I wonder why this is not reflected in the GDP industrial./agri. production and BPL rate. The astronomical heights to which the sensex is rising smells of tainted/.drug/narco-terrorist/ money and a huge crash in the offing. Beware.
RE:RE:Sensex at 19k
by Kannan SivaramanViswanatha on Oct 15, 2007 09:07 PM Permalink
I can certainly share your conservatism that the index has risen too fast in less than 45 days. Everyone says FIIs are pumping loads of money chasing the future growth of indian companies. One cannot rule out the possibility that in the cash downpour from FIIs some portion could indeed be tainted, the potential for such a probability is strong. The best advice for retail investors is to take the Mutual Fund route through SIP and watch the scene as it unfolds itself in the coming weeks. Society Generale now puts a target of 25000 for 2007 year end and 30000 for Q1FY08. This is the most ambitious prediction by far. No retail investor should enter into direct equity purchase at these levels. Whenever there is a strong trigger to pull down the market, how soon is anybody's guess, the market could plunge and the fall would be heavy. Even if you are a long term investor, this is not the right level to enter. But, even if you enter, it should be with your own funds that can be safely set aside without affecting your day-to-day life and that of your family. LEVERAGING is a strict no-no at this level.
RE:Sensex at 19k
by stav on Oct 16, 2007 05:51 AM Permalink
Indians should invest at every fall. We have very strong fundamentals. That is the reason, the world is having confidence in investing here. Ofcourse our development reflects on GDP, We have a constantly rising GDP.
