The Hindu Business Line : Why is inflation turning into an inflammation?

Khan, Jogin, Dakshinamoorthy and Sridevi tear themselves from TV screens beaming exciting events from the Olympics for their weekly chat about the markets. Keep the remote away and read.

Jog: I think there's a problem in my machine. Our medal

tally is not going up.

Sri: You thought it keeps ticking like your order book! :-)

Kay: If you'd kept the inflation monitor on your desktop, I

bet it would have changed faster than weather.

Dax: Did you say inflation or inflammation?

Sri: Kay, give him a black eye to explain the

difference. LOL

Jog: No violence, please! With inflation and international

oil prices the biggest concern, market is likely to open

weak and this trend could continue.

Kay: Don't forget the expiry of derivatives contract this

week. It's also likely to keep pressure on the market. Like

the truck drivers are putting pressure on the FM!

Dax: I heard something about Chatter-ji! That his

Mauritius arm became the

principal private sector

participant for a big

petrochemical project here. But

he's packing up, hiving off his

software company.

Jog: Dax, keep quiet. Next, you'll

say that Mr Chatterbox took away

three times of his invested money

by working as agent for import of

feedstock, Naphtha, and

body-shopping. I don't want you to mislead poor investors.

Say something about TCS, I'm happy!

Dax: Hey, you can read my mind from afar! Did I tell you

that I'm trying to track Lodha because he is also a CA?

Please caution, somebody, that investment is risky

business. So, take lots of care.

Sri: I see possibility of stock-specific movement. Action

will remain in mid-cap and small-cap stocks.

Kay: You're right, Sri. I guess cement rally will continue.

Watch Prism Cement, JK Corp, Mangalam Cement and

Mysore Cement. But be careful with these stocks. All have

run-up very fast and any negative news for the market

could drive down all these stocks. So, risky bet! Don't get

plastered.

Jog: Did you hear about Eastern Silk? The stock is at Rs 90

levels with P/E ratio of just 3!

Sri: Yeah, I heard somebody compare it to Himatsingka

quoting at a much higher P/E ratio.

Kay: Paper company stocks should also see some action.

My list has Ballarpur Ind, Tamilnadu Newsprint, and...

Sesashayee Paper.

Jog: International pulp prices are up. Paper prices should

also increase shortly.

Dax: Listen, I've got a query from a commerce student.

He asks if closing stock and stock closing are the same.

I'm asking him to sell his holdings to stop losses.

Sri: Tell you what. Dax gyan is dangerous gyan! :-)

* * * * *

Lee, with inputs from Vir, Ray and Bad.

Send in your views to: Chat@TheHindu.co.in.