Nifty has scaled 6700 levels. An year back we were at 5250 and 5450 levels. What does it mean for investors? The index has increased by 35% or so from those levels. But a lot of stocks have gained by more than 35%. This difference always remains. Same way when the Index will fall by 20%, individual stocks will tend to fall more than that.
I am perplexed. A lot of retail investors would be in a similar situation. One is getting tempted to invest, thinking if Modi becomes PM of India in the next general elections at least stock markets will rise. But that’s taking a gamble, what if NDA does not form a govt or if there is a hung parliament? The down side could be cruel. In ten sessions the markets can wipe out all gains. Climbing down a hill is always fast and quick. Law of nature.
I may lose out on some opportunity but the fundamentals of the economy still say that I should be cautious. I for one am walking the talk, this time. Till the results of FY 14 are not declared and a new EPS is not established, I am just taking a break. Hasta La Vista