Is it end of great Indian equity Dream

Last year around same time, we were dreaming(and our analysts were predicting) of 25000 level on sensex, a year later it turned out to be completely right, just 2 slipped somewhere in 2008 and left us hoping that we don't go to stone age of 5000 sensex level.

We must thankfully say good by to 2008 for being kind to leave us in the end after creating havoc worldwide. Everyone on Financial sectors looks happy that the year of distrust, fall, sadness, 2008 is going down the drain. 

After biggest financial crisis of present world i.e. year 1929-30, this year leaves financials worldwide left wounded. But there is a message to all of us. 'DO NOT BE TOO GREEDY'. Always know limits.  When 2008 begun, everyone was looking at 25000 sensex, dream run to continue. But we forgot that,

- What we were seeing was due to Foreign inflows

- There was no reason for them to continue coming to India when their own houses were put to fire. 

As per a data extracted from leading broker, FIIs pull out Rs 53500Cr while Domestic Investors invested Rs. 15500 Cr. If I take this figure ahead, Rs 38000 Cr (pull out can leave us wounded and markets down more than 50% YoY. These wounds are going to take years and years to heal and see markets on fresh high.

We also forgot that ours GDP is rising due to foreign investments and our own savings are not sufficient to keep India moving. That's why you see many perks being given to foreign firms to come to India and invest, latest being in Insurance sector (with FDI limit going up to 49% with recent bill in parliament). 

Our annual GDP is less than USA's money lost in this financial crisis.  Are we confident of what we are doing?  I am no expert to answer that, perhaps the great expert of generations, the time, will answer that. My prediction is that, at the end of 2009, we would be somewhere 20% up from here (i.e. 12000 on sensex and 3700 on nifty) with seeing lot of volatile sessions.

Bye 2008!!  (No reason to add 'good' before bye!!)