Why the Hindenburg storm is NOT over yet | How stock prices move? | Akshat Shrivastava

Summary

The video discusses the ongoing Hindenburg issue's impact on the Indian stock market, emphasizing the importance of understanding macroeconomic factors and stock price movements. It explains the supply and demand dynamics affecting stock prices and the role of counter buyers. The speaker warns of potential market corrections, particularly for small and mid-cap stocks, and advises investors to focus on fundamentals, diversify portfolios, and prepare for volatility. The video also touches on the Indian job market's challenges and promotes a master class on AI for skill enhancement.

Takeaways

• 📉 The Hindenburg issue is not resolved and has implications for the Indian stock market, particularly with short positions built for the September to November period.
• 📈 Despite celebrations of the Indian stock market's resilience, the real concern is the potential impact around November due to Hindenburg's short positions.
• 🤔 The video emphasizes the importance of understanding how stock prices move, debunking the simplistic view that stock prices rise with good results and fall with bad.
• 📊 The script explains the supply and demand concept in stock pricing, highlighting how changes in demand can shift the demand curve and affect stock prices.
• 📉 The video discusses the risk to different types of stocks, including Adani stocks and HDFC stock, and the potential for overvalued stocks to become hyper overvalued.
• 💼 The speaker recommends learning high-impact skills like artificial intelligence, especially in times of economic uncertainty, and mentions a free master class for the first 1,000 sign-ups.
• 🌐 The video touches on the political sensitivity of the Hindenburg report and the allegations against the CB chairman, urging investors to focus on macroeconomics and investing rather than taking political sides.
• 💡 The importance of understanding the role of counter buyers in the stock market is highlighted, explaining how the absence of buyers can lead to a fall in stock prices.
• 📊 The script points out that foreign institutional investors (FIIs) are not heavily investing in the Indian market, which contrasts with domestic institutional investors (DIIs) that are actively buying.
• 📈 The growth of Systematic Investment Plans (SIPs) and their contribution to the Indian market is noted, but there's a warning about the potential risk if retail investors slow down their SIP investments.
• 🌐 The video concludes with advice for investors to diversify internationally, prepare for market volatility, avoid buying stocks based on nationalism, and focus on fundamentals to preserve investments.

Q & A

What is the main issue discussed in the video?

The main issue discussed in the video is the Hindenburg issue and its impact on the Indian stock market, particularly the short positions built by Hindenburg for the period of September to November.

Why is the Hindenburg issue still a concern according to the video?

The Hindenburg issue is still a concern because Hindenburg has built massive short positions in the Indian market for November, which could potentially affect the stock prices and market stability.

What is the role of supply and demand in stock price movement as explained in the video?

The video explains that stock prices move based on the supply and demand graph. When demand for a stock decreases, the demand curve shifts leftwards, leading to a lower stock price at the new intersection point of the supply and demand curves.

Why is the speaker cautious about the Indian job market in the context of the stock market?

The speaker is cautious about the Indian job market because the unemployment rate is rising, which can affect consumer confidence and spending, potentially impacting the stock market.

What is the significance of the master class mentioned in the video?

The master class mentioned in the video is significant because it offers an opportunity to learn high-impact skills like artificial intelligence, which can be beneficial in times of market volatility and unemployment.

What are the two key rounds between Adani and Hindenburg as described in the video?

The first round was when Hindenburg shorted a lot of Adani stocks in January 2023, and the second round started recently when Hindenburg targeted the Chairman of Adani, making allegations and engaging in a back-and-forth of clarifications.

How does the video explain the impact of FII (Foreign Institutional Investors) on the Indian stock market?

The video explains that FII have been net sellers in the Indian market for the last few years, which means they are not buying into the market, which could be a concern for market stability.

What is the role of DII (Domestic Institutional Investors) in the Indian stock market as per the video?

DII are the ones creating counter buying positions in the Indian market, supporting it whenever it falls. They are buying the stocks that FII are not, and their actions are largely funded by the increasing SIP (Systematic Investment Plan) contributions from retail investors.

What is the potential risk to the Indian stock market according to the video?

The potential risk to the Indian stock market is that it is heavily dependent on SIP contributions from retail investors, which could be volatile. If there is a shock in the market or a slowdown in SIP contributions, the market could be hit very hard.

What advice does the speaker give to investors regarding portfolio management in the current market scenario?

The speaker advises investors to diversify their portfolio internationally, be prepared for market volatility, avoid buying stocks based on nationalism or emotions, and focus on fundamentals to preserve their investments.

Outlines

00:00

📉 Hindenburg's Impact on Indian Stock Market

The video discusses the ongoing concerns regarding Hindenburg's short position in the Indian market, emphasizing that despite recent celebrations, the situation is still concerning as massive short positions were built for the period around November. The speaker also plans to explain the dynamics of stock price movements and the risks associated with different types of stocks, such as those of Adani and HDFC. Additionally, the video touches on the rising unemployment rate in India and promotes a master class on artificial intelligence for skill development.

05:01

📈 Understanding Stock Price Movements and Market Influences

This paragraph delves into the mechanics of how stock prices move, focusing on the supply and demand graph. It explains that stock prices are determined by the intersection of supply and demand curves, and that changes in demand can significantly affect prices. The speaker uses examples of overvalued stocks and counter buyers to illustrate how demand is manipulated in the market. The paragraph also discusses the role of domestic institutional investors (DIIs) in supporting the Indian market and the importance of understanding market trends and the behavior of foreign institutional investors (FIIs).

10:01

💹 Market Trends and the Role of SIP Contributions

The speaker outlines current market trends in India, highlighting that foreign institutional investors are not actively buying into the Indian market, while domestic institutional investors are supported by a significant rise in systematic investment plan (SIP) contributions. This growth in SIP investments has led to a dependency on retail investors, which could pose a risk if these investors withdraw their investments due to market shocks. The video warns of the potential for a severe market correction if retail investors become volatile.

15:01

🌐 Diversification and Managing Valuation Risk

The final paragraph emphasizes the importance of international diversification and being prepared for market volatility. The speaker advises against investing based on nationalism and instead encourages investors to focus on fundamentals. The video also discusses the concept of valuation risk, suggesting that the market is currently at an all-time high and vulnerable to a significant correction. The speaker concludes by urging investors to study the fundamentals of stocks, diversify their investments, and be prepared for potential market fluctuations.

Keywords

💡Hindenburg issue

The 'Hindenburg issue' refers to the controversy surrounding Hindenburg Research's allegations against the Adani Group, an Indian multinational conglomerate. In the video, it is mentioned as an ongoing concern that could impact the Indian stock market, with the speaker emphasizing that the issue is not over yet and has led to short positions being built for the months of September to November.

💡Short position

A 'short position' in stock trading is a strategy where an investor, like Hindenburg, bets that a stock's price will decrease. The video discusses how Hindenburg has built its short position in the Indian market, which is significant for understanding the potential market movements and the risks associated with it.

💡Supply and demand

The 'supply and demand' concept is a fundamental economic principle that determines the price of goods, including stocks. In the video, it is used to explain how stock prices move based on the dynamics between the supply of stocks and the demand from investors. The script uses this concept to illustrate how a reduction in demand can lead to a drop in stock prices.

💡Stock price movement

The movement of a 'stock price' is the change in the value of a stock over time. The video provides an in-depth explanation of how stock prices are influenced by factors beyond just company performance, such as market sentiment and investor behavior, particularly focusing on the role of supply and demand.

💡Counter buyers

'Counter buyers' are investors who are willing to buy a stock at a certain price when it is being sold by another party. The video script explains the concept of 'order book matching' and how the absence of counter buyers can lead to a stock price falling as sellers lower their asking price to find a buyer.

💡Foreign Institutional Investors (FII)

Foreign Institutional Investors (FII) are entities that invest in a country's financial markets from outside that country. The video highlights the trend of FII selling in the Indian market over the past few years, which is a key point in understanding the lack of foreign investment and its potential impact on the market.

💡Domestic Institutional Investors (DII)

Domestic Institutional Investors (DII) are entities within a country that invest in its own financial markets. The video points out that DIIs have been the primary counter buyers in the Indian market, supporting it through SIP contributions, which is a critical insight into the market's current dynamics.

💡Systematic Investment Plan (SIP)

A 'Systematic Investment Plan' (SIP) is a method of investing in which a retail investor commits to invest a fixed amount at regular intervals, typically monthly. The video emphasizes the exponential growth of SIP contributions as a significant factor in the Indian market's resilience and potential vulnerability.

💡Valuation risk

'Valuation risk' is the risk that the price of a security is higher than its intrinsic value, which could lead to a correction or a drop in price. The video discusses the current high market valuation and the potential for a significant fall if the market experiences a shock or if support from retail investors wanes.

💡Market correction

A 'market correction' is a decline of at least 10% from the recent peak of a stock market index. The video warns of a potential market correction, particularly for small and mid-cap stocks, which are more susceptible to rapid and significant price changes due to their higher risk profiles and reliance on DII support.

💡Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to mitigate risk. The video suggests that investors should consider diversifying their portfolios internationally to reduce the risk associated with the Indian market's current dynamics.

💡Fundamentals

In investing, 'fundamentals' refer to the financial and economic characteristics of a company or an asset that determine its intrinsic value. The video emphasizes the importance of buying stocks based on their fundamentals rather than sentiment or nationalism, to ensure that investments are sound and can withstand market volatility.

Highlights

The Hindenburg issue's impact on the Indian stock market is still unfolding, with short positions built for September to November.

Investors should be concerned about the potential market fall around November due to Hindenburg's massive short positions.

Unemployment in India is rising, nearing 9%, indicating a concerning economic situation.

Learning high-impact skills like AI can be beneficial during uncertain economic times.

The video explains the complex dynamics of stock prices and market movements in a simple manner.

The first round of Hindenburg's shorting of Adani stocks occurred in January 2023, with stocks yet to recover.

The second round of Hindenburg's actions targets the Chairman of Adani Group, with allegations and clarifications being exchanged.

Investors should focus on macroeconomics and investing rather than taking political sides in the Hindenburg issue.

Understanding the supply and demand graph is crucial for grasping how stock prices move in the market.

Overvalued stocks can become hyper overvalued if demand increases, as seen in the case of Vai Renewables.

HDFC Bank and Kotak Bank's stock prices have not risen despite revenue and profit doubling due to stagnant demand.

Counter buyers play a significant role in managing or moving the demand of a stock.

Foreign Institutional Investors (FIIs) have been net sellers in the Indian market for the past few years.

Domestic Institutional Investors (DIIs) are the primary counter buyers in the Indian market, supported by SIP contributions.

A potential shock in the market could lead to a severe hit on Indian markets due to reliance on retail SIP investments.

Small and mid-cap stocks are particularly at risk during market corrections due to their high risk profile and DII support.

Market valuation risk is present as the Indian market is at an all-time high, with the potential for a significant fall.

International diversification and being prepared for volatility are recommended strategies for investors.

Avoid displaying nationalism by investing in specific private companies without considering their fundamentals.

The importance of transparency and trust in attracting foreign investment, crucial for a strong economy and stock market.

Investors should focus on reducing valuation risk and preserving their investments in the face of potential global shocks.

Transcripts

hi everyone welcome to today's video so

on this video I'm going to help you

understand systematically why the

Hindenburg issue is not over yet and

what are some of the key points that you

must remember this video is especially

important if you have invested a lot of

money in the Indian stock market right

now now the reason why I'm saying

Hindenburg issue is not over yet take a

look at this graphic it shows that

Hindenburg has built its short position

for September to November right in last

Zone it has built today people are

celebrating you know what Indian stock

market did not fall and it is great that

Indian stock market did not fall I

myself has invested a lot of money in

the Indian stock market I don't want it

to fall but the situation is not

regarding today the situation is

regarding what happens around November

right because that is when massive short

positions are built on the Indian market

by Hindenburg so that is the explanation

that I'm going to give you all right

additionally I will also speak about the

fact that how does exactly a stock price

move what is the risk to different type

of stocks like adani stocks HDFC stock

all that stuff so I'm going to have that

conversation with you and I'm going to

explain this entire very complicated

story in very simple points so let's go

Point by point and also on that note

that since we are very worried about the

market Fall we should equally be worried

about the job fall in the Indian job

markets right now the unemployment rate

is rising in India like anything it is

hitting close to 9% now which is a very

bad situation so during Times Like These

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so with that said let's move over to the

main video so the first key point that

you must understand is the entire

Hindenburg adani SL sa chairman Saga

right so the first round was between

adani and Hindenburg and in that round

Hindenburg shorted a lot of adani stocks

they probably booked profits in it I

don't know I'm not privy to that and

that thing happened in January of 2023

for example if I just show you so here

is where the the Hindenburg shot was

right and till date adani Enterprise has

not recovered similarly a few other

adani stocks since that time Hindenberg

has shed adani stocks they haven't yet

recovered so this is a very important

point that we must be aware of so this

was round one between adani and

Hindenburg the second round started

literally like 3 4 days back when

Hindenberg came out that hey we are

going to like you know sort of do some

Daka in the Indian stock market and then

eventually it turned out that you know

they were targeting the gun towards the

sav chairman right and they said that

you know what okay there are like some

allegations against her that she

diverted funds to a foreign

entity I don't want to rehash the case

because this is a very politically

sensitive case people are taking sides I

don't want to get into the middle of all

this so I will leave the Judgment up to

you Hindenburg has issued their entire

report the CB chairman and her husband

has explained what their Viewpoint was

then another round of allegation was

made by Hindenberg and then a lot of

clarification back and forth is

happening right so this is where the

case is we as investor should not be

taking political sides here so let us

focus on the macroeconomics the

investing part of it which brings us to

point number two right and this is a

very important point and the point has

to do with the fact that exactly how do

stock prices move now people are not

understanding how exactly stock prices

are moved in a particular Market we

assume that you know what boss when good

results come the stock Rises and when

bad results comes the stock Falls that's

a childish understanding of the stock

market so in the next 1 one and a half

let me give you the Practical explainer

as to why do the stock prices move and

for this you need to understand two

concepts okay so the first key concept

is a graph called as supply and demand

curve or supply and demand graph of the

stock market so it looks something like

this right so this is the supply of any

stock or any asset for example nifty 50

and demand curve is downward sloping

okay now typically what happens is that

the supply of stocks usually Remains the

Same it's not as if that h tomorrow will

suddenly increase more number of stocks

or more number of outstanding stocks or

Adis are going to usually increase their

number of outstanding stocks please

notice the word usually of course the

stock supply can also be increased but

generally it does not go up dramatically

compared to demand so wherever the

supply curve and demand curve meets that

explains the price of a stock right so

this let's quote it P1 now what happens

is that in order to move any particular

stock price the demand of the stock is

played with for example Hindenberg came

out and

said what is the goal of Hindenburg well

the goal of Hindenberg is to move the

demand reduce the demand of stocks or in

general the Indian market demand they

want to kill it or like you know they

want to reduce it so if they are able to

successfully reduce it right then this

demand curve will shift leftwards and we

will get a new intersection Point

somewhere here and that leads to a fall

in price P2 okay so this is how a stock

price change now there are two three

related points for example there could

be a massively overvalued stock and I

will show you the example also now that

Stock's fair value should be let's say

150 rupees okay you are watching it

today and it keeps on going up it goes

to 250 rupees now can you definitely say

that it will fall from this point the

short answer is no an overvalued stock

can become hyper overvalued if the

demand of the stock can be increased a

classic case study is that of Vari

Renewables so take a look at this this

literally looks like a pump and dump and

the stock was taken up like 30 times or

40 times right from its basic price

there was no improvement in fundamentals

but the stock went up why because the

demand of the stock was managed right

this is first very important Point

second key Point our second key example

is that of HDFC bank and cotk bank right

for example right now you might be

scratching your head take a look at this

graphic you will see that in the last

four years the revenues of HDFC Bank

cotch Bank have doubled profits have

doubled there is no issue with the stock

but the stock is moving in a range why

because the demand of the stock is not

going up this is the insightful point

that you should know that brings me to

related point about the supply and

demand of the stock that how exactly is

the demand of a stock managed or moved

right so for this you need to understand

the concept of counter buyers right so

now what is the meaning of counter

buyers so let me explain it by showing

you the actual trade book so what you

will notice is that see this is ITC

stock so on the left side you are seeing

the buyers right buyers and on the right

side you're seeing sellers right red

sellers okay and this concept is called

as order book matching so let's assume

that the price of ITC currently is 265

okay and you want to sell right so you

are one seller and you have one stock so

you will place one bid to sell ITC at

265 rupees now if you get one buyer at

265 rupees then this trade is executed

right and you get money in your account

and all that stuff subsequently clearing

process right so we are not getting into

the technicalities of it now the reason

why a stock price Falls is this that hey

now you are trying to sell ITC at 265

you have one stock and you don't get a

counter buyer there is no one who is

willing to buy this stock so what will

happen next you will place the bit 265

to 263 P then you again don't get a

counter buyer you keep on doing that

exercise and at 250 you get your one

buyer to buy this stock so this is

called as order book matching that your

order got matched at 250 rupe and

therefore the price of the stock fell

from 265 to 250 right so this is the

meaning of falling of the stock this was

a technical explanation that I wanted to

give you and understanding these Salient

points is going to make you a better

investor so in case you are interested

in learning more about such fundamental

points I explain it on my member

Community excellent reviews about the

community so far so in case you want to

check it out I will put the link in the

description and comment box I also teach

International investing I personally

putting a lot of my money for

diversification purposes outside India

now any sensible investor should be

hedged right uh we are retail investors

we don't know what is going to happen

what news is going to come all that

stuff so I teach that style of investing

also so in case you are interested you

can definitely check it out so anyways

coming back and now explaining this

concept at a market level in India there

are two very important trends that are

happening in India right now in fact

there are two three Trends so I'll

explain it very very quickly the first

key trend is that FIS are not buying

into the Indian market too much this is

not my opinion this is what is happening

for the last 3 4 years so I will show

you the data you can see year-wise data

of FIS so FIS mean foreign institutional

investors these are foreign players

right so in 2024 they are net Sellers

and they have sold very aggressively in

2023 again fiis have sold the Indian

market they bought the Indian market in

these three years right but in total the

first two tabs and and in total G the

second tab right then you will see that

they are in the last 1 2 3 4 5 almost 5

years F have been net sellers or they

have not bought the India market very

very important point and you must

understand this okay so this is fact

number one fact number two then who is

actually buying it and who are the

counter buyers in the Indian market it

is the dii now what is the meaning of di

diis are they are like HDFC AMC nepon M

AMC all the fund managers and all that

stuff who are domestic institutional

players they are the ones buying the

Indian market okay now comes the

question that hey where are they getting

the money to buy the Indian market from

and why are they buying the Indian

market okay so for this you need to know

fact number three which has to do with

SIP contribution so for example this is

the entire chart take a look at this

that the total sip contribution in

October of 2016 was

3,434 crores this has gone almost five

times right in October of 2023 so in

almost 7 years 5x growth this is massive

right now why am I talking about sip

because the way this model works is that

see you are retail investors you will

run your sip every month every first of

the month you will give like 50,000

Rupees as investment to your fund

manager mutual funds whatever you invest

in this is given to companies like HDFC

AMC right this is given to companies

like nipon this is given to companies

like edel Vice and all that stuff they

are diis right they pick your money

right and then they end up buying or

creating those counter buyer positions

that I was telling you about right so

this is very important fact and if you

relate all these two three facts let me

sumarize because I'm getting to

something interesting here number one

foreign institutional investors are not

buying the Indian market number two diis

are the ones who are actually creating

counter buying positions in the Indian

market and supporting it whenever it

falls and number three the Sip

contribution is rising like anything and

there has been exponential growth of sip

Investments which brings us to very

interesting prognosis of the Indian

market and this is something that you

need to be very very careful about and

the fact is that see if for some reason

there is shock in the market that for

example retail investors are not very

comfortable doing sip or they slow down

their sip or if there is any kind of

panic in the market in the Sip Market in

in in India because retail investors are

very flimsy right I mean they are not

like that well versed with investing

World they have not gone through a lot

of hardening process per experience

right so for them they are much more

volatile right so they can leave the

market at any point in time so in case

there is a world oriented shock Indian

markets are going to get hit very very

badly this is not my opinion this is

what the data tells us this is point two

because fi money is not coming to India

to be honest the FI type of stocks are

not giving a run up now these are stocks

like HDFC Bank kotch bank right clean

clean companies uh um why am I telling

you these are fi type of stocks because

FIS what they do is that they do hedging

right so hedging that for example they

are buying HDFC Bank in the cash market

and they might be selling HDFC Bank in

the Futures Market why because they are

hedging their position ha ha 2 2,000

crores they will buy it in one go they

cannot be sitting on so many naked

positions per se they have to hedge it

they have to protect or buy a type of an

insurance otherwise they can go bankrupt

right so they can only do this fno on

limited set of stocks in India and this

is one of the reasons why HDFC bank and

KK Bank type of stock haven't really

given a run up because last 3 4 years fi

money has hardly come to India so this

is fact number one fact number two that

there are certain types of stocks that

diis prefer to buy right and for example

small cap midcap category is entirely or

almost entirely supported by diis or

domestic institutions not by Foreign

institutions per se because the risk

profile of these stocks is very high

okay the sumission of these two points

is that if you combine these two things

whenever the market correction happens

small and midgap are sitting on a keg of

powder right and they can go down very

aggressively this is point one point two

certain stocks where there are no

fundamentals but they are still being

bought by diis because of wide variety

of reasons I'll not go into them they

will fall like anything okay whenever

the correction happens I have zero

interest in politics I'm simply trying

to tell you and teach you these points

so that if you if this logic makes sense

you can reorganize your portfolio a bit

see small and midgap you have to be

confident you know Market is going to

survive nothing bad is going to happen

fundamentally weak stocks you should cut

positions not because ke they cannot

rise they can continue to

rise and keep getting money and they

keep on pumping in like small capap

midcap stocks then they can keep on

Rising but right now there is valuation

risk in the market now what is the

meaning of valuation risk let me explain

that also by using some technicals so

okay so valuation risk means that you

can see that this is the trading

long-term trading Channel we are

somewhere here at the support right now

if this support gets broken there is

another 10% fall now 10% fall is for the

broad Market the large caps but there is

at least a 20% fall for small and mid

gaps here right so this is the valuation

risk that we are running right now

because the market is at an all-time

high and any kind of global shock for

example if there is some war that breaks

out right and it gets escalated then

these are all Global risks that is there

so therefore at this stage you should

focus on reducing your valuation risk

why because F or foreign institutional

investors are also exactly doing the

same right they are going to safer

markets right safer markets now what are

safer markets safer markets are where

the valuation risk is less that's a

second there is more investor trust now

there is not an easy way for me to

explain this so I'll use a very simple

example what constitutes as a good

economy right so for example let's say

that we are talking about our domestic

tourism now people used to come to Goa

now because a statue has been built in

Gujarat now those same domestic touris

start going to Gujarat do you think that

this is real addition to our economy the

short answer is no right that money

would have anyways come to Goa but

instead of coming to Goa now it is just

simply going to Gujarat per se okay so

this is not like real increase in

prosperity or leading to any economic

strength per se okay so this is 0.1 but

on the flip side consider for example BJ

Khalifa right now BJ Khalifa in Dubai it

attracts a lot of foreign tourist they

come with it carry their National

currency from Sweden or like India they

convert it into Duram and put this into

Dubai economy or UAE economy now do you

think that in the second example the

economy is getting strengthened the

short answer is yes right and you don't

require like massive understanding of

Economics to understand this basic

simple point so similarly in the stock

market or for any economy it is very

critical that we bring foreign money in

and that requires transparency that

requires trust for example again I will

speak from uae's example so U real

estate has been giving very good returns

why is that because if you go and check

on this website call as Beth right you

will see that every single transaction

that happens in real estate has been put

on a blockchain you can track that which

apartment in which locality got sold for

which price what was the square fot or

square meter of that apartment that is a

level of transparency but do you feel

okay transacting in like Indian real

estate no there is massive opacity you

don't know like you know how much back

wide green money pink money is there and

all that stuff no idea of rates whatnot

so there is no transparency what do you

think foreigners do do foreigners really

buy real estate in India no so very less

very few foreigners would be buying it

similarly if similar situation starts

happening in the Indian Equity Market we

will entirely be dependent on your sips

that is the simple point you give your

sip till the time your sips are going

markets will keep on going up whatever

random stocks need to be purchased will

be purchased from that perspective and

whenever it corrects Whenever there is

any kind of external shock you are

holding a very high Sovereign risk right

so this is the precise problem that we

are witnessing right now what is it that

you should keep in mind as an investor

three four things I have started doing

personally myself number one I have

started to internationally diversify

over the next one year I will I will

diversify approximately 50% of my

portfolio outside India that seems like

a more reasonable Diversified bit this

is absolutely critical this is point one

point two you need to be prepared to

deal with volatility now what is the

meaning of volatility be prepared for

the 20 30% correction that can come very

fast and furious because our market

right now is retail driven right and

Retail people are very Emeral they are

very volatile so to say right right so

there is no head or leg or thought

process behind it one bad piece of news

can impact us really really badly so so

this is the problem that we are

witnessing and I think given this reason

only that Sab is coming so hard after

fos and whatnot right so this is point

two point three please do not display

your nationalism by buying specific

private companies that is not the sign

of nationalism please use your brain

that a businessman is not equal to India

and India is is not equal to a

businessman all the profits that compan

is making they are not putting it back

in the economy per se okay so this is a

simple point that I will tell you

valuations make

sense and buy that stock only that is

not a problem but buy things on

fundamentals because the problem in

terms of not buying things on

fundamentals is that you will buy some

random company like V Renewables again

take a look at this when it starts

falling when it corrects in a day by 20%

you would not know what to do with it

right so given all these points go on

fundamentals study the fundamentals of a

stock diversify your risk next 6 months

can be volatile and you need to figure

out a way to preserve your Investments

accordingly I hope you enjoyed this

conversation if you did do press the

like button and I'll see you soon