ONE DAY IN 2011 SENSEX TOUCH 50,000 MARKS THEN INDIA CEMENT REPLACE ACC, 3I INFOTECH TRADE AROUND 18000, FSL IS ALSO AROUND 700. OPEN CHALLENGE..........OK
Sensex maintained bullish tone with about 900 points upward move on Wednesday. The strong upward move despite negative global cues shows the inherent strength of Indian stocks and Indian Economy. Tax mop up of direct and indirect taxes till October, 2007, showed highly buyoant economy and good corporate performance. Sensex should easily cross 21600 points mark by year end and any dip in the market shall be viewed as an opportunity to pick up stocks. When sensex moved from 6000 to 12671 in 2005-06, there was a gneral feeling amongst investing public that market would undergo a correction. At current levels also similar apprehensions prevail. I strongly feel that there is no cause for market to correct amidst reports of robust economic growth and lower inflation and a reasonable PE ratio of around 25 times. Most of the Sectoral Indices are showing valuations at levels around 15 to 20 times. So apprehensions are though obvious on the basis of high numeric level of Sensex, the fears are not justified by underlying data of the most of the Sectoral indices except Capital Goods and Realty sectors. I will not be surprised to see Sensex witnessing nearly 30% CAGR in next three calendar years till 2010, that is to say that Sensex may cross 41K points mark in 2010! No other assets class shall offer such high returns except equities. There are large number of stocks outside Sensex or NIFTY which have started upmoves in recent weeks. That shows that bullish trends are gradually turning wi
Have we really made such rapid progress in this one month to push the sensex to 20K ? If we could do it in one month why did we sit quiet all these years since independence ?. We talk about GDP and growth rate, but still we see the spectacle of rich becoming richer and poor poorer. Is owning a mobile by vegetable vendors a barometer of progress ? How about millions of people going without a proper meal a day ?. Are we trrying to fool oursleves by the gamblers at the stock market ? Can anyone give me an answer to these questions ? Thanks.
Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs10.
The villagers seeing that there were many monkeys around, went out to the forest and started catching them.
The man bought thousands at Rs10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at Rs20. This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
The man now announced that he would buy monkeys at Rs50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.
In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs35 and when the man returns from the city, you can sell it to him for Rs50."
The villagers squeezed up with all their savings and bought all the monkeys.
Then they never saw the man nor his assistant, only monkeys everywhere!!!
RE:Stock Market Story
by avinash on Dec 06, 2007 03:14 PM Permalink
it seems you know the working of stock market very well.you must have made fortune trading on bourses.
the market surge so fast is a bit strange because what has drastically changed in Indian economy in the last 6 months that did not occur in the last 2 years?
Poverty has not reduced in a significant way in the last 6 months, economy has not improved significantly in the last 6 months, exporters raising concerns and dollar weakness is pushing oil up and US can go into a big slowdown.
..But stock market is moving up every month. FII are pouring money into our stock market
but we are not seeing our FDI imrprove signficiantly into infrastructure , education, healthcare projects.
ANyway, something does not add up, or may be I'm stupid
The frenzy in the Stock Market is very omnious. It spells doom. What positive development has taken place in last 1 1/2 months so that market has gone up by 33% (15K to 20K).
Basically; FIIs are buying at these levels and once Indian MFs & public enter the market; they will exit. BEWARE !!!
The rise defies all logic. The investor specially salried class should desist from the market. Any day it may crash like anything if any incidence happens which erodes this overconfidence. Any unfortunate thing like war, terrorist strike or other such unpredictable thing will turn the market upside down. Beware.
