India's benchmark stock market index is reaching new heights, estimates are that sensex will hit 16k to 18 k shortly. Many of us may have missed the bus, we are left sucking the thumbs literally.
Euphoria on Dalal Street seems to know no bounds, a fundamental question is whether the booming stock market is doing any good to the economy, particularly corporate private investment.
A security market fosters economic growth by augmenting real savings and capital formation, increasing net capital inflows from abroad, reducing the cost of capital and raising the productivity of investment by improving the timing and allocation of investible funds through market signals.
Share market barometer opened higher on Saturday at 14,319.87 and climbed steadily throughout the day, reaching a peak of 14,727.28 before shutting shop at 14,625.25, its highest close since September 10, 2008.
Following Friday's gain, the prime index is up 43.87 percent this year, after slumping nearly 52 percent in 2008, a year marked by economic downturn, credit squeeze, rising inflation and high global crude prices.
Thanks to the weekly gain of 738.10 points, the Sensex also extended its weekly winning streak to 12 weeks in a row its best run in 4 years and posted the highest monthly gain, in percentage terms, in 17 years since 1992.
Several new concepts of investments have found their way to the Indian market with the introduction of new mutual fund schemes. At a time when interest in MFs might seem low, it is interesting to note several additional investment options being created. Investors must examine the details of such concepts carefully, to help achieve their investment objectives in a simple manner.
Well how long this feel good factor will last is the moot ? Some of the sectors which is going to boom are
banking, infrastructure, real estate, automobiles, telecom are sure shot hits.
Many FII s who were sitting on hard cash to invest are really ruing their decision. The opportunity to make quick buck is lost for many. Anyways that is how the uncertainty of market and how the dynamics work.
So guys take a calculated gamble invest 50% of your cash and keep the rest for correction if any. Good luck.
Posted by Mohan Sehgal | Views 211 | Share Blog
