After Morgan Stanley in May, its JP Morgan in August
August 18, 2006
Remember how Morgan Stanley analyst came on CNBC TV 18 and announced that Indian stock market is headed towards a bear phase ? And today we are back at 11,500 levels. I had advised not to panic during the fall.
This time Morgan’s Gora bhai, JP Morgan has downgraded India. I am glad if you have ignored his words, if not just do it 😉 We saw a rock solid quarter ending June-06 and what makes him downgrade India ? Remember, India’s sovereign rating was upgraded by Fitch just few days ago ? OK. I am sure you are totally confused now.
This is quite common in the western markets. One FII downgrades while the other upgrades. Don’t take it too seriously. Play your own game, it is as simple as that. What has happened in the past few years is we have seen the Indian market and economy mature and its depth has increased such that it is no more dependent on Big Bull like Harshad Mehta or Ketan Parekh. Institutions from around the world are betting Billions of dollars on India’s growth story. Don’t get distracted by downgrade or upgrade. Believe in value investing, you will make a fortune in 10 years 🙂 You don’t have to have a Stanford or IIM MBA.