Indian Stock Market - Back on track?

Indian stock market benchmark index, Sensex, is doing better than most of the developed economies' stock markets. Sensex faced some sluggish movements after the budget, but now the market seems to be bouncing back.

There are lot of small and mid cap stocks in Sensex which are still undervalued. Here are some of the stocks that gave more than 100% returns in last six months:

1. Crompton Greaves

2. Essar Shipping

3. GVK Power

4. Ispat Industries

5. Jaiprakash Hydro

6. Steel Authority of India (SAIL)

7. Sujana Towers

8. Tanla Solutions

Stocks that are doubled or tripled in last six months:

1. Punj Lloyd (217% increase)

2. Wellspun Gujarat (311% increase)

Wellspun Gujarat - a value stock?

Wellspun Gujarat, a leading manufacturer of steel pipes in India, has announced a very attractive increase in net profit for the quarter ended June 30, 2009. Profit was up by 94% to Rs.138 crore.

Current stock price of Wellspun is around Rs.205.

Moreover Wellspun recently got an order worth Rs.960 crore. Backed by these strong fundamentals and healthy outlook for next financial year, Wellspun Gujarat' seems to be a good pick.

Sensex - Outlook

Supported by a strong Q1 results by most of the Indian companies and strong growth in FY2009-10, Sensex, is expected to be in the range of 16000-17000 in Q3 2009.