The Hindu Business Line : A truly stable system expects the unexpected

Khan was studying with concern the trend of one-time items shoring up profits. Dakshinamoorthy was toiling with oil reports. And Jogin was dissecting the recent corporate results into a two-by-two grid, on profit ratio and ROI as axes… Till Sridevi jammed the brakes on their activities with a A truly stable system expects the unexpected cryptic message, thus: ‘StMkCt’ – for start market chat. Hang on!

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Sri: Hi, are you all away?

Kay: No. But traders can stay away!

Dax: From the markets?

Jog: Till such time there is some stability.

Kay: “True stability results when presumed order …”

Dax: “… presumed disorder are balanced,” says

Tom Robbins.

Jog: “A truly stable system expects the unexpected…”

Kay: “…is prepared to be disrupted, waits to be

transformed.”

Sri: It could become increasingly difficult…

Dax: To time trades based on market swings. :-(

Jog: Long-term investors can use the opportunity…

Kay: To gradually build a portfolio.

Sri: Though valuations are still not very cheap…

Jog: Buying in lots could help them?

Kay: Also, even out any adverse effect.

Dax: Of a sudden reversal in trend.

Sri: Buying of FII under-owned stocks?

Jog: Can be considered, I guess.

Dax: Last week’s numbers, koi?

Sri: Here! Reliance Energy gained 13% last Monday and

RIL, about 4%. Pharmaids Ph was up about 2% on Oct

15, while Wipro, Cipla, TCS, ITC and Dr Reddy’s earned

a profit of around 1% that day. Ranbaxy

ended on a +ve note.

Kay: Infrastructure and capital goods? Views?

Dax: Still appear the safest bet!

Sri: Given their lofty order books?

Kay: If markets remain dismal…

Jog: Then, investors could go for blue chips.

Sri: That would otherwise never be available…

Dax: At reasonable valuations?

Kay: L&T and Bharti Airtel?

Sri: Could be picked on declines.

Dax: But don’t press the panic button…

Kay: On mutual funds?

Jog: A fall here and a fall there…

Sri: Doesn’t mean exit time for funds.

Kay: Stay on?

Jog: MFs are after all for the long term.

Sri: Reassuring thought… Bye!

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Lee with inputs from Sri, San and Vid.

Blog at http://MarketChat.blogspot.com