“Definitely a good point to buy”: says chief economist at: NriInvestIndia.com
Markets rallied another 400 points, with massive buying seen in all major blue chip counters. The good part for the Indian economy is the fact that the Indian ADRs trading on NYSE and other US stock exchanges is witnessing some buying too. This clearly indicates that even the US investor believes in investing into the emerging economy like India.
NriInvestIndia.com a major global player for NRI Investments has seen a drop of almost 40% in their broking and mutual fund business in the past 5 months. However, the analysts out there firm that the momentum is picking up and the coming quarter would be of some good to the top brokerage houses, as the momentum is surely going to pick. The markets have come down to 10000 levels, which was much awaited and large majority of investors who has missed on to the previous bull run are now looking forward to catch these lows. Infact the NRI segment is also increasing their share of investment at these levels.
The inquiries to set up trading accounts for non resident Indians have also increased in the few weeks. The reason is simple that psychologically major part of the investing community was expecting the Indian market: bse (sensex) to trade at 10,000 and now that it is hovering around those levels, people and institutional investors are keen to buy in.
Yes, this is a right time to invest, but only for long term. The volatility has not gown down, but the good news is that the bailout plan is slowly working and the effect on the credit market is being witnessed. This would ease the capital flow in the credit market, giving more liquidity to the capital markets. Thus if one wants to place a bet, then this is a appropriate time, if no the correct time.
You cannot time the market, but you can certainly evaluate your risk to reward and on that basis you can make a choice which can reap you give benefits in a longer run. Thus one can plan to invest into India at these given levels. One of the best firms to make investments in India is: NriInvestIndia.com