Investment Analysis_5B

Investment Analysis_5B

Introduction

Stock markets are the barometers of a countries economy. It is also a measure of the country's financial stability and health. Internationally when economies are analyzed in terms of their financial stability investment in Stock markets is one of the main determinants. India has proved itself as a developing market and is on the verge of becoming the most favorite market for the international investors. The Indian stock has outperformed in the last decade which has outperformed in last decade. The market has generated around 12.20 % of returns in times of financial instability internationally.

Indian Stock Market (BSE)

Indian economy is one of the world sparkling markets the current index of the market is 19,550 points while there is an increase of 100 points a day. The (BSE) Bombay Stock Exchange is composed of more than 4,700 companies greater than any of the Asian stock market. One of the most interesting points her is that the market is that the BSE is an independent stock market which is not open for international investors. As other countries do to boost up their market index India never go for it. It means that all the investment made in the market is highly liquid and is from the local investors. It helps the market to give a clearer picture and also helps in avoiding of gambling. The Indian stock market has reached up to USD 1.0116 trillion and India then joins the elite market club in July 2009. Mostly the Indian market is composed of consumer care products, IT manufacturing and life insurance companies (Duniyah, 2008).

For a long term investment Indian market seems to be a good option because the market is not exposed to international investors which are good sign to avoid speculation. On the other hand, it also helps the local industry to boost. Some of the competitive edges of the Indian market are as follows:

Extensive growth in the IT Sector.

Indian Government policy

Local players are investing in the market.

Investment in the longer run in the Indian market is good because the industry is growing and the companies are expanding their businesses. Most of the Indian players are going for massive expansion in the US and European markets. They are of the view to expand their business through expansion and make them the engines for economic growth. On the other hand, the Government of India is also stable and ...