Inflation and shares market?

Question

the indian economy is not in its stable stage....any suggestion on if one should invest in shares...which are the safe companies? and any views on inflation...when do you think it is going to be little low atleast if not stable...

Thanks

Answer 1

Friend,

This fluctuation is natural and should expect with economies that having high growth. So nothing to worry. This is the time to have bottom fishing and most of the best companies shares available with reasonable price. As a newbie, you can select shares of Nifty50 companies that is the most established and elegant companies in India. Less volatile and able to provide handsome returns time to time.

Inflation will come down but it will take time. There are lots of preparations and actions going to make the inflation under control. when inflation high, the market will come down. This happening because the production cost for all companies will be increased and that will reflect in their net profit. This is very natural.

Don';t worry. If warren buffett is here in India at this time, he could have almost all the companies shares.

A person with long term investment focuses is nothing to worry because everything will come fine later... so go ahead ans start your investment with good companies.

does this make sense or required any more clarifications?

Answer 2

A good stock broker, with access to top tools like Morningstar will be able to help you.  The people who do the best in the market are people who get qualified professionals to help them

Answer 3

if the inflation remain at this level one should invest in those companies where the output is not really effected due to this.

for example

different raw material suppliers that too a monololistic one

regards

Answer 4

Indian economy is stable. Only share market and prices of commodities are not stable. Inflation would come down thanks to the interferences made by the finance minister. Inflation is one reason the market is going down along with oil prices.