Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

India's Sensex Index tumbles by nearly 10% from highs, a buying opportunity ?

Stock-Markets / Analysis & Strategy Dec 13, 2006 - 12:35 AM GMT

By: Nadeem_Walayat

Stock-Markets

The indian stock market has stormed ahead to new highs , after recovering from the dip during the summer. The market finally paused for breadth as profit taking took the index about 10% lower. The Banking sector led the decline in Bombay including sharp falls in ICICI Bank and HDFC Bank, which was a result of the Reserve Bank of India's decision to tighten liquidity by raising the cash reserve ratio of Banks.


Further downside is likely in the banking and technology sector to unwind the overbought state in the index. Though india is still a long-term buy so the decline should represent an ideal buying opportunity once the market makes a base.

The Sensex chart is initially targeting a move to the previous peak of 12,600 which is likely to be broken to further target a 50% retracement of the advance from the June 06 low, at 11,300. This would represent a further drop of some 13% off current prices. Which if it were to occur would represent a good buying opportunity, as the market at 14,000 traded on a PE of 19 , thought not overly expensive given continuing strong profits growth of some 25 to 30%.

How to buy into India's growth for the long-term
There are numerous investment trusts, mutual funds and unit trusts that invest in the india stock market, with funds seeming to be launched every other week. One notable good performer that comes to mind is the JP Morgan Indian Investment trust.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


14 Dec 06, 02:05
India will overtake China next year as the world’s fastest-growing economy
on rising consumer and government spending, Credit Suisse raised its 2007 growth forecast for India's $775 billion economy, Asia's fourth biggest, to 10% from 8.5%, Mr Tao said. China’s $2.2 trillion economy is expected to grow 9.9% next year from 10.4% in 2006, he said.

Surpassing China’s expansion rate for the first time at least two decades may help lure the overseas investment India needs to replace dilapidated port and roads and create manufacturing jobs. Prime Minister Manmohan Singh needs rapid growth to lift 350 million people out of poverty in the world's second-most populous nation.

“India's growth story will only get stronger,” said DH Pai Panandiker, president at RPG Foundation, an economic policy group in New Delhi. “There is a lot of money available to spend in India.” Sensex, which has risen 38% this year, touched a record on December 7 as overseas funds bought a net $8.52 billion of stocks after having invested a record $10.7 billion in 2005.

Per capita income in India has doubled in the last nine years and the number of households earning an annual income of at least $10,000 is rising more than 20% a year, according to McKinsey. Commercial banks’ outstanding loans have doubled in the past three years and have risen more than 30% since April 1.

India had the highest average salary increase in the Asia-Pacific region in 2006 gaining 13.8% in 2006 compared with 14.1% gain in 2005, according to human resources consulting firm Hewitt Associates. Salaries in India may rise by 12.3% to 15% in 2007.

shashi
13 Mar 08, 05:05
regarding economic growth of india compared to china

it is only in words not in reality,due to corruption.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules