Wednesday, December 20, 2006


Stock market update 20 Dec 2006

Well, if you are still with the Indian stock market today, you are a brave person. The last few days have seen a renewal of the gyrations of the stock market, enough to make you dizzy. So you had 2 days having massive falls, followed by some climb-backs, and then the incredible spectacle of a local country specific decision (a move by the Thai bank to curtail movement of currency out of the country) making the Indian sensex fall by upto 400 points, not a small thing.
I have been watching stocks doing this gyrations, and the only plus point is, such changes breaks me of the habit of watching stocks at frequent intervals. No point in frequently watching the market if you just see things falling into the red.
What to do now ? I will continue to be involved in the Indian equity market since I do not see any alternative. Equity remains a good option for a long-term growth option, as long as there is a certain amount of care taken. What does this mean ? Keep invested in good stocks, do not get too speculative in risky stocks. I was not too sure about Mutual Funds. I have a fair percentage of my funds invested in MF's; but their performance in a crash is not so good. They crash and burn like any other part of the market, you would expect investments controlled by highly paid smart market wired people to be much more savvy about the market.
Some of the stocks that I hold that are fairly stable (they fall, but do not crash significantly this time) even in this crash are Ansal Housing, Ashiana Housing, Era Constructions, IVRCL, TRF, Walchandnagar. I remain invested in these and some other stocks.

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Hi Ashish,

Thanks for the comment on my blog. I have been through too many crashes in the markets. I entered the markets during the heady times of Harshad Mehta.

My best returns on investment in the market was long term and specifically in mutual funds. Those were times when my portfolio would remain untouched. (by me).

Sometimes experience can turn out to be a bad thing. My experience of past crashes convinced me that markets are bound to crash when the market seems to reach dizzy heights. I bet on PUT futures in the period between 2003 and 2005, expecting crashes. These adventures led to my heaviest losses ever, while the market (indices) returned more than 200%!

Proves that one can keep on making newer mistakes! LOL

I haven't seen this blog yours fully. Will go through the posts at leisure. WHy dont you post on MMB on Moneycontrol. There are some excellent boarders there (Sainik, KFactor, SNSiva and others)
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