25000 level within 3 years? In last four financial years, the sensex has improved at an annual growth rate 44% from 3048 as on March 31, 2003 to 13,072 on the last trading day of the last financial year. In the last two years also, the sensex grew at 42% compounded annually. However, in 2006-07, the sensex improved by only 16% from 11,280. But, in the last over 3 months, the index has increased by 15%.
Huge success of public offers worries Rakesh Jhunjhunwala Big Bull Rakesh Jhunjhunwala is raising concerns about the short-term direction of the Indian stock market.
Addressing an audience of about 200 brokers here on Tuesday, Jhunjhunwala said, ?I am circumspect and rather careful about the market for the next six months.?
He says he is concerned about the way Indian initial public offerings (IPOs) are getting huge subscriptions not only in India, but globally.
Jhunjhunwala was talking at the launch of
India?s Leading Equity Broking Houses 2007, a publication of Dun & Bradstreet, a business information providing firm.
The recently concluded domestic follow-on offer of ICICI Bank Ltd attracted close to Rs1 trillion against an issue size of about Rs9,000 crore.
In mid-June, New Delhi-based realty firm DLF Ltd?s Rs9,500 crore IPO was subscribed three-and-a-half times. Dozens more IPOs, including those in real estate, are on the cards.
In early 2005, when India?s benchmark stock market index Sensex was hovering around 6,000 point levels, Jhunjhunwala surprised investors by predicting that it will go up to 25,000 by 2009. Two years since that prediction, the benchmark index has been hovering around 14,500 levels. It reached its lifetime high of 14,723.88 on 9 February.
Over the past month, the 30-stock Sensex has risen marginally from 14,397 points to close at 14,43.06 on Wednesday. The broad-based 50-stock S&P CNX Nifty has risen from 4,256 levels to 4,263 during this time.