May 18, 2009|
Time to be circumspect
Carefully assess opportunities before investing
Given the euphoria surrounding the UPA's decisive victory in the General Elections, stocks in India are expected by one and many to surge as markets open today. This is given that a lot of domestic and institutional investors were waiting in the sidelines all these months just to seek more clarity on the political front before committing funds in a major way. And given the voices that have crowded business channels since the election results have been out, markets are expected to go up sharply. However, amidst this euphoria, we would like to caution you against committing your entire investible surplus at one go for the fear of losing out on the rally.
Successful investing is all about discipline. Even while stocks across the sectors are still trading at attractive valuations from a 3 to 5 years perspective, it is pertinent for you to assess each and every opportunity very carefully rather than simply jumping into buying anything just because everyone else is buying. Of course, a stable government at the Centre would mean that India can move on its path to reforms with relative ease, but things will still take time to take off given the bureaucratic setup and slow decision making process.
India Inc.'s wish-list for the new government
As a new government, or the old one in a new avatar, steps into the South and North Blocks in New Delhi, India Inc. waits with bated breath to spell out its wish list of things to do. As reported in several business dailies, Indian companies now expect the government to dole out a fair dose of policy reform given that it (the government) no longer needs to take care of the whims of the Left parties, which have acted as the main hurdle to the reforms process all these years. The corporate sector is especially looking out for reforms in sectors like retailing, pension, and insurance, as also in labour reforms where the Left had made the most noise.
In this regard, The Economic Times reports that tax sops are also on top of corporate India's agenda to tide over the ongoing economic crisis. The report states, "The ailing export sector, which in October witnessed a decline for the first time in a decade and missed the target of $175 billion, has sought income-tax exemption for some five years."
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 19, 2017
Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
More Views on News
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407