Goodwill Investor Education Initiative: 8th July 2020
GW Eagle’s Eyes !-Market news:
Investors Perception is up positively but the lacuna persists.
The Indian bourses are of course scaling new highs viewed from the huge rally for the past few days but the base appears to be fragile. No doubt post intensive Covid devastation, the markets have surged upwards with the Nifty almost touching 10850 mark which is considered significant by all standards but the fact remains the volume of trade has not been appreciable and not like before. The BSE 30 share Index has no doubt soared by some 40 % above its lockdown low of 25 638 (and now at 36828).May be a good chunk of investors have left the markets and FIIs are also not plunging in with vigour like before although they have pumped in $218 Billion in June..
No doubt the Domestic retail investors and Mutual Funds with flush of funds are driving the market as at present. The Central Bank of the country has initiated a slew of measures to keep the liquidity in the system robust and the Union Govt. has also provided a lot of philip to the industires and others to improve consumption which alone would boost demand.
The most worrying factor is of “not too encouraging “corporate performance results pouring into the markets and the investors by and large have become conservatives if not skeptical in the short run.
Some of the overseas investors opine that the Indian stocks -many of the top traded ones- are overvalued and there would be a bubble sooner than later and this view has been swept aside by optimistic investors.
The Indian Government is facing a lot of challenges within and without -both economical and political and the fiscal deficit is a cause for concern and the revenue collections are much less than expected and needed. State Governments are struggling to meet both ends meet and in fact overspend , much beyond their means and COVID ‘ 19 has added fuel to the fire.
The Union Govt. initiatives in offing perhaps could extend a positive way out for the impending issues and the investors look forward for more IPOs, FPOs and disinvestment by the PSUs which might trigger the sentiment of the investors and bring forth those who left recently.
But the fact remains that the markets are active and alive and turning out to be exhilarating given the momentum in indices per se.
So it is time to make informed investments in the markets!
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