Indian Market has witness a BULL Market for 4 years were market have reached a peak of 21000 and from there it corrected to levels of 7700 and again it recovered to levels of 15000 in anticiaption of big announcement in budget which did not happen. invesots should understand fact that GOI cannot provide another stimuls because it would have short up DEFICT TO OVER 10% and with regard to Disinvestment the GOI will go for it and in my veiw in long run indian market are tend to perfom better due to following positives
1. Low commodity prices say 60% this will bring down cost of raw material
2. crude is around $60 that is 57% down from peak
3. fertilizer subsidy will come down to 3000 crores
4. Oil Import constitute 26-30% of total import will also come down drstically due to new explorations, Bio Fuel etc.
5. further GOI will reduce oil subsidy by deregulating it / incresing prices as per international market
6. Disinvestment in PSU
these are some of the advantage i my opinion indian market will se second leg of BULL MARKET from september,2009 onwards
Friday, July 10, 2009
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