stock market in the near-term.
following things to be remembered:
1. subprime crisis loss is around $4 trillion. so FIIs will take out there money from equity.
2. US slow down
3. Indian economy is also cooling down. industrial production is already down. earnings growth will come down.
4. sentiment is week. Indian growth story already lived 4-5 years which is difficult sustain.
already sens*x valuation is 22 times. if these factors affect the market, there will be a fall. the valuation should be brought to 16-18 times. then the sens*x will be around 13150 - 15000. this will be bottom level. maximum level will be 19000-20000.
except last year maximum P/E had been 20. in January 2008 it went up 28.
any events other than above will certainly change the trend.
Rakesh jhunjunwala says: The
https://vbulls.com/forum