Sunday, October 22, 2006

Samvat 2063

Vikram Samvat 2062 has been a great year for the Indian stock market with the markets growing at a phenomenal 60 % over last year.

So isn't it scary now to invest in the stock markets now? While it will be unfair to expect such stupendous returns of the recent past, returns between 15-20% should be feasible even now. And this return is still better than other avenues!

To be more specific, let's take a call on the following factors which may impact the growth of the markets. They are:
  1. Multiplier effect of Infrastructure development.
  2. Rising Income levels.
  3. Increasing growth of Services.
  4. Growth of GDP
  5. Growing confidence of Indian managers.

If we think that these factors will positively impact the economic growth, then we should be pretty confident of the stock growth too.

However before taking a leap into your favorite sectors, it is important to learn about the company's fundamentals, soundness of its business model and good earning prospects apart from comparing it with its competitors.

Happy new year and happy investing

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