According to the fund, the Sensex is quoting at a PE 10.4 which is lowest in the past 4 years (the P/E high for the last 4 years was 31.9 and previous low was 10.8 times). The fund is bullish on MTNL, RIL and Nalco which are either quoting below their book values and/or discount to the Sensex. These companies are performing well in their lines of business. According to the release, `` sectors like automobiles are expected to recoup on the back of strong agricultural growth supported by the 11th normal monsoon.''

The positives of the Indian economy are now very much visible for all to realize . India's GDP isexpected to grow by 5.5 per cent which is commendable given contractions / saturation being expected in the South East Asian economies and Japan.