Setting Stage For The Next Act
12/13/2012 9:05 PM Thursday
The government has finally managed to move ahead with its reforms agenda and this is certainly an encouraging sign, at least in the short run. The markets had been waiting patiently for this and have been reacting positively ever since the intent to carry out reforms had been spelt out by the Finance Minister. At least presently, the going seems to be good on all fronts; domestic as well as international. The US is busy grappling with the Fiscal Cliff conundrum, but there is a widespread belief that this ‘to be or not to be’ fight will finally end with a desired solution. Europe, on the other hand, has been sinking deeper into a recession, but then, this has anyways been discounted by the markets. Back home, the UPA II is seen setting up its agenda for the next general elections to be held in 2014. So, where does the market go from here? What will drive the markets going forward? This question is not something that we are addressing for the first time. In fact, our editorial and research teams have been working tirelessly towards providing our readers with the required guidance to help them swim and win even in difficult waters.
While the broader contours of the markets’ direction have been chalked out by us over the past many issues through our incisive research and experience, we thought this is the most opportune time to pinpoint the exact triggers going forward. Cash transfer of subsidies is all set to kick in from the 1st of January 2013. Will the scheme yield the desired results? Who will benefit out of it? As we see it, there is every probability that the cash disbursed will go into pursuits other than for what it is meant for. Another major trigger will be a populist budget and more importantly the budgetary allocations to various sectors. Power, Infrastructure and Real Estate are three sectors to watch out for. Our cover story will tells you in greater depth, why this is so.
It pays to be invested in companies that are market leaders in the segments in which they operate. But this is not the only reason why we are recommending HSIL (formerly Hindustan Sanitaryware) as our Choice Scrip this fortnight. I am sure you would want to read the other reasons as well. But more importantly it is desirable that you make investments so as to profit from them based on our recommendations. We have great faith in our banking system and the developments that are happening around this vital sector spell some good times for it ahead. We have naturally picked Vijaya Bank as our Low Priced Scrip for this issue.
A big feature of this issue is our special section on Mid Caps. Mid Caps are one of the most important segments of the market for they have the potential to deliver superlative returns if you could enter them at the right time. A timely entry into properly selected Mid Cap stocks can help improve the alpha generation of your portfolio.
Our research and editorial team gives you a host of carefully selected options to invest in this segment. But remember, mid caps are prone to wild swings. While they go up the most in a bull phase, they are also prone to rapid declines when the market trend turns the other way round. We have done the hard work and are presenting to you the best investing options in this segment. All said and done, as they say the proof of the pudding lies in the eating. So here are some stocks that we had recommended as good mid cap bets earlier and have now migrated to being in the Large Cap space.
As usual, our expert panel brings you the best insights on matters of tax and financial planning in response to your queries. The issue rounds up with market gossip which tells you of the stocks that could fetch you some quick returns over the short term. But remember, these are purely speculative and you ought to exercise immense caution while playing in these.
The markets are poised at a very crucial juncture and have been taking cues from factors relatively extraneous to stocks. The next three to four months are going to be very exciting and at the same time challenging for all of us. While we continue to guide you through our research and experience, it would certainly be good to know from you how well you are benefiting from our work. Do let us know, what you feel about our content. Send us your feedback on firstname.lastname@example.org. The next issue will come out at the beginning of the new year and we shall be there to handhold you into making profits by investing wisely for many more years to come.
V B Padode
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