By Himanshu Khandelwal
The Indian market made a historical day on Tuesday this week when Nifty touched the magic level of 10,000, driven by better earnings from blue-chips and strong liquidity. However, profit booking at higher levels pulled the market down to a mild correction, attributed to a psychological effect, muted Q1 results for midcaps and the forthcoming Fed monetary policy meet.
Stock markets in India have been soaring as the economy enters a prolonged period of political and economic stability. At elevated valuations, near term returns seem uncertain but investors should focus on riding the mega trends.
India’s per capita income has grown by 300 percent in rupee terms in the last decade creating an aspirational consumer of goods and services. This coupled with government policies have kick-started mega trends that will drive India’s growth story over the next decade creating massive investment opportunities. Three major features can be mentioned.