*we are somewhere in November ’07 to January ’08 kind of period not from a
valuation point of view but comparing with a China point of view. In
November ’07, the Chinese market corrected and Indian markets kept on going
up and we were told that people were actually long India and short China.
Eventually the Chinese market kept on falling and by January ’08 we realized
that Indian markets were no different and we had to crash significantly. So
somewhere from a global point of view, our valuation vis-à-vis China needs
to be kept in mind and more often H-share rather than the A-share market.*
**
*From a local point of view, the stock markets did jump significantly in May
2009, giving almost an entire year’s return in just one day and again
proving that it is your time in the market, which makes money and not timing
the market. So markets have risen significantly. Valuation wise, it’s fair —
neither cheap nor expensive and the economy is in a state of flux right now
with some positive numbers but the future doesn’t look as clear as the past.
So people are going to take time before they can firmly opine and in that
process we see a market, which is probably a bit directionless, moving in
narrow trends unless until it gets influenced by either a global event or
some clarity emerging on the local side.*



*--
Thanks

Manoj Damani
+91 9903009493
*

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