Any body who is still optimistic that the subprime pain is going to diminish quickly is surely living in a fairy land. For a country that thrives on plastic money, hiding the recession reality is no big deal. No amount of FED rate cuts can salvage US economy out of recession. The fact that ICICI and HDFC are having subprime exposure in tunes of 85 billions rupees under the carpet implies that US has already entered into recession. The magnitude of the crisis is such that it is going to wipe out some of the banks and major financial institutions. Dont get lured by sudden spikes in indexes to enter again. Either book losses or profits, but it is time to exit from markets with whatever you are left in your portfolio immediately. Indian markets will go tailspinning to see the abyssmal depths of 7K to 8K by the end of this year. This catastrophe of 2008 will go down into history as the year of great economic holocaust. Peace and senses will prevail in 2009. Mark my words.
RE:SENSEX WILL SEE 8000 by end of 2008
by sunny gujarathi on Mar 17, 2008 07:36 PM Permalink
No chance.. This is just a bad time for market,by diwali we can see the market up to 19k level.Till the time enjoy the ranges 16K-14K-12K Stick to basics,create a portfolio-try to buy low sell high..avg out the losses.. WHO DARES WINS!
RE:SENSEX WILL SEE 8000 by end of 2008
by Ajay on Mar 17, 2008 07:59 PM Permalink
what basics are you talking about? Companies with valuation of tens of billions of dollars don't have revenues in millions prime example Reliance power? Reliance industries Indian Jewel does not even sell it's product in India, so when americans buy lesser oil or come up with new stable electric car - can be 2010 Chevy Volt, or even make new refinaries in US RIL is in trouble beacuse it will loose money for every litre of pertol it sells in India.
Indian market is not based on any basics but on sentiments. They are good as long as it lasts, rest is anybody's guess.
RE:SENSEX WILL SEE 8000 by end of 2008
by Optimist Indian on Mar 17, 2008 08:17 PM Permalink
your thinking is baseless...
The electric cars need charging and for that you need electricicy which is from coal/fuel,nuclear and its not free....Also one can not move in US without car so petrol/gas will be always required in US...
RE:SENSEX WILL SEE 8000 by end of 2008
by Ajay on Mar 17, 2008 09:27 PM Permalink
RIL makes money by selling gasoline and other petrolium derivatives in North America. Now if North American demand for galosine decreases where will RIL sell it's product.
No one is suggesting gasoline will not bre required come 2010, however there would be a move away from it. Correct electric enrgy will be required and renewable and Nuclear have lead on this. Hardly any electricity is produced by Gasoline, Coal yes Gasoline No.
The issue being discussed was share valution and whether they are based on sentiment or financial prudence. So in case or RIL if there is no market to sell gasoline in there is no reason for it to be worth 15% of indian equity market.
RE:SENSEX WILL SEE 8000 by end of 2008
by NARENDR K BHANDARI on Mar 17, 2008 07:03 PM Permalink
your estimate is just based on emotion.the financial growth rate of india will change whole picture and in amonth you will see that stocks are back at feb08 level.
RE:SENSEX WILL SEE 8000 by end of 2008
by on Mar 17, 2008 07:49 PM Permalink
narendra ji they are correct u better watch for 6800 index and it is for sure
RE:RE:SENSEX WILL SEE 8000 by end of 2008
by on Mar 17, 2008 07:51 PM Permalink
bhandari ji they r correct we believe that it will shortly touch 6800 levels
RE:RE:SENSEX WILL SEE 8000 by end of 2008
by Sameer on Mar 17, 2008 06:20 PM Permalink
5000 is my guess. world economy is 50 trillion and derivatives are close to 600 trillion dollars.
Most of the economic expansion in the last decade has been created by credit and it is GONE.
Would invest in market again when down to 5,000.
Just to give you an idea..Japan's Nikkie was 40, 000 in 1986 and after 20 years it is 12, 000.
