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Honestly I do not see any upside for 2007 from currently levels.

The eps for the Sensex for FY08 is expected to be around Rs 735.

At current levels - Sensex at 12500, the FY08 PE ratio is 17, which is not cheap.

US economy is slowing down. The recent trouble in US subprime market are only adding to the worries of investors.

If US economy goes into recession in late 2007, emerging economies like India will also suffer.

I expect Sensex to be flat for this year. At best, it may end in 13500-14000 range at the end of 2007.

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