Indian stock market didn’t correct in line with global market and FIIs have almost sold Rs.7600Crs in month of May and MF were not aggressive buyers, retail participation was missing to a large extend then, who is buying? Today ET has come with an Article where HNI are buying and they are fully invested and this is my view also. But they will feel the pain once 4900 this time is cut, many stocks have eroded faster than market and any fresh correction will make this wealth managers cut leverage position first. Few analyst and wealth managers have been aggressively bullish quoting this market is refusing to correct.
Market is always brilliant and kind to indicate us in the last 8months Index hasn’t moved much and all data point very positive growth, on June 1st PMI data was best in 27years and many Auto companies recorded highest ever sales all these on very positive GDP data. “Liquidity” the Color of money it always runs on the slightest fear of weakness.
View: Indian Market in long term would be the best and pain in near term can be possible, problem comes only when the money invested has a timeframe and leverage. TATASTEEL was below Rs.180 2years before and it saw a high of Rs.700 like this there are 100 of example but it was investor who had full cash to pay and who forgot the investment who made money. Traders, Derivative investors or Leveraged investor have failed to deliver. SIP- Systematic investment Plan would help investor. http://www.akprabhakar.com/press3.php “portfolio for you” which was maintained in 2008-2009 for a Tamil magazine for 12months created good return for investor.
http://economictimes.indiatimes.com/markets/stocks/market-news/HNIs-pledge-MF-holdings-to-repay-debt-buy-fallen-stocks/articleshow/5996325.cms Affluent investors are pledging their mutual fund holdings to raise fresh money to buy recently beaten-down stocks, invest in new fund offerings (NFOs), repay debt and make a quick buck through trading. “HNIs are leveraging their fund portfolios to raise short-term money (usually for 3-12 months). Many of them are using the money received from portfolio leveraging to repay their debt or make investments (reinvest) in beaten-down stocks (averaging), real estate and new mutual fund schemes,” said a Mumbai-based wealth manager.
http://www.time.com/time/photogallery/0,29307,1845923,00.html A look at the world as it deals with a global financial crisis
Nouriel Roubini, the New York University professor who predicted the global financial crisis before markets peaked, said the Brazilian, Chinese and Indian economies may be overheating and developing asset bubbles. http://preview.bloomberg.com/news/2010-05-31/roubini-says-brazil-india-china-may-be-overheating-sees-asset-bubbles.html
Freak trade in RIL around Rs 840.55 in BSE- CNBC will RIL touch Rs.840 when DOW can do the freak trade target I would not comment not possibility is high http://www.akprabhakar.com/
http://twitter.com/akprabhakar BSE BANK INDEX DOWN ----------ICICIBANK, AXISBANK, HDFCBANK are Banks with no ownership these are government promoted Company who later became bank and now merger of banks Negative for These banks .
