Investors trickle back to Dalal Street

MUMBAI: If financial advisors are to be believed, investors are getting ready to return to the markets. Falling yields in the money market and budding optimism in the stock market are generating a lot of queries from investors. Though most queries haven’t translated into commitments, advisors say there is no doubt about a revival of interest among investors. However, advisors are asking their clients to be a little cautious and not to commit huge amounts at this juncture. “There is definitely some revival of investor interest. Falling yields have given hopes that rates would go down further. This has resulted in renewed interest in debt schemes,’’ says Hemant Rustagi, CEO, Wiseinvest, an investment advisory firm. “For equity too, the sentiment has improved. There are queries about whether to get in, get out and re-enter at lower level these days,’’ he adds. “Except for a few queries about FDs, nobody was showing any interest either in equity or debt till few weeks ago. Now, people are becoming a bit more confident,’’ says an MF agent.According to experts, investors are also influenced by the strong performance staged by equity MFs during current run up in the market. “Some aggressive funds have staged excellent performance . Some schemes which were down 50-60 %, managed to recover 20-25%. When investors witness such a thing, they know they have another chance to make money ,’’ says Rustagi. However, advisors are asking investors to tread with caution. “It is difficult to predict which way the interest rateswould go because of the government’s huge borrowing plan,’’ says an investment consultant. Says Rustagi, “The next quarter is crucial. We have to keep an eye on corporate results and also the elections to be sure about the market.’’