The Markets

Friends,

The week bygone has seen Nifty and Sensex show hefty gains but the participation by broader market is luke warm. What to make of it?

It’s simply the case that some big players in market have decided to give extra impetus to make a killing in F&O section and have manipulated the market basing intensive activity in some of the companies with bigger weight. Let’s be wary of this.

There is no shying away from the fact that the first company to declare QI result ie TCS has delivered stellar performance but that is not as much as the impetus given to its price. I also admit that money pool is being constantly expended and capital hoards are looking out for parking places in a time when there is little demand from investment needed for expansion of businesses. This is confirmed by the fact that many companies are coming out with schemes to buy back their own shares.

Now the cautious approach will call for restraint. If money supply eases now, it will have to be tightened later. So same thing that is pushing up the markets will be pulling it down. If long term investors get trapped in this kind of situation then it becomes very difficult to extricate out of it. So be calm, watch patiently and look for items that can be given good buy in good time.

Our portfolios have under performed in the last week but since the result season is on we will make trades as per the observations post result. There is however satisfaction that since after the the time of inception none of our portfolios (created during the quarterly result seasons) has under performed Hope you follow us here at this blog site and keep track.

For sake of reference Nifty closed last week at 11914, Nifty Next at 27410 and Sensex at 40509.

Wish you a healthy festive season that’s round the corner.

HariOm,

KRISHNA Khandelwal

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