Wednesday, February 18, 2009

STOCK MARKET as an investment option in 2009: opportunites, & few optimistic opts..

In spite of sloppy socio-economic situation everywhere around, we need to set forth a strategic approach in order to cah in the future favorable. Hence it will be apprehensive to work out a further analysis of the market scenario in later half of the current fiscal. As many of us believes in opening up of a probably investment opportunity in coming months, lets find out few justifications..

Firstly, in accordance with the events like merger, acquisition & all many more new establishments will be emerged up along with much prudent potentiality & undertakings & in course of reconstructing their capital base, have to come up with public offerings in capital market. Henceforth,these initial offerings can be a rewarding opportunity for us.

Secondly, apart from stock specific strategies.. if we shift a bit to the sector specific, the following sort outs can be significant. Among the several sectors severely suffered, there are few priority sectors like housing & constructions, power & even financial service sector like banking, insurance etc are prima-facie, more precisely, these sectors are bound to bounce back banking on continuous population growth & consequent gradual saturation of residential plots, huge demand of capital for business promotions & reconstructions along with economic turn around, more expansion of power etc are the core factors to be concerned upon.

Thirdly, as we all know fluctuations in interest rate, repo & reverse repo rate etc are also acts against stock market movements are likely to be revised further in near term. Currently these rates are quite relaxed to favor flow of fund in to the system. However, once the economy will be sufficient enough to sets in, these rates will be revised further & accordingly it will attract more attention towards the equity market.

Fourthly, all the global stock indexes are very much economy sensitive. As such a minimum sense of economic instability amounts in to a major insecurity across these markets. Hence they used to crash before the economy cramps in & recover once the economy is restored back. Accordingly, we can conclude that eyeing upon the economic stability & standings for the upcoming few months, more comprehensive decision can be taken up.

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