Financial Daily from THE HINDU group of publications
Sunday, Sep 25, 2005
Financial Daily from THE HINDU group of publications Sunday, Sep 25, 2005 |
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Investment World
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Stock Markets Markets - Recommendation Investment strategy: Take profits
Equities could trade in choppy territory over the next few months, as the effects of higher crude prices may neutralise effects of inflows. Over the past couple of years, a large number of stocks - including large caps - have risen by 100 per cent; gains have been manifold in the mid- and small-cap category. Going forward, price increases of similar magnitude may be hard to come by in such a short period. A corrective phase could imply declines or a protracted period of flat price trends. Investors who have deep-in-the-money positions, especially in mid- and small-cap stocks, could contemplate taking profits on at least 30-40 per cent of their holdings; exit penny stocks. We remain bullish on the long-term prospects of the Indian economy and the equity market. In this backdrop, retain a substantial part of your holdings; take profits on the rest and re-enter fundamentally sound stocks at lower levels. Stock-specific recommendations of Business Line, however, take precedence over this broad investment strategy.
S. Vaidya Nathan
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