The sharp really in the stock market is driven by expectation of a reforms drive after the new government. Which is likely to help script revival of economic growth, but caution that the challenge is for midable. There are several red flags on the horizons and recent data has pointed to the weak spots in asia third largest economy. Stubborn price continue to pose a risk while industrial growth has decline for two sensitive month in the stock market.
How challenge remain in the market
Financial market are forward looking and sentiment driven and they can pick up before the real economy pick up. But the present market the economy face some kind of challenges, and investor should be aware of this because the scanerio can be change as the time come. Many expert are widely saying that the perception of Indian market among the investor has changed positive in the past few month, due to the step taken by the reserve bank of India and the government to stabilize the currency in the Indian market. Any one can see the reflection are seen in the dollar exchange rate compare to INR its almost stable for now.
In the present the market has changed and up swing because of the political changes in the government. But concern remain as positive election outcome could bode well for equities, mutual fund, bonds and many real money investors. It could be a big challenge for the up coming new government will have to hit the ground running as growth has faltered to a decade low and is expected to be below 5% in the current financial year as well. Many reflection will be seen in the first union budget where the major step will be taken to ride for the Indian market.
The market has rallied significantly and the common feeling among retail investor is of being left out. Many large investor and the institution investors are experiencing a similar syndrome. The reason is no investor have ever been able to buy at the button and this is called market. Three month when the market was 15% lesser no body was ready to buy any stock at present market they are the looser. If one analysis performances of any successful stock investor, it is more through €discipline of time€ and timing the market of stock picking. The stock market witness cyclical gyration and no bull market over a few week. The market will be stable after the new government budget form.
Now how the market will move
Our advice to a retail investor not to get carried away by sensex gyration in the short term. Post actual result of polls on 16 May depending after they form the government they have to put the budget then the market will show some kind of reaction like how they focus on fundamentals. For those investor who are not able to invest in research, can go for large cap equity fund are the best for them, or else go to the stock market advisors in India Moneymindss short term stock tips suggestion which can help you gain some kind of profit in the market.
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