Indian markets are behaving like we are in a bear market. Although officially a bear market is defined as 20% drop from the peak, hence a market of around 4800-4900 would officially classify as a bear market. However the way we have gone, its nothing less than a bear market's making. and the worst part is that even after the correction the market is not looking cheap. Some stocks are interesting but still not a screaming buy. In such a scenario it makes sense to go in for 10% bonds, being offered by secure companies like SBI etc.
My worry is that with the fiscal deficit going up, the budget might sink the markets further. If we break the previous lows of 5180 we might go below 5000!!!
Time to be in cash or enjoy with the 10% yielding bonds, till the market corrects 10-15% or so from these levels.
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