My View On Indian Stock Market

I’m NOT optimistic on Indian stock market (only) for coming 2-3 quarters,
Even though there might be a global relief rally/technical bounce back may be seen which can be used as chance to exit the long position.
Indian stock market look some what attractive at current level but i think this is not a time to enter,as there might be a pain remained in global economy.
And FII will continue selling in EMs including india due to global slowdown.
The companies are not showing better growth in earning & i think the same picture may continue in coming 2-3 quarters.

The fiscal deficit may increase in coming months due to new policies of govt to boost the startups & other industry & which is good for recovery,
Although it might be bad for economy in future.
And so the RBI Governor will not cut the rate in next couple of quarters if the fiscal deficit increases.
And i don’t think the companies will start performing well even if the RBI gives a surprise gift of rate cut,
because the balance sheet of Cos., business challenges, & global situation speak more about the future growth.

As per my view, the Year 2016 & 2017 is an investment year, & we should not expect good return (even positive return in 2016) in this period.
BUT the the dawn will start near the end of 2017 & India will outperform not only EMs but also almost all economies in the world.
Don’t forget, The indian economy is in a long term bull run! But the pause has been seen due to global situations & high valuations.

In short,
Short term traders & speculators may earn by shorting the stocks, which are trading on high valuations in couple of months.
But there is a good buying opportunity on every sharp correction & which should not be missed by an long term investor.
Long term investor should use these sharp corrections to put money in large cap & blue chip Cos, & should keep the patience for at least 7-8 years.
The Investor who can’t catch the deep to invest should start the SIPs in well known MFs on in large caps Cos.
The Investors should consult their financial adviser before invest & get the information in detail about risk, reward, time frame etc.

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