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  • Market Advice: Sensex to move up, invest in blue chips

    Published on August 1, 2010

    By Sangeeth C Cherian

    The equity market has been volatile since last one year. Perhaps this condition neither help the investor to quit the market nor book the profit, so one needs to be vigilant and wise on any decision of buying or selling.

    True, the Indian stock market was not doing well since last one year. The sustained.

    Correction in the market over the last one year by the force-selling of FIISs because of f the challenges they were facing back home. Nevertheless this is an exceptional opportunity for Indian investors to create a great portfolio in to the blue chip shares.

    India is well placed to benefit from an improving global environment, especially when its economy has continued to grow in spite of the unprecedented turmoil in the global economy.

    The Indian stock market has been termed as a potential “baby bull” as the Sensex may continue to advance over the next 15 years and is likely to breach it’s all- time high of 21,000 during the period, a report says (Report by US-based Elliot).

    “If the price and time proportions between the waves in the 2003-2008 rally continue, the Sensex should hit 100,000 in about 10 years,” research group’s Asia-Pacific Financial Forecast editor Mr. Mark Galasiewski told In its report for Asia-Pacific markets, based on analysis of technical charts, Elliott Wave has said there were strong indications of “a resumption of the bull market in Indian stocks.

    The survey says that India has emerged as the most optimistic economy for hiring as employers have positive plans for the next fiscal (2009-10).  Mr. Subbarao, Governor, Reserve Bank Of India, said that local inflation has declined. He also assured that the domestic financial sector is functioning normally with a sound, healthy and well capitalized banking system. He also stated that wealth loss effect has been minimal in case of India and the domestic growth fundamentals like growing entrepreneurial spirit, rising productivity and increasing savings have been intact.

    Pointing out that 25 per cent of employers in India has positive hiring plans for June –Dec 2010, the survey says this clearly shows that Indian companies are positive despite poor forecast by experts globally. Global meltdown seems to have taken its toll on the hiring pace in the Indian job market. Employers are focusing more on maintaining their workforce at current level. Select your blue chips stocks from the following segments-Public sector, Oil & Gas, Capital goods, FMCG, Telecom, Construction, Automobile etc.

    (The author is the Portfolio Manager of GENEXT PORTFOLIO. He can be contacted @ 9747017107)