Dear Investors,

As we wrap up November, I want to sit down with you—at least figuratively—and have an honest conversation about where we are, what’s been happening, and what lies ahead. This past month brought a few surprises, some challenges, and yes, a lot of opportunities too. Markets, like life, are never linear, and that’s where the excitement lies. Let’s break it down together, the way we would if we were chatting over coffee.

Table of Contents

• India’s Growth: Slower, But Still Moving Forward

• FPIs Are Exiting, But That’s Our Opening

• LIC and Market Giants Are Still Thriving

• Microfinance: Leaner, Smarter, and More Discipline …

• Big News in Insurance: FDI May Go to 100%

• What Should You Do Now?

• Final Thoughts

India’s Growth: Slower, But Still Moving Forward

You might have heard that India’s GDP growth slowed to 5.4% this quarter, down from 8.1% last year. That’s quite a drop, and it might feel like a warning sign. But here’s the thing—slowdowns aren’t unusual, and they often reveal hidden opportunities. Even Moody’s projects India’s economy to grow at 7.2% next year.

Think of it like a marathon. If you sprint too fast at the start, you’ll tire out. Slowing down doesn’t mean stopping. It means pacing ourselves for sustained growth. This is a great moment to ask: Which companies will thrive despite the slowdown? Which ones have the resilience to outlast the noise? That’s where we should focus.

FPIs Are Exiting, But That’s Our Opening

Foreign Portfolio Investors (FPIs) pulled out ₹21,612 crore in November. When big investors leave, markets often dip, and I get why that feels unsettling. But it’s also when bargains start to appear. Imagine walking into a high-end store during a clearance sale—you can find gems at a fraction of the price.

Some high-quality stocks are bound to look more attractive now, and that’s when we want to be buyers, not spectators. It’s an opportunity to get in at a lower price while others are rushing out the door.

LIC and Market Giants Are Still Thriving

Here’s an interesting contrast: while FPIs were selling, nine of India’s top ten most valuable companies added ₹2,29,590 crore to their market valuation. LIC, in particular, had a stellar month. It tells us that the giants are standing tall, and sectors like insurance and finance are still worth our attention.

It’s like watching the tide go out but seeing a few sturdy ships still anchored strong—those are the companies we should consider anchoring our portfolios to as well.

Microfinance: Leaner, Smarter, and More Disciplined

Microfinance might not grab headlines like tech or real estate, but something important happened there. The sector’s portfolio size shrank from ₹4.43 lakh crore to ₹4.04 lakh crore, thanks to stricter guidelines. That might sound like a contraction, but it’s a sign of healthier discipline.

Think of it like pruning a tree—it might look smaller for a while, but it’s preparing for stronger, more sustainable growth. This is a sector worth keeping an eye on if you’re thinking about long-term potential.

Big News in Insurance: FDI May Go to 100%

The government is proposing raising the foreign direct investment (FDI) cap in insurance to 100%. If that goes through, it could be a game-changer. Imagine the industry getting a fresh infusion of expertise, capital, and innovation. This is the kind of news that could turn the insurance sector into a powerhouse over the next few years.

What Should You Do Now?

Let’s talk strategy. We’re in a dynamic environment, and staying flexible is key:

1. Hunt for Value: Look for companies with strong fundamentals that might be trading at a discount. In times like these, quality stocks often go on sale.

2. Think Steady Income: Dividend-paying stocks, bonds, and REITs can provide reliable income. It’s a good way to stay balanced when markets are volatile.

3. Diversify Smartly: Spread your investments across sectors—whether it’s tech, real estate, or manufacturing. Diversification is our best defense against uncertainty.

Final Thoughts

Yes, a lot is going on, and not all of it feels positive at first glance. But I firmly believe that with the right approach, these moments offer some of the best investment opportunities. As always, I’m here to navigate this with you. Let’s stay the course, focus on the long-term, and make smart, informed decisions together.

Thank you for your trust, and let’s look forward to the opportunities ahead.

Warm regards,
Rajat Dhar
Managing Partner
Finogent Solutions LLP

Disclaimer: This letter is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.