Weak global cues and deterioration in domestic macro data are likely to put the Indian stock market under pressure as of present. Resultant of more worries over US-China trade talks has reflected over Asian stocks and Wall Street futures. They have fallen as of 13th November.
The background behind the development is US President Donald Trump not being able to communicate of any fresh information as to when the U.S. and China would agree to sign a trade deal.
This has come by as a disappointment for investors, who were expecting to find some actionable share market news and game-changing details pertaining to administrative policies in the speech.
Volatile market conditions make stock tips by Shyam Advisory invaluable
The times are volatile for the stock markets, and keeping in tune with many developments helps derive better share market tips for investments. Shyam Advisory is a preferred avenue for coming across lucrative share market tips for varied types of investments. They deliver higher returns, and are a risk-free proposition, ensuring peace of mind for the investors.
The right avenue for long term and short term stock market tips
The Indian stock market has been influenced by a delay in the US-China trade agreement but has nevertheless continued to consolidate. In the long term, several stocks stand a good chance to deliver double-digit returns.
For the week lasting from 4th to 10th November, the market had achieved an all-time high, which came by as significant share market news. The factors in favor of the markets were government measures and consistent buying by foreign institutional investors (FII).
Corporate tax cuts, as announced on September 20 spurred a rally. Correspondingly, the benchmark indices are currently 11% higher, and much closer to their prior records.
Going by the historical data suggests that the duration for which an investment in stock markets is made has a correlation of sorts with the ROIs. The past 10 years have seen changes in governments and policies, but the market has had a solid run. The BSE Sensex, Midcap index and Smallcap have surged by 138%, 128%, and 80% respectively.
India’s growth potential was believed to be strong for the mid to long term by industry experts. Consistent measures by the Government of India have worked towards strengthening their belief.
A few of the near term worries nevertheless prevail. But upon a structural assessment of the Indian economy, we can figure out that the potential for growth is immense. The long-run compound annual growth rate of Indian equities should, therefore, be in the line of 10-12%.
Short term volatility will prevail on occasions, and this may be fuelled by global developments at times. But domestic long term fundamentals are resilient. Supportive policy actions too will work positively for the markets.
The secular Bull Run that the Indian stock market presently oversees offers attractive avenues for dips in the market. They’d come across opportunities for fine businesses, that would work nicely towards making up.
Let us take a look at some stocks that are stipulated to deliver high returns for long term investment:
SBI Life Insurance
LIC, a renowned player in the life insurance industry is presently undertaking a legacy transformation. The industry is yet to attain its potential for India, which places SBI Life as the best-placed entity in the industry.
The product-mix for the brand is favorable. The most favorable point in its portfolio is the low-cost distribution channel. Their AUM currently grows at 20-21%. It presently stands at INR 14, 00,000 million, and the stock may hence be accumulated for long term investment. Over the 10 years that follow, the company is expected to yield a CAGR of 15%.
IFB is the prime manufacturer and reseller of front-loading washing machines in India. They currently have a 40% market share. With the electronics industry all primed for growth across India, IFB Industries stands to be one of the top beneficiaries. They are among the most lucrative shares to invest in from a long term perspective.