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  • Market Watch: Sensex may further advance and Investors can prefer BlueChips

    Published on August 1, 2010

    By Sangeeth C Cheriyan

    Equity market across the globe has been volatile since last one year. This condition has hardly helped the investor either to quit the market or book the profit. In such a scenario one needs to be so vigilant and wise in making decisions to buy or sell.

    • True, the Indian stock market was not doing that well for last one year. May be due to the sustained correction in the market over the last one year by the force-selling of FIISs because of the challenges they are facing back home. Nevertheless this is an exceptional opportunity for the Indian investors to create a great portfolio in 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 meltdown witnessed in the global economy.
    • The Indian stock market has been termed as a potential “baby bull” as the Sensex may continue to advance over next 15 years and is likely to breach its all- time high level 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 Mark Galasiewski has said in his report for Asia-Pacific markets, based on analysis of technical charts. Mr. Elliott Wave has further 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 and will continue to go Southwards. 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 have 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

    Sangeeth is Portfolio Manager, GENEXT PORTFOLIO/HEDGE EQUITIES. He can be contacted @ 9747017107