Most Popular
1. Dow Max Drawdown Bear Stock Market 2022 - Accumulating Deviations from the Highs - 21st Feb 22
2.Putin Starts WW3 in Ukraine, Will Use Tactical Nuclear Weapons, China Prepares Taiwan Blitzkrieg - 28th Feb 22
3.World War 3 Phase 1 - Putin WINS Ukraine War! - 25th Feb 22
4.INVESTORS SEDUCED by CNBC and the STOCK CHARTS COMPLETELY MISS the BIG PICTURE! - 10th Feb 22
5.Will There Be A 2024 US Presidential Election? - 3rd Mar 22
6.Gold and SIlver, Precious Metals Sector Is at a Terrific Buy Spot - 6th Feb 22
7.Why Putin Wants the WHOLE of Ukraine - World War 3 Untended Consequences - 6th Feb 22
8.Dow Stock Market Expected Max Drawdown 2022 - 19th Feb 22
9.Stock Market Calm In the Eye of the Inflation Storm - 4th Mar 22
10.M = F - Everything is Waving! Stock Market Forward Guidance - 7th Mar 22
Last 7 days
Cathie Wood Goes All in on Teladoc, ARKK INSANE Noob Investing Strategy! - 17th May 22
This is Anything but Positive for US Housing Market - 17th May 22
What Should We Do If There Is No Fed Monetary Policy Pivot? - 17th May 22
All Possible Ways to Earn Free Litecoin - 17th May 22
How low Could the Amazon Stock Price Fall? - 16th May 22
Cathy Wood ARKK INSANITY There is NO Coming Back! - 16th May 22
NASDAQ 100 Stock Market LOWER LOWS & LOWER HIGH - 16th May 22
Sanctions, trade wars worsen US inflation - 16th May 22
AI Tech Stocks Earnings BloodBath Buying Opportunity - 14th May 22
Futures Contract – Trading Crude Oil With USO - 14th May 22
How to Get Kaspersky Internet Security for 80% Discount! Do not Pay Renewal Price! - 14th May 22
Sagittarius A* Super Massive Black Hole Monster at Centre of Our Galaxy REVEALED! - 14th May 22
UK Public Debt Smoking Inflation Gun - 13th May 22
What Happens When the Stock Market Dip Keeps Dipping? - 13th May 22
Biden Seeks Inflation Scapegoats; Gold Advocate Wins GOP Primary - 13th May 22
Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - 12th May 22
The War on Gold Ensures the Dollar’s Downfall - 12th May 22
Crypto Investors Stable Coins TERROR as Terra USD COLLAPSEs towards ZERO, Tether Next! - 11th May 22
INFLATION IS KILLING SILVER - 11th May 22
The Dominant Investing Theme of the Decade - 11th May 22
Is Bitcoin Headed to Zero? - 11th May 22
RECESSION RISKS 2023 - 10th May 22
The Future of the Dollar Seems So Bright It’s Blinding Gold - 10th May 22
Take Advantage When Markets Succumb to Fear - 10th May 22
How to Recognize a Less\ Than Obvious Opportunity (In focus: Corn) - 10th May 22
How to Ensure Financial Stability for Your Family - 10th May 22
The Stocks Stealth BEAR Market - 9th May 22
A Strengthening US Dollar Is A Double-Edged Sword - 9th May 22
Making Wise Investment Decisions - 9th May 22
Ways to legalize a Moving Company - 9th May 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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