Tuesday, November 27, 2007
India stock market update 28 November 2007
Now I know better. Unless I spend significantly more time on the stock market, I think my current strategy is a sound strategy. Buy stocks that are fundamentally sound and are not affected by low sentiment. As a result, I am out of hotel stocks, IT stocks and textile stocks since sentiment is against them (due to various reasons such as rupee depreciation, etc). I am more into engineering, capital goods, construction, some realty, and banking stocks (these are good sectors and one should look at companies that have been doing well in these sectors).
For the last couple of weeks, Indian markets have been sluggish with many days where there is a weakness, low volumes and drifting lower. In some cases, the sensex deceives the overall sentiment, since the sensex represents 30 shares, and the mid-cap and small-cap index may move differently from the sensex. Overall, with FII's not being very active, global weakness and threatened horror stories from the sub-prime problem still happening, one does not expect any immediate upsurge. However, the 'India' story remains on, and I plan to remain invested.
Stocks that I am currently tracking:
1. Supreme Industries: Rs. 350
2. Advanced Micronics: Rs. 89
3. Ion Exchange: Rs. 200
4. JMC Projects: Rs. 500
5. Khoday India: Rs. 294 (risky)
6. Nile: Rs. 357
7. PG Foil: Rs. 81
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