Aha .... back ...
So ... market makes below 10k at the pre weekend session. That is somewhat 1st page news of non-financial news papers. Hence bears are out of their den and waiting for another 5000 points southward journey. Come on ....... this is not a sap-ludo khala ... market seldom behave in thios fashion.
Let me explain my own view on the Indian market. This is purely my own judgment and I do have interest into the market in terms of my own money involved.
The whole World is now under financial turmoil that is known to everybody. And it is also expected that the world wide GDP growth will be substantially lowered this fiscal. Earlier it was around ~3.5% increase. It is expected that this will 'midly' slips to around ~1.5-2.0% this time, discounting all the turmoil. Now look at our beloved country. It is expected that we'll also down to somewhere slighly greater than 7%. Some optimistic people predicts it to be around 7.5%, whereas pessimistic prediction says would be 7%. Lets take 7%. So we're still one of the fastest growing economy in the World! Right! - So we'll expectedly again outperform the other developed economies by a good amount. Right? So we MUST expect the due respect from the world ...... in terms of the price to earn (PE) when booking the Indian companies shares.
Now it is expected that the Earning Per Shares of Sensex stocks will be around ~830-850 this fiscal. So if I assume India Inc. deserves a P.E of 15-18 ... it should be 12450 to 1500. And lower side : Lets assume everything is down ... even that India should expect a double digit PE, means 8300-8500 at least. So this is the downside.
Not agreed. That's upto you.
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