Goodwill Investors’ Education: 1st Jul 2020
Eagle’s Eyes: Market News: An analysis:
Bourses discount Covid ’19: Indian Bourses rebound- Gain over 20 %: in 1st Quarter of Fiscal Year of 2020-21.Read the analysis below:
Incredible? Yes- it’s true: Indian Bourses have shown their resilience and the Investors confidence and sentiment remain unabated despite the monstrous and diabolic designs of the deadly virus impact world over! The Share markets- both NSE and BSE have seen the biggest quarterly rally since 2009 with a proved gain of over 20 % in April- June 2020 quarter. This is the characteristic strength of the Indian Bourses and the investors- both national and overseas. FPIs are also slowly turning their attention to Indian markets as they do not find any other appropriate markets overseas to park their investible funds to gain a decent ROI like India. But some pessimistic market pundits opine that the Indian markets’ present upheaval would not sustain due to geo-political and econmic factors threatening nations world over and the bears are waiting to dominate and the optimists brush this side wards.
The reaons are not far to seek: The FPIs and the DIIs have felt that the worst is over and the retail investors too find it difficult to park their surplus funds elsewhere due to risk and very poor returns particularly from banks. Secondly the long and large rally goes to prove that the investors are driven by an optimistic note in terms of economic recovery in the last three months and the unabated flush of funds being pumped into the economy by RBI, Union Govt and others like FPIs.
That is seen as a positive turnaround viz a viz the nearly 30 % decline in the last quarter viz., Jan- march 2020.
Another noticeable feature is that the BSE and NSE Midcap indices are also up by over 25 % particularly Auto and Telecom sectors.
In fact FIIs were net buyers in Indian markets in April-June quarter to the extent of $3.91 Billion and DIIs have invested over Rs 10900 cr in Q1.
Of course, certain factors like impending US elections, Border tensions, IMF, ADB and other rating Agencies’ reservation on Indian economic deceleration, Corporate results, Covid ’19 influence and damage etc will weigh very heavily on the behavior of Bourses in the next one or two quarters. But the fact remains that the Indian economy with all the prevailing aberrations would eventually prove that the fundamentals are intact and strong to face any transitory challenge of the kind at present.
So investors keep investing in small tranches and the markets have seldom disappointed in the long run !
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