Rate cuts - Back again!!

The Fed Chairman held out hopes for another rate cut to boost the U.S. economy which has been under a lot of constrainst, of late, due to the soaring oil prices, credit concerns and the weakening dollar. The rate cut should act as a shot in the arm for the economy which many analysts are expecting to enter into a period of recession pretty soon!

But well, all said and done, we have to wait and watch until December 11 to see what course of action does the Fed resort to keep the economy afloat! However, in the same vein, I must stress that rate cuts are not the way forward. Sure, in the short-term, they help inject liquidity in the markets but in the long-run, resolution of the underlying factors needs to be implemented for the economy to move forward again.

All of this should have a mixed effect on the Indian economy. Until the future course of action does not become clear, it would be prudent to hold on to your investments/liquidity and not react to the market moves!

Also, those looking to diversify their portfolio may look to invest their savings in the following stocks:

India Bulls Financial Services
DLF
Tata Motors / Maruti
Infosys
Tata Power
NTPC / PowerGrid
ICICI Bank
Ranbaxy
Bharti Airtel

Investments in the aforementioned stocks, in proportions not exceeding 20% of capital, will provide an invetsor with a diversified portfolio, capabale of generating returns >50% in the next 12 months!

Hope you enjoyed reading this post!! ;-)

Which way is the Sensex heading??

The last 2 trading sessions have been quite rosy for the U.S. markets. The Dow Index, in fact, recorded its highest 2-day gain in the last 5 years! The Sensex, which had been so far responding to cues from the Dow, seems to be sharing none of the current euphoria! Sure, the markets have opened on a high in the last 2 sessions but the way the market lost its gains in the wee hours of the session suggest that investors remain wary of the euphoria being exhibited in the U.S.

Maybe, it has to do with the gold & the oil prices and the Re/$ rate; maybe it's plain and simple aversion to the euphoria on display! Or maybe it's got to do with the fact that the Indian economy is "insulated" from fallouts in the U.S. economy! The Sensex clearly is not giving any signs of going up; maybe the ride down from the dizzying heights touched in October has taught investors to exercise caution!

I actually like this caution; it seems to suggest that sentiments aside, the fundamentals need to justify any future growth. We won't go up just because everyone around us is going up and fine, we'll heed global cues but we'll chart our own course too!! However, I'm sure, many of you feel quite the opposite as well. Quick gains are welcome any day, but for an economy to mature, we need to rein in our sentiments and reward the underlying fundamentals!

I might be completely off the blocks for all I know but this, only time will tell! Wait & watch; stay hooked on to the ride because it's so so SenseXXXational!

Ek garam chai ki pyali ho...

Seeing the cup of coffee (the first of many.. Sigh...) placed quite strategically in front of me, I started to hum "Ek garam chai ki pyali ho.. Koi usko pilane waliiiiii ho...... Ha ha, even started picturizing the song as well: Salman Khan in his normal semi-nude state, sipping chai on a beach (chai on a beach: now this ain't normal) and some beautiful gals in undescribable swimsuits serving him tea and running after him and dancing with him & doing what not!!

As it is, I don't feel like reading a bit today! Plus the day seems so dull n boring (ok ok, so this is normal!!) n I don't feel like writing/reviewing/reading any reports today (again, such cribbing is normal).. But coffee ka cup dekh kar mujhe wo gaana somehow yaad aa gaya!! Mujhe sallu mia jaisi body-shody to nahi chahiye but a few of those babes (sigh.. wishes. .wishes.. wishes).. God, tussi sun rahe ho na?? Aise waiso ko diya hai.. Kaise kaise ko diya hai.. Mujhko bhi to lift kara de.. Thodi si to lift kara de!! (Ha ha ha, Mr. Adnan Sami, I'm not itching for your body size & shape either!!)

All due respect to all those who were mentioned in here.. I'm going to fetch myself a hotter cup of coffee.. This one has gone stale, err, cold!!

Ek garam cafi ki pyali ho.. Dhak dhak dhik.. dhak dhak.. koi usko pilane wali ho.. Jai (Anu) Malik Sahib..

Bo(o)ingggggggggg day..

Gosh today feels like such a stifling day.. even the markets have opened weak, again!! Though I expected the Citibank deal with Abu Dhabi banks to provide some relief to the market's down-the-hill journey!!

Anyways, the corrective effect is no where to be seen.. The market is down, just a shade under one percent. Auto stocks seem to be doing well, actually, I'm only tracking the scripts of Bajaj Auto, Maruti and Tata Motors. While the last 2 names have not given a good return in the last month or so, scripts of Bajaj Auto are set to go higher on the back of high sales volume for the month of November.. Sounds good to your ears?? Sample this: UBS has a target price of Rs. 3033/- on Bajaj Auto; Motilal Oswal has just released a target price of Rs. 2800/-.. The current market price is slightly over Rs. 2600/-.

Hey how many of you track Jindal Steel?? It's share price rocketed by over Rs. 4000/- in 2 trading sessions flat! This stock sure offers an amazing run for speculators and volatility traders to trade on!

Oh well, that's all from my end.. My coffee is also getting cold, so lemme go and attend to some dull boring things!! For those of you with nothing better to do, go and read James Patterson's Mary, Mary! An awesome novel (so far) on a serial killer..