Lower Crude Prices and Slow down in China, Good for Indian 1.25 Billion Customer Domestic Economy

Lower prices of Crude and Slow down in China is the best condition for India to become a Strong World Super Power. Most of the Indian Economy is domestic oriented unlike China which has export oriented Economy. If crude keep on bleeding along with soft Gold Prices ,we shall be having comfortable CAD.Slow down in China will tie down China to its domestic issues and it will have less nuscence value in terms of Indian security. All theories about harm for Indian Economy at further down fall of crude are totaly absurd and without any logic.Crude producers had enjoyed more than enough for many years for just pumping crude and they will be profitable at even 20 dollers .So current external environment is totaly conducive for Strong India.Present sluggishness in India is nothing but result of excessive capacity creations in past which will be solved automatically after balancing of capacities with future growth.So present situation is the perfect breeding ground of a Big Bull Run in India with in next two years .So stay invested in fundamentaly strong Quality Companies and Enjoy the future Boom.Companies benefiting from lower crude and domestic centric looks to be better placed presently.Financials will also make a good come back in 2017.

 

sir , i agree 100%. 2017 will be a rocking year for indian equities. low crude prices will result in higher savings for indians and would result in higher consumption and investments. india will grow 7% anyway in normal conditions. no reason to worry and be bearish. i see india to be a super power by 2025. i am super bullish.

 

What about this report by RBS?

Sell everything ahead of stock market crash, say RBS economists

 

RBS may be right for western economies. West has enjoyed their first movers advantage in science and technology .They have exploited third world by their industrialised superirty, but now that advantage has gone down with rest of world picking the technology.Now western economies are plagued by higher life style cost due to inflated wages and higher social security cost Now world is going to equilibrium and this will continue for next 25 years till all excesses are out of the system and their life style cost reduces to World average. So for next 25 years ,there will be permanent Recession in west.As China has also decoupled from rest of world since last 10 years,so it will company western economy although to a less extent of mild slow down.So India is in sweet spot for atleast next 10 years,all that money being pulled off will find its way to India in next one year after a artificial crisis.So we are going through a pause in A Super Bull Run in India.Enjoy Down Fall of Crude and Chinese plight,in short run take your positions in compnies which will benefit from current turmoil but in long term all compnies catering to 1.25 billion Indian domestic customer will not only survive but thrive.

 

All my stocks are in deep red portfolio is down 2.82% vs Nifty down of 0.54. This danger of having midcap and smallcap stocks.

 

You just wait for final assult by market forces,Speculator in chief and King of Speculative Times will be wiped out as indicated in my post ,Dead End for Poor Quality Stocks.

 

Sir I have high quality stocks only even they are down heaviliy. Hope they will recover soon.

 

You never miss a chance to stress the need to have large caps/sector leaders' stocks in one's portfolio. Today turned out to be Judgement day. Only high quality stocks have managed to bear the bears' onslaught.

 

Now my JB Chem IS DOWN 11% WHY? It is BEST QUALITY Stock.

 

kharb - sorry to bump your thread, I'll not join in the discussion but have a question for our friend Srouta - is JB Chem "the best quality" stock because you've it or are there some qualitative and quantitative reasons for the same? Also, I'm still waiting for capital protection & guaranteed returns stocks!

 

Don't be disappointed man. All are doing panic selling that's why it's temporary fall. Even sensex was down about 400 pt from days high. You will see such volatility definitely if you have small/mid cap.

 

Quality is just down to recover surely in future but Junks specialy in portfolio of Speculators in chiefs and large followers will be finally not only out, but will be white washed never to recover.History Repeats after every froth in Unknown Poor Qualty Stocks ,but strangely most of the new investers never listen.For them Speculators are Hero till proved otherwise.

 

It has high cash on books, no debt, low P/E, domestic formulations (low exports FDA risk), reputed management, expansion plans that is why it is best quality stock IMHO.

 

I think margin selling was there or panic selling by speculators. Now stock is almost recover at only 3% down (from 11%) so it shows quality of stock

 

Dear Bombay Boy,I don't know about each and every stock but is strong supporter of investing in fundamentaly strong quality strong sector leaders.I have lost lot of money and my precious youth time just Chasing Unkown Over Known.After that I have come to this conclusion.More over ,I feel no body should invest more than 30% of your portfolio in small and mid cap even in good quality Stocks.More over if you are not able to find right stock for those 30%,you can go to mid cap mutual funds.Mid cap are generally volatile and unfortunately bought by investers during boom time .Even good Quality small and mid cap stocks should be bought in Doom time,but it never happens.In my portfolio I have two main pharma stocks ,Lupin held since long and Sun pharma my recent fishing in tourbled water after recent turmoil.

 

The high cash is from selling some OTC business, right?

It's short covering. If it was a margin call, you'd see a lower circuit. Almost all stocks have risen considerably from day's low, does it reflect quality of the stock or the volatility in the markets?

 

There is some news about order of NGT for closure of their JB Gujrat plant ?.and company may go to court against this order.?Pl confirm this news from some reliable source.

 

In moneycontrol.com, this has been reported. Here is the link.

https://www.moneycontrol.com/news/b...lose-down-guj-plant-jb-chemicals_4988081.html

What will be the consequences? More pain tomorrow?

 

Official info by JB Chem to BSE site is here:

https://corporates.bseindia.com/xml...7C9241_BC92_46FC_8AFF_DDEF9D67469C_125420.pdf

This is very bad news for stock. What is future now for stock? Is it good buy or sell?

 

I think, JB Chem may get Stay order in Supreme Court. So, I don't want to exit JB Chem before the Supreme Court decides on Stay order petition. Would like to know how other investors of JB Chem perceive the current situation.