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Arbitary Obsessionist's Blog : Ambition is redundant. In life, mission is everything.

Sensex at 8500, Nifty at 2500 – What does Shankar Sharma (The Bear) has to say – An Interview

with 2 comments

Indian stock market investors will always remember 24th October, 2008 as the blackest Friday the Indian stock market as seen till date. The Sensex plunged 11% while the Nifty ended down by 12.20%.

The gains of the 4-year bull-run have been wiped out in just eight months!

So, what does the biggest bear of them all –  Shankar Sharma would have to say about this carnage?

___________

Q : Good evening sir, did you see what just happened in the stock markets today?

A : Why? Did it rise 100 points?

Q : Oh come on sir, you must be joking!! Sensex and Nifty fell more than 10% today itself. Sensex is trading near 8500 and Nifty near 2500!!

A : See? I have been telling you all for the last 9 months that the party is over. The days of easy money are over dude. India has run way ahead of itself. And investors can’t expect a compounded annual growth rate of 30-35% each year.

Q : But this day is different from other falls. The blue chips like RIL and ONGC cracked today. That too over 15% !!

A : Yeah…I agree with you on this. Your Finance Minister P Chidambaram also tried to intervene and calm frayed nerves but that did not help the markets. And you know what? He was saying that they were ready to adopt conventional and unconventional tools!! Tools?? These are times to go short. Nothing else. Pure shorting.

Q : So you didn’t even buy a single share today? Some of the blue chips were really attractive today.

A : No!! Why on earth would I do anything like that ?

Q : Sorry. Stupid of me. Sir, where do you see Sensex on 31st December 2008 ?

A : 7000

Q : And sir 3 years from now ?

A : 3000

Q : In the year 2015 ?

A : Base Value

Q : What sir?

A : I mean 100. Sensex at 100.

Q : You must be joking sir. Sensex at 100?? No way.. But at least at 7000, will you buy anything in the Indian market?

A : Well, first I will think of covering my shorts. Buying….? no hurry yet…may be by 2015. Lets see.

Q : Sir what are your views on real estate stocks? The Realty Index fell 25% today. And Unitech plunged 52% and DLF fell close to 24%. Puravankara Projects crashed 45% and Parsvnath was down 21%. There must be a lot of value in them now?

A : Value? In real estate stocks? No way. You can better invest your money in buying bricks. Even if Unitech falls to its 2003 prices of Rs. 1.50/-, I will short it. But DLF around 25 will be a good buy.

Q : Unitech @ 1.50 , DLF @ 25 !! But DLF’s IPO came in at about 500? Even I bought it. It was just too good to miss.

A : Then DLF guys made you a fool 25 times over. [Laughs]

Q : Which is the best buy you think currently?

A : Best buy is “short sell”.

Q : Sir a few personal questions. What is your favourite color ?

A : Red

Q : hmmm…oh I should have guessed it….Why do you have a picture of BEAR in your living room?

A : Oh that? He is Mr. Sharma, my father. And did you see our family picture?

Shankar's Bear Family  

Q : What?? ….Ohhkk sir, it was a pleasure talking to you and thanks for this bearish interview.

A : My [short] pleasure.

____________ 

Disclaimer: Unfortunately, this is not a real interview. 😉

Read about his earlier BULLS-BEARS-OSCILLATIONS view here.

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2 Responses

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  1. gud one dev..pessimists were always there even when markets were doing well but i wonder why is it so hard to find a single optimist in these time of crisis…

    Gaurav

    October 25, 2008 at 6:20 pm

  2. I plan to invest in Indian Stock market. How much money do I require to begin with? Which stock broker can I trust with sensex?

    BSE SENSEX

    November 26, 2008 at 5:13 pm


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