The Sensex finally snapped its losing streak yesterday, closing in the positive after 7 consecutive days of closing in the negative.. Retail report issued by the U.S. Government last night pointed to an unexpected increase in consumer spending despite rising oil prices, a choppy stock market and worsening credit squeeze in the real estate sector. Additionally, unexpected strong growth in Japan in the last quarter of 2007 sparked off a rally in the Asian markets which were up 2%-3% @ 9:30 a.m. .. So, worried investors, breathe easy, initial indications are that the Indian marekts may open in the positive for a second consecutive day..
However, Indian investors are still wary of re-entering the market. A strong closing of the market over a session or two will give some confidence to these investors. Indication are that a lot of investor money is currently waiting on the sidelines, investors are hesitant to enter the market currently but an improving scenario and strong closing of the Sensex and Nifty will lead to increased money inflows.. Advice remains to invest in stocks with a long-term horizon. Near-term investors would be advised to book their gains at every rally because the uncertainty is not out of the market yet. Experts believe that the markets may re-test the levels touched in January 2008 again before staging a comeback rally!
Received a funny mail today which took a dig on the stock market and the sale season going on.. Got it in a PDF format, trying to see if I can upload it here. But one good thing to come out of the market's downfall is that a few defensive stocks have come in the limelight. One such stock is Ranbaxy, the Indian pharmaceutical giant. The stocks of this company declined by only 5% in the period when the marekts declined by as much as 25%. This stock is a good long-term play and with the demerging of the NDDR business unit, an unlocking of asset value will drive the shares higher.
However, Indian investors are still wary of re-entering the market. A strong closing of the market over a session or two will give some confidence to these investors. Indication are that a lot of investor money is currently waiting on the sidelines, investors are hesitant to enter the market currently but an improving scenario and strong closing of the Sensex and Nifty will lead to increased money inflows.. Advice remains to invest in stocks with a long-term horizon. Near-term investors would be advised to book their gains at every rally because the uncertainty is not out of the market yet. Experts believe that the markets may re-test the levels touched in January 2008 again before staging a comeback rally!
Received a funny mail today which took a dig on the stock market and the sale season going on.. Got it in a PDF format, trying to see if I can upload it here. But one good thing to come out of the market's downfall is that a few defensive stocks have come in the limelight. One such stock is Ranbaxy, the Indian pharmaceutical giant. The stocks of this company declined by only 5% in the period when the marekts declined by as much as 25%. This stock is a good long-term play and with the demerging of the NDDR business unit, an unlocking of asset value will drive the shares higher.
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