Hi all, The past 20 to 30 years for numerous reasons looks like huge amount of plagiarism has been happening and many people seem to be perhaps stealing certain financial and numerous other anecdotes and surprisingly many of even mine and perhaps have been appending it with some cocktailed version of the same. neverthless, that besides clearly I am sure that the 10,000 I-bankers and other investors who used to regularly read my blogs on facebook and who also do remember the fact that on account of the massive spending done by the people of India although controversies do shroud the quantum and the source of money which people do spend yet the crux of the matter is that it surely augurs well for a glorious boom in the Indian stock markets primarily because the massive spending would surely Boost many Scrips namly perhaps front line indices stocks namely the Icici banks, HDFC banks, HDFC , petronet , Rpower, Reliance and also another 50% of the Large , Mid and small cap stocks. There has been some amount of Increase per se in the stock prices however what is clearly baffling is the FAD that Indians have for real estate and that too they do buy real estate at astronomical prices in many areas irrespective of whether it does warrant that price or not and that is clearly also Indicative of the fact that a Huge boom in the stock markets is highly imminent. Amidst the pall of gloom which seems to be prevailing , I am quite confident because the massive spending which numerous people in india and also those from overseas do indicate a massive upswing in the markets. The various other factual reasons are outlined by me thus 1. Since 2007 to 2014 in numerous places people have constructed homes and have also purchased say properties in numerous locations. Now he quality of constructions may have surely been good in certain areas and may not have been good in some. however the property or real estate purchases surely would have resulted in huge amount of economic activity for the banking sector in India Per Se. 1. EG : Franking of documents for real estate purposes by numerous purchasers. 2. Loans being disbursed and loans being collected by numerous banks and also auctioning of properties of potential loan defaulters etc would have led to banks gaining heavily(Collaterilisation and also liquidation if any). 3.Also although there has been some kind of a slump in real estate yet the fact of the matter is that if x was the price at which real estate had been procured by any person and post 2011 if it had fallen in some places to 2x from 3 or 4 x still banks which might have lent money at .80x to the collateral would still have a huge FOS (Factor of safety) vis-a-vis their collaterals which also indicate the potential stability and also the huge revenue churn which the stock market listed NBFCs (HDFC),HDFC bank , icici bank and numerous PSU banks etc would also be massive candidates for a propsective boom in their stock prices. 4. Also with the huge increase in homes the consumption of cooking gas, electricity etc certainly bears adequate testimony to stocks like Rpower, Reliance, petronet LNG etc zooming high. 5. Also the boom in infrastructure namely Roads, Ports, etc do indicate a massive boost to stocks like IDFC etc and also with IDFC perhaps being a likely candidate for a banking licence.Also with increase in logistics per se in terms of Transportation across roads (BOOT roads of l&T), switchgear boards of L&T for the new homes etc . 6, The massive increase in automobiles also lends to a huge increase in share prices of 2 wheeler and also 4 wheeler shares and also with every sale of a car or 2 wheeler there would have been a huge increase in sale of batteries viz exide industries etc. Also the spending on consumables like tea, coffee, sugar, lighting etc would also be a huge indicator to the stock markets booming high. These are some of the few reasons although there are a plethora of other reasons as to why although the Indian economy has had its fair share of travails, Trials and tribulations yet a massive upsurge in the stock markets are surely on the cards and I am quite sure that The same is likely to happen sooner or later or the same has commenced from late 2013 onwards. Perhaps good times Via-a-Vis the Indian equity markets may chime in . do your due diligence before investing and happy investing,. For instance refer nseindia and the efficacy and accuracy of the facts stated by me would be vindicated. for eg petronet on 28-jan 2014 was 102.6t0 and now it stands at 133.40 a whopping 30% upside in not less than 2 months
Posted on: Thu, 20 Mar 2014 11:01:58 +0000
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