7 Month Update

The interim budget is about to be presented but the sentiment still seems to be pretty down. Sentiment is a strange thing. It can make you feel very confident when Sensex is at 18K but it might make you feel pretty low when Sensex is at 9K. It is surprising indeed, this sentiment. It is similar to saying that a shirt available at Rs. 1800 is cheap and at Rs. 900 is expensive. I cannot stress enough the importance of buying around 9K for those who are investing for next 3-5 years. I see only positives pointers in the near future. Inflation is down around 5 and rates are dropping fast. I do not know what will drive the sentiment and the confidence of the Indians up. Maybe it will be once in 5 year comedy – the elections, or even the IPL might give it a boost ! I expect the markets to make a move around mid year and real economy to pick up steam by the end of the year. We are in pretty good shape compared to the US, which should take a whole lot more time to recover.

Do not have more to say this in this update. The numbers below speak for themselves. The value picks are beating the index and the others are trailing it by more than 14%.
Comments and queries are welcome.