Volatile market is driving away investors from equity

Pune, Sep 17 (UNI) Volatility and falling markets are driving away investors' from the equity market, and those who have already invested are worried about their money as prices of their shares have fallen by more than 40 per cent, an official from Pune Stock Exchange (PSE) said.

Market is now below the 13,500 level from its highest level of more than 21,000 in January this year. After market came down due to rising oil prices, inflation and low consumption globally, the money coming towards equity has reduced significantly, the official said adding, ''Though figures are not available, the sentiments are very much negative among retail investors.'' The official, who did not wish to be named, told UNI that this is an appropriate time for investors, who want to make fresh investment for long-term purpose.

They can diversify their portfolio as prices are much lower as compared to January level, she said. However, she opined that there won't be significant rally in the market till next year.

She also observed that crude oil prices would not have much impact on Indian market.

Investors can look for other alternatives such as bonds, SIP and other traditional investments, the official said.

Similar sentiments were voiced by Mr Vitthal Kulkarni, a retired army official who trusts traditional investment options. ''I never park my money in equity and always depend on the traditional forms of investment like FD and post office deposits.'' An official from a local broking house, Kulkurni Valuers Private limited, said that investors interest has decreased in equity significantly because of the negative returns from the market. she said that many investors are diverting their money towards FDs and FMP (fixed maturity plans), which are safe way of investment. The retail investors must wait and watch till the market stabilises. The infrastructure sector will be good for long-term investments, she added.

Meanwhile, Saurabh Deshmukh, a software professional, who had invested in equity when market was at the 21,000 level, said that he still believed in India's long term growth story and continued investing in Mutual Fund through Systematic Investment plan (SIP).

UNI SP RN NP1914