Can you still get reasonable returns from mkts?

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Can you still get reasonable returns from mkts?

The BSE Sensex closed at 19,854.12 and Nifty fifty ended at 5985.10. Nirav Sheth, Head PMS at Brics Securities feels that markets can see a 10% pullback in the market at some point of time and one can still make reasonable rate of returns from the markets.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS 7 important reasons to invest in SIPs Mkts should decisively break out: Ashwani Gujral Guj election results to have significant impact: Religare Signals point to further corrections: Dipan Mehta ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Gujarat Ambuja Exports | Gujarat Apollo Industries | Gujarat Industries Power Co. | Gujarat NRE Coke | Gujarat Narmada Valley Fertilizers Company | Gujarat State Fertilizers Company | Adani Ports and Special Economic Zone | Reliance Industries |

Traders returned to the floor with a spring in their step after a long weekend, and sent indices soaring from the word 'Go!' Narendra Modi 's victory in the Gujarat elections over the weekend helped push stocks of Gujarat-based companies sky-high!

Dalal Street has celebrated Christmas today. Bulls took complete control after fighting with bears in last week. Positive results from Gujarat elections, strong buying interest into technology stocks after long series of underperformance and positive global cues supported the markets.

Sensex gained over 700 points and the Nifty up over 200 points. Midcaps and small caps also joined the party. Tech , banks , metal , oil , power , telecom and capital goods stocks were the frontrunners.

This election results cheered all Gujarat based companies' shares. Recently listed Mundra Port gained all-time high at Rs 1192, up 12%. Reliance Industries surged over 3%. Other major gainers were Gujarat Alkalies and Chemicals , Gujarat Ambuja Exports , Gujarat Apollo Industries , Gujarat NRE Coke , Gujarat Narmada Valley Fertilizers Company , Gujarat State Fertilizers Company and Gujarat Industries Power Co .

The BSE Sensex gained 716.43 points or 3.74% before closing the day at 19,854.12, up 691.55 points or 3.61%. The Nifty fifty ended at 5985.10, up 218.60 points.

Sudarshan Sukhani of Technical Trends said, "The market did breakout ten days ago and then it retreated back. So the breakout still remains valid and after this correction, the markets will resume its upward move. I had felt earlier that what was going on was just a dip a normal correction and that's probably going to work out that way; which means 6,000 is likely to be crossed maybe before 2007 is over and perhaps 6,200; the earlier highs may then be challenged. The trend is up, that is essentially what we want to understand."   

Nirav Sheth , Head PMS at Brics Securities feels that India's earnings have surprised. He said, "One cannot dispute the fact that valuations are challenging. But we will have to appreciate the fact that they have been challenging over the last two years. Two years back, I don't think many people would have said we are going to be at 50% CAGR in markets. The point is that if one wants to be in India, then one will have to take a longer-term and the fact is that earnings have surprised."

He added, "One cannot look at India as an isolated case; one has to look at India within the overall spectrum. I am very clear that if there is any source of capital which is chasing risky assets, then India has to be part of that portfolio because one cannot dispute whether it is spirit of entrepreneurs, whether we are talking about ability to deploy capital at higher rates of return, India stands out over there. We can have a 10% pullback in the market at some point of time and instead of trying to predict where the markets are going to go over the next 3-6 months, I think one should look at what the companies are today; what they are going to be 2-3 years.  Hence, I think one can still make reasonable rate of returns from the markets."