Hello everyone, the markets have come down, it is a correction but all reasons do come for the fall for the market. The situation seems to be a little bad now. The markets are recovering from the honey moon as they had gone up to very higher levels. The correction is good as what goes up has to come down.Some aspects, which are not good has happened.
China, which is the fastest growing country in the world seems, to be on the decline. Peoples Bank Of China is injecting 400 billion yuan into the Chinese Banking system the Government Bank injecting money into its own country is a weakness of the Economy of China. The joint Managing Director of Havells Limited the leading electrical appliances manufacturing company in India says overall sales have tapered off for all segments. This is a bad thing as Havells is a good company, in the electrical segment . Foreign Institutional investments in equities have come down which in turn leads to a fall in equity prices.
The bright spot is the results of companies have been good and oil prices have come to a 9 month low which is good for the Nation as our import bill comes down, this leads to more money in hands of people.The markets will not be as high as before as some sanity has set in , the markets will give opportunity to all its a time to identify the right stocks, booking of profits and re entering good stocks is a good thing. Some stocks, can be bought for long term at this point. But, in the long run markets are bullish and this is a temporary aberration. HAPPY TRADING AND INVESTING.
