Wednesday, October 31, 2007

 

Indian stock market update as of 1 November 2007

The market seems to be going into ballistic zone, with having touched the all-important 20,000 levels this week. At this point, with the amount of foreign (and domestic) money pouring into the system, there is no telling which way the market will move. There is an incredible amount of money flowing into the market here and that is pushing the market to go up. This places the market at huge risks since such flows are volatile; this is countered by the view that Indian companies and the economy continue to show strong growth and this sentiment will continue to attract money.
By the grace of God, I have held my nerve (some may call it being greedy) and have not yet cashed out, hence stocks have shown good growth. There are tremendous pushes for a correction, and if you just look at the maths, a 1000 point fall, however strong it feels, is a drop of 5% and the Indian market has shown such kinds of volatility. One thing is sure, this is a good time to try and get out of speculative and high risk stocks since they are the first ones to get impacted. And for all the good news about the sensex, many times it seems that the midcaps are under-performing the sensex, so that is also something to be factored in.
Stocks that I am currently tracking:
KLG Systel: Rs. 740
Adhunik Metaliks: Rs. 149
Hindustan Constructions: Rs. 215
Indiabulls Real Estate: Rs. 644
JMC Projects: Rs. 460

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