The previous government of the political party which led the previous Government is back again with the thumping majority; congratulations. It is very clear that Mr. Modi will hold the reins of country affairs with a firm grip for the next five years. The Indian stock market salutes the electoral verdict as Nifty and Sensex kissing new highs.
Stock market veterans, FI is are predicting and projecting higher two very higher indices levels for the days to come. The mood of the market participants is jubilant on the stock exchanges on the backdrop of resumption of the previous government. In all an optimism emerged, and this optimism is purely an emotional and sentimental issue.
Indian Stock Market Issues
The stock market facilitates public ownership of companies while also offering employment in the trading industry. The government regulates stock market activity to protect investors with fair trade of exchange.
The market moves up and down because of factors that perform only on emotional issues for long. As and when the euphoria is fizzle out, the markets will count on fundamental issues. A trigger of an emotional issue may not be a driving force for market performance. So the readers should look on the driving forces in the Indian stock market like a continuation of economic reforms, the revival of the economy which is reeling under mild slowdown.
The traders need a strategy to protect themselves from trade loss. Besides reducing risk from gambling.
Markets will definitely expect from the new government the withdrawal of long-term capital gain tax reduction of corporate tax. It would be keen to watch the steps taken for the growth of the GDP, creation of jobs, government spending, etc.
So readers should be highly cautious while taking any form of investment decision and should focus on Indian stock issues also except a strong government.