BUMPER STOCKS !!!!!!!!!

Investing in equities in current market condition, having a look at the bond yield curve very important as it will help us in selecting the stock in the current market trends ”WHICH STOCK TO SELECT AND WHICH NOT TO”

The slope of the yield curve tells us how the bond market expects short-term interest rates (as a reflection of economic activity and future levels of inflation) to move in the future.

After having a look at the curve we can note down one key point i.e. -  

The yield curve is "inverted on the short-end" and suggests that short-term interest rates will move lower over the next two years, reflecting an expected slow down in the Indian economy.

In short “the inverted yield curve indicates an economic slow down”.

Certain facts and figures 

There is a saying – GROWTH & INFLATION GOES TOGETHER

Expected future inflation rate to be around – 7 - 7.5% (current food inflation – reduced to 6.9%)

Growth of our economy to be around – 6.5 – 7.5%

Not meeting of Fiscal deficit target (Proposed in Budget around 4.5%) expecting it to increase to 5.4% - (Slow IIP Index, PMI Index – Reduction in tax revenue generation)

Trade deficit to increase – not only because of less exports but also due to depreciation in rupee (14% slide)

Other than this Key Problem – 

1)    POLITICAL disputes & SCAMS unsolved

2)    EU Crisis – no proper solution yet – a long way to go

So, in such a situation where big problem such as

-         Growth & Inflation

-         Scams getting a new/ different waves

-         Political disputes remaining unsolved

-         EU crisis no solution yet – where EU 27 ranks 1^st  for Indian EXPORTS

Investors with less risk appetite should go for stock which relatively perform well in slow economic time – Non Cyclical Stocks (DEFENSIVE  STOCKS) the following are some -Krishna /NIKHIL/Nimit

	Consumption theme	Pharma	Related to food
HUL	BATA	SUN PHARMA	UFLEX
ITC	VIP	LUPIN	Jindal Poly flim
Marico	JUBILANT	BIOCON	BILL care
Jyothi Lab	PAGE INDS.	Stride acro lab	Jain irrigation
Kohinoor food	LOVABLE LINGRIE	Cipla
Ruchi soya	HAWKINS cooker
Netle	TTK prestige
	Gitanjali gem