Just when we were talking about the 6000-market a few days back, we probably did not know that it was on steroids.
It was due for some contraction, I guess; and it did:
These were the steps:
I am not sure what changed over these months in terms of the fundamentals. I don't know why it had to go to 6000 from 5500 and come back there. Some activity for the idle I reckon.
The game is played by the institutional investors, especially the foreign. They set the prices. They drink and inhale...it is they who are on steroids. Their pendulum swings between the points of manic optimism and manic pessimism. Have they ever been rational? Their performance speaks for itself probably, for a majority of them fail desperately trying to beat the market.
You can pick a starting point and see how much the market has fallen or risen. Now, it is on an earnings yield of about 6%, probably the highest for sometime; 2.75 times the book and has a dividend yield of 1.5%.
It was not me who said long back, a strange enigma is man...... Whoop!
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