The Indian stock markets which went into the correction since the last couple of days,have
started to recover sooner and faster than what everyone was expecting.Sensex fell from 17,300 odd levels to 15,000 odd levels. The worst hit segment has been the high beta stocks in realty. DLF, HDIL, Unitech, Suzlon,PunjLloyd, RIl, JPAssociates were among the highest losers.

Other losers included RCom, Bharti owing to the price war among the telecos which is going on after Tata Docomo introduced the pay per second and bought a sort of revolution
in this industry. And no doubt they are also among the fastest gaining stocks in the street today. One can accumulate DLF,HDIl, Unitech,PunjLloyd,RIL,IFCI etc for short to mid term gains. For eg PunjLloyd has lost close to 33% from its high in last few days and has been recovering well. Investors are advised to accumulate nifty and sensex stocks to remain on the safer side.

Sensex is still some 1200 odd points away from its near term peak and nifty about 400 points away. Meanwhile the US markets which started falling few days back are in a mode of recovery now. Dow has come close to 10,000 levels now and also the major major markets are in a rising mode.Also the Indian Govt decision to list atleast 10% equity of profit making PSU in the secondary markets has given a boost to the PSU sector. The Mid-caps are out performing the broader markets now.

From a short term perspective the stock markets look volatile, but when you take a long term view on the markets, you can see that the stocks are very attractively valued.Even though markets have gained some 70% from 2008 closing values, we still see a lot of scope in the Indian markets in the coming months. Last week was the first week after 3 non stop week’s of making loss in the Indian stock markets. Nifty is expected to remain above 4800 level in the coming week. Like the last correction sometime back, this time also we see that the markets are bouncing back faster than expected.

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