The Indian Stock Market Scenario

In keeping with global trends and the ever-rising oilBut really , any investor with average financial
prices, the Indian Stock Market is facing a downtrendintelligence can see that if the investments are made
in both the near-term trend and the long-termon the basis of strong fundamentals and not on
horizon. The Market which touched the dizzy heightshearsay, then such investment can still bring in profits.
of 23000 (BSE Sensex) is now trading at around theThis is the time for the long term investor to step in
14000 levels, a frenzied drop of around 40%and start investing. Investing in stages is the best
approximately. The reasons are as clear as daylight.strategy. Each dip in the market can be used to buy
The Indian Stock Market has been scaling new levelsor invest in really blue chip stocks., companies that
without any real fundamental reasons.perform strongly, consistently and that have fat
Feel-Good-Factors like Low inflation figures, Goodorder books. Such investments will have to be made
industrial production figures and positive economicwith a real long investment horizon.
indicators probably buoyed up the Index. But it wasSpeculation,short-selling and trying to make that quick
too good to last. The crunch came when the FIIsbuck can really land the unwary investor in to trouble.
started offloading their investment and the new IPOsLeave the day trading to the slick operators on the
started failing to collect the expected subscriptions.bourses. Invest in selected stocks and forget.
With inflation climbing steadily during the month ofThe markets will come back. The market will
May 08, the large investors started selling theirdefinitely find some good news to ride back into
holdings and booking profits. This left the Indianglory. The intelligent investor can afford to wait. The
Stock Market on the lurch. The stock market punditsinvestor in a hurry and haste may stand to lose his
say that the Dalal Street has fallen into the bear grip.bet.
Stay away from shares, they hasten to advise you.