Markets went down badly today, I personally think, it is a correction the Bombay index fell more than 600 points and Nifty fell more than 180 points.The reason given is the Saudi Arabia attack on Yemen to flush out extremists. It is called Geo-Political tension. Oil has risen due to its successive fall over a period of time, now it has risen more, because of the Yemen crisis. Oil rising is not good for the Economy of India, as it stokes Inflation. But, the silver lining is, IT companies contract renewal is happening now. So. IT companies like Infosys and Wipro will have business. The problem faced by IT companies is there is a demand to reduce prices of the contracts to be renewed. So, there will be pricing pressure which will effect the profitabibility of theirs. The Land Bill is to be passed in Parliament, and the Government is working hard to convince Farmers that no negative impact will be on them. The ordinance will expire and it has to be passed in the Rajya Sabha, were the numbers of the ruling party are less. Markets were bound for a correction which is happening now, to recover it will take more time.
The returns will not be as good as 2014, one has to wait for good returns and lot of hard work has to be done in spotting good stocks. FMCG is a safe bet as they are defensive stocks, and there is a continuous demand for their products whatever the economic situation. HAPPY INVESTING AND TRADING
