hedge funds de-leveraging will continue to keep pressure on the markets. headline news is likely to be gloomy over the next 2-3 months. In the absence of BUYING interest amidst relentless selling will lead to further downside – 15% to 20% from current levels.
The next few months will offer great buying opportunities for those with liquidity and those with the courage of conviction that this financial crisis will be subdued by the end of 2009 and pave the way for stable markets in 2010.
India’s economic growth may slowdown to 6% and corporate earnings growth to 10%, much of this is already factored into. Waiting for arrival of good economic news maybe in-appropriate as stock markets may have already rallied sharply by then. The best time to BUY in Mr. Nagnath’s opinion is over the next 3 months. However, investors who BUY in the next 3 months should have to hold them at least for a period of 12 – 18 months to exit.