Nifty-F (SGX )
is now Trading at 10289 at the time of writing of this article. Why Indian Equity
market is exposed to such high
volatility ? 100 Points Up or Down is not a matter now days. Lets, look at the
micro-economy figures.
A per a recent
report, Indian Economy is expected to grow7.4% in FY19 compare to earlier expectation
of 7.1%. The rise is due to the
production side, higher growth in agriculture (expectation of normal rainfall
and assumption of even rainfall distribution over space and time) and
industrial sectors is expected to push the overall economic growth. From the
expenditure side, the boost is expected to come from both private and
government expenditure coupled with green shoots emerging in investment
spending.Auto sales are rocket high with 25% growth insales.
The major
concern is the Banking sectors, which is loaded with huge Non-Performing
assests of 14% of its total credit portfolio and delay in the CAPEX by the
companies.
We are
hopefull that Indian Equity market will see Ups & Down in the near future ,
with the changes in the Bond market.Govt has reduced its H1/2018 borrowing from
bond market by 10%, which has made the Yields to slide from 7.80% to 7.3%
(10Yrs Bonds ).
