It has been a rollercoaster ride last week in Indian Stock market. As usual even after very good results, share price of Reliance & Bharti tele fell sharply and the analysts observed that it is profit booking time. With Rupee appreciating steadily against the U.S.Dollar, the software companies are starting to feel the heat. Even the most pessimistic forecaster would not have expected this movement from Rupee. This is the sector which has been pushing the economy strongly last 3-4 years and any dent in that will surely affect the economy as a whole. Cuppled with this is the increase in Home loan interest rates leading to delays(which will later become defaults) in monthly EMIs of housing loans. And already there is consensus among the bid daddys investing in Real estate that the fall is for sure & only the extent (10% or 30%) is debated. With all these factors, it is not the best time to invest in stock market, I feel. Then does it mean we should sell everything and remain liquid to buy at lower levels. While long term India story is good and stock picking is different from timing the market and taking a decision on the basis of index movements is not the right approach for value investing, caution is the buzzword now.
One stock which I feel has bottomed out recently and is a must buy in any portfolio is Hind. Lever.
I am confident that this will give a return of 25-30% in the next 1 yr & will surely ourperform the market(index) For more info wait for a week or mail me at dailyalways@hotmail.com.