Recent surveys of institutions and high net worth institutions suggest a bearish buy-side but a hopeful high net worth investor. This survey of India’s retail investors completes the picture on investor sentiment with regard to equities. Around 600 urban India equity investors were included in the survey with an average annual income of around Rs 6 lakh, representing the top 4% of household population by income. Retail investors expect the Sensex to close the year 14% higher than current levels for 2011 and their conviction level on equities is quite high. In terms of market strategy, 30% of the sample of investors are looking to choose stock picking as a strategy in 2011. About one-fourth think valuations are expensive and will buy only on correction.
Also See The Confident Investor (PDF)