Saturday, April 12, 2008
India stock market update 12 April 2008
However, there is plenty of bad news, that affects sentiment. The US is in a recession, and there is no sign yet that the recession could get lifted soon. In India, the Government is almost foundering in its attempt to save its political ass. It has not done anything significant to increase agricultural production, and hence is being forced into threatening decades old repressive measures to reduce prices.
Inflation is forcing an extension of the credit squeeze that is suffocating the industry and causing a lowering of overall growth; exporters are being squeezed so that enough is available domestically. Nothing right now seems to be going right for the Government, with all dividend from the dream political give-all budget having vanished.
However, all literature on equity advices to buy fundamentally sound companies, especially when they are down, so this is a good time to do small investments into companies such as Reliance, ITC, SBI, Infosys, etc.
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