The companies have to invest capital, employ people,train them,find markets, do R&D and produce goods in complex facilities to earn profits. There is competition and regulations.It is not easy for company to make money.
And if they are making profits it is mostly by manipulation of markets and balance sheets and duping the investors.
Why any company should earn more than 15% on investments? Are all American ,German or Japanese companies bunch of fools. Are Indians over smart. In fact Indian have neither domestic markets, nor raw materials nor capital and worst no technology of their own. They are dumping second class goods and services and charge huge prices.
The corrupt media and operators nexus in Indian Stock markets daily shout in print media and TV channels about India growth story and making heaps of money in stock markets.Nothing can be a bigger lie.
So called FIIs have 50% of investments which is shady.They come here invest, manipulate prices,dump shares and walk away to their banks laughing at we foolish Indians. Same thing MNCs are doing.
While in USA they are preparing to launch 4G , here in India politicians are quarreling about fee of 2G.
The mediocre institutes like IITs and IIMs are presented as premier centers ( because Obama says so)and salaries in lacs are being paid.It is free for all.Loot and plunder is going on in the country since Singh has joined as PM.UPA is most corrupt and unaccountable government in world.
While per capita income of India is just Rs 40000 per year the flat in Delhi costs Rs 40 lac or 100 times, and IIM charges Rs 5 lac fee that is 12 times. Compare this with USA where in NY flat price is just under 4 time of per capita and even Harvard charges 3 times maximum fees.
And we bunch of hysterical fools are shouting all the time India being a great power and try to ape USA. Indians at best are cheap copy masters including IIMs and IITs and other such centrally promoted setups.Even our programs like KBC and Big Boss are cheap imitations of western TV soaps.
India has only 1200 sq yard land per person for agriculture .Can any body even imagine that one person's all agro output requirements for a year can be met with this small plot of land? Never.It means India is short of everything and if any surplus is seen it is because of poor purchasing power of poor people and also adulteration.But this foolish government exports cotton,onions and sugar and then re imports at much higher prices.
Is this country being run by economic jokers or corrupt?
Coming back to stock markets see the details below: Market status in India as on date (January first week 2011)
Price-Earning Ratio 23.56 (desirable 15 for Indians)
Price-Book Ratio 3.72 (desirable 2.5 max)
GDP Growth Rate in % 8.9 ( I don't agree with these cooked figures)
Market Capitalization:GDP 1.07 ( high according to Warren Buffet should be around 0.8 for best market conditions)
IIP Growth Rate in % 10.8 (?)
Inflation Growth in % 7.48 ( according to me it is 20% for consumer)
Bank Rate 6.0 ( should be 3.5%)
No one applies mind.When in India you can easily get 8% return on bank FDR why anyone should pay more than 12 times the earning per share? The higher ratios may suit Japan or UAE or USA where interest rates are quite low.
That is why FII come here.But here fools in India are falling one above other to jump in stock markets.
The UPA government is taking every one for ride.The property prices have been increased 7 time since Singh came as PM.The balance sheets of companies have been revalued for land available with them and inflated and more and more money is raised from equity markets and banking system.It is a bubble which is going to burst.It is all artificial wealth.
The banks multiply money by 10 times their capital and generate paper money charge exorbitant rates and get fattened.
India is not special .It cant outperform global markets for long.It is not possible.It has no such advantage.Knowingly and brainlessly Singh government is allowing auto explosion when India has no fuel.
Instead of focusing on rapid mass transport ( see China) MNCs are being obliged.
It is time potential investors not get carried away by greed and publicity on channels and sink their hard earned money.Just think of shares like SKS MICRO, KOUTONS and several hundred other scripts that have turned junk.
Most of so called blue chips are not blue any more and will turn white in next 5 years.
India is up for sale.Both external and internal sharks and politicians are looting it.We shout that Muslim invaders plundered the country.
I think Indians are doing much worse.They have already looted in last 60 years more than 1000 years of loot put together.Mostly in Congress rule.Parties like congress and BP cant find even democratically elected 3 fresh leaders.What they will run the government.
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