Tuesday, April 14, 2015

PONDER UPON IT. Indian Share Market boom - yet not over.

PONDER UPON IT.
Indian Share Market boom - yet not over.
Share Market boom is on its height. Ordinary investors are making statements that now it is end of the road. Market will crash in short time. The arguments are done by those ordinary investors who are banking on the tips of others. They do not have their own research and analysis and they had invested on rumors in past and have burnt their fingers. Logically seeing this boom has just started. If take imitation from previous boom period -all stayed at least for two to three years. Current boom has started after BJP led govt. took the charge.
Secondly, previous booms were based on funds of FFI and other funds having sources from out of India.
Thirdly, Previous booms  smell end when all ordinary people started to give tips and all PANWALA,, LABOURS. TEACHERS, TICKET MASTERS and all others were talking about short cut to earn profit in short term. ( I have not find any of such symptoms yet , on the contrary regular investors are shirking and hesitating in investing in the market.
 Fourthly, Make in India and other policies started rooling now. Make in India is gathering momentum.
Fifthly, in previous boom, FIIs were in charge of all movements. FIIs could make and mar any company. All promoters and   company management were at FIIs mercy. Here situation is different, when DII (domestic investments institutions) are also financially sound and have financial muscles to hit back, (if FIIs start offloading their shares without any reasons. DII will absorb such huge off load with little or no impact on share prices.)

Another reason what I found very indicative , that stock  market is in long bool phase is, NYSE and NASDAQ  both give reasons and impact to lead Indian BSE and NSE .They have   just reached to their historical height , though NASDAQ has not reached to that level. I am sure that in 2001 boom NASDAQ was above 5000 mark and  still that has not reached in the stock exchange. The improvement in last 14 years and the growth of economy cannot be discounted. Putting together all the above reasons, give confidence to me and all other analysts that India has still huge chances to build its economy. There may be some hick up and bumpers on  road , but that can slow Indian economy for time being  but cannot stop developing...


dt. 14-04-2015.

No comments:

Post a Comment