Thursday, January 04, 2007
Stock Market Update for 4th Jan 2007
The Indian stock market has crashed, sometime significantly, sometimes just doing minor gyrations, but each time it has recovered and surpassed previous highs. People compare the P/E for the Indian market with other emerging markets and believe that the Indian market is now more expensive.
As against this, the opposite opinion is that the Indian story is now emerging; Indian companies are giving good earnings growth, are aggressively courting other companies abroad and that consumption in India is growing at a good rate. This makes the country more attractive to FDI, and this also has a spin-off with FII's becoming more interested in the market. How long this will last is the question ? Is this just the start of a long increase ?
I have stayed put in certain stocks even after the May crash, typically construction and real estate stocks (Era Cons, Ashhiana Housing, Ansal Housing, Garnet, and so on), and even when these stock have gone up, they are still not so close to the previous levels. Will continue to hold onto these stocks. Some additional stocks that I am tracking and will purchase some of them are:
GHCL Limited - Rs 170
Lanco Infratech - Rs 260
Shree Ram Mills - Rs 542
International Combustion - Rs 350
Fortis Financial Services - Rs 124
Aro Granites - Rs 107
Walchandnagar Industries - Rs 1154
Asian Oilfield Services - Rs 36
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