Marketing Manager | Posted on | Share-Market-Finance
Do you think Sensex bubble is about to bust?
Entrepreneur | Posted on
In its Annual Report, Reserve bank of India has raised alarm that Indian stock market is showing signs of a bubble building. “Test statistic was greater than the critical value at 1% level, possibly indicating evidence of bubbles in the market,” the report says.
However, if you ask me personally, the market is still in the safe-zone, with very low chances of a bubble bust at this moment. The latest rally in Sensex comes from the fundamentals that comprises plenty of factors, including the rising risk appetite of the global investors and modest improvement in the corporate performance.
So, if you’re a trader or investor, you can relax. Indian stock market is still far from the bubble bust. However, it’s definitely the time to stay vigilante and keep your eyes on every price movement. Because while the price indeed is going the straight way, there are still many unexpected components that can disrupt the market, for example, the approaching General Election 2019 and the loosening relationship of USA with other major economies.
In short, we’re not close to a Sensex bubble bust. However, a sustaining downturn in the Indian stock market is imminent. So, you’ve got to be extremely careful in playing your cards. For now, enjoy the latest bull run though.
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