DIRECTION OF WORLD MARKET IN 2019

We have entered 2019 almost a week ago. Everyone who is interested in capital market investment have a concern about the direction of equity and commodity market direction in the year 2019 and economic scenarios all across the world and specially in India. Last year 2018 was the year of correction all over the world. Most of the important indices of the world market witnessed correction from their upper levels. Dow Jones of the USA corrected almost 19.5% from its top in 2018, Britains's FTSE100 corrected 17.29%, Germany's DAX corrected 24.4% during the last year. Among Asian major markets, China's Shanghai composite corrected 31.34%, Hang Seng of Hong Kong witness 24.09% correction, Japan's NIKKEI corrected 22.49% and our India's NIFTY witnessed a correction of 10.35% during from its top in 2018. We can see that our Indian martket seen the least correction among all the major indices of the world.

In the year 2019 the macro economic scenario of the world is going to be affected by some of major world incidents. US-China trade war is still going on, Post Afghan scenario after US exit, slow down of Chinese GDP growth, Trump's immigration policy etc. Back home in India, 2019 is a year of general elections. Its impact will definitely be seen on the direction and volatility of market. Currently NIFTY is trading at around 26 multiples of P/E, which is quite higher and indicating that the market is overvalued. (the detailed analysis of Indian market in 2019 would be posted seperately)

Neeraj Dinmani (Neeraj Sinha)

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