HAPPY DIWALI & A PROSPEROUS NEW YEAR SAMVAT 2071 !!!

HELLO READER FRIENDS, 

Here's Wishing You n Your Family

A VERY HAPPY DIWALI &

   A PROSPEROUS NEW YEAR !!!!

We meditate on the Glory of the Creator ; 
   Who has created the Universe ; 

  Who is worthy of Worship ;
         Who is the embodiment of Knowledge and Light ; 

            Who is the remover of all Sin and Ignorance;

  May He enlighten our Intellect.

Gayatri Mantra....

There's always something warm and bright, about this time of the year, when everything has a special glow, and hearts are full of Cheer, that's why this special greetings comes your way, to wish you all a life's best on Diwali and in the coming New Year too.....

Bhavikk Shah

I Wish you all and your loved ones a Very Happy Diwali and A Prosperous New Year and Thank you all for being there as a backbone of the Blog for 7 long years..

From the last Samvat to this, markets has definately made every one happy this year. From last years Muhurat trading of 6,317.35 Nifty to current Nifty of 7,995 (22 oct 2014), its a fantastic 1,677.65 points run a excellent return of 26.55 % and if we take the peak of our markets then its around 2,247 points of run up from nifty low of 5,933. Whatever the case may be (elections, majority to new government, expectations of reforms etc) but the investors are happy as of now. But still I am concerned, 

Yeah am concerned, dont get me wrong I still hold my bullish view for Indian Economy & markets. We all know that there is a wave of change in Indian Economy and changes does not occur in sudden, it takes its own course of time and Stock markets tends to react faster than we expect and when the sanity of the markets returns, we see down trend in markets which are nothing but a reflection of true fundamentals of our economy.. 

Give a look at our IIP - struggling at 0.40 % our GDP at 5.7 %, and adding on to it our corporates are not enthusiastic enough to do major investments, remember I have repetitively kept on saying again and again that our corporates still holds huge chunk of cash of around Rs. 5,70,000 Cr. Secondly, this rally has come at a time when there were depressed earnings and if we see at the previous market peak, which was of Jan 2008, the earnings growth trajectory was Upwards at that point of time and currently the earnings growth is muted, this means that a lot of the anticipated improvement in earnings is already priced in. 

Looking at the way the earning season is going I feel that there could be downfall in markets which can wipe off entire gains, anyways the 10 years average historical PE of Indian markets is around 17.8x but below its peak of 25x. I see Nifty levels to cool off around 7,400 - 7,600 and then the new wave of bull market should start which I hope will be on back of the strong investments by the corporates, double digit IIP, lower inflation, strong earnings growth and hopefully GDP number of 8.5%.. So friends just be cautious and start booking your profits because we can see a sell off within 3-4 months.. Buy fundamentally strong stocks and keep a strict stoploss of 8 % ..Till then happy Investing !!!

WISH YOU ALL A VERY HAPPY NEW DIWALI AND A PROSPEROUS NEW YEAR !!!!

READER FRIENDS READ THE VERY FIRST POST OF THIS BLOG DATED : 30th OCT 2008 

Best Regards,

BHAVIKK SHAH 

Visit:  www.bhavikkshah.blogspot.in 

Visit: Mobile Version of Blog 

 Twitter Handle -  @bhavikkrshah 

VIEW THE POWER POINT PRESENTATION ON

RETURN ON CAPITAL