Expectations from Indian economy at present are indeed very high. After a spell of degrowth lasting for several years things are now looking set for a change. Expectations are the BJP led NDA will be able to muster enough majority to form a stable government at the centre without the push pull of parties which are not natural allies to the main party. It appears that all the parties within the NDA have got into a pre poll alliance. This is important and is more workable than say an alliance solely to ensure formation of government by a minority party. Fashionable also are such arrangements as "support from outside". "issue based support" etc. These serve an important purpose though, in that , it prevents a premature election , saving a wasteful expenditure of the nation. For some expectations are even higher. They expect BJP alone to muster a simple majority.
Numbers are not the only factor which has built up the tempo. It is the belief that the NDA led by its prime ministerial candidate will deliver growth. Investment will pick up particularly in infrastrucure. Power sector will receive priority. Rural income will receive a boost which in turn will increase consumption. With agricultural productivity increasing, the crippling food inflation will fall. This will ease the interest rate situation. India is already turning into an attractive investment destination. A great deal of foreign inflow has already taken place. Rupee will therefore appreciate and considering that India is import intensive, this will be beneficial. Policy action will be fast. Therefore if things pan out as believed we may be in for a long bull market.
It is therefore time to make a new beginning. Retail investors have been practically out of the market for several years due to unfavorable market conditions. Most midcap and small cap stocks which are the favorites of retail investors, have miserably underperformed. Only the well managed. large companies have been able to keep their head above water. Broad based buying has not started as yet. Only selected heavyweights have seen large scale buying. If the results on May 16 turns out to be positive then there may be an initial frenzy. Traders may latch on for short term gains. Investors need to keep their heads cool and wait for some correction to come. All the stocks mentioned in this blog earlier are still investment worthy.and can be bought after some correction..These stocks have already given handsome gains.
But if no party gets a clear majority there will be a vicious correction. One has to be prepared for that. That we will know on May16.
There is a caveat though. Global factors will as usual have an impact on Indian markets. And keep a tab on the weather. But then stock investing is all about risks and returns. For those with an appetite for risk, it will be worthwhile.
For those who want to start right away, and want some action here is a stocks which have not appreciated much or corrected in the recent past. Downside risk is minimum and has the potential to appreciate.
Lupin : Indian Pharma companies, barring a few with management issues have done remarkably well even in adverse circumstances. Lupin's stock price has been in a secular uptrend for the past several years and in terms of business strength it is well entrenched in the industry. It has immediate support at around 955 level.and can be bought closer to this level. .
Disclosure : I have bought this stock.
Until my next then
Happy investing
Basudev
Numbers are not the only factor which has built up the tempo. It is the belief that the NDA led by its prime ministerial candidate will deliver growth. Investment will pick up particularly in infrastrucure. Power sector will receive priority. Rural income will receive a boost which in turn will increase consumption. With agricultural productivity increasing, the crippling food inflation will fall. This will ease the interest rate situation. India is already turning into an attractive investment destination. A great deal of foreign inflow has already taken place. Rupee will therefore appreciate and considering that India is import intensive, this will be beneficial. Policy action will be fast. Therefore if things pan out as believed we may be in for a long bull market.
It is therefore time to make a new beginning. Retail investors have been practically out of the market for several years due to unfavorable market conditions. Most midcap and small cap stocks which are the favorites of retail investors, have miserably underperformed. Only the well managed. large companies have been able to keep their head above water. Broad based buying has not started as yet. Only selected heavyweights have seen large scale buying. If the results on May 16 turns out to be positive then there may be an initial frenzy. Traders may latch on for short term gains. Investors need to keep their heads cool and wait for some correction to come. All the stocks mentioned in this blog earlier are still investment worthy.and can be bought after some correction..These stocks have already given handsome gains.
But if no party gets a clear majority there will be a vicious correction. One has to be prepared for that. That we will know on May16.
There is a caveat though. Global factors will as usual have an impact on Indian markets. And keep a tab on the weather. But then stock investing is all about risks and returns. For those with an appetite for risk, it will be worthwhile.
For those who want to start right away, and want some action here is a stocks which have not appreciated much or corrected in the recent past. Downside risk is minimum and has the potential to appreciate.
Lupin : Indian Pharma companies, barring a few with management issues have done remarkably well even in adverse circumstances. Lupin's stock price has been in a secular uptrend for the past several years and in terms of business strength it is well entrenched in the industry. It has immediate support at around 955 level.and can be bought closer to this level. .
Disclosure : I have bought this stock.
Until my next then
Happy investing
Basudev
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