• MAY 4, 2003

Participate in India's growth...

After gaining nearly 8% in the month of May, the indices tally so far in June reflects a breather. PSU banks continue to hog limelight, but lately have had volatile fortunes. Technology stocks too have had their share of volatility. PSUs, especially oil companies, and old economy heavyweights have been key gainers. What now?

After a continuous gain in the last couple of months, valuations have corrected towards the fundamentals of some key companies. But as it happens in every rally, even laggards get the advantage of this run up. In a way, it is a good time to discard past bad choices and instead consolidate investments in good companies with vision and ethical managements.

Monsoon will be another trigger that the market movers are eyeing. As per the latest, the MET expects monsoons to be delayed by a week or so (June 10-18). So in the short term, one may see cautious movement on the indices. But even in this scenario, the overall long term prospects of the country look good and one may see it as an opportunity to increase holdings in companies that are poised to take advantage of these prospects.

Therefore, research on companies will play an important role going forward to make the right investment decisions. Look for research that is unbiased and gives strong and fundamental arguments in favour of a recommendation. If that's too costly, then you can do your own research by checking out the company's past performance (available free on most websites). Though this method is a shade lower than qualified research, it is still better than 'market khabar'. For people who do not have the inclination to both, selection of good mutual funds is a favourable option. Bottomline, be a part of India Inc.'s future growth prospects.

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