India is facing its tough times in the history with a weak rupee value. We have had weak rupee values even in the past but it was never this low. This time it is a hard hit for India but we can take this in both positive and negative note. There are multiple reasons for this fall. The primary reason being the increase in import compared to enough export. This is something that needs more attention. But we have to understand how challenging it changes the situation. Most of the foreign imports are highly essential commodity for the use of Indians but we fail to produce enough to be able to export to other countries. To say this in a nicer way, we can say that we are not producing enough to export outside and we depend highly on the commodities that are being imported into our land.
This fall in rupee value can be considered as a good opportunity for foreign investors. People who live in India and are highly dependable on Indian products will not have any problems. But if our day to day life is dependable on something that we have to import from other countries, it can be quite challenging to get them at cheap rates. That is one of the primary reasons why the value of petroleum products is also raising drastically. We will not be able to blame the government for this because it is a global problem and it is not just India which is getting affected because of this but there are also other Asian countries getting affected because of this situation.
People who live in foreign countries and are good investors are keenly observing the top performers based in India. There is a high possibility that we might get a good investment from foreign companies. The primary reason for this is because of the fall in rupee value. Every outside investor will have countries like India as an option because they might see a great future for the companies and projects emerging from India. There are lots of startup companies emerging in India with many innovative ideas.
How is it helpful for internal investors?
Share market is currently bleeding. Especially the mid cap and small cap stocks are not having a good time at all. People who invested last year are seeing a hard hit on their portfolio. For some people their portfolio value reduced by 50 percent. The current situation of cryptocurrency investors is also the same. But people who have invested in the stock market have not seen a good time since last year. For some of the stocks to recover back, it can take one more year as the stocks will have to show 100 % growth. People still continue to hold fundamental stocks that provide good returns in the long term.
Though there is a huge fall in the market today, there are many new investors emerging in India taking this as a good opportunity to get inside the market. This can be the right time for some of the new investors to see a good profit in a few months. It is expected that for someone who buys a solid stock in the current price, a fortune is definitely waiting after 6 months are in a few years. They might even end up getting a lump sum profit which they might have not expected. As the new investments are increasing, the share value will also gradually increase and it can even get the attention from the foreign investors.
All the above are just my speculations. I cannot be sure if this is what will happen. There is also a high possibility that we can see a huge crash in the economy. Anything can happen. But let’s just have hopes and follow the good path. If you are planning to do new investments, make sure you are investing only the excess money that you have. If at all you are not getting any returns from your investment, your regular life should not be affected.
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