FUNDAMENTAL VIEW ON INDIAN STOCK MARKET AFTER CORRECTION

The nifty weekly closing was very weak at 4867.75 which is a 10 days lowest closing after making a weekly low of 4829.60.Nifty lost more than 210 points compared to the previous week closing sending shivers and shock to bulls. This week belong to bears who pounded the flesh of bulls and made hay while sun shine over them.  The reason which can be attributed for such fall can be categorized as under:

-       Global economic growth seems to be losing its momentum.

-       Expert feels that the chances of a double dip recession looks quite possible.

-       There is also a fear that Euro zone sovereign debt crisis could spread to some larger countries that are too big to be bailed out.

- USD/INR have significantly depreciated and now stand at Rs. 49.27 which means dollars are flowing out of the Indian market.

- Domestically Indian markets have been adversely affected in view of corruption scandals like 2G Spectrum making big players nervous in holding and taking position.

- High inflation, high petrol prices, high gold prices, tighter monetary policy by RBI all together have strengthen the hands of bears.

However with the steep correction in the market a silver lining is emerging as our fundamentals starts looking very attractive. India story is a strong story of decade of strong economic growth and shall deliver good returns to the value investors who is willing to take risk by investing in blue chip stocks at their strong support levels.