Indian stock market has shown a continuous positive trend in last 5 years and delivered excellent return to investors. All the sectors and segments of Indian stock market are growing . But making it’s life time high in the year 2017-18 market has seen a negative trend after march 2018 due to chain of banking scams. Both of the major indices of Stock market Nifty and sensex has shown a bearish trend. Many the of the fundamentally strong stocks has seen a sharp correction. Now big question is it right time to make an investment in Indian stock market. Before going to decide lets discuss each and every factor affecting .
- Economic Growth : Indian economy is in action and is one of the fastest growing economy of the world competing USA and China like super powers. Indian economy has steadily maintained a continuous GDP growth rate 7.5% to 8% , which is almost double the average global GDP growth rate. In a official statement released by World Bank Asia may lead the economic growth and China and India would be on drivers seat.
- Stock Market Growth : Both of the major indices of Indian Stock market Nifty and Sensex has shown a continuous growing trend from last 5 years. During the last five years Nifty and Sensex have doubled their tally delivering an attractive return to their investors . Nifty was trading at around 6,000 in the year 2015 which is almost double now and trading at 11,000 .
- P / E Ratio: It was the only concern investors were worrying about. Due to high return in last 5 years most of the stocks were having high P/ E Ratio. Even many stocks P/E Ratio was double or tripple as compared to standard. Specially mid cap and small cap stocks P/ E Ratio were major concern for stock market. But in last 9 months stocks have seen a one sided straight sharp fall in the prices. Because of the significant correction specially in mid cap and small cap stocks P/E Ratio has now comes down which is a positive signal for stock market.
- Political Suspense : Stock market always welcome an stable and forward thinking government . Stock market was expecting Modi led BJP will form the next government in 2019. But after losing three major state elections Rajasthan , Madhya Pradesh and Chhatisgarh BJP is now on back foot . Now everyone is in wait and watch position till the general elections 2019. Only after new government in 2019 stock market will be in decisive position.
- IPO year : In the year 2019 many big players are ready to enter in stock market while issuing new IPOs. It may be a good opportunity for investors to keep eyeing on these IPOs . These IPOs may have also a positive impact on stock market . If these IPOs are having a premium opening may boost to stock market.
Founder of the blog , GST Practitioner, Professional, RTI Activist and Self -Employed
I have started this blog on the very first day of 2019 to share my views on Economy, Stock Market,Banking, Personal Finance and Business.Having a keen interest in writing since my college days.Many articles of mine have already published in many prestigious journals and periodicals .It will take some time but I am trying my best to make it a blog with difference.Looking forward for association and love. Suggestion are welcomed………….