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Shabbir is a developer in the field of Applications, web as well as database designing and is devoted to the optimization and usability of the code. Apart from doing some Share trading he maintains SEO forum and is a C++ addict.

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Is this the right time to invest in Indian Equity

April 21st, 2009 • Related • Filed Under

We have seen a 40% rise in equity for over the past 5 weeks in Indian equity due to the strong Global Cues but now when the Global Equities Indices going down we at Indian Equity market is resilient to go down and so what could be the potential reasons.

  1. Something has changed dramatically in the last one month or so when it comes to India.
  2. Global leaders and Foreign investors think India is the only good destination than any other Emerging market
  3. Indian Politics and some Indian Party funds is holding the markets.

I think the main reason is No 3 and my thinking is backed by the following.

Today April 21 2009 at 12:00 PM Indian Standard Time we have the status of Global Market on moneycontrol.com as follows.

US
Dow Jones 7841.73 289.60
Nasdaq 1608.21 64.86
Asia
Nikkei 225 8711.33 213.42
Straits Times 1833.34 41.51
Hang Seng 15165.47 585.44
Taiwan Index 5881.41 99.75
KOSPI 1336.81 0.42
Thailand SET 463.16 3.12
Jakarta Composite 1629.07 32.78
Shanghai Composite 2511.61 45.85
Europe
FTSE 3990.86 101.94
CAC 2967.46 124.50
DAX 4486.30 190.54

But Sensex ( 10906.59 -72.91 ) and Nifty ( 3359.05 -18.05 ) is resilient to go down. I have been observing the same for more than 2 trading session now and so my assessment is to get out of positions where you have been making some decent gains or you think your losses are not much. Keep cash level high if you would like to make some money out of this scenario.

Now coming to the question in the Title : Is this the right time to invest in Indian Equity ? and no marks for guessing it now. :D

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