Flattish short term - 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?  

Flattish short term

Oct 27, 2001

The bourses closed more or less at the same levels this week (Sensex up 5 points and Nifty up 6). The gaining spree ended as the initial hoopla over the credit policy died down. The sluggish Wall Street provided no solace. The week seemed like introspection time for market movers. The bourses (both US and Indian) are more or less at the pre-September 11 levels. From here on the economy would be the major driver of sentiment. In the US the consumer spending is the key to economic revival and so too in India.

So far the result season has been reasonably good for India Inc. Sectors like software, cement and auto have done well, while hospitality and some FMCG companies seemed under pressure. Post result season the bourses would now keenly watch the governmentís disinvestment and infrastructure development moves.

The signals that emanate from the North Block are positive in both these directions. With the divestment ministry, under Mr. Shourie, keen to get on with the reforms, we would most likely see some major companies getting divested by the year end. Though the minister may fall well short of the disinvestment target of Rs 120 bn for FY02, the momentum generated on this front is heartening.

The governmentís keenness to improve spending on plan expenditure is reflected by the Prime Ministerís road and rural electrification project. Though there is still a long way to cover, atleast we are in the right direction. The forward looking credit policy is likely to rein in the governmentís burgeoning interest burden as well as encourage investments in the country. With India one of the few countries expected to log a 5%-6% GDP growth this year, it is likely to figure in the list of global investment destinations.

The investors are wary of putting money in the stock market due to the uncertain global environment. However, except for war worries, India has much to look forward to. With the debt market running almost at its peak, stock markets offer a viable alternative over the long term.

Equitymaster requests your view! Post a comment on "Flattish short term". Click here!


More Views on News

The Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

My Top Pick for 2021 is Not a Stock. It is Something Much More Powerful (Profit Hunter)

Sep 28, 2020

My top pick for 2021 is something that has helped me and my subscribers beat the stock market by a factor of 2:1.

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...


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


Sep 29, 2020 03:37 PM