October 5, 2011 by akhilendra
Sensex of India in Short Term
Sensex of India in Short Term will remain volatile. Currently it is trading at 15792.41 and experts opinion is that it may further fall from here. Nifty is currently trading 4751.30. This is a tough phase for most of the stock markets in world and for many countries in Europe and USA. Indian stock markets have performed fairly well in 2011 but Sensex of India have bombed in 2011. Since the beginning of the year, Sensex and Nifty have lost lot of weight which they have put on in 2011.
Sensex of India in short term is a reflection of state of the Indian Economy. Indian economy is also currently struggling to maintain its pace. Indian GDP is going to be bit less than expectation. By the end of last year, Sensex of India was nearly touching 20000 mark and there was lot of hysteria around it. Most of the stock were overvalued and buying them at stage would have been fundamentally incorrect choice. Now Sensex of India have fallen consistently for last 8-10 months and they are at a level where investors can start taking their position based upon their long term goals.
Sensex of India in short term is expected to loose 8-10 per cent from here and so as Nifty. So one should look at the long term investing strategy and design the investment portfolio in such a way that it can compensate for that 8-10 per cent fall from here. Trading in equity is more about profit and loss than over or under value of the stock market. Therefore one should invest systematically at this point so that if Sensex of India falls from here then you can take the advantage of that for averaging.
This is a ideal time to start fresh buying with a long term investment goal. Many quality stocks are available at the cheaper prices and as stock markets are expected to fall further, they are going to be available at even better prices. So make a list of few good stocks which you know well and want to buy and start putting your money systematically into them.
ICICI Bank Long term stock solution
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