With inflation threatening to choke the economy, investors need to shift to a long-term strategy to be able to ride this wave without major damage.

Creating awareness among existing & potential investors will have to be a continuous process for the healthy development of capital markets in India.

From a low of 5200 levels in Nifty, our markets have rallied 10-15 per cent over the past three months mainly on the back of buying by the FIIs. At this point the market has already discounted the FY12 earnings and we may see some cyclical movement in the market in the coming two to three quarters.

A higher interest regime in India could hurt temporarily, but could also appreciate the rupee, which may attract FII inflows. Corporate results and government policies could also sway the markets.

Nestle India has witnessed double digit growth for the last 16 consecutive quarters. It has improved its product mix & the pricing power that it enjoys in the milk and nutrition product segments has helped it to witness better margins for the recently concluded Q4CY11.

Fiscal deficit impact is the major concern in-front of UPA government while designing Union Budget 2011, 3G allotment revenue & increase in tax collections are few income streams. Agricultural Reforms is on radar cause its directly contributing Indian GDP.

Though there is a plethora of tax-saving instruments available to investors, very few are as attractive as the ELSS. DSIJ presents 6 such schemes from among the 37 available to investors today, based on a study of the various parameters that make them look to be the best among the many

Overall, it seems India’s economic growth, especially in the coming quarter is bound to continue, the hitches in the way notwithstanding

We at DSIJ have recommended counters from Pharmaceuticals, Infrastructure, Automobile Ancillary, Textile and IT sectors. Also, considering the current scenario, we have tried to make a balanced portfolio.

Enthused by the sterling performance of the handpicked list of 50 undervalued but high growth scrips in 2009, this year DSIJ has again selected 25 small-cap stocks that will give retail investors big returns in the long term