Where are the markets headed?? Will sensex cross the earlier highs??
This is a question lot of investors have in their mind after the fall we had seen in Indian markets. Sensex itself has fallen from 21000 level to now around 17500. In India, we will only see 22-24% earnings growth in FY08 and 15-16% in FY09. The first half of the year will be pretty volatile and the market might even see the lows of 14k on the sensex. Second half should be good and I expect the market to be rage bound and it might touch the highs of 21 K. What we should observe here is that 21 K is the earlier high and market might not move beyond that. All markets world wide had a great rally last 1-2yrs but if we go deep into details on each market we would understand the reality.For example, S& P had gone down by 20%, but it hadn’t gone up all that much,whereas the emerging markets are essentially way overboard and way over their long-term trend lines. So I think that in many cases, some of the emerging markets could still drop about 30-40% from the present levels. In precious m