Monday, November 17, 2014

The Rising Sensex

The Sensex is now above 28000. A few months back economic pundits talked about 25000 mark and were looking forward to making money by speculation and intelligent investments. But now the whole share market is surging ahead. What are the reasons for such a rise?
1) The fall in international crude prices. The petrol price in India is more or less deregulated and is only controlled by international crude oil prices. The fall in crude oil prices has made surplus money in market and hence the Sensex is moving ahead.
2) Friendly government and bureaucrats. The government is considered market friendly. Also RBI governor is favored by all businessmen. The new Economic Adviser to GOI has also given more hope to all the junta investing in shares.
3) Lack of Global peer to peer competition. There is a lot of red tapism in India. Free trade and economic liberalization are dreams for all. More so for the rich. Because our range is limited we manage to excel and do well in our field. Bitcoins can change this to a large extent. But no one dares to make bitcoins a reality in India.
4) Foreign Institution Investments. The foreigners are investing more in India. They see India as an opportunity. We have seen the recent trends in FII activity in e-tailing.
These are some of the important points which is causing the Sensex to move up. With confidence. With determination. And with Drive.

No comments:

Post a Comment