Positives outweigh negatives - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Positives outweigh negatives

May 7, 2003

It has been two days of consecutive strength on the Indian indices. The sentiment has been led by a host of sectors alternatively. The FII investment trend too has been enthusing. On the international front, even the Wall Street has shown signs of buoyancy despite the US Fed expressing worries over economic recovery. In a significant move, US Fed chairman, Alan Greenspan let status quo prevail on the interest rates. However, the Fed did express concerns on the economic weakness. Job losses continue unabated in the US, despite improvement in consumer sentiment. The Fed did not rule out a rate cut later, if needed. These are signs that the world's largest economy is likely to be sluggish in the foreseeable future.

This is not good news for domestic sectors like software, which is largely dependent on the US for growth. So the best investment strategy for the sector is to stick with quality companies, who have the ability to consistently scale up the value chain.

On the other hand, continued sluggishness in the western economies is likely to force global investors to look for growth elsewhere. Consequently, Asia could see some strength in foreign money flow. India being one of the better growth economies in this continent is likely to be keenly watched by the global investors. This is an encouraging thought. Going forward, the government's infrastructure moves, the Maruti IPO, BPCL and HPCL divestment is likely to give a fillip to investor sentiment.

The signs of progress on Indo-Pak dialogue may also assure global investors. However, not even a die-hard optimist will hope too much on this front in the foreseeable future. But the current status is a small step forward. In the short term, notice to directors of Reliance to appear before the court in connection with the violation of the Official Secrets Act may temper investor sentiment today, But is unlikely to really be the cause of a big sell off. Overall, positives outweigh negatives.


Equitymaster requests your view! Post a comment on "Positives outweigh negatives". Click here!

  

More Views on News

Your Queries on the 8-Year Cycle Answered (Fast Profits Daily)

Sep 25, 2020

You've sent in your queries on my videos on the 8-year greed and fear cycle in the market. I'll answer them in this video.

It's When You Sell that Counts (Profit Hunter)

Sep 25, 2020

How I alerted readers to the impending crash last week.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 25, 2020 (Close)

MARKET STATS