Tuesday, September 11, 2007

 

Indian stock market update 11 September 2007

For some time now, I have been thinking about the frequency at which I update this site, with many times a number of days passing by. However, I am more of a long term player, and I don't believe that fundamentals can change in a few days, so am comfortable with the current frequency of updates.
The Indian stock market has shown itself to be fairly resilient over a period of time. After the sub-prime crash threatened to derail the market, the stock market has again crossed the 15,500 levels, but looks like there may be some minor corrections now and then. Minor corrections are healthy, since if the stock markets keep on rising, people get uncomfortable and are unwilling to invest further in anticipation. Also, with such falls happening now and then, people feel that scripts are moving up as per their fundamentals; if the markets keep on rising, it gives an opportunity for traders and operators to move up junk scripts (including penny stocks) and then when the fall happens, a number of retail investors also get hurt.
It looks like things are so so on the overall political front, with the deadlock with the left scaring the market earlier, and the current deadlock threatening the stability of the Government and putting a stop to many of the long-promised initiatives such as labour law reform, pension reform, etc. A lot of this has been discounted now, but even then, a sudden crash of the Government can badly affect the market. I remain invested, and will continue to evaluate and keep investing.
Stocks that I am currently tracking:
1. Adhunik Metaliks - Rs. 77.50
2. Bartronics - Rs. 236
3. Hindustan Constructions - Rs. 132
4. Tata Teleservices - Rs. 34.60
5. KLG Systel - Rs. 480
6. Reliance Petro - Rs. 128.50

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Sunday, June 24, 2007

 

India Stock Market Update 24 June 2007

Is there hope for the stock market right now? There are signs that with inflation down, things may seem to be better on the credit squeeze. The credit squeeze caused money to become more expensive, and if inflation remains down for some more time, we will stop hearing all the comments about the 'aam admi' hurting, and industries will get easier credit for their expansion plans. This is the chief way to get higher growth, and one should mostly ignore the left parties.
The Government seems to be making an effort to get some pension funds into the equity market (even under some tight controls), and if they manage to get past the obstacle of the left parties, there will be a lot more funds coming into the market.
At the same time, the Finance Minister is dropping hints about the floating of more PSU's into the equity market, but unless the PSU's are given more functional autonomy, it really would not benefit them too much. PSU's have been trailing private sector companies in growth of their share prices, and this is primarily because they take their policies from the government, and government policies are not dictated only on the basis of economic considerations.
Some stocks that I am currently tracking:
1. Ashiana Housing: Rs. 190
2. Reliance Capital: Rs 1088
3. Praj Industries: Rs. 489
4. JMC Projects: Rs. 255

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