Fairval

Notes on Indian equities, sectors and economy

Talking up the Markets -1: The FM and a broker

Posted by fairval on September 13, 2010

With the Sensex crossing 19k, markets are fully valued till April 11. But of course, markets can stay above fair valuations and stay there as long as bullish mood persists. This happens more often than not in a strong bull cycle.

What will of interest now, is to watch who all are talking up the market. There are several interest parties who would want atleast a 6 month window of markets above 19K. We start a new series here, to record statements made with intent of prolonging the gold rush.

The FM was first off the block last Friday. The moment the IIP data was released, he made this comment:

Finance Minister Pranab Mukherjee said, he expects average Industrial growth this fiscal to be between 12 and 13 percent, given the good showing of the labour-intensive manufacturing sector.

IIP for fiscal’11 at 12-13%? Economists, please revise yr GDP expectations immediately…

Naresh Kothari of Edelweiss made this statement on ET Now:

So there is a reasonably good chance that the market might go another 10% higher from these levels also. I think the trading range or zone of the market has changed over the last few sessions, over the last few weeks. We are now clearly in a 15000-16000 kind of a level at the bottom end to around 20000, may be even touch the earlier high of 21000 and then see where it goes kind of a range. So that is a range that I would think the market is in.

(well, to be fair, that’s a motherhood statement, all bases covered. Not like the FM’s statement above, which is clear in its intent)

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One Response to “Talking up the Markets -1: The FM and a broker”

  1. […] On 10 September 2010, the FM Pranab Mukherjee made this statement (see the earlier post): […]

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