Below 10 K

Well, the market shows the sign of stability at around 10 k levels. I sincerely think that we have bottomed out at these levels but there is every chance of that the sensex may test the 8k levels very soon. We have political uncertainities, disturbed business environment , inflation risks, employee layoff scenerios and above all a fear of WAR with our good neighbours. All these conditions are not favorable for a good market run up, but that doesnt mean that everything has gone wrong here. If we closely watch the performances of all the sectors in this country , growth is still there. Even in a worst case scenerio we are not going below 7.5 GDP number and i can bet on that.

We have one or other bad stories everyday, which makes the matter more complicated. Even when good companies and Examplorary Corporate Governence Starwarts like Satyam shows weak decision making , doubt definately comes into mind of the investors. There are un necessary rounds of so called rumors which hampers the sentiments more then ever. Look at the case of ICICI Bank. The stock has taken the beating like anything but that doesnt means that the Biggest Private Sector Bank in this country is going bankrupt just because the share price is not reflecting the true value of the stock. We have to understand that these are BIG players and small hiccups wont affect them. Yes, they can slow them down for a quarter or two, but it will not be a surprise if we see them shifting gears real fast.

As i have said in my earlier posts, the big picture is always LONG TERM. There are good oppurtunities to buy at these level. The BIGGGG companies of India are selling at cheap rates, some are even trading at values which is less then the book value of the company. There were days when stocks use to surge upward just at a news of a new land sale or a new acquisition. Those days are gone and we wont see them any near time in future. But there is always a steady growth.

I am saying it again, Think LONG really long, go for value picks at these levels, go for stocks trading below Book Values, go for good dividend paying stocks and you will see these investments made today will earn you a fortune in the years to come.

Happy Investing.........

Cheerssssssss