Friday, April 13, 2007

 

India stock market update 13 April 2007

This week has been a fairly good week for the Indian stock market. The sensex has been showing trends this entire week of going up, or going up and then being hit by profit booking, but overall sentiment has been positive. Is this likely to continue ? Million dollar question.
It is very apparent that the Government is going to try and to whatever it can do to fight inflation. The political cost of inflation is beating it black and blue. One can only hope that whatever monetary measures are taken to beat inflation do not end up throttling growth. For example, the RBI seems to be busy trying to mop up extra money out of the system, but growth is going to start getting hampered due to the credit squeeze (due to the increase in interest rates mandated by the RBI).
What sector seems to be doing well ? The IT sector should get a boost due to the good returns released by Infosys. The cement sector however is seeing what a determined government can do. The Indian Government wants to reduce cement prices, and after some non-cooperation by the cement majors, reduced the duty so that imports can under-cut the local prices. Not exactly a very happy trend. So cement sector is decidely on a wait and watch game.
Stocks that I am tracking:
1. Reliance: Rs. 1380
2. Infosys: Rs. 2094 (both are safe stocks)
3. Ramsarup industries: Rs. 148
4. Accel Frontline: Rs. 66
5. Voltas: Rs. 84

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