There may be all round negativity but the stock story led by Nifty has something positive to offer at the end of six months this calendar. Nifty, the broader stock market index, has grown about 15 percent during January to June 2012 period.
Low valuations and investor indifference might mean that markets surprise on the upside. This makes us believe that the current rally might have some steam left in it as sentiments are not yet fully upbeat.
Mainstream economics as it is practiced today, does have a lot of loose ends we believe. Little wonder, a lot of experts have begun to call it the dismal science. There are quite a bit of its principles that do not have universal validity. In other words, a principle that may work in one scenario may turn out to be a total disaster in the other.
As long as you keep your mind clear of biases and flawed thinking tendencies, and are able to think without the pressure of what others think and without fearing the loss of your social status, you`re very much on track to becoming a great investor.
The depressed sentiments and low expectations will pave way for optimism on any signs of turnaround in the economic situation. I believe that the “survival instinct” would play out among all the stakeholders of the economy, which could help bring it back on track.
The biggest learning in the last year has been for the present generation of investors who would not have seen such a long period of stock market underperformance and for whom the definition of long-term has changed.
The risk is that a plunging rupee will be seen by investors as reason enough to pull capital out of the country, adding yet more downward pressure on the currency and setting off a balance of payments crisis.
Markets continued to go on a losing spree with benchmark indices in India falling further by 2.6 percent. As if the axing of the US rating was not enough, talks of a France credit rating downgrade lingered, chopping around 4 percent from global indices in a single day during the week.
The Bombay Stock Exchange benchmark Sensex fell over 125 points in early trade on Tuesday as foreign funds and retail investors preferred to book profits after witnessing strong rally in the past few sessions.