If Markets Are Calling, Why Stay Away!

Even before the monsoon could approach and bring in much needed relief for the population, markets have reached their all-time highs at the time of drafting this note for our valued reader-investors. On Wednesday, May 10, Nifty touched 9400 mark bringing in much relief and cheer among the investors and all the souls involved with the equity markets, directly and indirectly. 

Few weeks back only, in one of our editions, we had talked about Sensex at a 35000 plus range by end of the year and well, in the just beginning of the year, it is inching fast towards 31000 mark. As if this monsoon has arrived sooner than expected if at least the markets’ behaviour is to be considered. So it is time to express joy, rejoice too.

In the coming days, the markets will take cues from four very important factors. To start with the earnings numbers which have so far remained better than the third quarter numbers of the last fiscal years, then comes the much-awaited uniformed tax regime, GST and monsoon--IMD has already expressed confidence for a good monsoon this time and in anticipation, stocks related to agri-products, fertilisers have started their run.

The fourth and final factor emerges from global markets and all of them including the markets in the USA have been doing extremely well at this time. Can there be a better timing to stay invested, invest fresh--we believe, yes, this is the best occasion to stay tuned to the markets and if you have stayed away from the equity markets so far, now don’t delay, catch the bus.

Our cover story package this time talks about why should aspiring new investors must enter the markets to get a good return to their investments, why one should not avoid being in this market and where the markets go from here for the ones who are already into the equities. I am sure, the stories will help the ones who have so far stayed away from the markets to come into the orbit of it and make most of their hardearned money in the form of returns on investments. So please, join the bandwagon, now.

We are also talking about the buzzing cement sector--stocks in this sector are looking bright and may turn even brighter soon. Why and how--read the special story on cement stocks which also has a set of recommendations. We got out tax advisory column back on demand of our reader-investors--I am sure you will benefit of it while calculating your tax liabilities and also to check which are the items may attract fresh new set of taxes and the ones which have been given a relief.

Coming back to the markets, investors can take lot of comfort from the positive market sentiment and they do not need to worry about the high price levels for equities. While there is always a chance of minor correction, as it is the basic nature of any equity market the probability of a market crash is quite low. The money inflow into equities from both the DIIs and FIIs is expected to be consistent going forward.

The prevailing risk-on environment globally is a big trigger for the market going forward and the liquidity inflow can push benchmark indices to new highs. This is also an opportune time to realign portfolio and get rid of underperforming shares that are lying in the portfolio for years together without contributing to the overall performance. While we await the monsoon and first spell of showers across the country, stay tuned to this space as lots more awaiting you during the coming editions of your favourite investment fortnightly. 

Happy investing !