Originally Posted by Hiral.s
Indian stock markets are slightly over valued. With regards to present sentiments in the market, Do you think markets are over valued?
On a broader view, Stock market is over valued at the moment.But on the contrary this overvaluation is not in all sectors but in some specific sectors only.As far as my knowledge n Research suggest, overvaluation is not at all the matter of concern rather capital inflow from FII is building up a bubble in the stock market.
I see a broad correction before 31Dec2010 in the range of arround 20-30% from current market.Like correction of 2008 this time also FII will be the gainers and Indian Institutinal Investors(ULIP/MF etc) will be loosers.I advice to cash in on stocks at the moment and keep ready the cash in hand for buying at corrections.