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Tuesday, April 29, 2008

Destination India
The moment few broking houses started giving buy calls and traders started jumping into the band wagon, market stoped rising. In any case today was the last day of the settlement and market always behaves to the positions.

After IFCI Arvind Mills made great recovery and we expect news of its land bank J V for joint development at prime location land at Ahmedabad will do wonders for this stock.

Try to catch all realty stocks which will rise in tandem with fall in inflation. There will be huge action in HDIL, DLF, Unitech, Punj etc in next 2 months. We expect DLF to touch again Rs 1000 in next 2 months. This will help all small realty stocks to see new heights such as Network, RDB, SGL Global etc which will give returns in multiples.

Why am I so bullish in Indian stock markets irrespective of all the recent drama, correction, high inflation and slow growth..? I think people call me perennial bull. Yes, I am bull till 2012 and I do not subscribe to the views expressed by wizards on the wire channels which are threatening the prospects as well as life of petty small investors. There is no governance applicable to them.

I am bullish in India irrespective of all near term negatives because I hold that Indian rupee is set to rise to Rs 25 against the dollar in next 5 years and believe or not if my projections come through then we will cross Sensex 40 K very easily and whole globe will come and sit in India. You can’t ignore a country whose currency rises 50% in just 5 years. This is inevitable and therefore my choice of investment will remain India and that too equity.

We have not even seen 1% growth in infrastructure and we are tiring. Bejing infrastructure spending in today’s context is 50 bn USD a year. Bombay is struggling for 1 bn USD. Make your mind broad and think loudly. I am seeing a say where companies will start getting orders of 25000 crs to 50000 crs in one single stretch and when execution takes place the profits will become like RIL profits. What will happen if microsoft will ask 5 mn sq ft space in mumbai and IBM another 5 mn in Chennai and Marks and Spenser consume around 10 mn sq ft....? India has land and minerals which is not there with other countries. We sell minerals and land for gold like arbas sell oil for gold.

Just do not listen to any sick advice and stay invested. Today’s small cap will become mid cap of tomorrow and large cap in 5 years. Any way it is your call at the end of the day. I am bullish and watching every day FII and instituitional sellers sell their holding only to buy at all time high.

Faith is to believe what you do not see; the reward of this faith is to see what you believe.

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