The Hindu Business Line : Monday morning & stock market blues

Dakshinamoorthy found that Mondays have been carriers of bad news when it comes to Sensex. Khan nodded in agreement. Jogin just dismissed it as plain idiocy. What if it turns true, once again? With FIIs selling in India, wonder where they are buying? Is another set of emerging market emerging from somewhere else? Even big IPOs and listings haven’t worked, Sridevi thought.

***

Jog: Stop terrorising people!

Sri: It can be true. People do take a break on Mondays.

Kay: I always knew this. Mondays are bad day to trade

Dax: Especially in a falling market like ours.

Jog: What is falling? After 5 weeks we have managed in green.

Dax: So slippery that the fear’s as bad as falling…

Kay: Some are saying Sensex may test 19000 in this pre-Budget rally

Sri: But I doubt. Most stocks have dropped below their earlier intermediate bottoms in January

Kay: Yes they will go down. Wednesday might be a better day to trade.

Jog: Stop joking. Tata Motors is my pick of the week. Don’t ask me why?

Dax: Reliance Power was such a heartbreaker. Investors lost

Rs 2,000 crore on listing

Kay: Even though the 1-year forward price-earnings multiple is now at 16 times levels.

Sri: But buy in select stocks. Caution measured with confidence.

Jog: Wish Chidambaram has some epoch-making Budget this time

Dax: Like his dividend exempt one? High hopes

Sri: Any sector mostly unrelated to Budget?

Kay: Media. Valuations are yet to normalise though. Metals maybe.

Sri: Low volumes are a worry.

Dax: RNRL, Reliance Power, RPL, Essar Oil and even IFCI saw heavy trading volumes last week.

Jog: Will re-look at financial services sector. My conviction buys lie there

Dax: JP Associates, NTPC and Unitech have seen open interest positions build up

Sri: KNR Constructions to get listed on Monday.

Kay: Any of you investing in REC IPO?

Jog: Good company. I am applying because price band is reasonable.

Dax: Opportunistic bet. What if…

Sri: Anybody see inflation go up?

Jog: Yes. Close to 5 per cent and I have a StanChart expert with me.

Kay: Inflation and stock returns mimic economic cycle. Market may also move

Sri: Capital goods and banking sectors will offer good returns, stick to them.

Dax: Should we look at beaten down players? For 2-3 years

Kay: May be. But too aggressive mindset.

Sri: The Sensex pullback may continue but gains can be fleeting.

Sri: Lets see how the US markets performed and then decide

Kay: Nice tip. Uncle Sam may have some very different plans.

Jog: I got it so bad; I got the Monday morning blues (Logs off)

Kum with inputs from Bad, and Lee

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