New Delhi: The stock markets of India have remained volatile this week as the world events were keeping investors guarded in their choices. Each and every day, the market had begun optimistically and closed usually with mixed outcomes. Analysts indicate that international signals such as the increasing interest rates in the US, poor performance of the Asian markets as well as concerns about international conflicts are influencing the mood of the Indian investors.
Sensex and Nifty were displayed with sharp rises and falls in the trading hours. There was pressure on banking, IT and metal stocks and some support of the market was provided by FMCG and pharma stocks. Most investors are opting to wait and watch as opposed to rushing into making instant investments. This is particularly the confusion of the small investors who observe falling after little upsurge.
This volatility is also being contributed heavily by foreign investors. On one day, they are selling Indian shares and on other days they repeat as buyers. This ambivalent behavior is creating confusion in the market. Meanwhile, the appreciation of the rupee in terms of the US dollar is also influencing stock prices, particularly where the company involves IT and export based companies.
According to market experts, the Indian fundamentals are good. The earnings of the companies, government expenditure and domestic demand are at a positive level. In the short run however, movements will largely be reliant on world news. It is recommended that investors should not panic and make emotional decisions.
Financial advisors recommend that attention should be on long term objectives rather than daily lives of the market. They also advise that one should invest in systematic investment plans and not in a lump sum. With the world slowly recovering, the Indian market will be stabilized in the next few months.
In the meantime, caution is the most important term since investors are paying close attention to Indian and international events.
