Good Evening all, Markets were down today owing to be the last day for derivatives tomorrow ie Thursday December 25th being a Christmas holiday. Many Foreign Investors are on a vacation so, the activity is less in Markets. The day swings need not be bothered much, as this is a normal course in the markets. The future looks good with the stable and good Government at the center and the International situation being good.
Indian Markets have given a fantastic returns in 2014, so you can see tempered returns in 2015.India is a multi year story so, it can generate good returns over the next few years. 12 to 18 months in the five year period investors are expecting a lot of macro changes happening, and expectations of a lot of imbalances in the Economy to be corrected is there.Post this period it is going to be an earnings led economy. Earnings of companies are expected to be good.A higher GDP growth rate is expected.Private Sector Banks are preferred than State owned Banks, as the Asset quality of Private Banks are better, compared to State owned banks.
Rate cuts are to be watched out, and if a rate cut happens Auto sector stocks will be the first beneficiary.Oil prices are going down this is a good thing for some economies and also hurting some economies thereby, it is a mixed bag.FDI in Insurance sector is much expected but not been able to pass the bill because of less numbers, in the Upper House of Parliament the Rajya Sabha.The Prime Minister might use an ordinance, to allow more Foreign Investment for Insurance in Private sector and make mining more transparent. This ordinance will be valid for 6 months, and must be voted during the next Parliament session which starts in late February. HAPPY TRADING AND INVESTING.
