Sensex above 17K.. Is it the right time to invest?

In February 2007 I had come up with an article Buy..Buy ..Buy...where I had asked lot of my clients to invest. Remember that was the time when markets were close to 12000 levels on Sensex. There was panic in the market as there was expectation that the market will go down to 8K levels soon. Most of my clients are still holding the asset class and have reaped the benefits. All my focus had been on long term investing and why we should not be worried about the market level especially when we are investing in an economy like India. Indian finance minister expects India will be growing around 10% on GDP with corporate returns to be in the range of 28% + with more appreciation in the rupee and more flow from Europe, USA & Asia. So doesn’t it makes sense to be in invested in India now? Ask any investment guru and he will say lets look long term. But what is long term???

Ideally its 3+ years.

I was telling one of my customers today that some of the hedge fund operators in Europe have made India as an asset class in itself. That’s something big for our economy as it will make sure more money flow happen to India & most of which will move into the markets, real estate or as direct investment into the companies. All the three make sure that the stock market moves up.

So isnt it a great time to be in the market. As somebody has said its not timing the market but time in the market which makes all the difference. So lets think big, lets think to remain invested; lets not try to time the market and Lets Invest.
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Comments

  1. Pradeep NairOctober 04, 2007

    From what I understand it is the flow of dollars that is driving up the sensex. Now will these guys pulls off the money, sooner than they should? Is this fast rise of the sensex any thing to be worried about?

    ReplyDelete
  2. UnknownOctober 05, 2007

    Yeah you are right, it is the FII's who are creating the volatility. As of now I dont se a reason why they should pull back the money. Since rupee is appreciating its actually dual benefit for the FII's as they can bring in the money to india now and get around 15 % return + if the rupee appreciate more say 2 %+ in two years then add that apreciation too.
    I think we should look long term (say 2-3 yrs min)

    ReplyDelete

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