Is the worst over for Indian Stock Markets?

This is the question that is uppermost in most investors mind.While the macros are still unclear there are clear indications that the US Macros are getting worse by the day.The drop in Oil prices is a clear indication that the growth is slackening in the largest consumer market.While the drop in Crude Oil prices is good for economies like India how the slowdown in the developed markets will affect the emerging markets is still unclear.I think the India growth story will re-emerge in the second half of the next calender year as Commodities cool off taking pressure of Inflation and thereby bringing the interest rates down in India.Also coming off a low base of growth in the financial year 2008-09 the second half of 2009-10 will definetly be better for Indian corporates.

My advise to retail investors is if direct equity investments is difficult to make because of various reason start SIP now with a outlook of 5-10 years and reap the benefits of long term compounding.Equity investments will definetly generate returns of over 15% compounded over the long term -this will be better than any other return available over various asset classes.