All is not in the well

DESPITE there being gloom all over and small investors being almost on the verge of losing their confidence in the markets, the Sensex is yet to see any sharp correction. This probably is due to the fact that smart and well informed investors better understand the fact that the markets may probably have discounted all the negatives, though they are yet to respond to the positives that a lay investor has failed to identity.

 

These positives include falling crude, gas and commodity prices, declining gold imports, an expected GDP growth of 6.5 to 7 per cent with moderating inflation, and a slightly less fragile UPA government preparing itself to bite the bullet on subsidies and on other major reforms. Other positives the markets are yet to take note of to resume its upward journey include no significant pull-out by foreign institutional investors (FIIs) in the recent past despite all the headwinds talked about by experts and analysts due mainly to their understanding of superior long-term fundamentals of India economy and a lot of development activity going on in rural India, a very good central bank and corporate sector, pockets of good growth achieved by many state governments, who in turn, are getting re-elected solely on the basis of good governance and growth achieved....READMORE