The markets been very volatile this week. The much awaited correction has arrived at last due to wat ever reasons which seems irrelevant. i suggest the investors to wait patiently and invest once they see a positive sign in the market. this might be the last chance to pick stocks cheap for the next rally.
If you take experts advice it would be wise to invest in Blue Chip companies at this juncture of share market trends. Reliance Capital and Reliance Petroleum are the best Bet one must go in for.
Besides this Cipla and Tata Motors are also going to give big returns after 3-4 months from now. The sensex seems to settle down at around 13000 mark with in 3 months from now.
Returns from your investment in Indian Equity is no doubt going to outperfom returns from any other avenues available at present - in short term, medium term and long term as well. Current correction will provide a decent platform to launch an investment in Indian equity. Only thing an investor has to do is to hold on with their spare cash till the current turbulence is over. The question is when will this correction end. In my opinion it would when FIIs come back to the Market. FIIs (that are mostly US based) are concerned about depreciating dollar against International currencies. US government has to reduce their trade defecit particulaly with China. President Bush (a madman)tried convincing President Jintao (another madman)to allow Yuan to appreciate against dollar as per the market forces. This obviously would make Chinese exports to US expensive and help in reducing the massive Trade defecit. Chinese President obviously refused to do anything like suggested. This leaves US with the only option of depreciating US dollars. Depreciation of US dollar would hit all companies those who export to US and also make FIIs uncertain of their ROI from their international investments.
