Future of IT shares in India

Future of IT shares in India-USA is again going through tough times or rather it can be said that it is still struggling to come out of the financial crisis which started in 2008. US debt crisis are still haunting US economy and companies across the country are finding it hard to sail through it. Recent events related to it have worsened the situation. S&P and china has already downgraded the USA and it has further added the fuel to the raging debate of its ability to come out of it, at least in the near future.

Future of IT shares in India depends upon various companies across USA which are struggling and layoffs and expenses cut down has become a routine measures to control the situation. Amidst of all the happening in the USA, one another country which is already struggling with high rates of inflation and turbulent socio-economic situation is, India. Though situation in India is a lot different than USA, but right now Indian economy and especially Indian stock markets are influenced by the happenings in USA.

Futures of IT shares in India also contribute to the GDP of the country.Indian IT companies do contribute significantly to Indian economy and they are one of the favorites among the stock investors in India. They have consistently delivered good returns to the investors. But looking at the current scenario in USA and Europe, it is not very hard to predict that coming days for Indian IT companies are going to be considerable tougher than previous days.

 

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Best or worst for stock Market

Best or worst for stock market in India is lying in the middle of the top and bottom of the current levels. Market has been going through a tizzy in last few weeks and it has become extremely difficult for average investors to keep hold of that.  US debt issue has flared the global market worries. Europe was already going through a tough time and when US debt problem came in the picture, it blasted the stock markets world over.

Best or worst for stock market is something which is like predicting its top or bottom levels. Lot of people would say many thing but no one can actually predict that.

Best or worst for stock market depends upon lot socio-economic factors. World has been struggling with economic turmoil for last three years but this time it is different. USA is not showing any sign of permanent solution for its debt problem and china, which was in a better position in 2008, is currently showing sign of weakness. Therefore the risk of a bigger economic recession cannot be ruled out.

Stock markets do anticipate a lot of these things and as usual, they have been falling since news about  US debt worries broke into the public domain. Indian stock market has gone through their own share of beating but more breaksdown seems to be inevitable.

 

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Short term investment strategy

This year has seen a lot of upsurge in stock market. If 2008 was a year of great fall, sorrow and depression, 2009 has seen the confidence coming back to streets. Things were looking in a good shape and today they look even better. but we need to ask one question, ‘Are they really in good shape?’ because something, as devastating as recession, cannot be healed in few months. It’s a process which should take more time than it has, so we need to be more vigilant while looking for truth. The global economical situation has stabilized but still remains delicate.

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OECD outlook for Indian Economy indicates a slow down

The Organization for Economic cooperation and development indicates a slow down for Indian economy in the coming period. The January composite leading indicator (CLI) grew at the whole and indicated a positive scenario for most of the Europe and the developed world. Italy is the only major economy in Europe which can witness down turn.

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Impact of Japan crisis on Stock Market

As news of nuclear radiation leakage in Japan is spreading across the globe, concerns related to socio-economical status of the country are also growing. Nuclear reactors in Japan were damaged by the massive earthquake and Tsunami which has hit the country last week. Initially picture was not clear about the damage which it has caused to the Japan but as now picture is getting clearer now; apprehensions are rising across the globe.

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Breather for market

Stock markets ended on a high note after crude prices eased up and fallen to 100 dollars per barrel. BSE Sensex closed at 18439.48 up by 265.39 points and NSE Nifty closed at 5531.50 up by 86.05 points. Rise in stock market came as a breather for the investors who were having a tough time. Rally was mainly led and contributed by heavyweights like Reliance Industries, HDFC, TATA steel, Infosys and ICICI Bank.

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Stock Idea- Voltas LTD

In the series of our stock pick, I now present Voltas. Voltas has gone through a lot of beating. Stock Market at large has been go through a lot of pain. Turmoil in middle east, economical recovery in the west and series of scams are mainly responsible for that. There are lot good stock which has taken the beating.

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IIP numbers analysis

IIP number for the month of January 2011 has been released. They stand at 3.5 per cent against 1.6 per cent of the December. They are better than expected. Manufacturing output which constitutes about 80 per cent to the total IIP data is increased to 3.3 per cent. Indian export has also increased to $20.6 billion as per data released by the government.

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Is recovery in west bad for Indian stock market?

With the economical recovery in western countries, especially Europe, Indian stock markets are witnessing a withdrawal of funds by Foreign Institutional Investors. FIIs investment in January 2011 was 48 per cent lesser than their investment in the same period in 2010. Analysts are busying in stock picks but if FIIs continued to shift their funds from Indian stock market then stock exchanges can plunge further.

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