Friday, June 25, 2010

Europe jitters pull down global equities

European jitters re-appeared again much to the dismay of investors. Stocks across the globe started the slide again. Indian markets are poised for a rally but given the global conditions markets postpone the same.

Domestic consumption can be considered as one of the key drivers of Indian economic growth. Midcap stocks are outperforming the indices and we expect the same to continue for some more time.

Realty should be avoided for the time being. Infra stocks like Nagarjuna Constructions are trading in a new band and so are stocks like United Phosporous and Bombay Rayon Fashions. But the actual momentum is lacking in the market despite of midcap winners.

We believe Euro issues might keep the liquidity at bay atleast for the short term. It is time to slowly build a portfolio for a longer term