Monday, September 24, 2007
India stock market update 25 September 2007
Now the more important issue is about what to do now. There is a tremendous buzz in the market that such a climb is not sustainable, and even with additional liquidity in the market, a correction or profit-taking is inevitable; it's just that no one is willing to hazard a guess of what the correction will be like. I myself finally realized that some of the textile stocks that I have been holding on need to go; even though it is a contrarian principle to hold stocks that are down, I feel that this level of weakness of textiles will continue for some time.
I am also thinking of taking a major decision regarding the Infosys i hold. Infosys has been a huge disappointment, with almost no movement in the last 1 year; I would think that it has actually declined in the past year. Infosys over a 3 year return has under-performed the Sensex significantly, and with the pressure on the Rupee only growing, I really am not sure what the future of IT stocks is. Overall, even if a correction happens, the economy seems to be sound, and worth holding onto in the long term.
Stocks that I am currently tracking:
1. Ashiana Housing: Rs. 260
2. XL Telecom: Rs. 195
3. Yuken India: Rs. 265
4. Walchandnagar Industries: Rs. 4950 (this has run up significantly, so be careful)
5. Tata Teleservices: Rs. 41
6. Voltas: Rs. 161
7. Praj Industries: Rs. 235
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