Don't expect short term gains from the markets

The main reason for the 9 month stock market fall is only one higher inflation, lower growth rate and FIIs are withdrawing money from markets and crude prices were in higher side. But incase of crude oil it is ok and inflation data is more or lesss ok but pulling back of money from Indian stock markets by FIIs are cause of concern. Due to the financial crisis in US and in other markets many of FIIs are facing the liquidity problem that is the reason only they pulled back more than Rs.35,000 cr from Indian markets. Infact they accumulated stocks in 3 yrs back in large quantities and they decided to continue in India Inc but olny the main reason is tight money problem in U S Markets there they don't have any other option rather than pulling back the money from Indian markets, which were resulted to 50% crash down of Indian stocks. But while raising stock markets indian investors tempted and entered into stock markets while stocks were having higher PEs. Which caused more than 50% loss of their portfolios.

Now Analysts are saying that it is the right time to enter into the markets. But only the thing is one cannot expect short term gains from the market. As the financial crisis in US has not yet end. Some reports are saying that many of European banks are in soup, but they yet to declare it. The bailout package is not the solution for the markets. All most around the world are facing the same situation. So that be confident and if you feel that markets are in bottom level then only start buying. (thebullishtrends)