BIG BROTHERS ARE WATCHING

Hacks of activities were there in our stock market for the last few weeks. Sensex and Nifty swinging like a faulty pendulum. The greatest effect was US mortgage crisis which resulted in a meltdown of 600 Sensex points. RBI revised monetary policy and increased CRR from 6.5 to 7 percent. Inflation fell to 4.36 percent. US subprime worries heightened.  Crude price is going up. And what is not happening?

 

All these made a serious concoction which made everybody heady, prompting some mistakes from small investors. We sold our holdings as if to save the world from the falling sky. On panic we looked for clues from other (world) markets, though we are insulated from many vagaries other markets are facing. Watch the World market , even bears will wear caps with horn today. The Raging Bulls will stampade.

 

But what about our big brothers FIIs are doing during the period? They quietly picked up stocks worth Rs. 675 crores between July 27^th and August 1^st, according to report. They picked up stocks after Sensex fell to abyss on those days.

 

The India Shining story is very much intact, it is a long term story and very credible. The story is inviting small investors to invest in Indian Capital Market.

 

The infrastructure sector needs a critical look-in and maybe some stocks there are still left as undervalued. FIIs are heavily invested in that sector, recent inclusion and increase in holdings are Ansal Properties, GVK Power  and IDFC.

 

(It is always good to see the known stocks going up, outstanding among them is Cummins India, the stock is touching INR 400.) 

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