#Sensex #Nifty #BSE #NSE #StockMarket #ClosingBell #MarketUpdates pic.twitter.com/9AfTe9LsUl
— Ventura Securities (@Ventura_Sec) September 25, 2019
@narendramodi sensex down for 504 businessman lost their 1.93crore rupees kya yahi hai vilas sir ji
— Ata Husain (@AtaHusain14) September 25, 2019
Tanked and all bhakts gone underground? #sensex
— MyYm?? (@m_y_views) September 25, 2019
The Sensex must be Anti -National
— Madhavan Narayanan (@madversity) September 3, 2019
Modi Ji asked the global business community to invest in India even when NIFTY and Sensex recorded slump despite the "corporate tax bonanza" by the Finance Minister. Poor guy is living a shattered dream! ?#EconomyCrisis
— Nikita (@HumanistRants) September 25, 2019
Dolly Khanna portfolio bears brunt of Bear attack
Dolly Khanna and her portfolio of glittering multibaggers have been a beacon of hope and inspiration for several novices at Dalal Street.
However, of late, the portfolio has lost its sheen.
A part of the reason is because Dolly prematurely dumped the crown jewels in the portfolio.
Relaxo Footwears is a prime example of this.
Dolly Khanna missed out on making a gain in excess of Rs. 100 crore by prematurely dumping the stock (see Dolly Khanna’s Small-Cap Stock Gives 12000% Gain In 10 Years & Is Poised To Give More Mega Gains).
No doubt, it is an unfortunate state of affairs.
The rest of Dolly Khanna’s portfolio of multibagger stocks looks like this:
|
Latest Portfolio Of Dolly Khanna |
|||
|
Stock |
CMP (Rs.) |
Nos of shares |
Value (Rs Cr) |
|
Rain Industries |
104 |
64,22,542 |
66.5 |
|
Radico Khaitan |
318 |
15,02,904 |
47.7 |
|
NOCIL |
114 |
33,10,025 |
37.6 |
|
Nilkamal |
1165 |
2,22,804 |
25.9 |
|
Muthoot Capital Services |
552 |
2,11,092 |
11.7 |
|
IFB Agro Industries |
389 |
104,240 |
4.1 |
As can be seen, Dolly has dumped several of her erstwhile trusted stocks such as RSWM, Butterfly Gandhimathi, Ruchira Papers, Som Distilleries etc.
Rain Industries, which was once the dominant crown jewel of the portfolio, is now a shadow of its former glorious self.
Even Manappuram Finance has been unceremoniously booted out of the portfolio.
Chennai-based Rajiv Khanna, who invests in the name of his wife Dolly Khanna, pared his holding in at least 10 companies. @iYashUpadhyaya
Read more: https://t.co/sWMX9njymN pic.twitter.com/pUQLisBFXt
— BloombergQuint (@BloombergQuint) July 24, 2019
(Dolly & Rajiv Khanna, the first multibagger couple of Dalal Street)
Slashing corporate tax rate to 15% is a good step
In his debut interview on youtube, Rajiv Khanna had provided valuable insights into his and Dolly’s investing philosophy (see How I Found Mega Multibaggers & Became Millionaire: Dolly Khanna Reveals All Top Secrets & Discusses Latest “No Brainer” Stock Pick).
He has revealed precise details of how he spots potential multibaggers and snares them in their infancy using the famous technique discovered by Peter Lynch.
In his latest interview to ET, Rajiv complimented NAMO and Nirmala Sitharaman for the bold step of slashing the tax rates.
He pointed out that new companies will benefit from the corporate tax rate cut and make a lot of investment over time.
“It is good thinking,” he remarked.
The step to cut corporate tax is historic. It will give a great stimulus to #MakeInIndia, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians. https://t.co/4yNwqyzImE
— Narendra Modi (@narendramodi) September 20, 2019
Irrational exuberance is driving the rally
We saw how, in the wake of the historical announcements relating to the tax rate cuts, the stock markets had rallied and posted unprecedented gains.
Sensex and Nifty posts biggest single day gains in the last 10 years. #NewIndiaInMaking pic.twitter.com/0WXmgqE3GT
— BJP (@BJP4India) September 24, 2019
However, Rajiv is skeptical about the rally in the stock market.
This is because of the grave economic slowdown which has gripped the Country.
He pointed out that while NAMO and Nirmala Sitharaman have benefited the corporate sector, they have not done anything to ensure that the common man has more money in his pocket to start spending.
“That problem remains unaddressed,” Rajiv stated, his brow creased with worry lines.
“I wish she (Sitharaman) would address that. The current rally is irrational exuberance. I am a bit skeptical about it, unless consumer gets more money in their hands,” he added in a despondent tone.
In a #CNBCTV18Exclusive Hugh Young of Aberdeen says tax cut will be a game changer if it’s a part of other steps. They continue to remain over exposed to India but valuations & lack of growth remain a concern.@latha_venkatesh @_soniashenoy @_anujsinghal https://t.co/aOKr1dShxe
— CNBC-TV18 News (@CNBCTV18News) September 25, 2019
(L-R: Rajiv Khanna, Mohnish Pabrai & Porinju Veliyath)
Wait for consumption to increase before buying stocks
Rajiv knows that novices are eager to rush to Dalal Street and grab stocks.
He cautioned us not to be eager beavers.
Instead, we have to hold our horses and bide the time.
“Let consumption start increasing, then I will start investing. At this point, slowdown is a reality. I am waiting for data points to emerge,” he said, demonstrating immense wisdom and sagacity of thought.
There is merit in Rajiv’s theory because an increase in consumption is a clear indication that the dreaded economic slowdown is coming to an end.
That will signal that the market has bottomed out and that it is safe to buy stocks!
Yes. He rightly pointed out current scenario.
I have been following Dolly for long time and one thing is for sure. Whatever he made gains during 10-15 years back and lost out in last 5 years. No one takes his buys/recos seriously anymore. So as Sanjay Bakshi, PV and Mohnish. All are fallen heroes.
where is the latest interview link?
I also have been following DK for long and I remember once Rain Industries was her crown jewel with about 25% of her total portfolio. She was even buying stock around 300-350 levels. Today at around Rs 85 per stock, she has lost about 18% of her total portfolio worth due to this single stock. In last 2 years, about 40-50% of her portfolio valuation is certainly wiped out. Porinju must be having even terrible time with Leel and Kaya carnage. Do your own home work friends. I have serious doubts on the credibility of these so called guru’s.
I have never been impressed by stock selection ability of Rajiv Khanna.