Thursday, March 01, 2007
Stock update 01 March 2007
What do I believe ? That right now sentiment is that the market was over-heated and that this pullback will bring it down to a lower level. In the midst of all the gloom and doom over how the budget was, I did not find it particularly bad. I was interested in seeing whether fiscal discipline was being maintained and that seems to be on target. This is very important as it gives a clear picture about what is the current state of the country's finances and the level of risk. If risk level is reduced, then Indian companies will find it easier to get loans, which is great for a country where companies are starting to buy more assets outside.
What has been my policy over the past few days ? I am looking at this fall as an opportunity and have been buying the following stocks: Trigyn Tech, Reliance, Era Constructions, Ashiana Housing, Walchandnagar.
I believe that India is continuing into a prolonged growth phase, and stocks are bound to go up again.
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