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Correspondent

23 August 2024 at 4:29:04 pm

Festive Surge

India’s bazaars have glittered this Diwali with the unmistakable glow of consumer confidence. The country’s festive sales crossed a staggering Rs. 6 lakh crore with goods alone accounting for Rs. 5.4 lakh crore and services contributing Rs. 65,000 crore. More remarkable still, the bulk of this spending flowed through India’s traditional markets rather than e-commerce platforms. After years of economic caution and digital dominance, Indians are once again shopping in person and buying local....

Festive Surge

India’s bazaars have glittered this Diwali with the unmistakable glow of consumer confidence. The country’s festive sales crossed a staggering Rs. 6 lakh crore with goods alone accounting for Rs. 5.4 lakh crore and services contributing Rs. 65,000 crore. More remarkable still, the bulk of this spending flowed through India’s traditional markets rather than e-commerce platforms. After years of economic caution and digital dominance, Indians are once again shopping in person and buying local. This reversal owes much to policy. The recent rationalisation of the Goods and Services Tax (GST) which trimmed rates across categories from garments to home furnishings, has given consumption a timely push. Finance Minister Nirmala Sitharaman’s September rate cuts, combined with income tax relief and easing interest rates, have strengthened household budgets just as inflation softened. The middle class, long squeezed between rising costs and stagnant wages, has found reason to spend again. Retailers report that shoppers filled their bags with everything from lab-grown diamonds and casual wear to consumer durables and décor, blurring the line between necessity and indulgence. The effect has been broad-based. According to Crisil Ratings, 40 organised apparel retailers, who together generate roughly a third of the sector’s revenue, could see growth of 13–14 percent this financial year, aided by a 200-basis-point bump from GST cuts alone. Small traders too have flourished. The Confederation of All India Traders (CAIT) estimates that 85 percent of total festive trade came from non-corporate and traditional markets, a robust comeback for brick-and-mortar retail that had been under siege from online rivals. This surge signals a subtle but significant cultural shift. The “Vocal for Local” and “Swadeshi Diwali” campaigns struck a patriotic chord, with consumers reportedly preferring Indian-made products to imported ones. Demand for Chinese goods fell sharply, while sales of Indian-manufactured products rose by a quarter over last year. For the first time in years, “buying Indian” has become both an act of economic participation and of national pride. The sectoral spread of this boom underlines its breadth. Groceries and fast-moving consumer goods accounted for 12 percent of the total, gold and jewellery 10 percent, and electronics 8 percent. Even traditionally modest categories like home furnishings, décor and confectionery recorded double-digit growth. In the smaller towns that anchor India’s consumption story, traders say stable prices and improved affordability kept registers ringing late into the festive weekend. Yet, much of this buoyancy rests on a fragile equilibrium. Inflation remains contained, and interest rates have been eased, but both could tighten again. Sustaining this spurt will require continued fiscal prudence and regulatory clarity, especially as digital commerce continues to expand its reach. Yet for now, the signs are auspicious. After years of subdued demand and inflationary unease, India’s shoppers appear to have rediscovered their appetite for consumption and their faith in domestic enterprise. The result is not only a record-breaking Diwali, but a reaffirmation of the local marketplace as the heartbeat of India’s economy.

Prioritising Stock Traders’ Mental Well-Being

Updated: Oct 22, 2024

People desire security in financial income, but trading is inherently uncertain. As per recent data released by SEBI, 93 per cent of traders in the Futures and Options segment lost money between FY22-FY24.


Stress and anxiety are significant concerns for traders, among other mental health concerns. Due to the uncertainty, inexperienced traders will likely face more stress than experienced traders. Several studies indicate that the percentage of Indian adults suffering from moderate or high levels of anxiety is close to 11 per cent. Stoxmind.ai, a psychometric assessment service for traders, estimates the number of traders with the same concerns to be around 18 per cent. A 2023 study by Mumbai-based GOQii estimated that 17 per cent of Indians were stressed due to financial instability. Stress and anxiety can be triggered by the chances of losing money, making wrong decisions, market volatility and family pressure.


Traders feel strong emotions such as fear, greed, euphoria or demotivation. There is a constant fear of missing out on opportunities or losing money. They face the emotional ups and downs that accompany profits or losses. The psychological pressure to succeed in a highly competitive and uncertain environment can lead to various mental health concerns.


Traders are also susceptible to cognitive biases stemming from making assumptions from a large amount of available information. Such biases are bottlenecks for objective decision-making. For example, recency bias causes one to perceive undue weight to a recent win or loss.


Negative self-talk is yet another mental health concern. It includes dwelling on past losses or doubting one’s abilities. Trading requires a high focus on analysing data, executing strategies, and managing trades. However, negative emotions act as a distraction to maintain focus. Negative self-talk can undermine confidence and lead to shying away from self-reflection - through journaling, psychometric tests or seeking feedback from a mentor.


Strategies for Well-being

The importance of self-care cannot be overestimated in a risky profession like stock market trading. Self-care can include yoga, meditation, gym exercises, and quality time spent with loved ones. Being physically active is essential not only to keep the body fit but also to support cognitive abilities. Maintaining a healthy lifestyle can help traders to stay sharp and make better decisions.


A support network can be crucial for treading objectively in the trading journey. Support networks can include personal relations, peer traders at the same level in their journey and senior traders. A support system can provide encouragement, advice, and a sense of camaraderie. Talking about trading experiences can help process emotions before they become overwhelming.


Traders need resilience - the ability to sustain setbacks and adapt to challenges. Trading is a journey with ups and downs; coping with losses and setbacks is essential. Building resilience involves cultivating a positive mindset, avoiding unhealthy coping activities, and maintaining a long-term perspective. Perception of losses can be reframed as learning opportunities for growth.


Cultivating self-awareness through introspection is the key to growing a strong mindset. It is crucial to pay attention to the psychological factors that inhibit trading, such as fear of taking losses or lack of confidence. It is better to be honest with oneself about the motivations for trading and what one feels rather than trying to suppress or hide those feelings. Self-reflection helps to play on strengths, manage weaknesses and identify areas for growth. Psychometric tests, journaling, mentorship, or professional guidance can help develop self-awareness.


Conclusion

Trading success is predominantly driven by psychology, surpassing the importance of market analysis and trading strategies. Understanding and managing emotions, cognitive biases, and an objective mindset is crucial for making sound trading decisions and achieving consistent profitability. Traders often make the mistake of focusing solely on technical skills while neglecting the significant impact on their mental state. Seek support from peers, mentors, or mental health professionals when needed.


(The writer is the Psychological Coach at Stoxmind.ai, a free trading mindset assessment tool.)

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