NIFTY: Near 8700
SENSEX: Near 28000
Nifty at current levels is near 24 p/e, US Index S&P 500 at current levels is near 24 p/e too. For any index, 24 p/e cannot be value territory for investors. Couple that with the lack of sufficient earnings growth in the market, It becomes ripe for a crash. We have so far avoided the crash because World Economies are printing money and sustaining their Economies, That is what US QE is (layman wise) and now they are going towards Hiking instead of Easing. We have a very strong Government at Center, We can see things improving after decades of misrule but the problem is at the Global Front.. Even US elections are around the corner and if Donald Trump sails through which I feel is possible, He is not much liked by the markets. Having said that, I would avoid making a DOOMSDAY commentary here which actually is a probability but no one can time it, I would suggest Investors to stay focused and Investment or Portfolio wise go behind stocks which are seriously in the value territory rather than buying bloated names at astronomical valuations because when Market cracked last time, Mega Bull Stocks like Educomp got finished while under valued stocks went under correction to emerge as a Multibagger in the Future. So Investors should be very cautious in the market right now.
What is at 24 P/E might go up further and trade at 28 P/E but I hope readers understand the Risk and Reward here.
Nifty at current levels is near 24 p/e, US Index S&P 500 at current levels is near 24 p/e too. For any index, 24 p/e cannot be value territory for investors. Couple that with the lack of sufficient earnings growth in the market, It becomes ripe for a crash. We have so far avoided the crash because World Economies are printing money and sustaining their Economies, That is what US QE is (layman wise) and now they are going towards Hiking instead of Easing. We have a very strong Government at Center, We can see things improving after decades of misrule but the problem is at the Global Front.. Even US elections are around the corner and if Donald Trump sails through which I feel is possible, He is not much liked by the markets. Having said that, I would avoid making a DOOMSDAY commentary here which actually is a probability but no one can time it, I would suggest Investors to stay focused and Investment or Portfolio wise go behind stocks which are seriously in the value territory rather than buying bloated names at astronomical valuations because when Market cracked last time, Mega Bull Stocks like Educomp got finished while under valued stocks went under correction to emerge as a Multibagger in the Future. So Investors should be very cautious in the market right now.
What is at 24 P/E might go up further and trade at 28 P/E but I hope readers understand the Risk and Reward here.
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