Growth Story: The Indian way

Indian Stock markets have witnessed an abrupt crash after a dream run in 2007. Maybe, the run up was a little too stretched and thus when FIIs decided to sell, it was all the way to bottom. It can be argued that the market was trading at all time high and one shouldn't have entered at the first place and sort of things.

In hindsight, it may appear logical as well, but the bottomline is that the sensex is trading below 17,000 and majority of retail investors are in red, including the writer of this blog. And it is not just the retail investors who have lost heavily to the cheater 'Ambani', as some people call him deriving vicarious pleasure by doing so. Centurion Bank of Punjab has lost FORTUNES (mind it, all caps) to the tune of INR2.6bn (that translates to Rs 26 crore). The amount is significant as it is more than half the profits it earned in December quarter.

However, the point i'm driving home is that some investors find an opportunity in flat market and do some value buying, while others continue to loose money. Both are important for the market to keep functioning properly. We shouldn't forget that stock market is merely a trading place where money and stocks change hands. Only way to make money in the market is to put your faith in the stocks you pick. The long term growth story is still intact, even after a moderation in corporate earnings.

Warren Buffett used common sense to invest in American Express and Coca-Cola. To hell with the theories of coupling and decoupling, can't we see that the average Indian is better off compared with 90's. It doesn't require rocket science to see where India is headed for the next 10 years if not 20. And it is not just about IT and ITES, even manufacturing is attracting a lot of investment.

In conclusion, all I'm saying is keep ur eyes open, do not fully rely on tips. Take lead from tips, do your own research, and if u happen to invest in XYZ after all this research, do not panic. It is still the same XYZ irrespective of all the selling from FIIs. And it is not that difficult to spot multibaggers in Indian market. Pick Punj-Lloyd or Gujarat NRE Coke or Petronet LNG, but again do your research and don't just invest money in these companies, invest FAITH.

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