What is the SECRET of SUDDEN change of HEART of FIIs POST BUDGET?

March 4, 16

What is the SECRET of SUDDEN change of HEART of FIIs POST BUDGET?

Greetings from Hitesh! While I am writing this post – FRIDAY’s market is closed and we have gained highest weekly gain in our market since 2009!! Till 29^th FEB morning everything was negative and suddenly there is a change that is 100% positive.

Nifty Future moved up from 6833 the low of BUDGET day to 7480 today, a gain of 450 points in just 5 days!! In percentage terms this gain is 6.5%. BSE Sensex moved up from 22494 to 24646, gain of 2100 points or gain of 9.3% in absolute terms.

What could be the reasons for the same.

Let me deal with some of the FUNDAMENTAL reasons for the same.

Mr.Jaitely as SALMAN KHAN:-

Do you remember the famous dialogue of DABAANG - Ek baar jo maine commitment kar di, fir main apne aap ki bhi nahi suntan.

Mr.Jaitley is doing the same things. He promised that he will gradually bring down the FISCAL DEFICIT to 3.5% and he has exactly done the same. Looking at the situations he had all the options not to stick to his commitments – but he kept his WORDS. If you look at the track record of previous finance minsters in keeping their promises particularly in the area of FISCAL deficit – you will hardly find anybody equaling to Mr.Jaitley.

Look at YUDHISTHIR in MAHABHARATA – he had done all wrong things like playing GAMBLE/betting his wife and brothers in GAMBLE and things like that. But he had one good quality – to say TRUTH irrespective of the repercussions. All his FAULTS got hidden behind this one good quality.

Same way all the negatives of the Indian Economy got hidden against this ACT of keeping FISCAL DEFICIT under control. This has given the RBI – a chance to revise its rate and infuse the liquidity in the Indian Economy.

FIIs have appreciated this move and they have also decided to reconsider their decision on the Indian Market. They have invested close to Rs.5500 crs in last 5 days.

WORKING ON THREE PILLARS TOGETHER:-

While writing for the BUDGET – I had used only one word – Most Comprehensive BUDGET presented since 1992. It was working on 9 areas simultaneously.

Broadly these 9 areas can be divided into 3 areas – GOVT investments / Private investments / Rural GROWTH.

While GOVT has always been active what lacked was the private investments and rural growth. Look at ANIL AMBANI GROUP / LANCO / JINDALs / JP ASSOCIATES and many such groups. All have done major investments but all of them are SICK now thanks to Project Delays and Interest Accumulations. With RBI expected to reduce the interest rates – these groups will give some fresh air for revival.

Rural Growth:- we have MNREGA since long. But it was never used productively. Now the same money will be spent on building up rural infrastructure. So, this will generate not only rural employments but also the productive work along with the same.

Monsoon:-

Indian MONSOON cycle has never seen 3 consecutive below normal Monsoon in a long-term history of India. Current estimates say that this year the monsoon will be very good. Normal monsoon will add GOD’s grace to the GROWTH of India.

What does this MEAN of SHARE MARKET?

If you combine the above 3 with likely RBI rate cut as early as next week or in its 5^th APRIL meeting – FIIs have every reasons to invest tons of money in INDIA.

If everything goes as intended – the Nifty can be 15000 to 18000 by 2018!! I am giving you this bold call way ahead of your MARKET EXPERTS.

What it means for NORMAL investors?

Start investing in selected stocks. Have a vision of 2-3 years and go on investing. In my last post I had already told you that I see many opportunities to do bottom fishing in 2016. Just go on adding if you want to hit the JACKPOT or go on trading if you want to make money daily/weekly or Monthly.

Both the way you will make money.

What NEXT?

Just to remind you in August 2012 – I had given a bold call that I see India’s destiny changing for better between 68^th birthday to 86^th birthday. Not a single EXPERT was so categorical when we told you. Look at all the events since 2014 and see we are going 100% right.

We have already given our bold target with fundamental behind the same. If you look at our TRACK record in GOLD/SILVER/Market - I have every reason to convince you that I will go reasonably accurate in this call also.

If you really want to make good money – just be with us for coming 3 years and follow us. If you want to do trading then also you can take our help.

Have a FANTASTIC WEEKEND.

Follow me on Twitter @hiteshmparikh or on WhatsApp - +91-9869425399 or www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.

www.hiteshmparikh.com