Podcast : Markets at all time highs, IPO season & Smallcaps

What is this podcast about?

In the fourth episode of the Prime Podcast, hosts Bhavana Acharya and Aarti Krishnan dive into the topic of market highs and how investors should approach their equity investments. They kick off the podcast by discussing recent news events, including Reliance Industries’ announcements and new launches in the auto sector. These events are analyzed to understand their impact on the market and investment landscape.

Transitioning to the main focus of the podcast, Bhavana and Aarati tackle the question of what actions investors should take in the face of market highs. They emphasize the need to avoid overreacting to new highs and the temptation to book profits too early. Instead, they stress the importance of considering valuations and the PE ratios of individual stocks in one’s portfolio. They also address common investor concerns such as whether to wait for a market correction or to invest immediately.

Then they highlight the significance of having a diversified portfolio and sticking to a well-defined asset allocation strategy. Bhavana cautions against trying to time the market and instead recommend investing regularly across market cycles. They provide insights into the risks associated with investing heavily in small-cap funds and suggest a planned allocation strategy rather than chasing short-term market trends.

The episode concludes by emphasizing the need for investors to focus on long-term goals, maintain a balanced and diversified portfolio, and avoid making impulsive investment decisions based solely on recent returns or market trends.

Key segments in the podcast discussion

1. Reliance Demerger: Jio Financial Services (1:12 – 4:19)
2. Auto Sector: Premium Launches (4:20 – 5:21)
3. IPO Season: IdeaForge, Cyient DLM, Utkarsh Small Finance Bank (5:22 – 7:13)
4. FPI Activity: Bonds, Equities (7:14 – 10:40)
5. Market Highs: Nifty, Sensex, PE, Portfolio (11:38 – 23:07)
6. Smallcaps: AMFI Data, FOMO (23:08 – 29:10)