MEMBER'S LOGINX
| Invalid Username / Password | ||||||||
| Invalid Captcha | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
India's Third Giant Leap
This Could be One of the Biggest Opportunities for Investors
- Home
- Todays Market
- Indian Stock Market News October 31, 2014
To spend, or not to spend? Fri, 31 Oct Pre-Open
The crescendo of positive sentiment in India has been building since the new government was elected with an overwhelming majority. 'Good days lie ahead!' appealed Narendra Modi. And sure enough, a virtuous cycle of optimism begetting more optimism has since been sustaining itself.
The stock market has also readily followed this pattern. Just yesterday, the BSE-Sensex scaled yet another high.
But has the Indian consumer started feeling confident enough yet to go out and loosen his purse strings? That, after all, is one of the most important questions businesses out there are anxiously awaiting an answer for.
The answer to that is somewhat of a mixed bag; bitter sweet even.
On the positive side, as per a survey by market research firm Nielsen, India has topped in terms of consumer confidence during the three months to September 2014. Considering that the survey covered 30,000 respondents across 60 markets in the Asia Pacific, Latin America, Europe, Middle East and North America, the picture looks good indeed as far as the average Indian consumer is concerned.
But is this confidence translating into spending?
And this is where things begin to look a little iffy. As their survey indicates, only about 59% of the respondents polled said it was a good time to buy the things they wanted. Somewhat worryingly, this is a 1 percentage point drop from the preceding June quarter. So is the euphoria around the new government waning?
Many businesses, especially retail consumer oriented, surely think so. A Mint report indicates there while there may be bullishness in terms of sentiment in the marketplace, consumers are still being fairly reluctant when it comes to actual spending.
Spending during the festive season surrounding Diwali too was subdued, it points out.
The only ones who have been very successful in luring the currently reticent Indian consumer are the e-commerce firms. That too seems to have become possible only with the temptation of humungous discounts, the likes of which have meant disaster for their own bottom lines.
When the currently prevailing 'positive sentiment' is going to translate into wholehearted spending by consumers is anyone's guess.
In the meanwhile, Indian businesses continue to await such a time with bated breath.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Indian Share Market Update: Top Gainers and Losers
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Multibagger Penny Stocks
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Best Small-cap Stocks to Buy
- Best Bluechip Stocks to Buy
- Guide to Penny Stocks
- How to Invest in the Share Market
- Warren Buffett - The Value Investor
- Pick the Best Multibagger Stocks
TRENDING TOPICS
Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
Equitymaster requests your view! Post a comment on "To spend, or not to spend?". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!