India’s stock market is on holiday – News24
Indian stock market now has its annual holiday on the back of soaring Indian real estate values and a strong recovery in consumer confidence.
The Indian stock exchange opened the holiday on Thursday, with a sell-off in the last four days of the financial year, with the average daily closing price up 8.7 per cent to 1,826 paise ($28) in the three months to September, according to data from the Bombay Stock Exchange (BSE).
In a sign of confidence, the benchmark Sensex index climbed 3.2 per cent in the 12 hours, with investors looking for a fresh start.
“There is much talk of India’s potential to overtake China in the fast-growing middle-income markets and the emerging emerging markets in the Asia-Pacific region, especially in Asia,” said Nisha Srivastava, head of Asian research at the brokerage, in a report.
“A strong recovery of economic activity and an improving economy are good signs.
It will take more time to see the full impact of this recovery.”
Despite the upturn, however, investors are still wary of the potential risks of a sustained upturn in the Indian stock markets.
For instance, many investors are reluctant to take on more risk in the stock market due to the limited amount of capital they have in the bank accounts and a high amount of leverage.
“The only thing I have seen is a lack of faith in the market,” said a 30-year-old IT engineer, who wished to remain anonymous.
“I don’t want to invest too much.”