Friday, October 05, 2007


India Stock Market Update 05 Oct 2007

What a ride. The last 2 weeks have seen a movement in the market that have defied all pundits, all experts, and thoroughly confused any commentator as well as the retail investor. When the market was heading quickly to 17,000, there were lots of calls that an imminent correction was due, but those faded out as the market made its relentless climb to the 18,000 level. The market is now very close to the 18,000 level and it could take just one or two more days to reach there; however, in the midst of all this rosy feeling, there is the fact that a lot of stocks are not participating in this jump. At the same time, there are junk stocks that operators are starting to push again, and these are the ones that most impact retail operators. They get stuck in these junk stocks and are unable to come out from these.
What is a good course of action ? A strong recommendation is to review the stocks that you may own to evaluate as to how many of them are backed by fundamentals and how many are junk stocks that are climbing high without any apparent reason. Another option in such a heated market is to take out some of the profit that you may have made, and hold it for investing if there is a correction. I say 'if' because no one can predict whether the market will consolidate and rise, or whether there will be a correction. There are now articles appearing in the paper about how this rise is all artificial, and would soon be shaken out. On the other hand, there is an incredible amount of money coming into the market from foreign investors and from domestic mutual funds.
Stocks that I am currently tracking:
1. Shree Ram Mills: Rs. 425
2. TRF: Rs. 1100
3. Hindustan Constructions: Rs. 162
4. Yuken India: Rs. 248
5. Tayo Rolls: Rs. 289
6. Voltas: Rs. 168
7. KLG Systel: Rs. 595

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good news

thank you

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