I was thinking is it right time to invest in Indian Stock Market? As no one can predict equity or time the market, for long term investor, every time is the right time. Looking at what happening at the moment in India, as it just got a stable government with everyone from common people to the corporate world is hoping no non-sense governance, things really look very attractive. Indian stock market is in a roll from March, stocks like SBI has gained almost 100% or doubled within three months.
Indices like BSE Sensex and NSE Nifty have touched them all time highs, with BSE inching towards 25000 and NSE towards 7500, shows the confidence of FII (Foreign Institutional Investor) in India's growth story.
Indices like BSE Sensex and NSE Nifty have touched them all time highs, with BSE inching towards 25000 and NSE towards 7500, shows the confidence of FII (Foreign Institutional Investor) in India's growth story.
Looking at pure growth potential, there is tremendous opportunity in Infrastructure, health, finance and every other sector. India is a big country with full of resource and manpower, all it was missing was a stable, decisive and no non-sense government.
If you look at other trends e.g. USD going down against INR, it's also a good hedge for NRI investors, who wants to keep their money in Indian rupees. In next section, I will list down my reasons or Why I think it's the right time to invest in Indian Stock Market, and I hope same from you. Let me know if you agree or disagree, and your reasons to invest in India equities.
1) My first reason to invest in Indian equities is that I believe in India growth story. Everyone will agree that there is a lot of scope and growth potential in Infrastructure, Power, and Finance sector in India.
If you look at other trends e.g. USD going down against INR, it's also a good hedge for NRI investors, who wants to keep their money in Indian rupees. In next section, I will list down my reasons or Why I think it's the right time to invest in Indian Stock Market, and I hope same from you. Let me know if you agree or disagree, and your reasons to invest in India equities.
Why I think Its right time to Invest in Indian Equities
Here are my few reasons, which is purely based upon common sense. I am not an expert, neither have done thorough research, but as an individual, I am putting my thoughts for my own benefit and also seeks your inputs. Since we can not overlook equities as an investment option, as it is our only hope to beat inflation, it's our responsibility to learn more. Same time, we also need to take advantage of opportunity coming to us.1) My first reason to invest in Indian equities is that I believe in India growth story. Everyone will agree that there is a lot of scope and growth potential in Infrastructure, Power, and Finance sector in India.
India has grown tremendously in last 20 years and one can expect similar growth in next 5 years with a stable and efficient government, this is yet to be proven but we all know that stock market runs on hope. It invests on the basis of what's going to happen, of course considering conditions and track record.
2) For NRI Investor, since USD, SGD, GBP all going down against INR, it's a good hedge to put money on Indian stock market, as one of the reason why INR is becoming strong against the dollar is FII buying rupees to invest in Indian stock market.
3) Indian stock market has not moved in last 4 to 5 years at all, and giving improved confidence of corporate sector on government, its all set to leap and bound in coming years. Recently, legendary investor Rakesh Jhunjhunwala also said that we are going to see a mother of all bull run on Indian stock market.
These are some of the reasons, Why I think it's a good time to invest money on Indian stock market, but I am also curious to know what you guys think? do you agree? disagree? let me know your thoughts. As I have said before Equity investment is risky and one can lose all their money and one should never invest more than what his risk profile permits. Many people, don't do make even 1% of effort on investment than they put to earn that money. You must do your own research before investing in any company or any mutual fund, because it's YOUR hard earned money.
2) For NRI Investor, since USD, SGD, GBP all going down against INR, it's a good hedge to put money on Indian stock market, as one of the reason why INR is becoming strong against the dollar is FII buying rupees to invest in Indian stock market.
3) Indian stock market has not moved in last 4 to 5 years at all, and giving improved confidence of corporate sector on government, its all set to leap and bound in coming years. Recently, legendary investor Rakesh Jhunjhunwala also said that we are going to see a mother of all bull run on Indian stock market.
These are some of the reasons, Why I think it's a good time to invest money on Indian stock market, but I am also curious to know what you guys think? do you agree? disagree? let me know your thoughts. As I have said before Equity investment is risky and one can lose all their money and one should never invest more than what his risk profile permits. Many people, don't do make even 1% of effort on investment than they put to earn that money. You must do your own research before investing in any company or any mutual fund, because it's YOUR hard earned money.
India is on the cusp of a big bull run. The current life high of BSE Sensex of 25,000 is expected to increase to 100,000 within next 5 years on the back of pro-reform government which has been given a clear mandate by people of India. It's first time in India that a clear mandate has been given to a government with capitalistic mindset. Some of the sectors that Foreign Institutions/NRI/ Funds should consider are Infrastructure and Telecom. These sectors have been run down due to bad policies of the previous government and are expected to bounce back the most within next 12-24 months.
ReplyDeleteSome stocks which have just started participating in the bull run in these sectors are:
Telecom:
1. NU TEK India - A Telecom infra company available at 0.2x Face Value and 0.02X Book value. The company has assets around $100m and MCAP of only $2m whereas the company debt is around $4m. One of the leading Indian fund house already owns around 2% stake in this company. Really attractive valuations for considersation here.
2. GTL Infra - One of the leading Telecom tower providers in India
Infrastructure
1. SUZLON- Its the world's 5th Largest wind turbine maker and the owner of RePower Germany.
Others
1. DCM Shriram - A conglomerate (Sugar, chemicals, Rural Retailing, Agri products) with $1b revenues and MCAP of only $350m. The company has been on the path to become a powerhouse in research of seed business and plans to become Monsanto of India. The company is highly profitable and the promoters and funds own close to 80% in this company so it has low floating stock. Its Ceo is also the Chairman of the largest corporate body of India.
There are 100's of such stories which can/are giving amazing returns to investors.
Can you please write about difference between PPF and long term Fixed deposit investment?
ReplyDelete