Whether the Dubai scare was underplayed or not, I really do not know. But I recall that when the first news flow on the sub-prime crisis started there was a knee jerk reaction only. Then the up-trend resumed with renewed vigour. Remember the RNRL & the RPL horses which took our sensex above 21000? For a moment I thought this could be a replay of those events. But I still am not sure.
Promptly I received an email claiming that this event was only a trigger and not the cause for the knee jerk reaction. There could be a fast ride to 5400 nifty (so the email claims). But I will stick to basics and keep looking for pockets of over valuation, especially in some of the mid-caps I hold. I am yet to find any such cases.
There was an interesting comment by the popular TV anchor on Tata motors, where he suggested that analyst estimates for the bottomline could be anywhere between 3000 to 4000 crores. Now that could be a huge peak to scale. No wonder, market movers are busy discounting 2010-11 earnings in this stock. Otherwise, I think this bounce in the index will still be regarded with suspicion by retail invetsors.
Increase the investment horizon all the time is what I always feel. What say? By the way, has anyone been able to guess the name of the small cap I commented on in my last entry It was apcotex industries!! Only for your information!!