Financial Daily from THE HINDU group of publications
Tuesday, Feb 07, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 07, 2006 |
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Markets
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Events Sensex 10,000: What they say
Psychologically, 10,000 is a big landmark in the history of the Indian stock markets but the fundamentals of the markets are still strong. With current P/E levels hovering around the 18-19 levels and next year earnings around 16, there is still a fair amount of room for upside. The month of January saw domestic funds raise around Rs 2,000 crore and Japanese investors around $2 billion. These liquidity flows will help sustain the high levels for the indices. But to investors, I would recommend that they be choosy since a sharp correction in the short-term cannot be ruled out. Mr Nirmal Jain, Chairman & Managing Director, India Infoline Ltd.
This is an important milestone for the Indian capital markets. It reflects the underlying strength of the economy and the leap of faith that global and local investors have taken on India. Indian equities have delivered exceptional returns for the last 2-3 years. However at these levels, investors need to tone down expectations. While the rally would continue to be broad-based and perhaps accompanied by higher volatility, stock selection would continue to be of prime importance and investors need to focus on margin of safety. Mr S.A. Narayan, MD, Kotak Securities.
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