5 reasons why investors shouldn’t worry about the slipping Sensex
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Ever since the Modi government has come to power, Not really, suggests Economic Times article titled 5 reasons behind Sensex's 600-pt slip and why investors needn't worry. As per this article, five factors mentioned to be playing spoilsports in the market are:
1. Rupee losing ground
Since June last year, US dollar has grown from strength to strength over rupee. However, analysts aren’t treating this trend alarming. A market watcher, while speaking to the ET opined that considering a composite basket and not just rupee dollar, it has been found that rupee has actually strengthened a little in the last year.
2. Fed rate hike and higher volatility
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As per the ET report, a market watcher said that as the market adjusts to the US
As a benefit for long term investors, a 5% to 7% correction in the market will fuel the
3. Good return after 2 years
The Economic Times report has further revealed that market being volatile over next 12 months one cannot expect a return of 25%-30%. Vibhav Kapoor, Group CIO of IL&FS has confirmed to the ET that if economy prevails at the same motion like now, good return is expected in next two years.
4. FY17 – Happy Days
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While analysts are positive of a higher growth gradually, FY15 earnings might be below 5%. Though FY16 would be better and might witness earnings around 13%-15%, it is FY17 when the financial experts are expecting a turnaround. Nilesh Shah, MD and CEO of
5. Technical factors
Analysts have opined that if 9,100 can’t be achieved very soon, extreme volatility, negative bias and stock specific action would continue.
(Image: Reuters)
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