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Talking up the Markets -3: Ramesh Damani

Posted by fairval on September 22, 2010

Predictably, all the experts on CNBC,are still holding up the possibility the markets will go up. Some more examples from Money Control.

This is Ramesh Damani has to say:

    1. Current rally is more sustainable than last one. There are no sign of 2007-like euphoria.”
    2. I am clearly focused on Coal India IPO, I think around that time we should see index make fresh highs.
    3. The outlook is good. We could see a time before it travels to 25,000, but the sheer pace at which the market has risen back from its almost vertical fall suggests that the market wants to go higher. It might spend sometime consolidating, 21,200 is a psychologically brutal level of the market. It will spend time, in my opinion, consolidating at those levels, but ultimately this bull market will probably head much higher.

      Our Comments: Sure, the market will ultimately go up, like we will die one day. About Mr Damani’s specific comments:

      1. Current rally more sustainable? This is hindsight speaking. I have not gone back to see what MrDamani spoke in 2007, but would anyone in 2007 have said the world was coming to an end? The US economy was rocking, the global economy was rocking. And what do we have now? US and much of EU is running a double digit fiscal deficit. India has a huge fiscal deficit. And this Congress govt is increasingly looking like it believes in Indira Gandhi style socialism. We have the spectre of Rahul Gandhi become the PM in maybe 12 months. And trust me, he will be a disaster.
      2. Coal India IPO. It does appear the market is being held up to ensure that IPO goes thru. Mr Damani is right, but the message is wrong. The smart money will probably exit by the time the IPO comes.
      3. The outlook is good: Read the full thing. IT says the market will go to the previous peak, consolidate, then go forward. No possibility of valuations anywhere being too rich and so on. No need to sell. Hmm, only hindsight can say anything about this statement. We will revisit 12 months down the line
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      One Response to “Talking up the Markets -3: Ramesh Damani”

      1. Praveen Shamain said

        This is what Ramesh had said on March 31, 2009.

        – Sensex to eventually break 8000: Ramesh Damani (March 31, 2009)
        http://www.moneycontrol.com/news/market-outlook/sensex-to-eventually-break-8000-ramesh-damani_391076.html

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