Big Bull Sees Sensex Past 7000 By 98-End
The securities scam-tainted stock broker, Harshad Mehta, has predicted that the BSE Sensex will cross 7000 by December 31, 1998.
"Markets are likely to be very buoyant as it is coming out of a three year slumber. I predict that by 31st December 1998 (if not earlier) the index will cross the 7,000 mark," Mehta said while taking part in a chat show on the Internet, conducted by Rediff On The Net.
The BSE Sensex yesterday shed 65 points to close at 3876.
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Mehta was very bullish on finance minister, P Chidambaram as well as the 1997-98 budget and felt that India would attract foreign investment to the tune of $5 billion in the first year.
He also announced his plans to launch a website. "Watch my website for my future plans," he told participants in the chat show.
Mehta's advisors to Indian stock investors also reflected his bullish mood. "For great times, stay invested in large growth oriented, low-priced high dividend paying well known stocks in India," he said.
Excerpts from his comments on the chat show:
On the 1997-98 budget and the FM: "It is a revolutionary ;budget. Where at one stroke our honourable FM has integrated our Indian capital market with the global capital market. Further by announcing a formation of a committee to look into the full convertibility on capital account a new India is being created.. ...If our finance minister stays long enough with the same tempo we may surpass the Chinese....Our present FM has created the environment to make India shine again."
On the stock market: "The stock market is a direct ;by-product of the human mind and its reactions. So our finance ministers and you should not be blamed. I after spending 20 years in the market still consider myself a student. ...Markets are a natural roller coaster.... ...The market always discounts the future."
On the voluntary disclosure scheme: "The VDS scheme is yet not announced so it is difficult to predict the response. The unique feature of this scheme is that it allows you to retain the capital by paying 30 per cent tax. If you bought a house at Rs 100 in black money and now want to declare it all you need to do, is to pay Rs 30 tax without touching the house."
On his role in the securities scam: "As advised by my lawyers, I am unable to comment on "alleged" wrongdoing. What I would like to state is that I had no intention of hurting or cheating anybody including the banks and government. Circumstances led to the much publicised scam in the media. I take this as a growth experience. "
On bureaucracy: "The bureaucracy in India is as much interested in the progress of India as anyone else. I have great respect for them and feel that they have unnecessarily been maligned. Please do not compare them with the Russian mafia."
On the economy: "The fears of reversal of the economic policies are unfounded as all political parties manifesto's clearly bring out their pragmatic approach in the continuation of reforms. The hysteria and jingoism of the past is long over and has been replaced by realism. ...India shall rise like the Phoenix from the ashes, as a financial power that it once was centuries ago.
On petrol price hike: "It may definitely cause a temporary setback in the market but will eventually satisfy the outstanding problem of oil pool deficit."
On foreign investment: "I'm in the process of interacting and studying the minds of these foreign investors. They are looking for transparency, security and good returns in that order. There is a strong possibility of if not $15 billion, but at least $5 billion in the first year. This will further extrapolate geometrically. Very soon, I plan to have a website which will regularly recommend the good investment opportunities."