Stock Market Outlook for next few weeks is going to be very volatile. Stock markets in India have been doing well for last few sessions. There has been huge turn around in the buying interest among investors. Market has recovered a lot in the last week and fallen yesterday to shed some of the gains it acquired last week. Stocks markets in India have been going through this zig zag motion for some time. Indian stock market forecast is quite dismal for the short term.
Stock market outlook for next few weeks will depend upon lot of factors.Global stock market indexes had their own share of beatings, happenings in USA has been causing this negative impact over stock markets world over. Recent news from Economy (U.S) that USA is again moving into recession has caused flairs across the global stock market indexes. Inflation and local socio-political instability is still nowhere close to clear. European Union is already struggling to come out of its own crisis.
Stock market outlook for next few weeks has been a major issue of debate among experts across the globe.
With the inflation consistently hovering in the upper region, it can’t be said that Reserve Bank of India is done with its rate hiking exercise. India has seen series of rate hikes in few last quarters. Inflation is still not in control but their effects on growth are visible now.
Indian GDP is slowing down and it is going to have its repercussions on the stock market. Companies are struggling high interest rates and growth is gradually becoming a challenge for them. The Nifty closed above 5,000 down only 20 points, while the 30-share BSE Sensex closed 108 points lower at 16,713 after seeing a recovery of over 100 points from the day’s low of 16,561.46.
There is lots of negative news like dismal report on US job growth and euro debt worries. It is causing panic among foreign institutional investors. FIIs have been the real force among rise and fall of Indian stock market. Whenever there is negative news in west, it either triggers flow of money from west to Indian stock markets or vice versa, that is flow of money from Indian stock markets to west.
In the current scenarios, Indian stock markets are relatively expensive than many other emerging markets. It is causing withdrawal of funds from Indian stock markets. It may continue for some more time. In between, some short term rally may occur but overall short term outlook will remain negative.
BSE may touch 14000. But this doesn’t mean that investors should stay from the markets. This is a very good time to build portfolios. One should take caution and invest systematically in good stocks. Investment strategy for the short term should be to focus on good stocks. Next two months are quite crucial for it to steer out this situation.
Experts believe that it may take a little longer but in a approx two months time, things would be clearer than before. Economy (Global) is going through a rough patch and it will have its own impact on the stock markets as well.
Stock market outlook for next few weeks is going to remain negative.
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