We at NriInvestIndia.com are actually assuming that these are some good levels to buy shares and not sell. NRIs can get some real bargains and cheap prices on value stocks; and they can hope to make money in longer run. However this just an assumption from our trading desk, and the final decision to buy and sell or invest totally depends on the investor. The markets have been volatile in the past few weeks and have shown some real drama on the charts; however we hope that the dust settles in the coming weeks and we will get a chance to see more inflows in NRI Investment sector. The fundamentals are still intact and growth story of India is not yet over, thus we believe that there is still a lot of juice left in the Indian capital markets. Perhaps, we might not see investors making money with the speed at which they had made before when the sensex went from the 14000 level to 21000 levels. However, there is still lot of potential to make money provided the clients diversify their investments in right mix. They can invest in commodities, stocks (using their demat account), top performing mutual funds, insurance, futures, etc.
To conclude, the markets still look very promising and one should wait for the right time to enter with the right approach that too with a balance of some great investment products. After all only those people will make money who site great investment opportunities in India at the right time and invest with prudence.
Our Investment Advisors at NriInvestIndia.com are still bullish on India, and are still advising clients to buy Indian stocks with a dollar cost averaging strategy (this strategy is definitely risky, so it is advised to take a help of a certified professional). More importantly the clients are being advised to reshuffle their portfolios by adding more of debt funds like the government and corporate bonds also, besides shares only. The idea here is to play safe, with a balanced asset portfolio with a mix of top performing mutual funds and stocks, along with some solid debt instruments; this would bring strength to the portfolio by reducing extreme volatility. However one needs to be cautious by not putting all his money in to the markets at these levels, but what experts are saying is that one should only get into this market with a long term view of say 2-3 years a minimum.
The good news is that the coming earning declaration from the Indian companies, is expected to be good, and this would definitely boost the consumer confidence and by all means this would have a positive impact on the stock markets of India, especially on the large cap shares like: Reliance Energy, HDFC Bank, Canara bank, Balram Sugar, ICICI Bank, etc. Besides the corporate earnings, lot of other mutual funds that were sitting on cash are about to come out from shells and do some major buying in the exchanges, and this would again push the index up on the curve.
The idea would be here to invest in India with caution, and as soon as the market picks momentum one can go aggressive by putting in more funds in some good mutual funds through various routes like SIPs – systematic investment plans and MIPs – monthly income plans. However the bottom still remains that the Indian boom is not over yet, and if one really needs to encash this golden opportunity then one needs to get into the share market with a positive attitude accompanied with some serious investing smartness.