Monday, January 07, 2008

 

India stock market update 08 January 2008

Today, the sensex touched 21,000 for a brief time, and then pulled back. Overall, the market has moved up on a fairly consistent pace, with many times, the large caps moving up faster, and many other times, the mid caps move faster. For the last several weeks, a worrying trend has again emerged, with many small caps and penny scripts moving up. Sometimes they may jump up several-fold in the matter of a few days, and is normally a sign that things are coming to a head and may decline soon after.
And so it happened today. One does not know whether it is a 1-day blip, or whether this is a sign to come. For some time now, most financial analysts are claiming that markets have risen up too much too fast, and the Indian market is fairly expensive now. Today saw a steep fall of the mid-cap and small-cap stocks. No one who was watching stocks today could have failed to notice the depth of the fall; officially it is 3.54%, but it feels more in the range of around 5% (depends on the scripts owned, I guess).
As always, be very careful when investing in penny stocks; they can be extremely risky, and even a tip from a place seemingly very safe could be just based on a rumour. There can be a lot of money to be made from small-cap stocks, but money can get lost pretty quickly also, hence be careful.
Stocks that I am currently tracking:
1. Reliance Ind: Rs. 3054
2. Yuken India: Rs 348
3. Supreme Industries: Rs. 350
4. TRF: Rs. 1956
5. P G Foils: Rs. 118
6. Patel Airtemp: Rs. 132
7. JMC Projects: Rs. 500

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