Wednesday, November 22, 2006

 

Stock update Nov 22 2006

The markets are moving steadily. The last few days would have given a shock to most market players, especially because the Sensex suffered drops. The sensex did not fall as much, but the drop in the price of the mid-caps was much higher. This has always been perplexing to the holders of mid-caps. It always seems to be that mid-caps move up much slower than the sensex (atleast since the crash earlier this year), but when there is a sudden downfall, the fall in mid-caps is more than in the sensex.
This actually is pretty logical if one thinks about it. In the beginning, when the sensex is rising, people are more inclined to safer and known stock such as the sensex stocks. It is only when the rally continues for some time do people start to take more adventures and move towards mid-caps that are riskier. If the rally continues, mid-caps start gaining more than the sensex and that is when you start seeing all the buzz around mid-caps. When the sensex falls, and it is a rapid fall, people want to conserve the money they have made. In such a case, they will dump their riskier stocks first, and hence mid-caps are dumped more easier. This is even more pronounced when people have seen the major crashes that happened in the last 1-2 years.
Stocks being tracked this day:
Valecha Engineering - Rs. 211
Walchandnagar Industries - Rs. 878
Thermax - Rs. 376
International Combustion - Rs. 299
Oriental Hotels - Rs. 401
Nava Bharat Ventures - Rs. 128
Bharti Airtel Limited - Rs. 637
Century Textiles - Rs. 638
Uni Abex Alloy - Rs. 107
Indian Hume Pipe - Rs. 347


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