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Stock Market in India |
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The Indian Stock Market has been running a bull run for many years. It is time this bull run paused for a few years in order to let the corrections take place. Some pull back is also possible as investors move their assets from stocks into bonds, gold and real estate. The real estate is poised for another strong show over the next several years, though gold and other commodities may rise at a slower pace. In particular the extended regions of Bangalore and Chennai, and suburbs of Hyderabad, Pune, Mysore might grow at well over 25% per year in value. Single Family Homes in Bangalore may appreciate faster than apartment units owing to supply-demand. Housing boom may also translate into higher returns in cement, steel, and other construction materials. Among selected stocks, the software and internet companies are likely to do quite well, as telecom and networking demand is growing at an incredible pace. Good companies to invest will be those startups in this segment. Foreign direct investment might get slower as US stock market has gained strength. Also, since indians can invest in foreign markets up to $100K without regulatory oversight, there will also be an outflow of funds balancing the incoming funds.
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