Are we heading towards a BEAR MARKET ?

Since May-10th, the various indices are down as follows

BSE Sensex Down 22%
MidCap Index Down 28%
SmallCap Index Down 33%

With rising interest rates and uncertainity over oil supplies, markets might currect further but nobody knows where the bottom is. If the market keeps falling at this rate, then very soon India will be up for grabs for FREE, which is not going to happen. Nor will the markets make a “U” turn and rise sharply.

I totally dismiss the idea of BEAR MARKET as predicted by Morgan Stanley analyst quoting India’s current account deficit as a major problem. He should know that India has been growing with the same deficit for the past 15 years and will continue to do so. Was this analyst sleeping when the SENSEX was at 12500 ?

I had advised you to SELL on every rise only to buy back later at lower levels. Wait for few more sessions until the markets stabilizes. But if you still have positions in operator oriented & speculative stocks, not too late to unwind. Remember what happeend to HFCL, Global Tele,Silverline, Pentamedia, etc in 2001 ?