Taking a view on the market - Views on News from Equitymaster

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

  • MyStocks


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

Taking a view on the market

Jul 3, 2000

The fact that the benchmark BSE Sensex gained over 9% during the month should bring cheer to the markets. However, most investors continue to be nervous and there is little talk of bullish sentiment. Investors (including the 'momentum' type) are probably justified in being pessimistic while assessing the performance of markets. This is because growth during June masks a large period of uncertainty, which still continues to plague the market. The Sensex closed at the 4,727 mark on 8th of June while it ended the month at 4,748). In effect, during the last 16 trading sessions markets have been hovering around the same levels. In other words, they have gone nowhere since then. The uncertainty has been due to several factors, the key one being large selling pressure from foreign institutional investors (FIIs).

Leading brokerage houses and mutual fund managers are quick to toss a figure of 6,000 - 6,500 for the BSE Sensex by the end of the year. The bullishness stems from rising corporate profitability and the general improvement in business environment. Mutual funds too have become relatively steady in terms of fund flows.

That there is a general bullish sentiment pertaining to the long-term performance of the Sensex should not however be treated just as a 'BUY' signal. Over the years each successive rally has witnessed the wheat being separated from the chaff. Markets are willing to pay more for companies with high quality managements, ethical business practices, transparent accounting norms and sustainable business plans. Investors would do well to realign their portfolios in a manner that offers them optimal returns while at the same time limiting their risk exposure.

Equitymaster requests your view! Post a comment on "Taking a view on the market". Click here!


More Views on News

Top 5 Recent IPO Developments You Should Know (Views On News)

May 12, 2021

So far in 2021, IPOs in India have raised nearly US$ 3 bn, the best start to the year since 2018.

How Did Mindtree Perform in Q4FY21? (Company Info)

Apr 20, 2021

Here's the rundown on the company's latest quarterly results.

Why is Bullion so Volatile Now? (Fast Profits Daily)

Jun 17, 2021

Why have gold and silver prices become volatile recently? Find out...

Cut the Noise and Hold these Stocks FOREVER (Profit Hunter)

Jun 17, 2021

A sure shot way of creating wealth is to not disturb the process of compounding.

Axis Quant Fund: Targets Quantitative Approach to Generate Alpha (Outside View)

Jun 16, 2021

PersonalFN analyses the features of Axis Quant Fund and explains the potential this fund has to offer to its investors.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 17, 2021 11:22 AM