As reported in the “The Economic Times”, dated April 30, 2013, the secondary market (stock market) in the next two-three months will remain range bound and lacklustre. This is due to a deluge of equity share issue from companies in which the minimum public share-holding is less than 25 percent as mandated by SEBI. The minimum share-holding has to be achieved by June 2013 and August 2013 by private sector and public sector companies respectively. This (SEBI mandate) will have implications for the secondary market as investor money could chase new shares, leaving very little for other stocks. With FII inflows dipping, thanks to political uncertainty casting a shadow on reform measures and current account deficit, such trades could leave the market bearish.
Hence stock market investors should take the above information into account before devising their trading strategies.
good reading
ReplyDeleteBSE Sensex has remain almost same for almost two-three years now. It is following sine wave pattern, goes up sometime but comes down again. Is it wise to invest in stock market at all in such a scenario.
ReplyDeleteLast two years have not been good for the investors especially 2012 saw the market decline by 26% and was the worst among emerging market economies. The current year started on a good note but fizzled out after budget. In the current scenario a retail investor should spread out his investment and buy fundamentally strong scrip at each decline to take the advantage of cost averaging.
DeleteCorrection = in place of 2012 read 2011.
DeleteThats a real good piece of information ,small investors will surely take care of their money
ReplyDeleteInformative and will surely help market savvy guys !
ReplyDeletesunil joshi
The confidence is slowly coming back as crude,gold price and inflation is falling..
ReplyDelete