Thursday, May 15, 2008
India stock market update 15 May 2008
We are hearing a lot of news about some severe problems in the realty market, what with property prices apparently falling in many cities across India, especially in areas that were away from the center of the city and which had seen an exponential rise in prices earlier. So, am carefully watching this sector and evaluating further progress.
There are many bad news currently in the market; the Government is going through the jitters because of inflation and the inability to do anything about this inflation; further, the credit squeeze that has been employed to control inflation is causing industry to slow down. This is apparent in the current rate of growth of Industrial Production, which is the lowest for some years now. It is difficult for the Government to reconcile high inflation as well as a slowing industrial production - it seems incapable of doing anything much about it in the short term.
As a result, my tracking is happening now for fundamentally safe companies such as Reliance, Bharti, companies from the Birla Group, as well as some finance companies such as ICICI, and surprise, IndiaBulls. The tech sector remains on a watch, although with some fall of the rupee, it may get better for them.
To be updated when a new post is made, click on the icon Site Feed