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Nickname: Nathan
Review: It is hard to predict where this market will head. My reasons: First why the market could go higher.
1. Indians predominantly invest only in land and gold. Thousands are still not in the market.
2. Most so called investors are indeed speculators. Many investors bought Biocon, a biotech company, thinking it will be the next Infosys. So far it has been proven to be a very stupid move!
3. There is lot of money sloshing around in India. People have made a killing in real estate and some of that could spill over into the stock market.
Why the market could head lower?
1. Indian businesses tend to be corrupt because it is sytemic. It is just a matter of time until someone will tip the apple cart.
2. The market is driven only by technicals. So when the market reverses those who fed the market will kill it, too.
3. Intellectuals prop development by Indian companies is far behind any of their neighbors. The Indian patent office takes 11 years to issue a patent!
Date reviewed: Apr 14, 2006 6:28 AM
Nickname: AngryAmerican
Review: AngryAmerican, your comment has no relevance to this article. Also try telling American shareholders that American companies should not make fabulous profits overseas! For a change, instead of cribbing, try creating opportunities for yourself in this global environment, just as other countries are trying. Stop crying and stop slacking!
Date reviewed: Apr 10, 2006 7:26 AM
Nickname: FinanzWhiz
Review: When will we learn? Indian markets have never followed a common logic. And, always, it's the small investors who gets the red signal in the end and it's he/she who burns their hands. Take a simple case. If you look at the kind of economic growth that the country is witnessing, it's mostly happening in small businesses and at the micro level. Not in any big companies. So, ideally, it should be the private investors and entrepreneurs who should benefit from this economic growth. Not Infosys or Wipro.
Date reviewed: Apr 7, 2006 2:56 PM
Nickname: Bill
Review: A customer asked me to find suitable opportunities in India. The selection was narrowed down to the choice between an open ended and a closed ended mutual fund. When I contacted the active manager of the open ended fund and asked for a current risk assessment of the stock market in India he said that he would get back to me. Now I know why?
Date reviewed: Apr 6, 2006 8:58 PM
Nickname: Rahul
Review: Indian markets are too overpriced.
Date reviewed: Apr 6, 2006 8:09 PM
Nickname: bigb
Review: Indian Companies need to offer investment options such as REITs, Commodities, Derivaties, ETFs, variety of mutual funds, Corporate & Muni Bonds to absorb all the money pouring in. The opportunity is ripe for introduction of all these options.
Date reviewed: Apr 6, 2006 6:15 PM
Nickname: AngryAmerican
Review: Try telling the people working at the companies whose jobs are getting outsourced to India that it is a good thing.
Date reviewed: Apr 6, 2006 4:10 PM
Nickname: marathon
Review: Indeed the stock indices hasve gone to dizzying heights purely on liquidity and not necessarily on fundamental factors. Given the 04-05 growth was higher for most of the mfg andservice companies maintaning sucha high growth YOY is unlikely. A Correction of 15 to 20% is called for a healthy market.
Date reviewed: Apr 6, 2006 12:28 PM
Nickname: Eco Dullery
Review: One aspect which has not been covered in this is the diversion of public money from the banks to the stock market creating a short term liquidity crunch. Also, while the RBI insists that the liquidity crunch is temporary, this has got to play a factor to push interest rates up. The inflation is also being supressed with the impact of the crude prices not being passed on => more pressure on interest rates.
Date reviewed: Apr 6, 2006 9:43 AM
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