Investors feelings have surely not stabilised and they are still feeling like they are in a desert. Though the Global Markets have performed positively in the past few weeks the economic concerns are still there among the investors. The uncertainty is there and many questions are being raised like has the market bottomed out and are we in a bull rally now. Though the experts agree to the fact that the markets have bottomed out they don’t expect the rally to last longer. There are still some corrections left and a genuine bull market is yet to come. Further corrections will see more capital being deployed in India. If the markets stabilize globally then one can expect the Indian markets to give some good returns.
The problems in Europe are going to last longer and it will not go away faster. Many problems still need to be addressed in the Euro Zone and Europe is coming out with much bail out plans for the banks. The US has also seen some new bottoms and is not uncertainty still prevails there. Still much positive news are required to bring back the investor confidence. This can be said to be a technical rally and not many people will be changing portfolio in this rally. It is a short covering which could still see corrections. The valuations in India are still not attractive and if it corrects around 10-15% then will be seen investing more capital. The condition in India is far better than the Global markets and it would become much better if we see the Global Cues improving.
Bell The Bull says: India could see more capital investment after a possible correction