play straight

Our markets reflected the general gloom and doom across most stock markets of the world. The spate of bad news from the US and the weakening rupee have triggered the fall across the board. Many pivotals are hitting new lows. These stocks might plumb new depths, who knows ! But it is amid this uncertainty and panic that one can pick up gems. It requires a Braveheart to do this. Yes, you also need cash– not many are liquid now.

Buying in small lots is definitely possible. Some stocks worth picking up based on their fundamentals are:

Tata Steel

Raymonds

TCS

State Bank of India

ABB

Aventis Pharma

UTV

Reliance Capital

After the death of my dear brother, I was overwhelmed by the support I received from all his friends, associates and well wishers. However, the only thing which left a bad taste in the mouth was the behaviour of a close relative.

When I told her that I was very happy with the positive vibes I got from my brother’s friends, she immediately commented that there were a few who were critical of my brother’s attitude. Apparently, a colleague had remarked that my brother was short-tempered and impatient.

I was hurt and could not comprehend how anyone could be so insensitive and stupid. I ignored her and her comments as this was the best way to convey my displeasure.

In this downturn, there are several companies which are available at attractive valuations. For the next few days I will identify some industry specific stocks for investments.

Today, I want to suggest three steel sector stocks for investment at current levels and at declines as well.

1. Tata Steel- around Rs 480

2. SAIL- Around Rs 135

3. Adhunik Metaliks- around Rs 65

I stayed at my late brother’s residence for about a week in Noida, close to Delhi border. I was overwhelmed by the response received from acquaintances, some of whom had not met him for years together. A friend called from New York on hearing the news of his death and expressed his sympathy to me. I am grateful to him for also passing the news to some other acquaintances with whom we had lost touch completely and had no clues to their whereabouts.

The unequivocal support received from my brother’s employer deserves special mention. My nephews are pursuing their studies and the owner director assured us that their education would be taken care of without any disruption.

The bottomline of my story is that more than relatives, the support from outsiders and acquaintances was tremendous and proves that a good soul is always remembered for his deeds.

Great thinkers have written extensively on life and death but it is still a mystery. Mankind is still struggling to understand life after death.

John Donne said: “Death be not proud”. But man remains as vulnerable as ever. I am now convinced that death reveals the eminent as George Bernard Shaw observed long time ago.

My brother passed away last week without any trace of a serious illness. He was on his way to work and returned home before he could reach office as he felt some discomfort. Before he or his family could realise it, he succumbed to death within the space of a couple of hours !

Concerned relatives and friends streamed in to his residence from different parts of the country on hearing this sad news. From the vegetable vendor to the top management of the company he worked for, he was a true friend, colleague and well wisher. I was overwhelmed by their response and unqualified support.

He has left behind his inconsolable wife and two bright and enterprising kids in their early twenties.

His company has promised all support to the family. I salute this company’s spirit of camaraderie. My brother’s career was cut short unfortunately at a time when it was just about peaking. God had obviously other plans for him.

I am, however, thankful to the Almighty for many positives that have emerged since my brother’s death. Long lost friends and well wishers have been reunited with us in this difficult period. I am convinced that there is light after darkness. Behind the dark clouds there is always a silver lining !

It is a topsy turvy market. In no time bears are back with a vengeance and have pinned down the market at weekend close. There was aggressive selling in pivotals today as market grew jittery over the prospects of an early election.

Reliance, the market heavyweight, led the pack of losers. The good news is that every correction offers an opportunity to pick up stocks at attractive valuations. For the patient investor, it is time to accumulate growth stocks in affordable quantities.

One should stick to one’s convictions and not be deterred by short term volatility. The markets always rewards the long term investors. 

The rally today was like a wild horse let loose. Held in check for quite some time, the slightest excuse was enough to send it soaring. Fortunately, crude registered a sharp fall below $110 mark. This was a good enough reason to embolden the bulls who went on the rampage.

Banks, infrastructure and heavyweights like Reliance made a smart recovery. Even though the underlying cynicism is intact, there is no denying the fact that the mood is gradually shifting to positive zone. Unless the market sentiment improves, a long and growing list of IPOs will remain in the back burner.

Investors would do well to do book profits from time to time in mid caps and small cap stocks and shift focus to beaten down large caps.

As I expected, today’s market movements suggest that shorts are getting cut out fast and longs are getting built up. The markets recovered strongly in the second half. A major positive could be a sharp drop in crude prices. Funds from various fund houses are waiting in the wings to buy aggressively at the slightest hint of a revival in sentiment.

To the trained eye it is obvious that the market sentiment has improved dramatically in the last two weeks in India. Economic activity will pick up sharply in the last two quarters of the current fiscal and this will get reflected sooner rather than later.

I am quite bullish on construction, financial services and PSU navratnas, especially NMDC.