Tuesday, October 02, 2012
India stock market update - October 2, 2012
The market as expected welcomed the improvement in the air, also because there was no expectation of any such measures over the past many months; the market had come to expect that there would be ongoing policy paralysis and eventual reduction in the rating of the country and companies. The market as such has been seeing an increase in the index values and many shares that have been down-trodden have started climbing up from their yearly lows. However, there is a high amount of risk. The policies of the Government towards reform are not deep, nor are they because of any deep belief, especially since many members of the Congress are fearsome of the public backlash to the reform.
There is an improvement in engineering stocks, because of a belief that the economy will start improving, including in infrastructural, construction and other stocks. So for the short term, some risk can be worth it by investing in these stocks.
Reliance seems to be slowly recovering, although the share has been depressed for quite some time.
There are some other stocks that are worth investing in such as:
West Coast Paper
Tata Global Beverages
Keep in mind that some of these stocks have already run up in the past few weeks, and there is a risk in buying into the equity market.
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