Is It The Right Time To Buy Stocks?

BANGALORE:  With the new government in charge there is a huge change in the country’s economy. Since 2010, Nifty has delivered just five per cent compound annual growth rate but now it is all-time high, with a 25 per cent rally from its 2014 lows. According to the new high-frequency macroeconomic data, the pointers are that, the economic cycle is turning and more good is yet to come, reports Business Standard.

With rising Nifty, the investors are more excited about investing and withdrawing. Thus if you have any plans of withdrawing your investments then wait and think again! It is visible that we have entered into a much more favorable macroeconomic, business and investment environment when compared to the last 3-4 years.

India is now out of macroeconomic vulnerability and thus balance of payments has improved considerably, the rupee seems stabilized and forex reserves are getting refilled.  Apart from all these, significant improvement has been observed in purchasing managers’ index surveys, exports and railway freight traffic, among others. The new government remains committed to financial care.

Most importantly the core retail inflation seems to be declining over the past two months. Prudent government food policies, stable exchange rates and benign global food prices offer a backdrop which is conducive to declining inflation trajectory over the course of next several quarters. As this happens, it will set the stage of monetary cycle reversal, which will be a big tailwind for growth as well as markets.