India Sensex hurting !

Sensex pundits now talk of structural problems, given the dive in the Indian stock market. This was the same bunch talking the Sensex to further highs past 20,000. If you had invested in the index at 20,000, you would be poorer by 7.86% in a very short period of time !

Experts and market analysts are taken aback by today's industrial production growth figures that puts Sept 2007 growth at 6%+ down from 12%+ same time last year. Increasing loan rates, squeezed credibility and higher rupee seem to be weighing heavily on growth indicators - effects of these actions should not be a surprise to anyone!

Sensex is most likely up for a period of volatility. You need to maintain a longer term value-driven view to have the stomach to take this churn. Its like buying a house - you don't check prices every day and don't look to sell quickly. When you buy shares, you are effectively buying ownership into the company - a commitment that is best given some time to bear fruit. If you have selected the company right and bought at appropriate price/value, you could be in for sustainable value creation.