INDIA downside up OR upside down!!??

Hi All..so u thought I forgot all about my blog after creating and scribbling in it once??..no dear!! ;)

hey did u guyz had a look at the markets in the last couple of days, its been crashing considerably..but I think thats a short-term correction basically coz of the supersubscription of REL Power that got a trillion pulled out from the market...Our country's estimated GDP is somewhere near ~10 trillions (hey please dont sue me if I am wrong there!!) and 1/10 of these funds locked in 1 IPO could be a big deal and a fair reason for the market dip, wat say??

Well I also see some more factors affecting the ongoing correction, like the lack of expected participation from the FIIs, the Yen treading new highs against the dollar, and the other global cues. However, the forthcoming Congress meet in US, by the end of Jan, regarding Fed rate cuts should be carefully watched upon coz that could bring in some good news...hmm... lot of grey areas discussed!! but I always like to end anything on a happy note...folks while US is supposed to be heading into a phase of recession, India is striding on a growth path now with the difference in US salaries compared to India dipping 21% and healthy corporate results that are meeting our expectations etc. The business houses are venturing out to capture innovative and unexplored avenues of growth across most of the sectors, call it Realty, Financial Services, Power, Oil and Gas, Pharma etc, we are very well-diversified.....well, India is a country known for diversity in unity, is'nt it? So all in all.....I see a bright future for India, in India!! :)


Authored by: MEENAKSHI SHARMA, CFP

The markets today..

Lack of any FII inflow coupled with the movement of liquidity from the secondary markets to the primary one led to the Sensex falling by over 700 points in intra-day trading before the Sensex recovered almost 350 points from the day's low. This movement of liquidity is attributable to the Reliance Power IPO which mopped up over Rs. 1 trillion yesterday, with the market expecting the IPO to be oversubscribed several times over.

This fall was only a correction; the bull story of the markets remains intact until the financial budget! However, the sensex may be prey to more whimsical (volatile) moves of this sort during this period. Smart investors would do well to keep atleast 10 percent of their portfolio in cash and book their profits on every rise! Though global cues have been pretty discouraging, the Indian markets are no longer being dictated by the overseas concerns. Sure, there is some effect but the overall mood is that of optimism!

So stay invested in this bull story & enjoy the SenseXXXational Ride!!

The right time to take a position in Parsvnath

With the markets declining by 500 points in the last trading session, it seems as if we are entering a short period of correction. The Sensex continues to have strong support at the 19,000-19,500 mark and I would expect the markets to bounce back after hitting this level.

Meanwhile the correction in the market has led to a steep fall in the price of Parsvnath Developers.. The stock enjoyed a great rrun in December 2007, appreciating by over 45% .. However, the share price has fallen prey to profit booking and the stock has entered a near-term period of consolidation. However, I believe that investors should look to accumulate positions in this stock at every dip. The stock closed at Rs. 431 yesterday and has a 6-month target of Rs. 700 (minimum). Another run like that in the month of December and the stock will easily scale my target price.

Do not panic because the lull in the market is only temporary. Use the decline to buy fundamentally good scripts at cheap prices; the markets are going to resemble a roller coaster ride in the months to come!

Back with a follow-up on the telecom stocks..

In my post on the telecom stocks dated December 31, 2007, I'd advised investors to build positions in both RCOM and Bharti. Well, the position in RCOM sure has paid off well for those who did invest in the stock at that time. However, those of you caught on the wrong side of the bargain, do not despair - Bharti remains a fundamentally good stock to own. So, hold on to your positions, accumulate the stock on dips and exercise some patience - your patience will be rewarded..

Markets seem choppy at the moment, awaiting earning signals from the major stocks. Mid-caps and small-caps seem to have rediscovered their midas touch after a brief slump! These stocks are back in the thick of action.. Do not discount the IT stocks, these stocks are available at very cheap prices and look to build your positions in these counters.

& for those of you who need some clarification on the companies I've mentioned in my last post, kindly leave your comment with your email id!