In the investment world, it is often said that small cap stock of today are the large cap of tomorrow. The natural progression of a small cap stock is to grow to become a mid-cap and then a large cap. Like mid-cap there is no clear definition of small cap stock. In India usually the companies with the market capital of less then 500 crore could be term as small-cap. But this definition can be change depending on market condition. Investing in small cap stock could give return in multiple but it should be very clear in the mind of the investors. One of the main reason is there is not much publicity, but the investor has to take some kind of risk.
As the economic recovery takes off, I believe small and mid cap stock will out perform the broader markets by a wide margin since they are disproportion. The sheers magnitude of the downtown combined by 11 repo rate hike till april 2012 that small and mid-cap hammered mercilessly.
Fiscal deficit and inflation a concern
Finance minister identified fiscal discipline as a key focus area, along with containing inflation and boosting the peace of growth to create jobs. But he indicate slower GDP growth will imply lower tax buoyancy and higher fiscal deficit. We must move towards an era of discipline, where we can reduce the fiscal deficit, contain inflation and improve upon our growth rate.India must prepare for this. We must commit ourselves to the discipline in order to strength the Indian economy. Which can improve the quality of life for every Indian and pull out the deprived once from the state of poverty. Short term discipline till we reverse the present trend will give us long term benefits.
Fiscal deficit was estimated at close to below 5% of the GDP during the last financial year but several major expenditures were not budgeted for as the finance ministry argued that the fourth quarter payments can't be included in advance. Finance minister also has the priority caution against the current trend of weak economic growth, poor investments, high pace of price increase and tax collection growing slower then the asking rate.
India can ill afford the trend. This has serious social consequences since slow-down comes with a decade of job less growth. Reviving the growth momentum, containing inflation and altering to gainful employments is today an over riding priority. There is a need to boost domestic low cost manufacturing and hasten the pace of reforms. Price stability and growth are inter-twined but may require a different strategy. The minister gets into its pre-budget huddle from Monday with the budget expected to be presented in the first week of july. So be careful in selecting the best stock advisors in India for happy return.
One has to believe or not a majority of the infrastructure companies seen to be under huge financial burden as they bid for project in the hope that cash flows will begin once the road or power project commerce production. While some of them bid beyond there capacity and in reason several case project has been delayed. What compounded the problem was the weak sentiment in the stock market. If you are investor in the market then take the advise of stock market advisors in India for good gain.
As the economic recovery takes off, I believe small and mid cap stock will out perform the broader markets by a wide margin since they are disproportion. The sheers magnitude of the downtown combined by 11 repo rate hike till april 2012 that small and mid-cap hammered mercilessly.
Fiscal deficit and inflation a concern
Finance minister identified fiscal discipline as a key focus area, along with containing inflation and boosting the peace of growth to create jobs. But he indicate slower GDP growth will imply lower tax buoyancy and higher fiscal deficit. We must move towards an era of discipline, where we can reduce the fiscal deficit, contain inflation and improve upon our growth rate.India must prepare for this. We must commit ourselves to the discipline in order to strength the Indian economy. Which can improve the quality of life for every Indian and pull out the deprived once from the state of poverty. Short term discipline till we reverse the present trend will give us long term benefits.
Fiscal deficit was estimated at close to below 5% of the GDP during the last financial year but several major expenditures were not budgeted for as the finance ministry argued that the fourth quarter payments can't be included in advance. Finance minister also has the priority caution against the current trend of weak economic growth, poor investments, high pace of price increase and tax collection growing slower then the asking rate.
India can ill afford the trend. This has serious social consequences since slow-down comes with a decade of job less growth. Reviving the growth momentum, containing inflation and altering to gainful employments is today an over riding priority. There is a need to boost domestic low cost manufacturing and hasten the pace of reforms. Price stability and growth are inter-twined but may require a different strategy. The minister gets into its pre-budget huddle from Monday with the budget expected to be presented in the first week of july. So be careful in selecting the best stock advisors in India for happy return.
One has to believe or not a majority of the infrastructure companies seen to be under huge financial burden as they bid for project in the hope that cash flows will begin once the road or power project commerce production. While some of them bid beyond there capacity and in reason several case project has been delayed. What compounded the problem was the weak sentiment in the stock market. If you are investor in the market then take the advise of stock market advisors in India for good gain.
SHARE
