Current evaluation of Indian Markets

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Current evaluation of Indian Markets

• Chetan J. Parikh
• Jeetay Investments Pvt Ltd

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Valuation comparisons
Source Bloomberg
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Some stocks look overvalued...
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Some stocks look undervalued...
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Some areas of caution

• Two of the best investors in the world - Warren
  Buffett and Bill Gross are betting on a recession
  in the US economy
• Buffett has written to his operating managers
  warning them of a long and painful recession
• He has sold his entire holding in US government
  securities

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Some areas of caution

• Two of the best investors in the world - Warren
  Buffett and Bill Gross are betting on a recession
  in the US economy
• Buffett has written to his operating managers
  warning them of a long and painful recession
• He has sold his entire holding in US government
  securities

7
Bill Grosss view

• Feels twin deficits and import of products and
  services from China and India are the biggest
  threats facing the US economy
• Expects US to tackle the first problem by letting
  loose inflation
• Solve the problem of imports by weakening currency

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The Indian economy

• Fiscal deficit is a cause for concern
• Second generation reforms not in sight
• Indian companies are slowly learning to grow
  inspite of the government, not because of it