Monday, July 21, 2008
SHAKY STOCK MARKET!
Indian stock markets are currently rocking due to ongoing political crisis. The stability of government is the major factor. If the present government escape the fall, appears to be imminent due to lefts joint opposition on nuclear deal, the market may (watch my word “may”, it cannot be assured!) look up. In fact the global oil price is showing sign to calm down. The last crude price fall was very sharp it was around $20, last week in the international market. The fall was registered in both New York and London “Brent” crude prices. In India the market is not watching the triangular situation, the stability of government, the inflation and the global crude price. With the ray of better days ushering in the crude market, to-morrow is the d-day, the government stability for till it completes its tenure will be confirmed; last but most important factor is the inflation. The measures taken up, by the central bank, are likely to show results in two months now. Prices of some cereals and food products are showing the sign of price stability. But the iron may go up in the next month as the global price is quite higher that the Indian price of iron. It may fuel the fire of inflation what is already quite bright. But if the oil price takes a down ward trend and inflation gets controlled, then it can be hoped that market will note it and look up. In fact in this doll drum, sensex and nifty are on rocks, but one thing going quite steady. May be not many are watching it. The exchange traded funds, the gold funds are going steady. A year ago, the net asset value of UTI`s ETF`s NAV was Rs833/- now it is Rs1359/-. Even now fresh investments can be made, since gold price is all the way like to go up, sans few momentary hiccups, by the small investors. Some experts are advising the small investors to look for dividend yield funds with Mutual Funds with good track records. Since their net asset value has come down to the extent of 35-45%.