THE INVESTMENT SHOULD BE BASED ON THE QUALITY OF THE STOCK, NOT THE HEIGHT OF THE INDEX

Albeit the Sensex contacted 50,000 interestingly on January 21, it settled there on February 3. The absolute most hopeful then, at that point, said that the market could contact 70,000 by December. Demonstrating their mix-up, the BSE record crossed that achievement before the finish of September (24th). Financial backers in stocks have never seen such a race. The Sensex required just 156 working days to arrive at 50 to 60 thousand. The complete worth of all offers in the market expanded from Tk 81.91 lakh crore to Tk 261.19 lakh crore.

The Sensex took not exactly a couple a very long time of 36 years to begin from 100 focuses on January 2, 1986, and reach 70,000. The record that quit crossing 1000 on July 25, 1990, is by and large 60 thousand following 31 years. The ascent so far this year is 12,296 focuses. It isn't so much that the economy has improved drastically. Unexpectedly, one might say that there will be a particularly quick improvement, such a race considering this expectation. Added to the tremendous stock of money. Homegrown monetary establishments, unfamiliar monetary organizations, general financial backers - all play a significant part to play (In the table with the reason for development).

Where the Sensex stands, the piece of the pie cost to-profit proportion (PE proportion) is very high, 30.96. That is multiple times. Furthermore, higher PE proportions in the market undermine an unexpected fall. In addition, Sensex is disregarding the current issues of the economy. The higher it rises, the more noteworthy the danger of a major fall.

Old financial backers are glad in a high market. Nonetheless, there are hazards in new ventures. Presently, rather than checking out the record, one needs to purchase and sell as far as the nature of specific stocks and future possibilities. Conventional financial backers ought to be careful about two kinds of offers, contingent upon the value, regardless of whether they are falling or rising (contingent upon the pay and benefit of the organization concerned). Many are putting resources into common assets on an offer premise to keep away from hazards. That speculation has additionally tracked down a major benefit.

IN THE NEXT FEW WEEKS, THE MARKET WILL BE WATCHING:

• Received from Prime Minister Narendra Modi's visit to America.
• Whether there is any adjustment of the loan cost of little reserve funds plans like NSC, PPF for October to December. A warning in such a manner might be distributed on September 30.
• What the Reserve Bank settles on loan costs. A gathering of the credit strategy council of the top bank will be hung on October 6-7.
• Demand for various items at the celebration.
• Financial aftereffects of organizations in July-September. The aftereffects of the second quarter of the current monetary year will be delivered when the Pujo starts.

Conceptualized by MR & Posted by Rajarshi