Indian Economy gives us a mixed trend now. Both the auto sales and tax collection is excellent but the higher inflation and the decreasing industrial production is below the expectations. A good monsoon is expected in the coming months. The increasing crude prices are a big threat in Indian stock market.
The economies of developed countries are not so encouraging. There are some problems in the global markets. So the developing countries like India will one of the destination global investors. Excellent results are disclosed by the Indian Corporate institutions. As far as the higher growth story is concerned, Indian market is still in attractive valuation.
There is volatility seen in the recent months which threatens the short term investors. So retail Investors should invest for at least three years for ensure good profit. Although the index rose, some index stocks are underperforming. Investment diversification should be maintained by the retail investors. It will save you from the short term market violence seen in the market.It is expected that the growth rate of corporate will be 20% and the capital market will perform on the base of that. Let it remind that the growth will not be like a straight line. So think long term.
It is noted that the Indian banks are performing very well in last couple of years. Banking index is performing better than nifty and sensex. It is estimated that the banking stocks will be performing in the coming years. Investment opportunity is still expected in the banking stocks and even in Non banking financial services stocks.
One of the noted matter in the Indian stock market is the entire infrastructure is underperforming. The government recognized the necessity and relevance of infrastructure sector to ensure the growth and development of the nation. Infrastructure will be a key sector in the coming years because the power of India growth story. It could attract both the national and international investment in the recent times. Political stability and sophistications done by the national high way authority of India will help the infrastructure sector in the coming years. Strong growth is expected in the good infrastructure companies which have good business orders. It is the good sector that should be seriously considered by the Indian retail investors. There will not be any growth without infrastructure. So be part of India growth story.