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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Sensex up 281 points as retail inflation drops to 6-year low in April

PTI
May 14, 2025
2 min read


Equity benchmark indices Sensex and Nifty rebounded in early trade on Wednesday as retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.

 

Also, a cooling US April inflation data added to the positive trend in the equity markets.

 

The 30-share BSE benchmark gauge Sensex climbed 281.43 points to 81,429.65 in early trade. The NSE Nifty went up by 96.65 points to 24,675.

 

From the Sensex firms, Tata Steel, Bharti Airtel, Eternal, Tech Mahindra, Infosys, Mahindra & Mahindra, Bajaj Finserv and Reliance Industries were the major gainers.

 

Telecom operator Bharti Airtel climbed over 2 per cent after it posted about a five-fold jump in consolidated net profit to Rs 11,022 crore in the March 2025 quarter, mainly due to the tariff hike impact and one-time gain on tax benefits.


 

However, Tata Motors, Asian Paints, Nestle and IndusInd Bank were among the laggards.

 

Tata Motors dipped over 1 per cent after the firm reported a 51 per cent decline in consolidated net profit to Rs 8,556 crore for the March quarter, hit by lower volumes and operating leverage.

 

"A strong tailwind for the Indian market is the sharp dip in April CPI inflation to 3.16 per cent. This leaves enough room for the MPC to cut rates thrice more in this cutting cycle. This is positive for the market in general and rate sensitives in particular," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

 

Retail inflation eased to a nearly six-year low of 3.16 per cent in April mainly due to subdued prices of vegetables, fruits, pulses, and other protein-rich items, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.

 

The Consumer Price Index (CPI) based inflation was 3.34 per cent in March and 4.83 per cent in April 2024. It was 3.15 per cent in July 2019.

 

"These developments (India, US inflation data) are likely to boost investor sentiment. In addition, easing trade tensions between the US and China, as well as a reduction in geopolitical frictions between India and Pakistan, are supportive of a favorable market environment," Vikas Jain, Head of Research at Reliance Securities, said in his pre-open market quote.

 

In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng were trading higher while Japan's Nikkei 225 index quoted lower.

 

US markets ended mostly higher on Tuesday.

 

Global oil benchmark Brent crude dipped 0.57 per cent to USD 66.25 a barrel.

 

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 476.86 crore on Tuesday, according to exchange data.

 

On Tuesday, the Sensex tanked 1,281.68 points or 1.55 per cent to settle at 81,148.22. The broader Nifty of NSE dropped 346.35 points or 1.39 per cent to 24,578.35.

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