The year 2013 has been a see-saw for Indian stock
markets. The Current Account deficit, the gold demand, the FED tapering, the
American debt ceiling all provided the unhindered volatility in prices. 4
months ago, the rupee depreciation caused everybody to write off Indian equity
markets with huge sell-off by FIIs. And on this date, Indian stock exchanges
are making daily 5-year highs. This is being done primarily on account of huge
FII buying while there is little Indian participation, either on retail or institutional
front.
There must be a sense amongst the common lot that
they have been left out. And they will be eager to ride the bandwagon. And
there comes the question of stock selection and valuations. Equity investments
is for long term and not for momentum trading. While stock selection is the
easiest job when it comes to equity investments, people err when it comes to
valuations. In the internet world of today, there are readymade models of
valuations available everywhere. But do they suffice, its arguable.
