The downward performance of India’s benchmark indices since last five years has lowered the confidence of long term investments in share market.
Bombay Stock Exchange and National Stock Exchange has shed more than 11 per cent from January 2008.
Nearly half of the blue chips listed on the 30-share index are currently trading even below its early 2008 levels. Tata Steek, BHEL, Reliance Industries, ONGC, L&T, airtel, etc.
The sectoral indices have declined in the last five years. The realty index (-90%), power (-70.20%), capital goods (-64.66%), metal index (-61.94%), PSU (-52.05%), Oil & Gas (-40.17%) and consumer durables (-19.48%) have taken a beating. FMCG, auto, IT and Pharma was exception.
“Long-term investing has become challenging as the last five-year period, perhaps for the first time in history, has seen two global meltdowns. The period has also seen close to a 50% crash in the rupee exchange rate and global crude oil prices holding up despite the global slowdown,” said G Chokkalingam, managing director and chief investment officer, Centrum Wealth Management.
“The country also made a few major errors like losing over $110 billion in gold imports over the last 30-months and not reversing the interest rate cycle substantially on time.” He further maintained.
Source – Financial Express
©2009 Copyright by Invest In India
