guide lines given by Larsen toubro are very very positive .

yes spandanji,
this is not new for us, we have discussed it from time to time in last 6/7 months.
many of these factors are already discounted as some of the stocks are or around three years low while few of them are at 1/5 or 1/4 of the peak values.
high crude rates or higher inflation or higher interest situation is also not going remain for longer time.
i am of the view investors can convert 1/4 of cash in to investment at current levels.
though index has fallen but many of strong fundamental mid caps are doing well & finding good value based buying from investors,
guide lines given by Larsen toubro are very very positive .
i would like to invest on dips .
this is just my view.
kukku



2008/7/29 LovelyGuy Hide quoted text -
>> Dear all,>> Nothing new for us/ISGians. Did we not know it?>> "Dark Clouds gathering" was the term used a long time ago in one of> the threads.>> Corporate profits will be trimmed to 15/16% from 25-27% was written on> number of times.>> Inflatory pressure and severe tightening of monetory policy can harm> too was indicated by Bhushanji.>> GDP forecasted for coming year was carefully caliberated by some to 8%> or below. Some mentioned to 7.5 while others mentioned 8.5.>> Fiscal deficit is a major worry and I personally mentioned it in> Classic battle thread. This would severely hamper Govt plans on 5 year> yojana.>> The real pressure would be seen from September end quarter, taking> it's peak effect to December end or March next year end quarters,> before situation can ease a bit.>> With monetory tightening, now borrowing is terribly expensive so small> caps and midcaps or even large caps will have to delay or trim their> expansions plans. (This was written on ISG)>> Salaries are still up. (Kukkuji mentioned it on numbers of ocassions)>> Monsoon is Ok, not great and agriculture estimates are major worry for> food inflation. With all money pumping in to agri sector, we need to> show solid performance and if that doesn't happen, it would be a set> back.>> When all above factors are met with liquidity crunch too, situation> can deteriorate further and takes a long time to recover. (This was> also mentioned indirectly in one of the threads recently)>> The whole situation will take an year, minimum to get resolved and> that is only up to some extent.>> However market moves ahead of time so we may see factoring a "turn> around" by the end of this year/beginning of next year. The growth> would be very slow and there won't be significant gains/improvements> in any of the above numbers till mid next year or so.>> Also one more important thing I want to add.>> This time is such a complex one and multifactorial that even smartest> ot the smart market can't factor everything what so ever is happening> or may happen in near future.>> Considering above, we are coming close to a bottom formation and I> expect it to happen in 2 to 3 months or so. Sensex wise, anything> around or below 12316 are good value for money, if scripts chosen> carefully. These would provide some fine and decisive buying> opportunities. One mustn't miss them as one should shop when such dark> clouds gather in abundance.>> There are certainly sectoral shifts in recent time.>> Reality and construction sector is completely deflated. Banking took a> big hit too with private financial. Energy and power are corrected> severely in recent time. These are pretty clear indications of> sectoral shift.>> While Pharma, Telecom and FMCG considered pretty decent sectors as> well as defensive ones, I would> ====================================================================================================> certainly look at Agro-Commodities and chemicals, Bio-Fuels, Oil-Gas> and Green Energy as new market> =====================================================================================================leaders> in coming years. Selective energy and power scripts and some> engineering firms may do well.> =====================================================================================================>> One thing I learned in recent times is that, do not depend on> confirmation of a situation/news stories, but just think ahead, once> you have all data, analyse yourself using simple logic and if you want> to win, you have to be on the top of the market, perhaps slightly> ahead of it. (Which is ahead of time therefore you are well ahead of> time)>> The above were my views only.>> Regards>> Spandan Joshi