When I wrote the below article few months back, many were saying Indian markets expensive. The SENSEX was at 15000 levels. Now SENSEX did 30% from those levels and crossed 20000 for a short while and now trading around 8% lower from the peak at 18750 levels.

The PE for the SENSEX should be now around 23 times now ( I have not calculated the exact value). The SENSEX stocks are bound to grow at least 25-30% cumulative for next 3 years (I here advance tax collection up by 40%). This will take the SENSEX EPS to 1600 – 1800 range.

Taking a low PE of 20, SENSEX should at least see 32000 mark. Taking a higher PE of 23 times on a higher growth and higher EPS target, SENSEX should see 41000 mark. This target is for next 3 years.
Investors are recommended to stay invested.

Author: Ananda Kumar. Join www.winfromus.com , the premium stock advice service.

The SENSEX ( The sensitive index of Bombay stock exchange) closed today at 15300 points (almost near 52 week high) up from 10149 (almost near 52 week low) a year back. A whopping 50%. If you look at the dolex 30 52 week high of 3119 and 52 week low of 1729, dollarwise returns are almost unbelievable 80%.

Indian stock markets are in this dream run because of the effects of FII investments, increasing corporate earnings and realisation of better valuations by Indian companies.

BHARTI TELEVENTURES gave 126%, HDFC gave 80%, ICICI BANK gave 96%, LARSEN & TOUBRO gave 96%, STATE BANK OF INDIA gave 110%, RELIANCE COMMUNICATIONS gave 108% returns during this period.

9 stocks gave negative returns versus 21 stocks which gave positive returns.

The PE Ratio of the sensex currently stands at 20.5 times. During september 2006 when SENSEX was at around 12000 points the PE Ratio was at 20.75.

This means that the Indian markets are as attractive as it was in September 2006. I predict a 35% returns on SENSEX in the coming 1 year.

Indian Stocks market is showing strength from strength and is making steady gains over last few years. SENSEX and NIFTY are less than 5% below the all time highs.

Advice on buying and selling of Indian stocks and indices. Indian stock market investing made easy. Expert recommendations, mature tips, share market information at one place. Portfolio advice for Indian stock markets.

Making money from Indian stock market was never so easy. But although markets are in the upswing we find more and more people exiting citing losses in stocks. A close analysis shows non understanding of financial markets as the main reason for this.

Stock price movement is just more than a simple graph. Fundamental analysis helps you to identify potential winners which can be multibaggers. Technical analysis helps you time the markets. If you are a long term investor, Fundamentals play a more important tool. If you are a short term trader, Technical analysis, news, rumors play a more important role.

Indian corporate earnings are showing strong growth in last 4-5 years which is well reflected in Indian stock market.

Stock market trading without proper research is bound to make you loose all your finance. We recommend studying charts, avoid keeping a close eye on quotes / prices, day trading, penny stocks. Finding a good stockbroker, Stock Market Guide , stock exchange like New York stock exchange, Toronto exchange, NSE etc. Stock picks should be purely based on research on fundamentals and technical analysis. Consider future trading and options. Mumbaibull.com presents a set of stocks to buy based on these principles. Emphasising more on fundamental and a bit on technicals.