Market Scenario - Nov 2011

Secnario:
At present i feel that Indian markets is full of chaos. Everyone is directional less and looking for onfidence from others. In my observation, On one side there is goverment who understands everything better than the common man, but have not been able to take gr8 steps to overcome the tuff scenario. Industries are facing tought situation in higher interest burden and slower economic pace affecting the overall business environment. Avg. Market Analyst have downgraded majority of the stocks. Mnangement who were bit confident of their business 2 quarters ahead of coming out of the problem, are now accepting that they shall take another 2 - 3 or more quarters for things to improve. Capex is completey slowed down, IIP has come down substantially for the last month. Best of the stocks which were sustaining the last 1 yr market have also started correcting. The overall sentiment in anyone's mind is to avoid the market. Moody's Downgraded Indian Banks( indirectly India), Rupee has depreciated highest in last 33 months, Interest is exepcted to be at its peak, inflation is also high, politicians are coming out with any positive steps to improve the sentiment, Pledged shares have started coming in the market with force selling.
18% of BSE 500 stocks have corrected by more than 70% from previous high.
39% of Bse 500 stocks have corrected more than 50% from previous high.

My View:
I remember from Benjamins Graham's Book, he talked abt Markets is like Pendulum, Moves between Extreme Bearish and Extreme Bullish case. He said good returns can be generated, when markets is in Extreme Bearish case. I feel that markets are currently in such a scenario and gradual buying from this levels can fetch good returns on 2 - 3 yrs period. However coming 3- 6 months would be very important from the point of view of Govt intiatives, inflation, Interest Rates and Currency; do keep a watch on all the factors.
Safe Harbor:The above views are solely mine personal view and i dont recommend to BUy or Sell in Indian Equity. Every reader please take yourown judgement on Investing.