The Sensex sure is intent on losing all the extra weight around its waist, right?? It's shedding tears and lots of points and money at a pretty fast rate. However, as the Sensex showed last week, it can just as easily recover the lost ground.
The large caps have taken the brunt of the beating with DLF and Tata Power, in particular, getting a special beating. But the real action is in the small- and mid-caps!! I was seeing a news item on NDTV profit which showed the phenomenal rise of some of the small cap stocks in the last 3-4 months. Also find attached a similar article from Economic Times. [http://economictimes.indiatimes.com/Markets/News__Views/Stocks_News/Mid-cap_stocks_continue_to_stay_in_focus/articleshow/2554700.cms]
While the large caps may be fundamentally sound and heavily invested in, I believe it's time to turn your focus to the small- and mid-cap companies. Many of them are trading cheap; these companies are certainly not all that understood, the trick to profit here would be to invest in a stock which the market underestimates and then hold on to it because sooner or later, the market will reward the stock for sound fundamentals. Even if the market somehow misses the stock, rest assured that the FIIs will not!
Well that's all I have time for at the moment, see you all sometime later!!
Tuesday, November 20, 2007
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