Friday, August 03, 2007

 

Indian stock market update 04 August 2007

What a week. The sensex took its 3rd biggest fall this week, of 615 points; a very scary day. And then it has bounced somewhat back after that. This level of volatility has been seen in the Indian market before, but it still can be very nerve-wracking for the retail investor. Of course, the opposite is that a regular investor is pretty much used to all this and will take such corrections in the stride, in fact equating such corrections with the need to have a regular corrections when the market has been climbing so as to let off steam.
Of course, one thing that can never be said enough is the need to be very careful about tips. Investing in speculative stocks is risky if you are not paying regular attention. Further, if enough profit has been made in a stock and you feel that based on fundamentals, it has reached where you wanted to, take the profit out. Invest it in FD's, MF's, or even for things such as increasing insurance on you. Don't let greed overtake you.
I have a smattering of some stocks that have not get mauled too much in the recent carnage, and this makes me want to buy more of such stocks, these stocks being: Adhunik Metaliks Limited, Ashiana Housing, Hindustan Constructions, Ion Exchange, JMC Projects, KLG Systel, Reliance Petroleum, Walchandnagar Industries.
I am still a believer in the Indian growth story, but need to watch what is happening in global indices. If liquidity comes under strain, the effect will also be on the Indian market.

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