Excitement vs. Facts

By Ramesh Akkineni

from an interview with Gaurav Dalmia

What is your view on the Indian stock markets in the near term?

I am nowhere as bullish on the Indian stock market as the general analyst crowd is. I think the long term prospects for India are excellent but there are wildcards, from what happens to the dollar, to oil prices, to our deficits, which in turn will affect inflation and interest rates. It’s quite amazing that people who were bearish when the market index was 3000 got really bullish when the markets reached 6000. Clearly, there was a greater upside in investments when the market as a whole was 3000 as compared to when the index is at 5500 levels. I use this fact to temper my own excitement, which happens from time to time.

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