Thursday, January 13, 2011

 

India stock market update - 13 Jan 2011

It's been some time since I wrote in this blog, and things have changed a lot since then. The overall political environment in the country has taken a deep turn for the worse in the past couple of months, with scams affecting the image of the Government to a great degree, implicating the even honest image of the Prime Minister. Further, the economic and monetary policies seem to be moving in a direction that is not very conducive to growth, such as a high rate of inflation, and a result, the Reserve Bank seems to want to limit money supply by raising interest rates, which in turn will lead to a contraction in the amount of capital available for companies to finance their growth and lead to a reduction in the growth rate of many companies.
As a result of all this, and because there seems to be a slight positive movement in the economy of the United States, FII's seem to be selling in the domestic market, and are also repelled by the amount of the scams, which increases the perception of a high degree of corruption in India as a whole, something that is seem as harmful to the working of companies.
In the past 2-3 months, there has been a sharp fall in the value of mid-caps with many portfolios falling by 20-25%, a sharp drop that is not fully mirrored by the value of the Sensex. So what does one do about stocks ? If you believe (as I do) that in the next 2-3 years, there will be a continuing fast growth, then a drop in mid-caps and some large caps is a good opportunity to buy, so am tracking stocks such as:
1. Elecon Engineering
2. Reliance Industries
3. Bharti Airtel
4. Pipav Shipyards
5. Hindustan Construction

Labels: , , , , , , ,




To be updated when a new post is made, click on the icon Site Feed Site Feed


Comments:
I have a website where I research stocks under five dollars. And ten dollars. I have many years of experience with these type of stocks for those investors looking an exchange traded funds that invests in lithium type stocks their is an exchange traded fund that invest in stocks in the lithium business it is Global X Lithium ETF symbol (LIT).
 
This comment has been removed by a blog administrator.
 
If you are trading in NSE, BSE, MCX and in NCDEX then let sharegyan give you all stock trading gyan
 
Post a Comment

Links to this post:

Create a Link





<< Home

This page is powered by Blogger. Isn't yours?