Notes on Indian equities, sectors and economy

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 92 other followers

  • Top Posts & Pages

India’s bull market is over

Posted by fairval on March 30, 2007

RBI’s actions today confirm what I have been feeling for sometime – this bull market is over, alteast for the next 6 months or so, if not more. The feedback I got from today’s drastic measures by RBI is that interest rates will rise by another 1-2%. That is huge (since we have already seen a rise in the 1-2 years. At say 12% or more for a home loan, demand has to fall. So demand slowdown, GDP slowdown – all of that looks a reality now. Corporate expansion plans may be hit.

For investors as well, cash (FDs etc) seems a better option. Canara Bank is giving 9.5% for a one year deposit. Deposit rates may rise to 10% or so. So why invest in equities. It is time to be overweight cash, underweight equities and real estate.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: