Today the Sensex was down by 62 points at 30188 and the Nifty down by 21 points at 9400. Yesterday on the 10th of May market was at an all time high the Nifty was up by 93 points at 9409.85 and the Sensex was up by 314.82 at 30248.17.Today there was profit booking which got the market a little down or a much needed correction.
Financial Institution HUDCO had an IPO this week which performed very well.The markets are high as Mutual Funds have pumped in a lot of money placing domestic Investors in the Drivers seat. This has acted as a buffer against Capital outflows sparked by global Investors according to Deutsche Bank AG.
As Returns from Property and Gold are falling Investors are embracing equities which has led to a rally in shares.Gold and Property are traditional favourites in India. According to Bloomberg data, withdrawal by Foreigners last month did not stop the BSE Sensex rising above 30000 for the first time, as Mutual Funds ploughed inr 112 billion into stocks.ITD Cementation an Indo Thailand Infrastructure Company, priced around INR 173 is a good buy. Tata Motors priced around inr 430 is also a good buy, though it has dropped from about inr465/ last week. A lot of sales of cars and trucks made by Tata Motors will spiral the stock up. ITD Cementation is engaged in constructing Metro Rail across Hydarabad and Karnataka and yearly results are good, though half yearly results are down.Though there is a lot of PUT writing going on Markets are Bullish and any downward correction is welcome.
Happy Trading & Investing.
Disclosure: Investors are advised to consult their Financial Advisors before picking up stocks.
