This week has shown the Nifty in its true colors. I have to request you to please read the post titled ‘Should There Be Further Fall’ (posted on 15th May 2012) for a better understanding about the back ground. The words there have been quite impregnated with scenario unfolding now.
There are still some people who that India does not deserve a significant valueation premium but the whole point is can Indian markets keep losing value while changed circumstances enable to raise corporate profits. Such conditions are emerging. With basic value now almost ten year high there is not much room for the market go down, is my main premise. There has been a good preparation by most countries to take care of any eventual Eurozone crisis post elections in Greece .