Saturday 13 November 2010

Equities are in full flow now. Bulls have completely taken charge of the market. valuations are yet not stretched as it were during last bull run, which eventually saw a collapse. one data to differentiate between two bull runs, i will quote is ratio of MCAP of all listed companies to our GDP. In 2008, MCAP to GDP ratio was 1.70, whereas today it stands at 0.97 today.

There was a correction of around 4.50% in the last week. people should take this opportunity to invest some part of their surplus in the market. Stocks to watch out for this week are Neyveli Lignite, Educomp Solutions and SBI.