It is the basic point to understand risk evolved in the equity market by equity investor. Valuations, sentiments, market conditions wholly change very sharply, to gain more from the market better to have much knowledge and the capability to verdict on the conditions. Strictly speaking, there is no such 'positive news' for the market in the near-term even evaluating ourselves, basing the following points: 1. Industrial growth slows - down 2. Inflation is at 6month high 3.Raising Crude prices 4.Drop in GDP growth 5.Budget favored to public not to the market 6.US recession signals 7.FIIs turning net sellers in Markets (inc. India) till now in this year. 8.Govt to face elections within a year, means subsidies cost will grow. 9.Raising rupee hitting the exporters 10.Nuclear deal in the bumpy road The following will be the triggers for the market: 1.Quarterly results may be below the expected. 2.New problem in the pregnant stage i.e., Mid-term elections issue to be born in the near term so many so many Government may not be able to regulate the above at this point of time, bcoz FM will start thinking about the welfare of the public due to the alarm for elections already rung.
I posted this article on march 2008.
I will update this when things going to change
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