This is an Investor's Market
The market have again moved ahead of the Delhi elections.
The rise of AAP in Delhi did jitter the market but in it's own stride it welcomed the populist AAP and moved ahead with India in focus.
The problems in Europe is being looked by the market from a distance .... with caution.
The rise in prices of crude oil is comforting to some as it has an indirect bearing on the economy and inflation. We can expect the crude prices to remain range bound between 60 - 80 $ per brl. And this range will be comfortable for the Indian economy.
The 3rd QE nos have been dissapointing but the market is taking ques from the Govt's quest to bring major reforms and positive moves in that direction. After the initial euphoria, the market has stabilized to the fact that the outcome of the efforts of the MODI govt will take 6 months to 1 year to show any results on the ground.
The NPAs of both public and pvt sector banks have been worrying but the steps taken by the largest public sector bank SBI show's there determination in resolving the issue in near future.
The next trigger for the market is the upcoming budget by the present Modi govt. Though not many big bang announcements are being expected by the industry however this being the first comprehensive budget by this govt we do expect some form of vision statement to come out of it.
One thing is for sure that unlike the previous govt's working in getting stuck up with have's and have's not and trying to distribute between the lower strata with freebies, the prsent govt is encouraging everyone to come forward and work to achieve things, and slowly moving towards merit oriented system while still taking care of the extreme poor who genuinely need help, by providing them opportunity and trying to connect them to the mainstream.
The make in India push by the current govt to make India a manufacturing hub in near future will also start showing results in 1 to 1.5 years. Many industrialist have come forward to participate in this govts effort. The opening up of skill development school and institutions will grewatly help in this direction.
Thus we can say India is indeed sitting on the cusp of a great economic boom. And the present market can go up only. Either in measured steps or in leaps depending on the sentiments. Today's market though near it's recent peak is still an investor's market with a long term view of 2 to 5 years or more. Many of the largecap and midcap stocks are near it's 52 week highs but the PE multiples still do not reflect the potential story of growth inherent in these companies. One must slowly and steadly builup his or her portfolio with these largecap and midcap stocks and participate to make multifold returns in near future.
If one is not so market savy then don't sweat just stick to the Sensex and Nifty companies. They are part of the index for their longterm performance reflected in their market capatilisation and future growth potential.
Another way to participate in tgis market is through mutual funds a proven best friend of not so market savy investors.
You may choose any path but stay there for the long term and keep investing slowly to buidup up sizeable portfolio. This market will fulfill many of your dreams in time to come and may even provide a good retirement corpus.... provided you stick for a medium to long term with your investments.
Happy Investing
The market have again moved ahead of the Delhi elections.
The rise of AAP in Delhi did jitter the market but in it's own stride it welcomed the populist AAP and moved ahead with India in focus.
The problems in Europe is being looked by the market from a distance .... with caution.
The rise in prices of crude oil is comforting to some as it has an indirect bearing on the economy and inflation. We can expect the crude prices to remain range bound between 60 - 80 $ per brl. And this range will be comfortable for the Indian economy.
The 3rd QE nos have been dissapointing but the market is taking ques from the Govt's quest to bring major reforms and positive moves in that direction. After the initial euphoria, the market has stabilized to the fact that the outcome of the efforts of the MODI govt will take 6 months to 1 year to show any results on the ground.
The NPAs of both public and pvt sector banks have been worrying but the steps taken by the largest public sector bank SBI show's there determination in resolving the issue in near future.
The next trigger for the market is the upcoming budget by the present Modi govt. Though not many big bang announcements are being expected by the industry however this being the first comprehensive budget by this govt we do expect some form of vision statement to come out of it.
One thing is for sure that unlike the previous govt's working in getting stuck up with have's and have's not and trying to distribute between the lower strata with freebies, the prsent govt is encouraging everyone to come forward and work to achieve things, and slowly moving towards merit oriented system while still taking care of the extreme poor who genuinely need help, by providing them opportunity and trying to connect them to the mainstream.
The make in India push by the current govt to make India a manufacturing hub in near future will also start showing results in 1 to 1.5 years. Many industrialist have come forward to participate in this govts effort. The opening up of skill development school and institutions will grewatly help in this direction.
Thus we can say India is indeed sitting on the cusp of a great economic boom. And the present market can go up only. Either in measured steps or in leaps depending on the sentiments. Today's market though near it's recent peak is still an investor's market with a long term view of 2 to 5 years or more. Many of the largecap and midcap stocks are near it's 52 week highs but the PE multiples still do not reflect the potential story of growth inherent in these companies. One must slowly and steadly builup his or her portfolio with these largecap and midcap stocks and participate to make multifold returns in near future.
If one is not so market savy then don't sweat just stick to the Sensex and Nifty companies. They are part of the index for their longterm performance reflected in their market capatilisation and future growth potential.
Another way to participate in tgis market is through mutual funds a proven best friend of not so market savy investors.
You may choose any path but stay there for the long term and keep investing slowly to buidup up sizeable portfolio. This market will fulfill many of your dreams in time to come and may even provide a good retirement corpus.... provided you stick for a medium to long term with your investments.
Happy Investing
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