Prediction of normal monsoon brings cheer in stock marketYesterday, we have received the prediction for monsoon during the current financial year. The weather experts have predicted almost normal monsoon during the current year (only 3% shortfall). Normal monsoon is good for agriculture, which would improve the purchasing power of people. This would cause better earnings for companies which is good for the stock market.
Naturally, the stock market has reacted positively. Both Sensex and Nifty continue their upward journey along with smaller indices.
However, I would like to caution the equity investors (of ISC) in respect of three issues:-
(a) Don't purchase penny stocks. These are always unpredictable.
(b) Try to stagger your investment. Don't purchase at one go.
(c) Go for equity mutual funds instead of investing in direct equity. This will help to diversify your investment over sectors and will bring you the fruits of expert guidance.
Happy investing during the ongoing year!