Stock Market - The Indian Scenario

The stock market is a really nice place to invest yourpresent US $ 140/ a barrel, changed everything for
hard-earned money. Provided you know all the ropes.the worse. With inflation soaring high internationally
The Stock Market is no place for the tender-heartedand in developing countriesl like India, investors and
and the weak-kneed. The Stock Market is a a Greattraders sold their positions for fear of losing heavily.
Leveller, in that it lifts you up one day and dumpsFIIs pulled out totally and left the markets in the
you on the mat , the very next day. This is true inlurch.
the case of the Indian Stock Market, the undisputedThe prospect of the Indian stock market recovering,
leader of the Asian pack. Here the foreign institutionswhich fell from the dizzying height of 23000 (BSE
hold all the trump cards. The domestic institutions andSensex) to the present 14000-15000 levels, in a
the mutual funds do play important roles but theymatter of about 5 months, looks rather bleak All
are in no position to change the trend of the marketIPOs in the recent past have been non-starters. The
on a given day. Volatility is the word that springs totraded volumes in the Indian stock market has
the mind, when you think of the Indian Stockreached abysmal lows. With the crude price slated to
Market, more so in the year 2008.test new highs according to the experts, the future
The past 4 years from the phenomenal crash of Maytoo looks rather dismal.
2004, had witnessed unprecedented gains for theNow what does the average investor do? Is it time
Indian Equity scenario. Stocks which sold for Rs.50/to book losses? Is it time to stay completely away
and Rs.60/ four years ago , rose to such dizzyingfrom the market? These are the cardinal question
heights as Rs.2000/ and Rs.4000/, trading almostthat the pundits are struggling hard to find answers
400-500 times. The strange fact here is that nobodyto.
, nobody really , had the foresight or vision to buyBut amongst all this pandemonium, let us try to stick
and hold stocks for 4 years at a stretch. At theto the fundamentals of investing in the stock market.
slightest upward trend , most people liquidated theirNever,ever, invest in a stock on hearsay and rumour.
holdings. But these four years gave the savvyInvest in a stock after looking at its fundamentals.
traders the opportunity to enter a particular stockOnce invested stay invested until your target profit is
several times and exit with handsome profits. But theachieved. Never try to average in case of a fall.
year 2008 has been so far very unkind to theNever speculate. Invest intelligently. You shall stay
investors and traders. The International Crude Priceafloat in this sea of sinking investors.
which rose from US$60/ a barrel in 2007 to the