Thursday, March 22, 2007

 

India stock market update 22 March 2007

For a fair amount of time, the Indian stock market sensex has been hovering in the 12000-13000 range, some days advancing and other days falling down. However, in the past 3-4 days, there has been a rally and the sensex has crossed the 13,000 level. In fact today, the sensex climbed by around 350 points. This increase though is accompanied by low volumes, and there has not been a corresponding increase in the mid-cap and small-cap indexes. This is consistent with past behaviour where large-caps get investor fancy, and then as the bullish feeling spreads, mid-caps and small-caps start getting investor interest.
Mutual funds have been a major disappointment for the past 1 year. If I compare NAV's from before the May 2006 crash with current values, they are roughly the same or even lower; this was actually more of a shock because the selling point about MF's is that they are run by experts; however, if they flat-line in times of stress, where is the expertise ?

Current stocks that I am tracking:

1. Atlas Copco - Rs. 729
2. Reliance Capital - Rs. 653
3. Tata Elxi - Rs. 285
4. Trigyn Tech - Rs. 27.80
5. Allianz Securities - Rs. 55.50

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