Employ the value stocks in India
A group of bad news is coming from the global markets in 2011. The U.S Dollar is dropping against the major currencies. Investors fear a correction. The reports from U.S Job market is extreme weak. According to the new report, Retail Inflation in U.S increased 0.3% in July. US home sales dropped 3.5% in July. The European stock prices are come in the two year low. Both JP Morgan and Morgan Stanly are not confident about the growth in United States. In November 2010, Ireland applied for an 85 Billion aid package to tackle their budget deficit.
Many investors fear the repetition of 2008. That kind of thinking is really foolish. This is a very good buying opportunity for long term investors. Most time stock markets work against mass psychology. When the investors are cautious, market will not give big falls. We think it is a very good buying opportunity. The real problem in India is the inflation. India started sell off on the worries of inflation problems. RBI is increasing the key rates without intervals. That tendency can be stopped in the coming months. That will be very encouraging for the Indian markets.
Crude oil price is falling by the fear in the global market. India is one of the largest importers of crude oil. Falling crude oil prices will decrease the inflation in the coming months. That will be very beneficial for our Oil marketing companies like, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. This will help the central government to reduce the fiscal deficit. In future, Indian oil marketing companies will be a resort for Foreign Institutional Investors. They will pump millions of dollars to India.
An economic slowdown can be seen in both China and Japan. The Government of Japan is trying to increase the value of Yen against Dollar to help their exporters. Some analysts are thinking the Indian GDP growth will be below 7.2% in the coming months. Systematic Investment plan is the right strategy in the particular market conditions. SIP means pumping certain money to stock market in each month. Let the market goes up or down, you should invest a certain amount in your dearest stocks.
The entire world will concentrate the emerging markets than developed markets in the coming years. Some political and inflationary fears can be seen in the country. It is expected that the country can overcome those challenges by time. Other point is that nobody can find bottom of the market. Indian markets look very attractive now Employ the value stocks in the current market violations.