The Sensex touched its all time-high on Monday. Mehraboon Irani of Darashaw and Company attributes it to the performance of the Indian corporates. He says there is no reason to feel negative about the markets, as he feels India should remain bullish for at least the next 3-4 years.
Excerpts from CNBC-TV18's exclusive interview with Mehraboon Irani:
Your reaction first on the market touching new highs?
I was very positive. As I always said it's difficult to predict the start and the end, in the sense given you are at 9,500, I said I don't know where the fall will end but this is the time to buy. We have a long way to go and full marks to Indian corporates, the way they have done.
I think there is no reason to be negative, the only problem if any which can arise is if hedge funds come to sell or book profits or if the market gets over-leveraged with the greed of investors wanting to buy more and more. So we have to be ready for sharp falls here, but every fall is a great buying opportunity.
I think India is hot, I would say India is the hottest and we have a long way to go, so every fall is a great buying opportunity. There is no need to fear that while we are at an all time high now. It's time to book profits. I think one should continue to churn their portfolios and remain invested. I think India should remain bullish for at least the next 3-4 years.
What's your sense on the targets really because Hitendra Vasudeo is quoting 13,500, we are still young in the earnings season, we have a whole lot of earnings to come by and of course there is Diwali round the corner. Where do you see the Sensex headed from these levels?
If you are talking in the short-term, I would say that people can remain invested, after the corporate results are over we may see a correction, a sharp fall. The only thing I fear is that again people will come to the conclusion that the bull market is over, which is not the case.
Every fall should be a great buying opportunity and if you talk of the targets, I think it's not very fair to set a target but I think we have a long way to go and I don't believe in setting a target in the near future. I won't rule out even a 30-40% rise from here for the indices over the next 12-18 months.
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