Sunday, October 15, 2006

Bombay Stock Ex at all time high again

The market's at a new peak today, 12,700+, and in my opinion, this time it's not overvalued. That's a huge change, considering that just 6 months back I had predicted that it will go in for a 25% correction, which it did.

Why this changed sentiment? Simply because in 6 months India's changed again. The buzz in the air and excitement on the ground has to be experienced to be believed. Airports are twice as busy as 6 months back; property deals are happening at a rate unheard of (more on this below); mobile & internet connections are soaring; salaries are soaring; there are new shops and malls coming up faster than anyone can track; there is new sense of confidence and "can do" with government officers; new nightclubs have sprung up everywhere full of new faces...

I am helping a friend in Toronto buy a 5000sq ft office in Bombay. I have been checking out offices for him last 4 weeks. He wants an office in an A grade building with a 15 foot ceiling. I shortlisted 5 offices. Can you believe it, all are now sold. I was seeing offices and by the time I got back to him and called the agent back within a day or two, they were sold. Its crazy! Now he's told me that as soon as you see a place, just pay a token and lock it in !

Bollywood movies are a great way to experience the changed profile of the market in India. Previous Bollywood movies were made for a large uneducated type of population. The movies released in 2006, which have scored hits are all targetted at educated urban auidences. And 2006 has already given 6/7 big hits and a few more are expected before the year is out (BTW, Khosla ka Ghosla is a must watch).

Not just movies, but live performances are soaring. I have been to more great live performances this year, many by overseas troupes than in the last 15 years! And tickets are at prices people would laugh at previously...and sold out! Nutcracker whose picture is in my previous post ran to full houses for a week plus and then held a few extra show...

So here is to more good times in Bombay.

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