1. Please do not go exclusively by the title of the post as long term story of India as a force to reckon with is intact, however short term trend is bearish which is based on following facts as listed below:
(a) Peak of inflation has been seen in this year and is not seen petering out.
(b) International credit ratings have issued warnings for downgrading of its credit rating as a nation due to Fiscal deficit reaching unmanageable levels.
(c) RBI is at its hawkish best and is tightening credit avaialbility by hiking interest rates. Thus stocks which are affected by inflation may see further 15% decline from current levels.
(d) Reduced availability of credit in hands of people means slowing down of infrastructure sector which gives impetus to more than 165 industries.
(e) Q2 results may have surprise in offing.
(f) No sound policy decisions will be taken in currents year as it is a year which is closing to election and thus one may only see decisions to appease public as at times harder decisions need to be taken for the interests of nation.
2. However long term story of India as a nation is intact by virtue of human resource available with us.
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