Monday, September 24, 2007
India stock market update 25 September 2007
Wow, what a ride. The market has fairly bounded up by leaps and bounds in the last few days, and is way over 16,500 not something that most people would have expected (they may have hoped, but not expected). Leading the charge is Reliance Industries, that has reached the dizzy levels of Rs. 2,300. Engineering companies are also taking advantage of this climb, with textiles and IT continuing to be way down.
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
To be updated when a new post is made, click on the icon
Site Feed
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
Labels: Equity, Future, India, Stock
To be updated when a new post is made, click on the icon
Site Feed
Tuesday, September 18, 2007
India Stock Market Update 18 Sept 2007
So today the market did a up and down climb, and was negative for some time today, but eventually closed up by 164 points. This is reversing the trend of the past few days where the market would go up in the morning but would decline due to profit booking. The index is still below 15700, and unless it can give a conclusive jerk and break the 16,000 barrier, there will be a lot of talk about downturn in the market.
The sub-prime crisis in the US market apparently still has to run its course, with persistent marker rumours about the financial impact on US firms still to be fully out (given that some of the financial transactions and holdings are very complex). A lot of people are waiting for the US Federal Reserve to make their important meeting statement about whether there will be any change in interest rates.
The Indian economy still appears to be a on a roll although the sharp rise in credit interest rates in order to squeeze inflation appears to be having an effect on industrial growth, and the Government and RBI may soon have to decide to lower interest rates in order to spur growth. But, the overall picture on the Indian market still remains positive, and that is the way that my investment horizon currently is.
Stocks that I am actively tracking:
1. Bartronics (this has risen a fair amount, but good potential) - Rs. 277
2. Hindustan Constructions - Rs. 135
3. JMC Projects - Rs. 340
4. KLG Systel - Rs. 526
5. Praj Industries - Rs. 215
6. Supreme Industries - Rs. 225
7. Tractors India Limited - Rs. 325
To be updated when a new post is made, click on the icon Site Feed
The sub-prime crisis in the US market apparently still has to run its course, with persistent marker rumours about the financial impact on US firms still to be fully out (given that some of the financial transactions and holdings are very complex). A lot of people are waiting for the US Federal Reserve to make their important meeting statement about whether there will be any change in interest rates.
The Indian economy still appears to be a on a roll although the sharp rise in credit interest rates in order to squeeze inflation appears to be having an effect on industrial growth, and the Government and RBI may soon have to decide to lower interest rates in order to spur growth. But, the overall picture on the Indian market still remains positive, and that is the way that my investment horizon currently is.
Stocks that I am actively tracking:
1. Bartronics (this has risen a fair amount, but good potential) - Rs. 277
2. Hindustan Constructions - Rs. 135
3. JMC Projects - Rs. 340
4. KLG Systel - Rs. 526
5. Praj Industries - Rs. 215
6. Supreme Industries - Rs. 225
7. Tractors India Limited - Rs. 325
Labels: Equity, Future, India, Inflation, Stock
To be updated when a new post is made, click on the icon
Site Feed
Tuesday, September 11, 2007
Indian stock market update 11 September 2007
For some time now, I have been thinking about the frequency at which I update this site, with many times a number of days passing by. However, I am more of a long term player, and I don't believe that fundamentals can change in a few days, so am comfortable with the current frequency of updates.
The Indian stock market has shown itself to be fairly resilient over a period of time. After the sub-prime crash threatened to derail the market, the stock market has again crossed the 15,500 levels, but looks like there may be some minor corrections now and then. Minor corrections are healthy, since if the stock markets keep on rising, people get uncomfortable and are unwilling to invest further in anticipation. Also, with such falls happening now and then, people feel that scripts are moving up as per their fundamentals; if the markets keep on rising, it gives an opportunity for traders and operators to move up junk scripts (including penny stocks) and then when the fall happens, a number of retail investors also get hurt.
It looks like things are so so on the overall political front, with the deadlock with the left scaring the market earlier, and the current deadlock threatening the stability of the Government and putting a stop to many of the long-promised initiatives such as labour law reform, pension reform, etc. A lot of this has been discounted now, but even then, a sudden crash of the Government can badly affect the market. I remain invested, and will continue to evaluate and keep investing.
Stocks that I am currently tracking:
1. Adhunik Metaliks - Rs. 77.50
2. Bartronics - Rs. 236
3. Hindustan Constructions - Rs. 132
4. Tata Teleservices - Rs. 34.60
5. KLG Systel - Rs. 480
6. Reliance Petro - Rs. 128.50
To be updated when a new post is made, click on the icon Site Feed
The Indian stock market has shown itself to be fairly resilient over a period of time. After the sub-prime crash threatened to derail the market, the stock market has again crossed the 15,500 levels, but looks like there may be some minor corrections now and then. Minor corrections are healthy, since if the stock markets keep on rising, people get uncomfortable and are unwilling to invest further in anticipation. Also, with such falls happening now and then, people feel that scripts are moving up as per their fundamentals; if the markets keep on rising, it gives an opportunity for traders and operators to move up junk scripts (including penny stocks) and then when the fall happens, a number of retail investors also get hurt.
It looks like things are so so on the overall political front, with the deadlock with the left scaring the market earlier, and the current deadlock threatening the stability of the Government and putting a stop to many of the long-promised initiatives such as labour law reform, pension reform, etc. A lot of this has been discounted now, but even then, a sudden crash of the Government can badly affect the market. I remain invested, and will continue to evaluate and keep investing.
Stocks that I am currently tracking:
1. Adhunik Metaliks - Rs. 77.50
2. Bartronics - Rs. 236
3. Hindustan Constructions - Rs. 132
4. Tata Teleservices - Rs. 34.60
5. KLG Systel - Rs. 480
6. Reliance Petro - Rs. 128.50
Labels: Equity, Future, India, Pension, Stock
To be updated when a new post is made, click on the icon
Site Feed
