Indian share Market is clue less in these days. Big tickets have posted good result in third Quarter and some declared dividends also. But still market is not ready to move ahead. Three day it go up and in a day it lose all gains. My students ask me why such behavior of the market ??
I am observing Share Market from last 20 years and studied it every time. but frankly failed to gauge its mood. Then also I put forward following reasons for not choosing any direction.
1. Globally recovery is very slow and appears very elusive.
2. UPA govt. lacks the inclination to take steps to support FII. These promises Congress given at time of election. But aligned parties are refraining Congress to take decision in investors favour.
3. Promises to reduce subsidies in various forms have not fulfilled.
4. Divestment of Public Enterprise is very slow.
5. Reforms are in snail pace.
6. Other Asian Markets appear more progressive.
7. AAP has shown power to influence Indian political environment in substantial way. By refusing FDI in retail AAP has given signal that it will not allowed FDI in all sectors. In more AAP has not given any clear indication about party's foreign investment policy.
8. In last decade it has been found ,instead of retail investors ,FII, Domestic Institutions, mutual funds and other big Brokers Houses are deciding direction of market. Hence there views and requirement of liquidity also influencing the market in great deal.
9. Up coming Parliamentary election and its result will make the trend clear but till not to commit long term investment is the mentality of investor community.
10. Hung parliament will again give uncertain political environment.
11. Rating agencies are not rating India as heaven for investment.
Above all reasons are responsible for not choosing any direction by share market. But then If any Strong Govt. with considerably majority will be elected then again situation will change dramatically and market will zoom toward northward direction. At present the investors with high appetite will only roam in market. Once they will get some profit ,they will book that. But long term commitment will come only after May -2014.
Do decide what kind of apatite one has got as investor and what is the profit one target( and loss too) . Happy investing .
I am observing Share Market from last 20 years and studied it every time. but frankly failed to gauge its mood. Then also I put forward following reasons for not choosing any direction.
1. Globally recovery is very slow and appears very elusive.
2. UPA govt. lacks the inclination to take steps to support FII. These promises Congress given at time of election. But aligned parties are refraining Congress to take decision in investors favour.
3. Promises to reduce subsidies in various forms have not fulfilled.
4. Divestment of Public Enterprise is very slow.
5. Reforms are in snail pace.
6. Other Asian Markets appear more progressive.
7. AAP has shown power to influence Indian political environment in substantial way. By refusing FDI in retail AAP has given signal that it will not allowed FDI in all sectors. In more AAP has not given any clear indication about party's foreign investment policy.
8. In last decade it has been found ,instead of retail investors ,FII, Domestic Institutions, mutual funds and other big Brokers Houses are deciding direction of market. Hence there views and requirement of liquidity also influencing the market in great deal.
9. Up coming Parliamentary election and its result will make the trend clear but till not to commit long term investment is the mentality of investor community.
10. Hung parliament will again give uncertain political environment.
11. Rating agencies are not rating India as heaven for investment.
Above all reasons are responsible for not choosing any direction by share market. But then If any Strong Govt. with considerably majority will be elected then again situation will change dramatically and market will zoom toward northward direction. At present the investors with high appetite will only roam in market. Once they will get some profit ,they will book that. But long term commitment will come only after May -2014.
Do decide what kind of apatite one has got as investor and what is the profit one target( and loss too) . Happy investing .
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