.....................Dil Mange More said Sensex when circuit broked. Making all thinking next is what. The jumping Sensex has reminded India all of security scammers from likes of Harshad Mehtas to Ketan Parekhs. Most feels, technicals are bad how it dared to jump so high, no doubt stable govt is a positive but not much that sensex can jump by 17%. Most believe this is a bad time stay far from market, theres no chance that company earnings will zoom by 20-25% over the next one quarter due to a stable govt. So anyone who invests now will be a fool, sensex has jumped without a firm base and the jump may result to a big problem for all.
But what I feel is otherewise, this spike is here to stay, lets go back to 2008 when nuclear deal was signed, despite facing the verge of failure this very government stood up, took the challenge and made the decision which is a history in itself. Now it has the majority, it has ability, courage and AUTHORITY to take the decisions which are required and may put India to an even faster growth track. Moreover all over the world indices are not governed on companies earning alone market setiments also affect the index numbers. And this euphoria is on the base of pending decisions like: i) Pension Reforms ii) FDI reforms iii) Labour Sector reforms iv) Insurance Reforms v) PSU Disinvestments and many more.
All these decisions will bring a lot of money to companies reducing their cost of capital and thus more investments, more growth and thus overall enhanced value to the stocks.
So have faith in our country, we are on the right track.
Yours
Ajatshatru Kaushal
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