Indian Stock Markets Today

Although the Indian stock markets opened on positive note post Independence day and held the gains for most of the trading session today, but as the day went ahead, the markets could not hold the gains and went down by around 100 points, with especially the mid cap stocks actually facing the burnt.

Economy is cyclical

Economic cycle is predictable long-term pattern changes in national income. What has been seen is that traditionally business cycles have four stages in its lifecycle: expansion, prosperity, contraction, and recession. After a recessionary phase, the expansionary phase can start again or the economy can stay in dormant mode for a longer period of time. The phases of the business cycle are characterized by changing employment, industrial productivity, and interest rates, which earlier used to be a national phenomenon, but now with the globalization, economic cycle internationally have got interlinked to certain extent. Some economists believe that stock price trends precede business cycle stages where as certain other think that the correction in stock price factors in before the actual recession.

Global financial turbulence - Opportunity

Global economic turbulence is an opportunity, it is undoubtedly the truth. There is a lot of money which is still available in the global markets looking for avenues to be parked. There is doubt about growth in the leading markets and therefore fund flows are bound to come to the Asian markets, emerging markets and India. I can say without any doubt that there is an opportunity but to capitalize this opportunities, emerging markets like India have to be ready to grab it by having large scale bankable projects where the FII's can park their funds to get safe and reasonable long term returns, one such example where such issue is prevailing in the Indian market is the power sector which has potential opportunity of large scale capital investment but is lagging in terms of sizeable sustainable projects where FII can invest for long term growth.

Stock markets next week

Going by the global economic turmoil and reactions of the global stock indices, big swings in stock prices could again characterize trading in the week ahead, as investors are watchful and the very behavior of the markets is beyond comprehension of the common investor. Although panic has not yet gripped in which is a good sign, i just hope that economic situation and global stock market indices stabalize so that the indian stock market invetors feel confident to return back, especially the FII, FDI and retail investors.

Indian Stock Markets this week..

If we go by what the indian stock markets had to say this week of the global economic turmoil, it was quite clearly a gloomy outlook. Both the Indian stock market indices Sensex and Nifty were on the decline throughout the week and went down past their respective support levels. Now it would be interesting to see whether Sensex goes down and breached 16000 mark.

I am an optimist and would for sure look for some bottom fishing. Now the most interesting and speculative aspect is to predict the bottom. So i would say happy Fishing..

Gold the biggest gainer

There looks to be one single gainer amidst the global economic turbulence, and that is Gold. The Gold price has touched record highs on account of gold being considered safe havens.

The question that remains to be answered is whether retail investors got left behind in the gold rush or there is still steam left in gold and retail investors can take fresh positions in gold.

This is an interesting space to watch out for the days to come, although the demand in physical form for sure has dipped in countries like India where there is lot of demand of gold jewelry.

FM confident on Indian economy

India today exuded confidence that credit rating agency Standard & Poor’s decision to downgrade the sovereign rating of the US would not have any adverse impact on the country.

After issuing an initial statement earlier in the day that the situation was ‘grave’, the government assured investors that India’s growth story was intact and the country would achieve high growth despite weak global sentiments. We will have to analyse the situation. It will require some time…