Friday, January 22, 2010


And then came the correction..........

Valuations are not just ''fairly priced'' in my opinion!!
Valuations are not cheap!
Sectors like Autos, FMCG and Engineering leave a wafer thin margin of safety for the investor.
As I have been saying in recent posts, it's definitely time to take some chips off the table.

Indian Stock Markets will have to cope with the current sell off in global equities as well as volatility and uncertainty as we head towards the Indian Union Budget.

The charts below show that equity returns in emerging markets like India are highly dependent on FII fundflows. The sustainability of these FII investments in emerging markets could face significant headwinds if the world economy heads for a ''double dip''

These charts are from the Business India Magazine - January 24, 2010.

1 comment:

Master And Student said...

It is very nice to see that, your tagline includes "bullish on Indian Economy".
And as you have rightly said Indian equities are fairly valued at this point of time, and any double dip could create the usual havoc, India being a high beta market.