Indore investors yet to get over slowdown shocker
Last week, Union government signed business agreements with China and Japan, which are expected to boost Indian economy. But all this has not drawn people to the share market.indore Updated: Sep 22, 2014 18:07 IST
The global investors’ meet scheduled in Indore early October has raised hopes of bringing in more investment in industry and trade to Madhya Pradesh.
Last week, Union government signed business agreements with China and Japan, which are expected to boost Indian economy. But all this has not drawn people to share market.
"About 40% of people, who had sold their shares following the global economic meltdown in 2009, have not shown confidence to start purchasing shares again," chartered accountant and stock market research analyst Tuhinanshu Jain told HT.
"This is true for Indore as well," he added referring to the fact Indore is MP’s commercial capital which contributes about 43% of tax revenue to state exchequer.
During global economic recession, about 60% of people who invested in shares sold the stocks, withdrew from share market and invested in real estate and gold.
Of that 60%, only 20% have re-entered stock market to buy shares. According to experts, a day’s panic triggered by global or Indian financial crisis shakes confidence of Indian shareholders and they begin to sell shares for small sum.
Any uncertainty about future government policies also increases stock market volatility.