Tuesday, July 08, 2008
India stock market update as of 08 July 2008
I am still holding on, given that I believe in 2 things:
1. All my education years wherever I have studied either finance or economics (and specifically the equity market), there has always been one standard logic. When the time is down, when people are not buying, then this is time to buy. I still believe in that, and so prefer to look out for some great scripts that are available at pretty reduced rates now (such as Reliance, Infosys, ICICI Bank, Tata group, etc)
2. Secondly, over a long term, equity market has always given the best results, and this crash has been happening for a period of 6 months so far. Previous crashes and downturns have gone on sometimes for much longer periods, but there has eventually been a recovery.
At the same time, I will not deny that the situation remains painful. Timing the bottom of the market in this situation is very hard (you buy a script, and then it can fall much further); and the participation of retails investors, FII's and domestic FI's are all very low.
So, I keep on watching and monitoring. What do you people think ? What is the future like in the short term and long term ?
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