Tuesday, December 6, 2011

CONTRARY OPINION : SENSEX TO GROW IN EXCESS OF 20% IN 2012.

Leading FIIs including Citi, BofA-Merill Lynch, UBS Securities, Macuarie and Nomura predicts a gloomy picture for Sensex and NIFTY and they expect the bench mark index to fall another 20% from the current level. First Choice IPO differs with their prediction and expects the indices to to grow in excess of 20% in 2012. Global crisis is just a 'blip' says Prof Levitt, the author of the best selling book Freakonomics. And that is not without reason. Economies around the world have grown so much since World War II, unless there is something horrific on the horizon, which he does not see, people will look back these days as nothing more than a 'blip'. There is no doomsday looming on the horizon. It is only the extreme reaction to the markets by the so called biggies, that makes the problem look bigger than it actually is. And if one analyses the earlier prediction made by these FIIs, one can safely conclude that the market is headed in the opposite direction than what these experts think. There could be some slow down in parts of the world, but the India growth story remains in tact. Stay invested in top indices stocks.

19 comments:

  1. As you suggested I am investing/averaging in Cantabil Retail. Is it accptable? Can I get back my money/returns if I wait for some time(months), please?

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  2. There is no guarantee in stock market.

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  3. Prasanna sir had already mentioned in the previous thread to stay away from retail stocks. Also its better to get out from Cantabil.
    Me too holding this scrip too some large extent and not willing to get out of it soon. But I will wait for one more quarter to see the results and then take my decision.

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  4. Sir my portfolio has 3i infotech @ 20,HDIL@ 66,L@T @50,RCOM@ 72,Shree renuke@32,Suzlon@24 need buy/Sell/Hold on these as mkt seems going only one way and that is towards gravity..

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  5. Thank you for your encouraging words

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  6. Sir,

    I want to purchase infrastructure bond for tax purpose. Could please suggest which is better among IDFC,L&T and IFCI.

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  7. In my opinion, we can't blindly believe what Prof Levit predicts. I highly doubt that Sensex would grow more than 20% in 2012. This government is highly inefficient in almost everything and that will indeed impact our markets; therefore, 10% seems optimistic and reasonable. However, during these times of uncertainty, I think it would be safe to invest in top index stocks and average them out.

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  8. Thanks Sir, I bought infra bonds accordingly.

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  10. I am surprised to see that DSIJ magazine need help of other websites to promote themselves.
    This is not the new way to advertise about the products and services but DSIJ is following this is quite surprising to me.
    Prasanna sir, we are happy that even DSIJ tracks your recommendation and hence it does make sense to write the queries here itself and get it resolved than to buy the magazine.

    - Sanju

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  11. Look at the IPO recommendations of DSIJ for the last 2 years. They have more than 80% failure rate.

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  12. Hello Prasanna sir,
    I still do remember about their surprising recommendation of Nitesh Estates which is still trading below its IPO price. The good thing was that I did not follow any of their IPO reco. :)

    - Sanju

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  13. Foreigner individual being (in future) able to invest in india has chances of boosting indian markets? Especially, who knows if black money by indians abroad may somehow get routed back using this mechanism.... ?

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