Last 2 days alone bought more than INR 3mil incl Reliance power and Rel Infra incl those bluechip cos ve fallen more than 50 to 60% in last 3 weeks of time.
Same time bought June calls 5600, 5800 and 6000. I'm very much sure by end of April you will find Sensex will be at 20,000 again.
What were the major factors for this correction:
1. High inflation 2. To control price, RBI's interest rate hike 3. 2G scam so as other scams which investors losing confidence at centre. 4. Churning out the cash flow from emerging markets towards US and major European markets.
What is my expectations :
FIIs will start enter into the market after saw a 20% correction, which will give most co's valuation attractive.
Everyone's eye on budget, Govt will take major steps to stabilise the inflation below 7% by end of May or so. And, make sure will try to restore the confidence to the people.
And, 2nd quarter there is a huge possibility that Federal Govt Chairman Bernake will come with the point to look for interest hike in US, which will lead huge fall of US stock market, as money will flow from stocks to currency market and treasury notes/bills and govt bonds.
Same thing will follow when European Union chairman Trichet will talk about interest rate hike in Euro.
This will give a opportunity money will start flow again towards Emerging market specially towards BRIC nation.
What's Not Sure : How far our govt will success in budget? After Egypt, what is next
Re: For me..it' good time to buy
by deecee on Feb 13, 2011 09:42 PM
It is all kite-flying.With MMS the great economist and Sonia the great Indian BAHOO India is doomed.Jai ho
It is sad that our domestic financial institution, retail investors, etc simply buy or sell solely on the basis of what FII's do. India will grow at a healthy 8% rate over next 5-10 years. If we take this long term view, even buying at sensex of 18k or 19k is fine. It is high time investors ivest in good stocks for the long term and not on what FIIs do.
Spectrum case is diverted to attack industries and investors. All these years, judiciary is part of lawless and corruption. Now they attack as street goondas.Without trail, they decided verdict. By using people weakness, they misuse judiciary to undermine development.In future,govt officials will take decision; bank have to fund corporates. Today is Thomas Alva edison's birthday who was sacked from General Electric Company which was founded by him on auditors' report. similarly Steve Job of Apple Computer was sacked from his own founded company on auditor reports. Auditors and Lawyers can not develop industries and nation. If trusted more, all will fall. It is unfortunate, corrupt judiciary is glorified by the ignorant mass.
If you are big and have loads of money and can take some hits (temporarily though) then you will make tons of money. This is what FIIs do. When markets plummet they buyback at lower prices to reverse the trend. Common man is fooled to believe an uptrend and then enter into the market and looses money on reversal again. Big players can maintain their margin requiremnets and therfore survive.
