Indian Market: Is this the right pace?

For anyone who had seen the Benchmark trading at the end of December and after a break of a month, one would surely be surprised and would surely go haze n’ blaze.

No investor would have ever imagined that the Sensex would crash so much and infact remain to be at the same point. Even on the day of the HUGE crash, investors were very optimistic that it is just a matter of a week and the benchmark would be right up there again.

However, I guess I’m one among the many market watchers/investors who were pretty surely waiting for the huge correction. Infact, I have time and again mentioned that it was a pseudo market and the right price for the Indian market/economy was somewhere in mid 16k or 17k.

The huge plunge in the market was for various reasons that I have elaborated in my previous blogs. The US inflation and the US markets had reached its saturation. Its always natural for which goes up for a long time, has to come down. In the case of US, its been like this periodically. So, a US economist would not bother about it as its quite sure that there are some FED cuts following and some Tax cuts following, after which its again gone be the BULL! But what really bothers for all of them is, how long will it take to bounce back to the BULL. I do not think anyone has answers to this as of now. Coz economists, Fed, Govt are all analyzing if the US is in recession already or if its yet to come.

There are many compelling factors for one to tell that the US probably is already in recession mode. The less sales, services slowdown, mortgage crisis, sub prime crisis are just to name few of the many indicating the US slowdown.

This is the era of globalization! Everyone speaks of it infact!! The term actually weighs a lot! And if someone speaks of it, others feel that “this guy knows a lot!”. The countries are interdependent on each other for survival and growth. I was reading one of my friend Rahul’s blog. I had actually touched on this topic, but he has gone ahead to explain this at a big level.

For a while now, the markets are trading almost at the same level. I guess this will go on atleast till the Great Indian Economists, our own Finance Minister Chidambaram and our PM Manmohan Singh present to India, the budget for the next financial Year.

Talks have already been spurred on what could the budget offer to the common Indian, what the budget could offer to the corporate, to the sales, to infact all the industries.

I would like to present it again, that this is one of the best times that a commoner could get into the market. Get in and stay long. Remember, be it life or market or anything, the more u stay long, the more you are the returns. The short term returns are very little, be it profit or loss.

For all those who had invested during the Great Indian BULL, keep the investments intact, do not sell it. Remember; Every dog has its day!