NIFTY in the Danger Zone? | US Downgrade + Moody Moves Explained | CA Rachana Ranade

"If yields increase, typically the currency of that country becomes stronger. You want to mark this down. Yields of a country, bond yields of a country. So, US 10year bonds, US 20-year bonds, US 30-year bonds, if their yields increase, their currency becomes stronger. And if US currency becomes stronger, INR will become weaker."

"See, I feel that defense is a theme which one should think about from an entire decadal perspective rather than one quarter, two quarters. I have said this many times. I'm repeating this one more time. Whenever markets are in a bearish sentiment, everyone is going to look at PE PB and is going to cry about it high valuation and this once market is in a bullish momentum no one is going to even look back at the valuations. So once currently market has just started going in the bullish territory in the bullish momentum if it continues no one is going to look at the valuations."

"power and power finance sector. Uh I I mean again if if I'm talking about a 3 to 5 year perspective, no questions. Absolutely bullish on that."

"So now what I'm saying now the theme is that sell America maybe they are not believing so much in the American economy because of the piling up of debt because of their debt to GDP ratio going to crazy levels. The demand has weakened to fulfill the demand. They are increasing their offer rate. So basically yields on bonds are increasing. It is not a good sign for USA. And in such a case if investors feel investors as in countries let's say China, Japan they are parking their money in USA they may say instead of parking in USA I may think about parking a bit in Europe. Of course USA is way bigger as compared to European market overall but still they may consider reshuffling their portfolio to some other developed country."

"And when I'm saying by India, by India means basically because our credit rating has increased, there is a chance that whenever foreign funds want to invest in emerging markets, money may flow from other emerging markets to Indian markets."

"So overall whenever you have good structural reforms, you have infrastructure development, uh you have overall a proper strategy where you can attract foreign investors, all in all good economic growth. What happens is that a country's credit rating increases and that be so in that case typically what would happen is that now India will be in a position to actually get loans if we need. Of course, we can need them. If India needs loans, we can get it at a lower rate of interest."

"Uh the only thing is that if you were to diversify yes India is a place uh because US is already a developed economy right? India is still a developing economy and our target is to be a developed economy by 2047. for that if our companies perform really well there are chances that we may you know step up the overall earnings and profitability and maybe you can you know mint more money in Indian markets that's a possibility but I I won't I won't uh you know suggest I'm not sure whether that's right that's right the right word or not but if you are already based out of Canada and you are having 80% in USA I don't think it's a wise decision to pull out everything from US market and put entirely in Indian market but yes definitely a chunk to kickstart maybe a 10% allocation or 15% allocation in India does make sense"

"gold prices will not have a huge impact of yields I don't think so to some extent yes but not a big impact per se"

"See, I feel that defense is a theme which one should think about from an entire decadal perspective rather than one quarter, two quarters."