SENSEX crosses 18300…There’s lot to expect from the current market level??
Most of the investor community is worried about the market at this level. Some say we have grown very fast, some say FII’s might pull out, some say usually at this time of the year there comes a big correction and there are some who feels the political uncertainty might cause a big correction.
But do we really have to worry about this market??
The fear in the market is not knowing where you are investing. If you know that you are investing in the world’s fastest growing economy with a GDP expectation of more than 9%, an economy which is a part of the emerging markets which is an asset class in itself and where the risk apetite of global investors is increasing. Emerging markets receive 10% of the global allocation and represents 30% of global economy and 15% of global profits. So a market like India looks attractive in the long term to lot of investors whatever the level is.
There is also lot of concern regarding Hedge fund operators in India. Investors are of the opinion that they might pull out money as for them profit is the only motive. Here we should understand that after all the sub prime mess and re-rating of various markets some of the riskiest Hedge funds have either collapsed or have changed their strategy in investing specially in emerging markets. Interest rate concern is not so prevalent in our markets since the economies inflation performance has been good RBI might not tighten the rate.
We should also understand that foreign investors are less sentimental than the domestic ones. There are lot of advantages to an economy flush with liquidity from foreign and domestic players and an appreciating currency.
So in a scenario where markets start reacting to some bad news domestic investors might sell out and foreign investors might buy. This will make sure that either market doesn’t correct with big difference or will correct and move back and trek to a new high within a short span of time.
The imp worry for India is that it is a cyclical society with a low per capita income. After the global economic cycle which has favoured the emerging markets for the last 2 years takes a cyclical turn, India goes back to stability phase. India is also considered risky in their domestic policy and reforms management. Hope to see some good and bold decisions for fast reforms in agriculture, trade and infrastructure.
Whatever the worry is it’s a good time to be in India if we have a long term horizon. Lets not think more, lets not loose the opportunity,
Lets Invest..
Keep Reading
But do we really have to worry about this market??
The fear in the market is not knowing where you are investing. If you know that you are investing in the world’s fastest growing economy with a GDP expectation of more than 9%, an economy which is a part of the emerging markets which is an asset class in itself and where the risk apetite of global investors is increasing. Emerging markets receive 10% of the global allocation and represents 30% of global economy and 15% of global profits. So a market like India looks attractive in the long term to lot of investors whatever the level is.
There is also lot of concern regarding Hedge fund operators in India. Investors are of the opinion that they might pull out money as for them profit is the only motive. Here we should understand that after all the sub prime mess and re-rating of various markets some of the riskiest Hedge funds have either collapsed or have changed their strategy in investing specially in emerging markets. Interest rate concern is not so prevalent in our markets since the economies inflation performance has been good RBI might not tighten the rate.
We should also understand that foreign investors are less sentimental than the domestic ones. There are lot of advantages to an economy flush with liquidity from foreign and domestic players and an appreciating currency.
So in a scenario where markets start reacting to some bad news domestic investors might sell out and foreign investors might buy. This will make sure that either market doesn’t correct with big difference or will correct and move back and trek to a new high within a short span of time.
The imp worry for India is that it is a cyclical society with a low per capita income. After the global economic cycle which has favoured the emerging markets for the last 2 years takes a cyclical turn, India goes back to stability phase. India is also considered risky in their domestic policy and reforms management. Hope to see some good and bold decisions for fast reforms in agriculture, trade and infrastructure.
Whatever the worry is it’s a good time to be in India if we have a long term horizon. Lets not think more, lets not loose the opportunity,
Lets Invest..
Keep Reading
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