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 can keep on booking 10% every 300 points gain in SENSEX. This will make sure that if some market crash happens due to overvaluations and global economic market slump the portfolio will not go into negative.

As I always say Keep investing but this time be cautious too.

Also check my latest blog post by clicking home above or directly go to www.sureshkaimal.in 

Comments

  1. Inventory POS SystemDecember 28, 2010

    I like your article and it really gives an outstanding idea that is very helpful for all the people on web.

    ReplyDelete

Post a Comment

Popular posts from this blog

Real estate prices in India face slowdown

Real estate price in India is stabilizing and is facing steady slowdown especially in the metros. I have taken Bangalore as an example in this blog but other places too are affected by similar concerns. In Bangalore the real estate price is going crazy, though none of the real estate agencies would like to agree to this fact. Property prices moves due to the basic principle of Demand & Supply When demand is high & supply low prices will go up When demand is low & supply is high prices will come down For example let’s assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property. When the property prices are zooming everywhere> Here the owner will try to add as much premium to the property as possible, wait for three months and sell off in the last month at the highest bid ( RsX + RsY) W
Read more

Details of New Pension Plan 2009 (NPS) of Govt of India, PFRDA

Image
T he New Pension Scheme (NPS) has been launched on ‘Labour Day’ on Friday for all the citizens. This followed the confirmation by the National Interim Pension R egulator of the scheduled launch of the Mega Pension Plan from Friday. This scheme will be for for employees of private sector, self employed and extended it to everyone in the country. The Pension Fund Regulatory Development Authority ( PFRDA ) has decided to bring in some changes in the new pension scheme with effect from May 1, 2009.   The   new pension scheme(NPS)   will allow the fund investment of nearly 50% in the high risk stock markets. Six major fund managers were shortlisted for the   new pension scheme   in the month of February. They include Reliance Capital,ICICI Prudential Life Insurance,State Bank of India,Kotak Mahindra Bank,UTI,IDFC. An expert panel was formed under the guidance of HDFC chairman Deepak Parekh to look into the matters of   new pension scheme . The   PFRDA   has made a strict limit of inve
Read more

The World of Portfolio Management Service (PMS)

During the last market correction one of my client came to me and said why don’t you give me a mutual fund, which tries to beat the market by buying when markets go down and selling when its up. Why is it that MFs are not so aggressive?That’s a genuine concern which lot of investors have and to do so one has to actively manage the portfolio of stock, which happens in a portfolio management service. What is a Portfolio Management Service? PMS is a service designed for those customers who due to lack of time or knowledge cannot actively manage their portfolio. The service includes making a portfolio based on the risk appetite, needs, goal, time frame etc and actively managing the portfolio on behalf of the client to reach the specified objective. The investor is constantly informed about the happenings in the portfolio by way of personal interaction and reports. The PMS team will study the economic data, fund/scrip wise performance and research on various data relevant for the performanc
Read more