Welcome all to my first post of the year 2008! The start of the year has left me very happy and smiling from ear to ear! Not only has the stock market displayed some great resilience in maintaining the 20k+ levels, the market also seems ready to move up and cross the 22,500 levels..
Ok, ok, so I guess my initial estimate of the Sensex touching 21.5k levels hasn't been reached yet and here I'm, already taking a shot at the heights the sensex can achieve in the New Year! The growth in the markets this year is expected to be more moderate and one driven by earnings and newsflow! Investors will be looking to take their cues from the third-quarter earnings which will soon be announced, beginning with the IT heavyweight's, Infosys', earnings on Jan 11.
The current pricing of the IT stocks looks very attractive; I would advise building positions in Infosys, TCS and Wipro before the earning season kicks off! The IT stocks were heavily discounted in 2007 and 2008 could just be the year when these stocks will outperform the broader market. A stabilizing rupee will do their fortunes no harm either.
Also, the auto stocks did not really shine in 2007. Again, I advise investment in Maruti and Tata Motors. Both the companies have a lot to offer and 2008 could be an exciting year not just for these 2 companies but the entire range of auto stocks in general!
Power stocks remain a long-term play; look to build positions in these stocks as they will zoom to unprecedented heights by 2010! Also, with the Government mulling a cut in the duty rates for oil comapnies, shares of ONGC and the other oil companies are set to benefit and have a mini run upwards in the near term.
For those intersted in mid-caps, check out Godavari Power, Parsvnath Developers and Srei Infrastructure Finance.. More on the markets later! It's time for me to get back to my work now!! Adieuuuu!!
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