Indian Stock Market is booming ,once again. Majority of the Investors and specially the high networth investors have been waiting on the sidelines for the market to correct since the debacle of the market in the year 2008. It is regretfully submitted that people at large could not participate in this rally, hoping the markets shall correct, which till date it has not.
THE FIIs have invested heavily in the in the Indian Stock Market on a continuous basis.
According to my view , the reasons are manifold.In a nutshell, One strong reason is the weakening of the dollar, other being the slow to negligible economic recovery in USA after the economic depression of 2008, so much so they have announced to buy Tresuries Bill for 600 Billion US Dollars , with the intention to save the economic and also to prevent failures of the Banks in America.
As long as fundamentals of US economic show weakness investment in India shall pour. The moment US shows improvement in its fundamentals ,FIIs shall disinvest in Indian bources and the markets shall then correct ,( and it is here where the investors are to be cautious and invest keeping their eyes open and give ear to valuable economic news, reports etc , and also to book profits) and invest in USA , to participate aggressively to multiply their money. Till Then ROUND THE YEAR -HAPPY DIWALI
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