Ganesha has discussed the Top sector performers for 2007
in previous article. Here you will have an idea for your investment portfolio for year 2008. You can make your investment portfolio better than previous year.
2007 has been a landmark year for Markets which rallied to touch all time highs of 20K. The run-up in the markets was aided by unprecedented flows into the equity, with FII inflows during the year grossing $18 billion. The liquidity flows towards India was driven by strong growth posted by the Indian corporate and high profitability of India Inc. visa-vis peers. This is also evident from the strong FDI and Private Equity funds that the India Inc. attracted. Year 2007 was a year of records for Indian markets. We saw the highest number of 1000 marks being croseed on the Sensex. Sensex crossed six thousand marks as compared to five in 2005. Metals, capital goods and oil & gas stocks had a tear away rally giving over 100% returns. But the question now is can we mange to give the same returns next year? Which stocks will help us give us similar smart returns? Here are some of the Astrological views on markets, sectors and stocks one can buy.
We are going to enter 2008 with lots of promises, economic fundamentals are strong and more strong are corporate fundamentals. There are good strategic plans in terms of organic and inorganic plans, which are in place and there is growth visibility. Rupee appreciation has made overseas assets more affordable for Indian companies. Valuations are also well placed. If Sensex sees 20% growth in FY08 then it trades at 18.5 times FY09 earnings. We had recorded FII inflows in FY07 and they are expected to be over USD 20 billion in 2008. There are lots of new papers coming in. IPOs worth Rs 1,75,000 crore are being planned for FY08-09 and we will see most of it coming in FY08. There is an increase in infrastructure spending of over USD 500 billion, which is being planned and is positive for the economy and will help the Bull Run sustain. We will also have intermediate corrections.
At the beginning of 2008, Ganesha feels that the Market may stay steady but after the mid month of January, market may take rest and then it shall make correction. Ganesha is bullish on banking stocks like IDBI, ICICI, and SBI. This term is related to the transit of Jupiter and Mercury. Jupiter will be transiting in Sagittarius throughout the year. But it will go retrograde on May 7,2008 to September 7, 2008. In the hydrocarbon space, he likes Reliance, ONGC, GAIL. In the metal space, he prefers integrated players like Tata Steel and SAIL. In the auto sector, Bajaj Auto, Maruti and Tata Motors look good due to Saturn and MarsÂs position. After April 2008, Mars will change its sign and two big malefic planets- Rahu and Ketu are going to change their signs. This phase will be notable for market activity. In the madcap space, Kalyani Steel, Bharat Forge and Shreyas Shipping look good. The year is optimistic in the first half.
Ganesha likes power, capital goods and cement stocks also. Ganesha is also bullish on midcp pharma stocks. Even they are of the opinion that first half of the year will be good. Later, we could see some sidewa movements and consolidation.
Ganehsa sees more benefits in entire Infrastructure Index, which are going to achieve new heights. DLF Ltd., Unitech Ltd., Parsvnath Developers Ltd, and Akruti Nirman Ltd. shall be more beneficial. But you are advised to be more cautious in terms of Company Selection. If you have any kind of confusion in company selection, Ganesha advises you to invest in Mutual Funds of Infrastructure.
In the end, Ganesha would like to give you a piece of advice that invest your money carefully in the market in 2008.
The Ganeshaspeaks Team