As we can see that major world market’s are trading at there life time high levels and Indian stock market is still little bit away from its life time high levels. still there are difference of opinion with regards to market trend. many analyst are thinking that market is still high volatile and investing at higher level is high risky and some are prediction that market will still continue this rally and we may see life time high coming soon. In such condition retail investors are highly confused with there investment and they really don’t know is it right time to invest or not in a market.
to get help with your problems and views we are listing some points in your notice.
1. rally on expectation and good economic data.
For the first time in 41 months, inflation has eased into the comfort zone, paving way for more flexibility in monetary policy. On the domestic front, with oil, gold and industrial commodity prices weakening has led to WPIslipping below the 5% level mark. RBIGovernor has indicated that he would consider falling inflation while deciding oninterest rates in the bank’s next policy meet raising market expectations for further interest cuts.
“We expect another 50-75 bps cut in the rates during the course of the year. Monthly Diesel price hikes – seen as biggest reform in oil sector would further ease investor concerns on the fiscal deficit front,”
2. Q4 FY13 corporate earnings have been better than analyst estimates:
With only 2 out of the 15 companies in the Sensex having missed the analyst estimates (Bloomberg consensus), the corporate performance has been far better than Q3FY13 where 43% companies missed estimates and 40% missing estimates in first 2 quarters.
“The industry would see margin expansion in the coming quarters as the input prices are softening. Benefit of falling interest rates would start reflecting in the corporate performances in the 2nd half of the calendar. Government is also putting efforts in getting stalled investment projects moving and kick start the investment cycle
3. IMD has projected normal monsoon:
IMD has projected monsoon for the season at 98% of LPA with +/- 4% error. This would benefit the agricultural sector and help containing food inflation.
“Moreover the indirect stimulus in form of election year would also aid the overall economy. Roughly, Rs 1 lakh crore would be spent by the government and candidates for the election. Also, the government typically announces sops in the election year and refrains from the politically suicidal decision