Tuesday, February 07, 2006

Indian Stock Market Hits 10000 - What it means for us

For sometime in the recent past, I've been trying to invest some money in the stock markets and Iam now greatly stunned by the upward movement of stocks in India. I still remember it seeing around 2000-3000 in 1999 and a 3-4 fold improvement in the last 7 years is astounding. India is experiencing a period of great economic revolution. The consumer confidence is very high, there is optimism all around, and the world is trying to flirt with this new girl. No wonder, the market reflect this boom.

I always believe that India has a great future. Indians on an average are not lesser in intelligence to any other race, but still Indian per-capita income is around $500/year about 50 times (!!!) less than those of the developed countries. When economies were controlled just by material power, this was understandable. But, now the world is moving towards a Brainy stage, where people's intelligence is the premium. Thus, we have the chance to take our per-capita income by atleast 50 times, provided we finish our basic socio-economic lessons first. If the per-capita income grows by 50 times to $25000+(not an unreasonable thing when u look at it person-to-person incomes) we could have an unbelievably sized Indian economy of around $25trillion(60% of world GDP in 2006 prices!!!). No economist could dream of such a big figure, but it is not impossible given the fact that it is very easy for a person of normal intelligence to earn $25000/year in Europe or America and there are always the rich moguls. Moreover, the cascading effect of such an economic revolution along with the fact that India is tropical country with strong historical heritage could change the whole world. It is definitely not impossible!!!

But, before imagining about the spectacular future, we need to set right the basic elements... 400 million illiterates have to be educated, 370 million people have to be lifted from chronic poverty and hunger. 500 million people need to be given basic necessities of water, power and sanitation. Our 1000+ monuments of historic heritage (most of them over 1000 years old) have to be rescued and restored. Our agriculture has to be lifted from the current average productivity of less than a tonne/hectare for food grains.

Thus, we are under-utilizing our potential and utilizing our remaining potential could take just a matter of years if we could significantly dent in the illiterate and poor sections of the society. By just making a person to read and write a language, each one of us could help in removing 400 million illiterates and we could almost double our GDP, because education often increases opportunities and incomes by atleast a factor of 2. Simple things could do wonders for our country and world economy.

WE have done more complex things, like producing a supercomputer, geo-stationary satellites, thermonuclear bombs and high-tech machines. Now, itz our turn to do simpler things like making people read and write, have minimum food and water and this could stun the whole world!!!

2 comments:

sharetipsinfo said...

Hi Friends
Please try to recall we claimed that Sensex will touch 15000 mark very soon, We believe that we were the first one to make this claim. Now just see we .
The story doesn’t end here only.
Now we are making you beware that now trade with due care. As Nifty and Sensex will see correction now.
We are making this statement but still we request you don’t start shorting right now, and no need for panic at all. We are just making you aware that you need to take precautions.

Apart from this We would like to highlight few facts also regarding SENSEX journey to 15000 mark.

BIGGEST GAINERS

COMPANY % CHANGE
L&T 61.7
BHARTI AIRTEL 35.6
RIL 33.7
TATA STEEL 26.4
BHEL 20.4

RAGING BULLS

MILESTONES DAYS
4000-5000 2551
5000-6000 125
6000-7000 1965
7000-8000 80
8000-9000 81
9000-10000 70
10000-11000 43
11000-12000 30
12000-13000 193
13000-14000 37
14000-51000 213

Right now best buy are any IT stocks specially TCS and INFOSYS are very hot for buying.

We hope this information will be quite beneficiary for you and can be used appropriately.

Regards
Sharetipsinfo team

sharetipsinfo said...

Hi,

Indian stock market is one of the most volatile market. Its two main stock exchanges are NSEand BSE. Both exchanges generally follow same trend.

NSE and BSE offers platform for investment in Indian stock market. In India there are many traders who prefer NSE over BSE as they consider BSE
as more volatile exchange but truth is that all exchanges be it NSE, BSE or LSE are volatile and should not be considered as a place for speculation.
One should strictly follow technical analyses if they want to earn regularly from any stock market.

Please remember analyses of stock market be it technical or fundamental do help!!

Regards
SHARETIPSINFO TEAM