Samir Arora has made the grim prediction that the real estate would “crash like we have not seen”. His theory is that if NAMO and AAP are hyper serious about black money, then the places where the black money is hidden, namely real estate and gold, would go out of fashion.
Samir Arora was, as always, gung ho about the state of the economy and the stock market. He advised incremental investment in his favourite sectors, namely, IT, Pharma, consumer durables, private banks and NBFCs.
Here again, Samir’s logic is that these are secular growth sectors which have done well in the past, and will continue to do well, in the future. The additional advantage is that as these companies pay the highest rate of tax, the proposed reduction in the tax rate to 25% would benefit them immensely. He also predicted that on an overall basis, the market would give gains of nearly 15 percent in the year 2015. This obviously means that individual stocks will give much higher returns.