Knowledge

To,                                                                                                                   Date: 28.05.12

My Dear Friends,

Sub.; View on Share Market

Since last Boom (i.e. 2008) market had been Zig-Zag and individual most of the stocks have come down. Only Index / Nifty has been maintaned but if we see the valuation of individual portfolio’s since then it has come down by 50% - 80%.

Now my view on Share market is very bullish and from June / July 2012 & Onwards we may see reversal of major trend, simple reason behind it:

1.      Economic Cycle to change i.e. from recession to Boom. 2008 – 2012 – 2016 & it may continue upto 2016.

2.      Real Estate Boom cycle runs for 9 years and that too is going to complete soon. (2002-2012) Land prices has started coming down or stagnant since few months. Land prices are extremely higher and now yield / return on fresh investment may not be as it was or even may have to wait for a logner period. After Real Estate only bigger area for Investment is Capital Market.

3.      Dollar / Rupee now looks favourable some where Dollar may settle around 47 within a year time and it will have positive impact on our Balance of payment & GDP.

4.      Election year – 2014 (Tentative or may be before) one year before and 2 years after election generally market is found in Bullish trend. Market keeps great expectation from new government. (See last election result 2 upper circuit market has witnessed). 2013 Union Budget will have an Election budget and lot of announcements can be there which may impact on growth of country.

5.      RBI also started cutting of CRR and Repo rate.

6.      Government has to spend on infrastructures which will generate demand to the industries.

7.      Astrologically view - From June – July 2012 market will see an upward trend and may make new high upto Dec. 2012.

8.      Most of the sectors will run in the coming rally.

9.      It is very attractive for FIIs to enter at current price of Dollar/Rupee conversion.

Over all Capital Market looks to be a very attractive for appreciation of money in coming days. One may start accumulating good shares and midcaps at ectremely low price.

Even if one don’t expect rally eventhough investment at this time will not give negative result in short period.

Thanks

Chirag Singhvi