Sunday, November 22, 2015

The Dust Settles

The last few week have been tumultuous and now the dust is beginning to settle. Let us remove chaff from the wheat and filter the noises out. The markets gained 1.2 pc in the last 1 week. The target of 7200 is now 500 points away from the current low.

1. The Power Reform announcements if and when implemented will lead to the Discoms recovering the lost ground. This was the most groundbreaking announcement of the past few weeks.

2. Coal India FPO which will hit any moment, full subscription is advised for the Retail Investors. Coal India gives god dividends and at least Rs 20 can be expected this time around. The dividend yield itself will be around 6 pc.

3. Coal India has got the approval for exploring Coal Methane Blocks, this will need to significant new cash flows for Coal India.

4. The FDI announcements in various sectors will lead to more foreign money flowing and Defence is the key sector I see benefiting. Defence Sector from the Private parties is under developed in India and I see the Private Sector in Defence in India as a sunrise sector.

5. The time to talk is over and the Government will get down to business now. The Phase 2 of Modi first 5 year term has been kick started.

6. Power, Defence, Pharma and Banking are the key sectors I will watch at with special focus on Infrastructure lending.

Things have started moving on the ground. The next few weeks should provide us with more buying opportunities.

1 comment:

  1. no updates in nifty levels from last few days.....

    ReplyDelete