The markets were all about ups and downs in the gone week, with a final pickup that we saw on Friday. Yes the markets are down and beaten, trading below the long awaited 10,000 mark at the sensex (BSE: Bombay Stock Exchange). Analysts do believe that the buying can be seen coming at these levels, but the markets definitely miss the enthusiasm and zeal, that it wishes for. The oil is trading at its 6 month lows, commodity prices are trading lower, and the federal reserve is out with a solid $600 billion bailout plan too; then whats making the market sink day by day. This is one hard riddel to solve.
Many analysts believe that the major damage has been done and we are certainly at the bottoming out stage, all looks good now with inflation under control and the entire home mortgage bubble been taken control off; we can see some fresh buying coming into the markets very soon. On the flip side the good news is that no major banks or institutions are selling at any of the major stock exchanges, its just the lack of buying at counters: says “Karey Girish” at NriInvestIndia.com
The global economy is definitely suffering a lot, where we saw a lot of blood shed at major world stock markets like: china, japan, india, singapore, etc. The financial damage has been done, and this whole bailout will definitely bring some ease to the market, but such an effect would take some time to reflect on the market sentiment. The effect would be seen in the coming months, but nothing should be expected in a short term, say many bankers and economists.
However this could be a golden opportunity for those investors who missed on to the golden run of late 2006 and 2007. Investing in Indian stocks & mutual funds at these given levels could reap out some good long term returns, as the risk to reward is quite evident. The dowside is definitely less and on the other hand the upside is quite attractive, says a research analyst at: NriInvestIndia.com