Earnings upgrade

Sensex ( daily, 18 months)
Charts capture people's expectations truthfully. This chart of Sensex has captured the revised earnings of index companies. The economic downturn, constant selling by the FIIs and subsequent reversal has been shown on the chart. Lows of 8000 Sensex were the worst case scenario. They may not be revisited anytime soon. If there is a correction then we are likely to get good buying support at around 13000 levels. For 15 P/E as the benchmark for our economy the market is expecting Rs 1000 as earnings for Sensex companies. Our market remains a 'buy on dips' market. Individual companies are finding their own price levels based on their performance. Maruti and ACC are two notable examples.
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Vibhas