There are things 'Known' and things 'Unknown' and there are some 'Known Unknown' ... and Indian asset market can easily be compartmentalized in the last category ...the asset market had entered into an 'terra incognita' ages back and yet the forward march continues ...levels after levels fall like ninepins ...every buisness news channel worth its salt cried wolf from every roof-top that they could muster ...and still no stopping this relentless money-machine ...are our markets in the state of 'irrational exuberance' to quote Fed's Alan Greenspan prophesy in those heady days of tech. boom ..as a keen market watcher and 'self-declared' analyst ..i just agree to disagree with the general mood of the markets... no doubt that large foreign money is pouring into Indian securities and debt ..indian comanies are going for cap-ex after nearly ten years of excess capacity ..exports and local consumption is growing.. and growing fast... housing demand is red-hot, new sunrise areas are fueling growth and job creation ( Retail,IT and IT-enabled.. )
but somewhere in this exuberance the fundamentals have been sacrificed.. overlooked .. the markets looks overheated,trades at P/E's (post-2007 earnings) way beyond the many country averages and we are seeing lot of speculative action these days ...and yet we are cheap (how ...i don't know ...) the reform program in in tatters.. privatisation is a strict 'no-go lane' ..fiscal situation is anything but rosy...and you just need one terrible monsoon and we again sink back to abyss ..normally the best of the times are there to make the toughest of decisions .. but the greatest the goverment could muster was airport privatisation ... there are no quick fixes .. no magical wand ... the choices of today will decide the growth of tommorrow... there has to be postive reforms to sustain and further this growth instead of relying on foreign funds to do the trick.. we also need some semblance of sanity in these markets or many people will lose their shirt this time round ...and don't you ever believe on FII's ... for they have a very long rope ...
~DISCLAMIER~
The view expressed are mine and mine alone .. my company or blogspot have no linkages with my opinion ... and its doesn't matter anyway ..the retail people had already sold-out at levels that were half of what the market is ruling today ...typical spectators ...you know !!!
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