Modi effect

#1
We are not ignoring the fact that recent economic data showed reducing CAD and Inflation.We are also not ignoring the UPA governments measures to strengthen Rupee. They could reduce the food inflation.In election in India Onion and potato used to be the main discussion subject.UPA can feel better this time for reducing the food inflation.But FIIs were focusing something else.Lets check on that.

Ever since Narendra Modi selected for BJP`s prime ministerial candidate stock markets in India was reacting positively.From September last year FIIs were crazy about Indian market .FIIs betting on possible stable Government.In September last year FII purchase in Equity was 12,632 crore.Till February this year FII bought 55741 Crores in Indian Equities.So far in month of March they bought 19469 Crores.Last week FII was really pouring money into Indian market.In last 5 days FII net purchase was 10478Ccrores

Lets relate this with opinion polls released by several agencies. Most of these polls say Narendra Modi may become the prime minister and BJP will come into power.FIIs are looking for a stable government.Now look what BJP can offer to the investors

Below is the main points from their economic agenda
Provide stable policies for investors
Transparent investment atmosphere
Policy stability and quick decision making
No policy paralysis No corruption
Vodafone like tax issues will be avoided

Economic policies for Both congress and BJP is not different. But the stable government must be established on clear mandate. Latest reports showing NDA can get 225 seats in election.So getting the absolute majority will be easy for BJP. Several factors drive the market growth. Let’s just watch how the stock market moving in India from September last year supported by huge FII flow.

We took the stock market growth across the globe like US, Europe and China. Several good and bad news were influenced the market like China and Germany contraction, Ukraine crisis, Dollar strength etc .


Now our Nifty performance for the Sep 13 to March 14 period
NSE Nifty index rose 18% during this period,clearly out performing all major world indices.Several factors helped this growth like declining CAD and Inflation.But the major reason behind this super performance was due to the increased optimism from Global investors.

We are not here to make a prediction on continued bull rally as we are believing in efficient market hypothesis. All available news are already factored in.
 
#2
We are not ignoring the fact that recent economic data showed reducing CAD and Inflation.We are also not ignoring the UPA governments measures to strengthen Rupee. They could reduce the food inflation.In election in India Onion and potato used to be the main discussion subject.UPA can feel better this time for reducing the food inflation.But FIIs were focusing something else.Lets check on that.

Ever since Narendra Modi selected for BJP`s prime ministerial candidate stock markets in India was reacting positively.From September last year FIIs were crazy about Indian market .FIIs betting on possible stable Government.In September last year FII purchase in Equity was 12,632 crore.Till February this year FII bought 55741 Crores in Indian Equities.So far in month of March they bought 19469 Crores.Last week FII was really pouring money into Indian market.In last 5 days FII net purchase was 10478Ccrores

Lets relate this with opinion polls released by several agencies. Most of these polls say Narendra Modi may become the prime minister and BJP will come into power.FIIs are looking for a stable government.Now look what BJP can offer to the investors

Below is the main points from their economic agenda
Provide stable policies for investors
Transparent investment atmosphere
Policy stability and quick decision making
No policy paralysis No corruption
Vodafone like tax issues will be avoided

Economic policies for Both congress and BJP is not different. But the stable government must be established on clear mandate. Latest reports showing NDA can get 225 seats in election.So getting the absolute majority will be easy for BJP. Several factors drive the market growth. Let’s just watch how the stock market moving in India from September last year supported by huge FII flow.

We took the stock market growth across the globe like US, Europe and China. Several good and bad news were influenced the market like China and Germany contraction, Ukraine crisis, Dollar strength etc .


Now our Nifty performance for the Sep 13 to March 14 period
NSE Nifty index rose 18% during this period,clearly out performing all major world indices.Several factors helped this growth like declining CAD and Inflation.But the major reason behind this super performance was due to the increased optimism from Global investors.

We are not here to make a prediction on continued bull rally as we are believing in efficient market hypothesis. All available news are already factored in.
Yes. I accept it.
 

jamit_05

Well-Known Member
#4
There is no sure shot income in the markets. When a large enough number of people think that a certain event will give them a sure shot gain on their purchases, then that it a suitable time for FIIs to give the retail investor what he wants: stocks at high price.
 

praveen taneja

Well-Known Member
#5
ok so do you think mkt is going to correct bcoz after delivery a fall always comes to buy back at lower level whatever is delivered at higher rates
 

jamit_05

Well-Known Member
#6
When FIIs sell, markets gets spooked and declines are sharp. Investors should develop the ability to spot such scenarios as it gives great opportunities to buy into their favourite stocks at good prices.

I am not saying there will be utter decimation like in 2008, not that it is out of the realm of possibility. All I am saying is, after election Nifty will fall and consolidate in the range of 4500 to 5000 for a few months.
 

jamit_05

Well-Known Member
#7
It makes sense for FIIs to sell into the Modi-Euphoria, bring price down to the range of 4500-5000, and start gradual accumulation. And before we know it, within a couple of years time Nifty will be all set for 10000. :)
 

TradeOptions

Well-Known Member
#8
Don't know about it but my stocks of Gujarat based companies are playing seesaw these days.
Which particular stocks are you talking about, please name a few such Gujarat based stock names.

thanks
 
#10
When FIIs sell, markets gets spooked and declines are sharp. Investors should develop the ability to spot such scenarios as it gives great opportunities to buy into their favourite stocks at good prices.

I am not saying there will be utter decimation like in 2008, not that it is out of the realm of possibility. All I am saying is, after election Nifty will fall and consolidate in the range of 4500 to 5000 for a few months.
Exactly, small investors are still waiting for a miracle. I see anxiety in MF companies now a days. They are spending on advt like anything.