Warren Buffet gave an alert on Indian stock market

 

Indian Stock market Huge run up since March 2020 to August 2021:

India's stock market has seen a lot of momentum in the last few months, if we talk about Nifty and Sensex, then in March 2020, Nifty's was trading around  7511 and Sensex's was trading around  25,639 If we talk about the present days, then Nifty is trading around 16630 plus levels But the same thing is to be said about Sensex, it is trading above 55940 levels. Coming to the market so fast is often surprising. While the corona virus has caused a lot of damage to the economy of all over the world, on the other hand, the stock markets of the world have also given very good returns to the investors and traders, in this way, the world stock markets have not suffered much because of the corona virus. The way the markets have seen recovery from the lower levels, the losses of the investors have been recovered but profits have also been made simultaneously. But the world's biggest investor Warren Buffet News has questioned this speed. So let us talk about the reports being published in the media that what Warren Buffet has to say on the huge recovery of the Indian stock market.

Warren Buffet gave alert on Indian stock market:

According to Warren Buffet, even though there has been a recovery in India's GDP, I am not going to see any good signs of recovery from lower levels in the Indian stock market. Even though investors and traders have made good profits in this recovery, but India's GDP recovery is much less than the recovery of the Indian stock market. According to Warren Buffet, even though there has been a recovery in India's GDP, I am not going to see any good signs of recovery from lower levels in the Indian stock market. Even though investors and traders have made good profits in this recovery, but India's GDP recovery is much less than the recovery of the Indian stock market. According to them, the markets have ignored the losses that Indian companies have suffered due to the outbreak of Corona virus, while Indian medical experts are also talking about the arrival of the third wave of corona virus, in such a situation, there is a lot of boom in the Indian stock market. Will not be considered a good sign

Indian stock Market experts & Warren Buffet View on Indian market & Growth:

Indian stock market experts or specialists accept that by taking a gander at the proportion of India's GDP development recuperation and the securities exchange's development, it is justifiable that the development in the securities exchange is the conjecture for GDP development and income of companies. Significantly more than that. Along these lines, there is plausible of a colossal fall in the securities exchange now.

The valuation and relating market capitalization of India's stocks isn't coordinating with the Gross Domestic Product Ratio of India. It is developing a lot quicker than the recorded normal. As per the pointer of the world's biggest investor of stock market Warren Buffett, this is the most ideal approach to quantify the genuine worth of the securities exchange of a country. The valuation of shares and the proportion of gross domestic product additionally give a genuine image of the economy of a country.

As per the Warren Buffett point of  view the proportion of GDP and market cap in India is nearly  102%. Also Indian big broking and research companies has expressed that its verifiable normal in India has been more than 75%. To ascertain this normal as per the Warren Buffett pointer, the all out market cap of a nation is considered as the numerator and GDP is considered as the denominator. As per experts, this implies that valuations of Indian stocks have become over the top expensive and the speed of recuperation in GDP development and income of companies is slow. Corona virus may have a big impact on India's economy growth in the near future and a fast recovery is not possible.

In nutshell, after reading the above view of Indian stock market experts & world biggest investor warren buffet on India stock market, we can say that investors and traders of stock market should stay alert in the Indian stock market. Profit booking on the higher levels is always good. Long term prospectus are still good but it is also better to book some profit and sit on cash so that we could buy good stocks on lower levels. However, we may see stock specific rally in the midcap or small cap stocks in the coming days or weeks.

Also Read: Growth of Indian Banking Industry

Disclaimer: Please do your own research before taking any decision of buying or selling into the stock market. Also please check the news from your resources.