Recession Proof India

The word 'Recession' has affected everybody in this world. September 2008 brought the menace of credit crunch in America and with that the downfall of big American symbol of financial power such Lehman Brothers. One of the oldest institution of American Capitalism. India as other countries did suffer due to American economy's downturn. But, It was relatively safe due to certain factors that worked in its favour. Indians don't use plastic money extensively as other develop countries. Seventy percent of Indian population lives in Rural India. And in my opinion Rural India is the reason behind the India story. Indian Equity Market has bounced back smartly, Companies have performed above market expectations,present GDP growth and expected GDP growth both are among the best in the world. All this because of two words RURAL INDIA. Analyst as well as Companies have underestimated the spending and saving power of Rural India. Every aspect of Indian Economy is dependent on Rural India. Every sector will perform well if it sees that maximum effort is given to satisfy and services the Rural India. Companies have to understand that Urban India is a small place considering the vastness of Rural India. It is easy to sell in Urban India but the returns are secure and long term in case of Rural India. RURAL INDIA the growth engine of India.

Indian Stock Market

People are scared of stock market especially after they incurred huge losses in 2008. Last festive session was the worst time for the Retail Investor in India after a huge rally which touched 21000 in the Bombay Stock Exchange. Market analyst were suggesting that the worst was not over. But, contrary to their prediction Indian Share Market have recovered beyond market expectation. Someone who invested during last festive session certainly have doubled his or her portfolio. Market analyst seldom suggest market movement correctly as market don't move on suggestion. Analyst always go by the flow. Nobody suggested that Sensex will hit an upper circuit in the time of Recession but, it did. Nobody suggested that the IT index will be so much robust and support the market during these times but, it did. Everybody talks about fundamentals are sound and are looking good for further rise in the market.
Among all the Emerging Markets India have outperformed every emerging market. Today nobody would dare to say that markets would take a downturn during the last quarter of 2009-10. After peaking in the month of December around 17500-18000. Every indices in India will fall by the last quarter of 2009-10. Sensex may come down to the levels of 10500-11000 or even less.

Pick of the Day - Welspun India Target - 58/- , Cairn India Ltd Target - 268/-