Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Golden time for value hunters - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 14, 2000

    Golden time for value hunters

    In these testing times, the spate of quarterly results was expected to trigger a positive sentiment. That did not happen. Though both Infosys and Satyam quarterly results exceeded market expectations, the markets fell regardless. Taking a clue from the NASDAQ, the BSE Sensex hit a new 52-week low of 3,714 on Friday, a loss of more than 8% compared to previous week. Compared to its high of 6,151 in February this year, the Sensex has lost around 40% in the past eight months.

    Several factors have affected the sentiment of markets adversely. The fresh spurt in the international crude oil prices in view of renewed tensions in the Middle East, the slowdown of Index of Industrial Production (IIP) from a high of 11.8% in February to 4.8% in August 2000 and lower GDP growth rate of 5.8%. These factors are bound to have a negative impact on the topline growth of corporates. The latest example is HLL whose topline growth reported a mere 0.4% increase in the third quarter of FY01. Further, lower agriculture growth will hit FMCG companies targeting the rural markets. Two wheelers, textiles and cement manufacturers will also be affected. The impact of slow down will crystallise into the bottomline growth of these companies. Already, Gujarat Ambuja, India’s most efficient cement company has reported a whopping 50% decline in its quarterly profits.

    Keeping this scenario in mind, FIIs and mutual funds do not seem to be in a hurry to buy stocks at lower levels. Infact FIIs have sold securities to the tune of Rs 1.5 bn in the previous week (Rs 3.2 bn upto October 14). Mutual funds were net sellers of Rs 1.7 bn (Rs 2 bn till date in October). The volumes in the markets also declined substantially. Global meltdown in new economy stocks and its impact on the domestic industry, drop in production of key industries like cement, steel and automobiles continue to worry the investors.

    The slow down in the Indian industry and outflow of FIIs and mutual funds investment from the markets clearly indicates a weak undertone for the markets, at least for the time being. Even excellent results by software majors in the coming week could fail to spur the markets. In such a situation, investors would do well to adopt a wait and watch policy and accumulate blue chips at every decline.



    Equitymaster requests your view! Post a comment on "Golden time for value hunters". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Were You Lured By Mr Market's Bait? (The 5 Minute Wrapup)

    Aug 23, 2017

    Mr Market lured investors into believing they'd bitten into a crash. Did you take the bait?

    Deep State First (Vivek Kaul's Diary)

    Aug 23, 2017

    Nowhere was the darkness deeper than in the nation's capital. There, no light shone. No flicker of awareness...observation...learning...or reflection appeared.

    Why Hasn't Warren Buffett Rung the Bell Yet? (The 5 Minute Wrapup)

    Aug 22, 2017

    It's surprising Warren Buffett hasn't warned investors about the expensive stock market? Let us know why.

    Think Twice Before You Keep Money In A Savings Bank Account (Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 23, 2017 (Close)