Mutual Fund leading from front, sensex not approaching up or down in 2015 -16
There is a rumor of increasing fed rate, and is the most disturbing indicator of the financial market today. A scenario of increasing the interest rate has been created in the USA. Sensex has come to 20,000. Pressure has been created on shares in present condition. Still, new issues of the market are more or less stable with the stability of share prices of small and medium shares. The strong new issue market is evident from the incident of an unexpected response of investors towards RBL bank in the first public issue. It is expected that RBL bank shares will be registered at 15 to 20% premium, in the share market. On the other hand, different mutual fund projects have become popular in small and medium-sized townships during the last one year. The reasons behind this popularity of mutual funds are — decrease in interest rates in banks and post offices, an almost bullish trend of shares and bonds market, decreasing the popularity of chit funds and strengthening marketing arrangements.
The price of the US dollar may increase on this basis that substantial amount of foreign investment may be returned from India’s share market due to increase in interest in the USA. As per weather forecast, there may be 2% deficit in rainfall which has a marginal effect on the agricultural production of our country. It seems that Indian Financial Market has suddenly reduced its pace. There is no possibility of heavy fall in the share market. Rather a new positive trigger may cause an upward trend of the sensex. There is healthy foreign exchange reserves in India along with enough control on import. Therefore, it will not be tough to fight against the increase in fed rate, if there are any.
As per the statistics of SEBI, investments in mutual funds has been increased by 19% in last financial year, outside the big 15 cities (B-15) in India. Where total shares value or amount of market capitalization is 109 million crores in the whole market. The asset value under the jurisdiction of mutual fund has become almost 15 million crores. Sensex, at first, increased to 24,000 from 22,000 and now it has reached 28,000. As a result, many investors are expecting good or substantial amount of gains in mutual funds projects where Equity alternative of NPS project and equity-dependent exchange trend funds or ETF projects are the perfect examples of that.