Since July, Indian markets have witnessed a sell off due to decreased global progress and sorry state of US and European markets. However, it is expected that the Asian markets will pace up and get out of this temporary down phase. People should expect a reversal soon. Like the 2008 financial crisis, money will start pouring back in the country just as the economic turmoil in Europe is done and over with.
Once the mayhem in the European countries is over, people who have left are going to move back and even more people will shift there and those who remained shall remain.
The best idea today for the investors is to invest money in Indian stocks and commodities because they are offering the best valuations at this moment. People should continue to acquire stocks in India – they have come down to a very attractive level and buying them will be a good step today. Sensex and Bombay Stock Exchange have both declined more than 19% since beginning of the year 2011 and the ratio of price to earning has also decreased since October 2010 from a very high 21 to a merely 15.
At this current stage of the Indian markets when the prices of stocks are so low, India’s consumer sectors and commodity sectors are the most attractive areas to invest. Templton India Growth Funds holds shares in Maruti Suzuki, India’s leading carmaker, ING Vyasa which is a consumer lender and Tata Chemicals, the fertilizer maker company owned by the Tata Group.
Bell The Bull says the invetors should invest causiouslyto get good returns