What to expect from the 2019 stock market?
By Suhail Khan |
What to expect from the 2019 stock market? | category 2 | 0 comment | 03-June-2019 |
Forecasting for stock market result in 2019 is hard to do because in 2019 there are many strategic movements taking place in this year and it can make a great impact on the share market, if you invested in the share market in 2019 then you should be ready to face unexpected result.
In 2019 one of the biggest movement is Lok Sabha election that can make a great impact on share market with its outcome. Some people say making predictions of the stock market is an art, not science. However, regardless of whether prophets take an analytical approach or use intuition, markets are very difficult to predict, else there will be many more millionaires in the world.
We need to understand there are certain factors that are important as a cue to discount the overall movement. The negative factor for the Indian market is the negative global markets, which are off their peaks and trading at 1 year lows. The expanded volatility of 80 % from the last couple of weeks has already put global sentiments in a negative perception.
The favorable factor with this year end and next coming is the appreciation in the INR. INR has appreciated almost 7% in the last few weeks which is a most important factor. This will have significant impact on CAD. Keeping above perception in the background, Equation seems to be positive for a long term i.e. While in short term or medium term perspective like 3- 5 month we expect a rise in volatility that can dampen any directional move.
Investors have always been in favor of a stable government and sustainable economic growth. Elections have a short-term impact on the market, but it is the government policies and economic growth that is more important in the long run. Also, global cues will continue to impact the Indian stock market, before and after the elections. So we should keep one thing in mind that regardless of which party would come in power, after initial reactions, Indian market would continue to follow global trends.