Tuesday, January 5, 2010

Markets in 2010.......................?

As we all know that our capital markets have performed really well in 2009.Major Indices ..i.e Nifty and Sensex have given return of around 70% in the year 2009, making Indian markets one of the best performing markets among emerging nations.
Also our markets have entered 2010 on strong note.. but the major issue is that, what will be the market mood in 2010, many analysts are predicting the upward momentum for the market to continue for H1(first Half of 2010) and are optimistic that markets will make life time highs, but i m bit pessimistic about this upward movement of the markets and highly cautious in the present scenario.......there are several reasonf for this
-Inflation is set to bring clouds on economy which will prompt action from the RBI to reduce liquidity in the system, and the interest rates would increasing impacting our capital markets.
-The market movement is really surprising and those stocks are hitting upper circuits which have no fundamentals at all or they are having poor fundamentals.

All n all be cautious while investing and do your study thorougly before going for any decision.
At last my sectorial priority for investment is
1.Energy
2.Banking
3. Consumer Durables

Be aware and informed investor
Good Luck