Gold Vs Sensex

This is one of the most sought after season for aggressive short term investors. Investors are trying to buy as much of gold,, which is soaring for the record heights recently to nearly $1100 an ounce.

Investors are now trying to make very short term profits from stock markets and trying to reinvest in high returns commodities such as gold.

Hence today's 500 points up in the Sensex doesn't mean that positive factor is back in the market. Investors who are really interested in long term investments (1-2 years) should enter the market now. But this is not a good time for entering for real aggressive short term investors!

Sensex will stay in the range of 16000-17000 till Q1 2010. Higher volatility may affect the market sentiments in short term (say 3-6 months).

US Stocks stumble

US stock market witnessed another day of bolt as the markets crashed due to the disappointing numbers on consumer spending. US Commerce department released the consumer spending data for Sep'09, showing a decline of 0.5%, first time in five months.

Dow fell by more than 1.5% to 9800 (down by 160 points). S&P 500 also came down by 2% to 1044.

However this fall in US markets may not have greater impact on Indian market on Monday. Sensex is moving based on the selling pressure by the investors who have invested in emerging markets. Moreover the market fell by more than 1% on Oct 30, a day after US markets bounced back (official data showed that US is recovering from recession). However Sensex is expected to be highly volatile in coming week as global markets are tumbling.

Sensex continues to fall...!

Sensex fell for consecutive fourth day to end below 16,000. The market closed lower by more than 1% to end at 15896 on Oct 30. This is led by telecom and oil sector companies.

Bharti Airel announced its Q2 results on Oct 30 in a positive note. But did not match the market expectation. The stock down by more than 6% to end at Rs.292. Airtel's lowest in a year was Rs.290. This shows that the stock is moving towards to break its lowest support next week.

Long term investors who can hold their investments for 1-2 years, can now consider investing in Bharti Airtel.

Sensex is expected to be in the range of 16000-17000 in coming weeks.

Sensex in November'09

As the US and Europe markets are stumbling, Asian markets are also expected to be more volatile. However China and India may have a less volatile market movements in November'09.

This is supported by expected strong economic growth (around 6.7%) in 2009-10 and better turnaround results from India Inc.

Moreover, Sensex is expected to be in the range of 16500-17500 in Nov'09.

We can expect the market to be more volatile and touch record lows in recent days on 29 Oct'09. Again this is backed by the fall in Dow on previous day.

Anyway this will be a season for rational investors to get their picks!

Sensex - Short Term Outlook

Global markets are back on track, thanks to the promising results by corporates. India Inc is showing a healthy start towards Q3. Sensex has been recovering well from its 16,000 levels towards 18,000. Hope this may be reached in this month!

I have some stock picks expected to deliver a really 'good' returns in next 6-12 months. Here is the list:

1. Welspun Gujarat
2. Tanla Solutions
3. Gayatri Projects
4. Crompton Greaves
5. SAIL
6. Essar Shipping
7. Sujana Towers
8. GVK Power

Sensex is expected to be in the range of 16,000-18,000 in next 3 months.

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.

Sensex is bouncing back!

After some post-budget trembling, the Sensex is bouncing back today. Index is already up by 406 points, expected to close above 13,800 points. This shows that investors again put in confidence in Indian budget and its aggressive growth plans. Well, if the economy grows at more than 7%, then India will be the second fastest growing economy in the world, after China.

I would like to mention few stocks every week in this blog which has some 'value'.

Here's are the stocks to watch for this week:

1. Page Industries
2. ITC (a good stock that gives nominal returns even in bad times)