surjit bhalla saying this i could accept. now omkar goswami going one step further? jeez, this makes me nervous, because a) this means we are getting into irrational exuberance or, b) if there is something to it, now the babus and netas will start figuring out their angle in this and how to make it go away. after all, perpetuating poverty is what the netas and babus are all about, in addition to sucking up to somebody somewhere for bribes.
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3 comments:
Now ICICI Bank's Kamath is saying that 10% growth is a given and 13-15% is possible provided some policies are put in place. Financial weasels don't take much time to get back to what they do best - creating violent swings in market sentiment, which is always displaced from what the reality is, and making money from trading long and short in opposition to that misplaced sentiment. India's "gaddi" will keep chugging along at 7-8%. It's not going to be enough, but it won't be too bad either.
I don't agree that it is completely irrational exuberance. Indian businesses have become globally competitive. However, I do not completely agree with all the points Omkar Goswami makes.
For one, the Jaguar-Land Rover acquision is not something great; it was a wrong decision. Secondly I do not like this idea of using market capitalization as a measurement of success; This figure is at times completely irrational.
Revenues, profits or book value would be better terms to use for measurement.
I completely agree with the columist that Crompton Greaves is a fantastic business.
All this euphoria I think is due to the easy money policy which benefits leveraged as compared to savers. All this euphoria seems a little considering the fact that AP govt tax recipts are down 25% from the already reduced expectation. It is down nearly 50% since last year.
Food inflation is quite high in India. Perhpas inflation is also one reason why the industry is riding high.It should be seen how all this is going to end.
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