When our markets went into a tailspin early this week, everyone including P.Chidambaram came out to comfort the enraged investors. He said India’s fundamentals are strong, our corporate sector is healthy. No cause to worry.
Then I read Wall Street’s reaction to Apple’s stunning results. Apple's holiday profit jumped 58 percent. Its computer sales grew 2 1/2 times the overall market. And despite fears of a recession, the iPod maker expects its revenue to grow 29 percent this quarter. Not bad, huh? Well, not good enough for Wall Street. Focusing on Apple's guidance for the current quarter, a forecast for strong growth that fell short of analysts' expectations, investors hammered the stock taking it down more than 16 percent in early trading.
Would you still have faith in the power of earnings to outwit strong negative sentiment? Clearly I am not sold on that. No, I am not drunk on that decoupling kool-aid either…. So take a cue from wall street and resist that urge to buy in Dalal Street for now...