Indian Equity Market

Indian Equity Market​
A Goldmine waiting to be explored​
India is among the top investment destinations today. India has a vast potential as rightly pointed out by experts: India is the 4th largest economy in the world and has the 2nd largest GDP among the developing countries, in terms of purchasing power. It is experiencing growth with macro economic stability and is in the process of integrating the global economy. The post liberalization era has generated numerous opportunities leading to collapse of the licensing era. Various research conducted across the globe confirm the fact that China and India will be the economic giants of the 21st century.
While the two populous Asian giants enjoyed nearly double-digit growth rates over the past decade, other countries—low, high and middle income alike—began to worry that India and China’s success might come at their expense. According to experts, the share of the US in the world GDP is expected to fall from 21% to 18% and that of India will rise from 6% to 11% by 2025 and will emerge as the third pole in the global economy after US and China.

 By 2025 Indian economy is projected to be 60% of the size of the US economy and by 2035 India is likely to be a larger growth driver than the 6 six largest economies in the EU, though its impact will be a little over half of that of the US.

 Indian companies will be the growth drivers for this phenomenal growth hence it will be smart thing to invest in these companies. The point that investors should understand about investing in India is that India is an investment goldmine for long-term growth. While short-term profits maybe churned out from time to time but they are not a penny’s worth in longer run but the gold mine would be for those who would be prepared to stay for the longer run.

The Sensex has given a return of 19 per cent compounded annual growth rate (CAGR) since 1979, higher than any other financial investment instrument available to any retail investor and it has been even higher over the past 3-4 years? To be precise better then any other investment option in the world.

What this means in plain math is a Rs One Lac invested in any average blue chip company in India in the year 1979 is worth Rupees Fourteen Crore or (Rs.140 million). Added to this astounding figure equity investments in India have grown 32% in the past three years alone.
Although Equity does have a very huge down side risk as an instrument of investment, it has the potential to give excellent returns if you invest knowledgably and astutely. Also with the real estate boom slowing down, equity presents itself as the best available option for future investments in this fast growing economy.
Pradip Phalore, the author of this article is a MMS-Finance student ‘08 at SIMSR. He has started his own investment consulting and management firm -Salasar Investments.
[FONT=TimesNewRomanPSMT,Italic] You can get in touch with him at -[/FONT]
[FONT=TimesNewRomanPSMT,Italic] [email protected][/FONT]


[FONT=&quot]
[/FONT]
 
Click to expand...
Hi there,
informative article on Indian Equity market. Regarding this article

"By 2025 Indian economy is projected to be 60% of the size of the US economy and by 2035 India is likely to be a larger growth driver than the 6 six largest economies in the EU, though its impact will be a little over half of that of the US."

It mean Indian Real Estate market is stable now for great investment plan.

thanks.
 
hey,
all those stats are looking great on the screen. but the real issue is India being neither a capitalistic economy nor the other word around and being a mixed bag have a full chance of getting kicked because our major exports are to the US be it be the IT industry to the Cotton industry. if the US are going to face a fall back, then it will lead the FDI's to draw back money and go running int their houses to safeguard it and while the Indian equity market also thrives as now because of the FDI's which will again create a scenario like what we had seen last year during the financial collapse of the US
 
You must log in or register to reply here.
Back
Top