
Since last October, there has been sentiments of gloom and doom and everything was looking bad. Stock markets are just a reflection of the general economy and sentiments. But primarily it is driven by sentiments. From the high of 22000, it had gone down to intra-day low of 7500. People have lost huge amounts of money. Retail investors or FIIs or Indian MFs, everyone is loathe to invest. Economy wise, Manufacturing sector is seriously hit so is the export sector. IT sector is badly hit with exports decelerating in double digits. US economy is in serious dumps showing serious negative growth rates in last few months. Combined all this and you can realize how the two of the serious wealth creation avenues are hit. Property prices are down by 30-40%, stock market was down by more than 50%. The only other avenue was Fixed rate instruments which just cannot create serious wealth.
But the election verdict has changed all of that; first it changes the mood of gloom & doom. The reasons for that are - 1) Stability at the centre 2) Expectation of impetus to reforms 3) Disinvestment of PSU to generate funds for infrastructure & other much needed projects and thereby providing growth opportunity to other sectors.All of the above reasons will improve the sentiments dramatically. Today's market are just a sign of what is in store for us, 2099 points in a day for sensex. Add to that the fact that FIIs, MF money and retail money is waiting on the sidelines and is ready to get invested.
All of this is going to provide a serious opportunity to wealth creation. Invest in Domestic stories like Infrastructure, Banking & Capital goods sector and in next one year, one can make serious money.
Kudos to us Indians. Well Done!!!!!
Cheers
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