India’s Stock Market is HOT - Investors Don’t Fear the Bull Ride

By Dr Suvrokamal Dutta

With bulls gripping the share market, the institutional broking houses in the country are witnessing a robust rise in business volumes.

The investors are a little apprehensive about the major’s correction but they are riding the wave in a volatile upsurge. “The volumes are very high. It has doubled at our counters during the last two months. And, the major part of it has come this fortnight. The market is bullish and we don’t expect a major correction either. A few dips are inevitable, but the growth story will not stop here,” says Mohit Suri VP Kalinga Broking House.

New and dormant investors are back in action and suddenly everyone is talking about the share market, he adds. The inverse demand is working. “Such is the share market phenomenon. People enter the market after the prices appreciate and then they get stuck. They don’t enter when the scripts are available at discounted prices. But, they ride the waves when the market is at an upsurge,” pointed out Shailesh Nigam of Amiya.

He has advised his clients to keep 40 percent of their capital free. “Investors should book profits on targets and withdraw their money from the bourses and keep in bank as the market lures for a re-entry. They should wait to enter in dips. The positive sign is that investors are now working with institutional broking houses in research-based scripts,” adds Nigam. He finds infrastructure, pharmaceutical and some banking stocks good to invest.

Regional head of ShareKhan Mradul Verma sees a positive but dangerous trend. “Small corrections are inevitable but we don’t fear a bears hug. Long-term investors are very safe but in this market trading is ruling the chart. About 80 percent of volume is in futures and options and day-trade. Carrying forward the trades can be very dangerous and in a dip investors cam suffer major losses.”

But I do not see any selling pressure. As a matter of fact, investors are accumulating scripts. Entering in researched blue chips and mid cap is a better option in my opinion. Few of the investors are predicting market to make a new high very soon.

“With the trend of last two days it seems the market will rise. I have booked my midcaps and switched it to Sensex stocks, as they will not fall the way others might. For a long-term investor, entering in good scripts is always safe. It is where trading comes in picture people suffer most,” pointed out Rajeev Masand, a long-term investor.

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