I kept saying that the market perceives that the worst quarter – for a short time at least was the Q ended Dec 2011. Why this quarter?
The interest rate increase was felt fully, sales were down…and obviously profits were expected to be down.
It is in such a time that the shares (which had already been hammered) react saying ‘now the worst is over’. So when a company announces bad / poor results, share prices go up. This is exactly what happened.
Shares like Cummins, Cholamandalam, Tata Motors, even Mahindra Holiday Resorts (i am still waiting for good encouraging numbers from this company before committing to more shares of this company!) have all gone up.
However many people missed the bus – and those people are now over rationalising the rise. Many of them are waiting to buy. And all of them need some stories AS TO WHY THE MARKET HAS TO COME DOWN. Fantastic.
They have p/e theories, currency theories, Nri theories, cash flow theories………
well, well…let us see
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