In the long term share market to go up say market experts

20 October, 2012

After rising by 180 points on October 18 the 30-share BSE Sensex fell 110 points on October 19 to close at 18,682.31 points. The 50-share Nifty also plunged by 34 points to end trading at 5,684.25.

THE BENCHMARK index Sensex fell due to profit booking and sharp fall in the rupee against the US dollar. The Indian rupee has seen sharp correction, losing over 2 percent since yesterday to hit an intraday low of 53.95 against the US dollar on Friday. The rupee had closed at 52.87 a dollar on Wednesday and at 53.41 on Thursday.

Market experts say that those retail investors who want to invest for a longer term should stay invested into the market while ignoring the fluctuations.

“Markets are purely and purely driven by global liquidity. Nothing has changed on ground as far as the realities are concerned. The only thing is that this huge amount of liquidity that downside is getting kept. And as far as the retail investors are concerned, I mean if they have a horizon for longer term investments say for 2-3 years it makes sense to stay invested. Otherwise, in the short term I think we are probably trading at the higher end of the range,” Arvind Pruthi, a market expert told this Citizen Journalist .

He added that new retail investors should look for a fall before investing in the market.

Equity head at SMC Capitals Jagannadham Thunuguntla said that retail investors should not get worried on today's fall as in the long term the market is set to go up. “In long term the market is going up. It is good time for retail investors,” Thunuguntla told this citizen journalist.