Tata Steel
November 8th, 2008
it is now more or less certain that the falling prices in our stock markets is a function of FII money flowing out of the country. Valuations are no longer sacrosanct. Fundamentally strong stocks have been battered so much that now they are in the company of notorious stocks which have no pedigree. Does this mean, these stocks are out of favour and should be discarded? Certainly not. If Tata Steel is today quoting at around Rs 190, it is because of a couple of important reasons. The company, like many such investor favourites, is the victim of FII selling, short selling and slowdown in earnings of the company in the short term. The company is worth accumulating by those with an investment horizon of two to three years.
