Economic survey is favourable and cautioned the Investors

Thebullishtrends: Economic Survey 08-09 presented by the Finance Minister in few minutes back in the. As per this survey an average GDP growth of 9% is achievable in the 11th Plan. Mr.Chidambaram said the country’s growth has been reflected in the pace at which the average income is growing. The Economic Survey, however, reveals that capital inflows have been putting pressure on prices. On investment opportunities, the Survey assures that a climate conducive for investment will be maintained. Finance Minister said there is no need to ensure non-inflationary growth.

As per this survey Individual investors need to take informed decisions and remain cautious," and pointing out that Indian stocks as reflected in P/E multiples was the highest among the emerging market economies such as South Korea, Thailand, Malaysia and Taiwan. The survey further emphasised that investor awareness is equally important from the market stability angle as "investment in equities could be based on incomplete analysis and guided by short-term speculative gains".

Stock rose from the day’s lows as investors cheered data from the pre-Budget Economic Survey but the sensex could not sustained in the higher levels and the positive sentiment hs became the negative sensex lost 61.61 points at 17,764.38 points at 1.44pm. As per this survey government has sounded a word of caution to investors, asking them to resist the herd mentality, but also stated that the road ahead is optimistic for equity investment.