Overseas stock markets – India & china Bullish

Where iss the Indian stock Market Heading

Sensex has just crossed 15000 mark n the long overdue correction cd set in anytime .Its risky out there n its ideal time to book profits

The BSE sensex hit an all time High on Friday the 7th of July crossing the 15000 mark.

This time the jubilations n celebrations were absent n response frm various investors quite muted.

Everyone is skeptical as to what course the sensex wd take frm here on n what returns one cd expect in the coming months.It has risen frm 3000 levels of 2003 to 15000 levels in 2007 giving a 5 fold return for investors who hang in there.

Going forwd,the returns at the max cd be only 20% per yr if u consider that sensex wd rise to 30000 in 5 yrs time.Thus the risk reward ratio is not very attractive.

gone r the days when u cd buy anything n still make a killing.Only very few sectors like capital goods,construction/realestate,telecom ,banks,oil-gas n steel hv participated in the current rally.Sectors like fmcg,consumer durables,auto,autio ancillary,cement,sugar,IT etc hv been The Bombay Stock Exchange

THE BOMBAY STOCK EXCHANGE

 

underperforming the Index or giving negative returns.

Going ahead, the ride wd not be very smooth-it cd turn out to be very volatile with stock specific actions.

In my opinion,Retail investors shd try n book profits in scrips which has given phenomenal returns n keep 50% of their portfolio in cash.

They shd immdtly exit frm penny stocks n bad scrips booking losses if need be.

They shd refraion frm falling for the temptation to buy into stocks based on tips n rumours as it cd prove to be deterimental in the short term.

For the short term, the mkt cd consolidate n steadily drift lower due to profit booking.A 1000-2000 pt correction cannot be ruled out n this wd give good opportunity for Investors sitting on cash to re-enter at lower levels.

Caution is the watchword for now as the guidance given by IT behemoths next week n rising crude prices coupled with global cues wd determine the short term direction of the mkt.

Investors should book profits n wait for correction to re-enter.

~~ Stock Picks and Stuff from JJ ~~

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