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'Buy India' stocks, strong economy to drive current rally: expert

Written by: Staff

Ahmedabad, Mar 24 (UNI) The massive FII inflow and strong macro fundamentals are likely to drive current bulls rally for some more time, till uncertain factors like high crude prices or US economic slowdown dampen the spirit.

Rounding up a seminar on 'Dizzying Sensex: Should You Take The Plunge?' here today, India Infoline Ltd (IIL) executive director R Venkataraman said there is no fixed formula to success in the stock market.

He said he does not believe that Indian stocks are undervalued, but at the same time he would not be surprised if the Sensex reached 14,000 in the next 2-3 years, looking at the foreign investors' interest in Indian stocks.

He said India is outperforming the world and emerging market indices because India's growth story is largely domestic led and therefore, less risky. Indian GDP is growing at 7.5-8 per cent on its own strength. Emerging markets are highly dependent on developed economies for growth.

Mr Venkatraman admitted that political factors also affect market seniments, rather too much, for instance continuance of economic reforms.

The scrips for capital goods, FMCG, retail, hotels, entertainment, telecom, farm equipment, power, engineering and construction might continue to grow.

Yet, he said, there are certain thumb rules like ''The higher the risks, the returns'. Mutual Funds are relatively less risky, but one must have self-discipline.

He said all investors - the first timers or last timers or small timers - must understand the fundamentals of the market sentiments and know well the company for the scrips to be traded.

Promoted by Mr Nirmal Jain and Mr Venkataraman, IIL is listed on both the leading stock exchanges of BSE and NSE. The group has 77 offices across 36 cities in the country.


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