India to see $700-bn investment in 4 yrs: Kamath.....

Friends,
Looking at what Mr.Kamath speaks and he being a wellkown figure in Finance sector,now no doubt should be left in investors mind that Indian economy is on high growth path and hence Stock market is also on high growth path and hence my targets of 28k to 30k this year is achievable.
We can see a rerun of Japan Nikkie of 39000 and even more.....in next 4-5 yrs....
Correction are bound to come and they may be in such a magnitude that the confidence will be shattered and Chartist will start giving a SELL signal and every one will be anxious what is happening and what will happen then....but we will be back on track....
I have been asked by my many friends that Ramesh Damani is seeing a big big fall in our market in next 2-3 months.It is obvious that Apr/May/June are such period where market use to go in DEEP correction.We have witnessed in past and hence we should be ready to face that correction whenever it comes.
But am not sure whether that correction would be a prolonged bear phase....we will look at it when it will come, but as I have written, don't SHY of booking profit...that is the BUZZ word...


India to see $700-bn investment in 4 yrs: Kamath

NEW DELHI: Anticipating a 700-billion-dollar investment pipeline for the country, ICICI Bank Managing Director and CEO K V Kamath has said that corporates alone would infuse up to 500 billion dollars in the next three to four years. "India has a strong investment pipeline. Currently, we are putting the pipeline at around 700 billion dollars. Till recently, we talked about 500 billion dollars," Kamath told here.
More importantly, corporate cashflow itself would account for up to 500 billion dollars and the investment needs would not depend heavily on debts, as was the case about ten years ago, Kamath said. The time period for these investments to materialise is 3-4 years, he added.
While noting that the timeframe would depend on sectors where the money is going, he said, "If it is an hydroelectric project, (it would be) three and a half years; if it is some other investment, the time frame could be different... this (3-4 years) is an an average level." The managing director of India's largest private lender said he does not see India's growth story slackening for another 15 years as there is a dramatic level of investment happening in the country.
"Just to put in context, about ten years back near 1995-96, if the national investment reached 15-20 billion dollars a year, we thought that was a tremendous improvement... We have raised the bar higher for ourselves. "It is across all sectors, all areas where we see bottlenecks. There is nothing left out. If we see bottlenecks, this would mean that it needs to be funded," he said. Kamath said that ten years back, this investment would have been funded through 30 per cent equity and 70 per cent debt. "That time you would have a large problem meeting this need and over leveraging risk consequent to that... Now, we believe that corporate cash flows are running between 150 billion dollars to 200 billion dollars a year." This has reversed the trend to 70 per cent equity and 30 per cent debt now, cutting down the reliance on debt dramatically. Noting that the country's robust economic growth was boosting the corporate cashflow, he said the corporate profit growth would be at least 15-20 per cent and there were no signs of a slowdown. Besides, improving corporate numbers, global liquidity and an appetite for Indian equity are contributing to the decline in reliance on debts, Kamath said.
Corporate India is not consuming the debt to a level seen earlier and it is the public that is emerging as a major debt consumer, bringing down the pressure on liquidity, he noted.
"The lay consumer today is probably the largest consumer. Seven years back, the lay Indian was not a (significant) consumer and had the Corporate India been consuming, the pressure would have been there," Kamath said.