BUY BUY BUY...today/tomorrow..SENSEX itself down more than 7 %
Sensex down more than 7 % from its peak in a single weak. Volatility to remain taking into consideration budget and state elections. The only thing to be kept in mind is the GDP growth of 9.3% (govt estimates) and the corporate profitability which will be a subset of the growth in the economy. Analyst beleive this year will be better than last year and we should be crossing 16500 on Sensex by december. I strongly feel that from here on we can see more focus on Mid caps this year than large caps and the mid caps index should cross its all time high. As of now we should be standing at an PE of 15.5 % of FY08 on SENSEX which looks fairly valued but if I take into consideration the strong growth in the economy I feel its the right time to buy to make in the profits. Though I would like to mention that we need to be cautious too. The best thing to do is to keep a track of valuations and once the valuations go beyond 17 PE on SENSEX we need to start looking at profit booking. To do so one c