India Markets

A Better Business Environment

Brandon Wendell
Instructor, CMT

Congratulations are in order for Narendra Modi and the BJP for the landslide election win.  “Modinomics” as it is being called promises to usher in a new era of business and economic growth for the largest Democracy in the world.

Time will tell if the new pro-business, less government environment will help turn the tide of the Indian economy.  Many people are impatient and want to see changes quickly so Modi has his work cut out for him.

As I write this article, the equity markets are responding to the election results.  However, the buying pressure is coming in at extremely high prices and Friday’s price action was a bit disturbing.

Modi Nifty demand

The reason for the concern is that even though the Nifty and Sensex closed much higher than their previous closes, they closed well away from the day’s highs.  This indicates that there was a lot of profit taking and not long term investment.

It is being reported that foreign investors have poured about 160 crore into Indian stocks and bond investments over the last six months and now own about 22 percent of listed stocks.

Professional traders do not chase price and buy at high levels.  They wait for opportunities to buy at wholesale levels.  To learn more about how to trade professionally, enroll in one of Online Trading Academy’s Professional Trader courses today.

Brandon Wendell

This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.