Deepak Shenoy

India's Selloff: How Bad Can It Get?

I'd written about this at:

blog.investraction.com...

As of Feb 7, the Nifty EPS grew only 13%. Dividend yield in India has always been of the order of 2% or so so let's leave that out. The P/E then was 22 trailing.

The Nifty was at 5133 at the time, down a staggering 1000 points from the Jan highs.

As of today we're at 4600 on the Nifty, a further 500 point drop from when I wrote the article - another 10%. Though to be honest this 10% has happened in the last one week.

I'm still confident we'll recover after a few years, but bottom fishing should happen at the 3500 levels on the Nifty (corresponds to 12000 on the Sensex). My first buy point is 4000 (14,000 Sensex).

Disclosure: Short the index. (Was not short when I wrote the article)