With the Indian economic growth back on track the ministry feels that the it is the time to withdraw the duty cuts offered last year. This could have a negative effect on industries across the board, especially the likes of Steel, Automobile and Cement because of a reduction in the demand owing to an increase in the excise duty.
Moreover an increase in the excise duty would also increase the general price level in the economy which would worsen the inflation situation.
Thus, this gives one more reason for one to remain cautious and not to take euphemistic long positions in the market based on the views of the SO called experts on TV, since they will only make money if they get advertisement revenue, which in turn depends on increased number of retailers watching the business channels and retailers only watch business channels in the time of a market boom and not in the adverse times.
One can still start SIP investment in the stocks I have already mentioned many a times: Hawkins, Crest Animation, Infoedge India and Zicom and avoid chasing the rate sensitives and completely ignore the BUY ON DIPS advice.
Happy Investing.
this is very true sir
ReplyDeleteYes, it is Gopal
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