»Profit Hunter by Equitymaster

On This Day - 2 JUNE 2021
Rs 2 Trillion Stimulus Coming to a Stock Market Near You

The United States had the longest list of new billionaires in the decades following the Great Depression.

From John D. Rockefeller to Henry Ford to Sam Walton, scores of entrepreneurs found themselves in the reckoning of the wealthiest in the world.

That's because America saw an unprecedented demand for cars, fuel, and retail products in the years following the depression.

New highways were built at a never before pace in the US in 1930s.

Believe it or not, 90% of rural America had no electricity until the Great Depression.

American power infrastructure changed dramatically in the years that followed.

China has had a similar story in the past two decades.


Chinese entrepreneurs have joined the ranks of wealthiest globally. Even as China's factories buzzed and new technology businesses gained prominence, IPO billionaires became common.

Zhong Shanshan from China, became the 14th wealthiest person on earth in 2021. He has 24 other Chinese billionaires competing with him.

Most of them got to the position on chasing IPO riches. These include promoters who were formerly teachers or accountants or software engineers.

During Covid-19 lockdown, stock markets globally were buoyed by an army of retail investors looking for quick returns.

The Chinese IPOs created a bunch of billionaires and scores of millionaires amid the pandemic.

Interestingly, India is set to see a surge of such liquidity in the stock markets in 2021.

It won't be an exaggeration to say that the newfound liquidity could act as a huge stimulus for Indian stock markets. One that could take the valuations to higher stratosphere.


Indian stock markets could see a record Rs 2 trillion coming in by sale of shares in 2021. Of this, 40% could be via initial public offers (IPOs).

PSU disinvestment and offers for sale (OFS) could make up the rest.

Popular startups like Zomato and Paytm are planning to tap the primary markets this year.

Add to that the government's plan to privatise or divest stake in some PSUs (even big ones like LIC) to raise funds for infrastructure spends.

To put this in perspective, the fund flows into primary markets this financial year could exceed the cumulative inflows over the past decade.

As you know, I am constantly on the lookout for rare wealth creation stories on the back of India's Revival.

So, I do find the prospect of India's crorepati IPOs exhilarating.

However, I won't hesitate to warn you that not all companies lining up in the stock markets would create wealth.


Even some popular startups may disappoint post listing with their capital allocation and profitability.

So, invest with caution.

India's Revival is a huge megatrend that is here to stay. Possibly for decades.

So do not get carried away by the short-term market stimulus.

Rather, prepare well to create your fortune.

I will share more ideas and insights with my subscribers and readers who wish to profit from this megatrend.

I have created a Telegram group to share all that is essential to keep track of India's Revival.

If you are interested, you can join my Telegram group here.

Warm regards,

Tanushree Banerjee
Tanushree Banerjee
Editor, StockSelect
Equitymaster Agora Research Private Limited (Research Analyst)

PS: Three hidden forces are converging to trigger India's revival. This could potentially mint countless new millionaires. On 9 June, I will reveal once-in-a-generation opportunity to potentially make 1,000% long-term gains. Full details here...

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.

Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement

Disclosure & Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. The Author does not hold any shares in the company/ies discussed in this document. Equitymaster may hold shares in the company/ies discussed in this document under any of its other services.

This document is confidential and is supplied to you for information purposes only. It should not (directly or indirectly) be reproduced, further distributed to any person or published, in whole or in part, for any purpose whatsoever, without the consent of Equitymaster.

This document is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity, who is a citizen or resident or located in any locality, state, country or other jurisdiction, where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject Equitymaster or its affiliates to any registration or licensing requirement within such jurisdiction. If this document is sent or has reached any individual in such country, especially, USA, Canada or the European Union countries, the same may be ignored.

This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Our research recommendations are general in nature and available electronically to all kind of subscribers irrespective of subscribers' investment objectives and financial situation/risk profile. Before acting on any recommendation in this document, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the securities referred to in this material and the income from them may go down as well as up, and subscribers may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. Information herein is believed to be reliable but Equitymaster and its affiliates do not warrant its completeness or accuracy. The views/opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. This document should not be construed as an offer to sell or solicitation of an offer to buy any security or asset in any jurisdiction. Equitymaster and its affiliates, its directors, analyst and employees will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any decisions based on this document.

As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407