Bulls Vs. Bears

Posted on maekhana.blogspot.com on 03/06/2008

Well, the market has taken one more down turn, below 16k levels for market. its alarming to note, but i still feel the BULL phase is not yet completed and the its just a bear fear in the market. India's great story is still on, the companies are still showing good results, then how come the market can stay down for long. Fundamentally speaking i feel the graph will again try to touch the 20k level in the mid term and and surely shall cross the 25k level in a years time. Heavyweights like RIL, INFY , WIPRO, TISCO, the powerplays like RPOWER, NTPC, and solid metals like SAIL, HINDALCO, are not going to eat dust even in the next 25 years time. Then why should we fear about the slowness in the market. The financial back of indian economy like ICICI , HDFC, SBI are in the expansion phases, churning out newer strategies to expand as quickly as possible. These are fundamentally solid companies with an sure shot run of more then 25 years in future. Not to forget the home drillers like R PET and R NET. Individually these stocks are going to give the share of the goldmine to its shareholders. We are little slow when it comes to agriculture, Once we have some solid changes in the current agri pilicies ,we will definately have some great affects on the GDP's. We are talking about 7.5 to 8 levels of GDP, which is mainly due to the grwoing economy, with a little support from agriculture sector we are sure to maintain anything between 10-12 on YOY basis. This is not a dream but something that is really acheivable. Forget the inflation numbers, they have misguided in past and are currently doing so. C'mon a normal investor doesnt even know the exact meaning of inflation. Its time to change the way we calculate it. Thats what i can say about this. Stay invested, pick the good ones, with strong fundamentals, have patience and see the results. Its time to think from at least a 5 to 15 years prospective. When we say we have almost 60 percent of the workforce is below 25, cant we think about an investment which is designed from a 15 to 25 years of prospective. After all these sub 25 years contributors of our GDP, will keep on earning for atleast next 25 years before thinking to retire. Think Long term, not only to save taxes but also to contribute to OUR INDIA ! My picks at below 16k levels are GUJNRE, RELNAT, NTPC, BHARTI AIRTEL,HINOIL Cheers.