Are you feeling "Panic" ?

Are you feeling "Panic" ?

Yesterday, Indian market witnessed a shocking wave in share market. The Asia’s oldest market benchmark was down by 1624 point down. The investor’s Rs 7 lakh crore wealth wiped out in single day fall. Many investors feel panic and many see this is a good opportunity for investment. It is always good idea to buy in panic. At least you can find good company in fair value or below fair value.

Is the yesterday’s market fall just the beginning of a global recession or it is temporary blip with great pick opportunity? In my view, it is opportunities for those who have not plunged in the market till now. For those who have already invested in the market, need not to be panic. The India growing story is still intact and stay focused on. Savvy investors are investing millions of dollars into Indian companies. Indian Market is going to be huge, growing and world leading market. For traders, market always risky if their bet goes wrong so for them that does not matter whether market up or down. They totally play a gamble.

China have an economic problem so some impact is obvious on Indian market. Our CAD (Current Account Deficit) remains around 1.5% of GDP in comfort zone. We can convert worldwide crisis into an opportunity. Global development cannot impact India after beyond a point. Except for currency and stock market all other parameters are in right direction.

For investors who is looking good opportunity for investing in direct companies or in mutual fund can send mail for help. Please feel free to ask if you have any query.

If you have doubt about investment product and want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for conducting seminar in your city, just drop the mail.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Declining Gold and Rupee

Current state of gold and Indian Rupee

From last few days, Indian rupee and gold prices are in limelight. Yesterday, the rupee had made record low of 59.9850 to the dollar. The sliding of rupee reflects the stress state of Indian domestic economy. The currency has lost 11% since May. Our economy is facing challenges like high current account deficit and lower capital flows. The major impact of this sliding of rupee to dollar can affect the credit rating of India. At present, S&P has already maintains negative outlook whereas Fitch and Moody has maintain stable outlook for India.

Sliding rupee will impact on our industry significantly. Software and pharma industries will boost their profit as their major revenue depend on export. Automobile, capital goods and telecom sectors will feel some pinch on their profit margin.

Gold has also gone low 5 % yesterday after US Federal Reserve signalling of possible scale back in stimulus. I always consider gold as a hedge instrument against inflation. It is non yield bearing asset.  In US 10 year treasuries bond is in 2 year’s high so investor have attractive option of invest in bond. With bond yield rising we are beginning to see liquidation out of gold. Spot gold has also touched the lower level since October 2010.

Demand of gold in India has slowed in this week due to government’s curb on import of gold. According to many technical analyst it may be fall below 1200$ an ounce. In this year, it has already come down 23%. We will witness the huge volatility due to trading community in gold. Today morning, many of buyers of gold is attracting for purchase due to its fallen price. This sentiment may give some support to its price.

The overall impact of weak rupee will be seen as hike in fuel prices, expensive foreign education, costly vehicles and electronic items. The attraction for gold of Indians will be continued as it is well known fact.

For more detail about any other query related investment, you can contact me through my email.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com