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Friday, July 25, 2008

We are talking of Indian Stock Markets, which is in a very strong and healthy BULL RUN. The ratio of risk and reward to your investment is of a very high degree, so in the recent past very low number of people were participating in the market, but gradually the number is increasing day by day.

We think we at 20000 Sensex are trading at low levels, whereas the old or traditional trader is considering it as top - the person who has been part of the market during 1992 or 2000 are fearful expecting same sort of crash. We think they are mistaken this time, for many reasons -

  • Firstly, 1992 or 2000 were one man show - this time not.

  • Secondly, when our GDP was 4% Sensex was around 6000 roughly, now GDP around 10% and Sensex at 19000 ?

  • Thirdly and lastly in 2002, the property which was of Rs. 1 Lac is now around Rs. 5 Lacs or more - Can you expect to get that property for  Rs. 1 Lac again - We say NO, never under normal geographical circumstances.

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