Thursday, May 31, 2007


India stock market update 31 May 2007

Today was a day when the sensex moved up by more than 100 points, in fact by 133 points, to close near an all time high. It is above 14,500, and there is an incredible expectation in the air that a correction is due. People are delaying purchase into the secondary market, a number of people are actually doing profit booking so that they do not get caught when a correction happens. On the other hand, and this gets interesting, there are a number of people who are saying that the upmove also comprises of a movement by midcaps and such movement may be sustainable. No one knows what will happen, but the watch word for now is to be very careful and invest only when you are sure about the stocks that you are investing in. One good recommendation is to use profits to pay off loans, put into FD's (some of them offering upto 10%), and to move into more mutual funds. Of course, for those who have got the stock market taste, investment into the secondary market will continue.
Some of the sectors that I am staying away from is hotels, sugar and textiles. I am fairly invested in engineering, real estate and banking; although I could invest more into banking. As far as the stock market goes, I will continue to invest, although I am thinking of investing some more into these 2 mutual funds: Franklin Flexi-cap and SBI Magnum Global. I have been advised to do a bit of investment into some sector specific funds in addition to diversified funds, but I hesitate a bit over this.
Some stocks that I am currently tracking:
1. Nesco - Rs. 1185
2. Alphageo - Rs. 330
3. Era Construction - Rs. 370
4. IVRCL - Rs. 352
5. JMC Projects - Rs. 273

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