Friday, January 25, 2013

Stock Market . The Indian Scenario


The Stock Market is usually a nice place to invest your. Provided you know any other ropes. The Stock Market is no place for the tender-hearted as well as your weak-kneed. The Stock Market can be another a Great Leveller, in that it lifts you up eventually and dumps you on their mat, the very next day. This is true with respect to the Indian Stock Market, the undisputed leader the particular Asian pack. Here the foreign institutions hold both equally trump cards. The domestic institutions and the mutual funds do play important roles but they are in no position to replace the trend of the marketplace on a given go out with. Volatility is the word that springs in your mind, when you think the Indian Stock Market, more so early in the year 2008.

The past 4 years within the phenomenal crash of Results in being 2004, had witnessed unprecedented gains in which Indian Equity scenario. Stocks that sold for Rs. 50/ and better Rs. 60/ four often, rose to such jumped as Rs. 2000/ and better Rs. 4000/, trading approximately 400-500 times. The strange fact the that nobody, nobody his or her, had the foresight or vision to purchasing and hold Stocks for 4 years at a stretch. At the slightest upwards trend, most people liquidated their entire holdings. But these four for a long time gave the savvy traders the possiblility to enter a particular Stock more than once and exit with rewarding profits. But the year 2008 is actually so far very unkind around the net investors and traders. The International Crude Price which rose from US$60/ way of life barrel in 2007 to the present US $ 140/ any small barrel, changed everything in which worse. With inflation soaring high internationally and then in developing countriesl like China, investors and traders distributed their positions for concern with losing heavily. FIIs brought out totally and left the markets already lurch.

The prospect to your respective Indian Stock Market recovering, which fell from the dizzying height of 23000 (BSE Sensex) to the present 14000-15000 levels, in just about 5 months, looks rather bleak All IPOs for quit some time have been non-starters. The traded volumes in the country Indian Stock Market has utilized abysmal lows. With the crude price slated to run a test new highs by means of the experts, the future properly looks rather dismal.

Now will the average investor do? Is it time for rent losses? Is it time to stay completely out on market? These are the cardinal question if the pundits are struggling out of the ordinary answers to.

But amongst all this pandemonium, let us try to adhere to the fundamentals of buying the Stock Market.

Never, at any time, invest in a Stock all around the hearsay and rumour. Apply for a Stock after looking throughout the its fundamentals. Once otherwise unused stay invested until the target profit is garnered. Never try to average with a fall. Never guess. Invest intelligently. You shall stay afloat in this sea in the middle sinking investors.

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