Sensex 25000 by 2010 !!! (Part-II)
Posted: Thu Mar 11, 2010 2:48 am
Dear gnv,
Please excuse delays. The said post has skipped my attention.
1. Now that the Budget is already presented, immediate concerns of investor are addressed and with the road map of next 3 years been opened.
2. Shri Pranab Mukherjee needs to be congratulated for throwing surprises of reduced Income Tax; not increasing Service Tax; increasing Central Excise by a meagre of 2% as was expected; marginally reducing Corporate Tax by 0.75% in shape of 2.5% reduction of surcharge and at macro level, conveying a confidence of raising Rs. 25,000 crores, app. US$ 5.5 bn by disinvestment of shares of Government Companies ; another Rs. 36,000 crores from sale of 3G Spectrum mobile connectivity and also transparent bidding for Mining rights. The Finance Minister has left more money with middle class; has also promised an exercise of infotech governed Public Distribution System which will not only reduce corruption and inefficiencies, but will also add happiness to the lives of people at the lowest end of the society.
3. This Budget reaffirms the strength of Indian economy and the growth story of Indian corporate's profitability. Gross Domestic Product (GDP) growth of 7% on a broad based economy indeed reflects the health of Indian corporates. 1 year forward Price Earning (PE) Bombay Stock Exchange (BSE) Sensex shares at 1,060 translates into PE of 15.35 and PE to G of 2.2 - one of the lowest and very attractive PE to G across the world. The Finance Minister has reiterated committment of infrastructure development both urban and rural and the public welfare schemes moving towards direct payment and reduced income tax leaving higher disposal income with middle class will result into Capex and Consumer spending. Add to this, last 5 years Saving's rate of 35%+ and investment rate of 30%+ and Foreign Direct Investment (FDI) of US$ 20 bn in first 3 quarters and Foreign Institutional Investor (FII) investment of US$ 18.90 bn since April 2009, show the confidence of global enterpreneurs and industries too.
3. The markets may commence an upward movement straight away but even if profit booking corrects the market in short term, the fundamentals are good enough for an annual return of 15%-20% over next 3-5 years. A good time to add on investments and initiate investments in Indian equity schemes of Indian Mutual Funds too.
4. First week of March 2010 has witnessed global / Foreign Insititutional Investor (FII) investors totaling close to a US$ 1 bn and investors with a view of 3-5 years, the level of Index at 17,000 is fairly priced and offers possibility of annualized gains of 18% - 20% per year.
Best wishes
RAJESH H DHRUVA
Note : As on 11th March , FII investment in March 2010 totals to US $ 2.33 bn
Please excuse delays. The said post has skipped my attention.
1. Now that the Budget is already presented, immediate concerns of investor are addressed and with the road map of next 3 years been opened.
2. Shri Pranab Mukherjee needs to be congratulated for throwing surprises of reduced Income Tax; not increasing Service Tax; increasing Central Excise by a meagre of 2% as was expected; marginally reducing Corporate Tax by 0.75% in shape of 2.5% reduction of surcharge and at macro level, conveying a confidence of raising Rs. 25,000 crores, app. US$ 5.5 bn by disinvestment of shares of Government Companies ; another Rs. 36,000 crores from sale of 3G Spectrum mobile connectivity and also transparent bidding for Mining rights. The Finance Minister has left more money with middle class; has also promised an exercise of infotech governed Public Distribution System which will not only reduce corruption and inefficiencies, but will also add happiness to the lives of people at the lowest end of the society.
3. This Budget reaffirms the strength of Indian economy and the growth story of Indian corporate's profitability. Gross Domestic Product (GDP) growth of 7% on a broad based economy indeed reflects the health of Indian corporates. 1 year forward Price Earning (PE) Bombay Stock Exchange (BSE) Sensex shares at 1,060 translates into PE of 15.35 and PE to G of 2.2 - one of the lowest and very attractive PE to G across the world. The Finance Minister has reiterated committment of infrastructure development both urban and rural and the public welfare schemes moving towards direct payment and reduced income tax leaving higher disposal income with middle class will result into Capex and Consumer spending. Add to this, last 5 years Saving's rate of 35%+ and investment rate of 30%+ and Foreign Direct Investment (FDI) of US$ 20 bn in first 3 quarters and Foreign Institutional Investor (FII) investment of US$ 18.90 bn since April 2009, show the confidence of global enterpreneurs and industries too.
3. The markets may commence an upward movement straight away but even if profit booking corrects the market in short term, the fundamentals are good enough for an annual return of 15%-20% over next 3-5 years. A good time to add on investments and initiate investments in Indian equity schemes of Indian Mutual Funds too.
4. First week of March 2010 has witnessed global / Foreign Insititutional Investor (FII) investors totaling close to a US$ 1 bn and investors with a view of 3-5 years, the level of Index at 17,000 is fairly priced and offers possibility of annualized gains of 18% - 20% per year.
Best wishes
RAJESH H DHRUVA
Note : As on 11th March , FII investment in March 2010 totals to US $ 2.33 bn