Sensex & Nifty at 2 years High: Sustainable or Not

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Indian stock market is again giving closing at higher sides as Sensex has crossed 20k mark and Nifty as well giving closing above 6100 mark. So can it be taken as market will give more growth in the near future or not.


The real question arises in everyone’s mind is that whether these levels are sustainable in near and long term future? If we go a little deeper in the fact then it will be easy to understand the actual reality.

 

If we take a look on the international markets, say USA & Europe, the situation hasn’t improved much. The economic growth rates of both the regions are not showing much improvements. Many countries in Europe are still on the verge of bankruptcy economically.


Fuel prices in the international market are still sustaining above the level of 100 dollars which is also not a good sign for better economic growth as many sectors got affected by the range of fuel prices in the local and international market.


The local conditions are also not very favourable like high fuel prices, less encouragement from government policies and slow growth rates of many sectors.


So if we see the overall picture, it seems that this higher side run of Sensex and Nifty doesn’t seem much sustainable and further growth scopes are very limited. Experts are also of the view that long term investors should avoid their investment in the current market ranges.

 

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