Thursday, April 13, 2006

Roller Coaster ride of Sensex

The wild gyrations of Sensex can give Maumit Khan(my fav) or any item gal dancer a run .When everybody thought Sensex is going hot with the release of Basic Instinct 2,it made everybody go down in knees in last 2 days.We humans have this uncanny neck of thinking that Sensex is where we can mint money , but to b honest with idea of making money in short time u may b better of investing in lottery then stocks.The lottery makes u loose 10 bugs but Sensex for unthoughfull investment in short time can make you go pauper. The age old theory says everything that goes up must also come down n somebody rightly said we notice the stocks when its time for it to come down. Some, common mistake we do is we all follow news n when we hear a good news we think its time to buy. But,why dnt we realize that when its time for us to buy the script is already in its high becoz of the FIIs n Mutual Funds n its time for them to dump .So, is the case that moment we buy the script it comes down n we start fretting over our luck .when do we realize its not luck , had we really made a sound investment ie a stock with good fundamentals and good news helping the bottom line of the company in long run,there is no need for us to panic .The company will always pick up in long run, itz a test of patience . Satyam made a nosedive of 80 rs in last couple of days.But my conviction is that 1 month target its surely going to break its 52 week high of 900.You cnt dump a stock which is growing QoQ at 35%.To b honest I myself is deeply invested in Satyam but fundamentals are strong which beckons the stock .The stock is trading at p/e of 22 compared to its peer Infi at 35.But,breadth of the market will be decided tomorrow with Infi coming out with its number and to go by roomers its going to be better the expectations with some bonus issue coming up for shareholders .I am keeping my fingers crossed for tomorrow n hope market comes out of its hot gyrations n bull again takes up like the batting of Dhoni

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