This time Domestic Institutions spoiled the party
When ever market falls, FIIs are accused of relentless selling. But domestic mutual funds are responsible for the yesterday's last hour fall of the market. FIIs indeed bought power and infrastructure companies. Domestic players gave two reasons for their sale.
- Fire news of Reliance Refinery
- Pakistan/militants are planning to attack our deep water resources of ONGC & Reliance's Gujarat assets (Pure rumors but they are their longtime strategic targets) if tension between these two countries escalates.
But the real reason is that they need cash. They didn't book profits. They booked losses in the name of portfolio re-allocation. our sympathies with the professional fund managers who are now a days worrying more about their own job security and how to minimise their salary cuts than the funds under their management. You have to ensure stress free environment for their optimal performance. Otherwise they think and act like individual investors only.Fine. We need not worry about this. Trend is the king. Intermediate trend is up despite yesterday's insipid close.
Yesterday's Financial Chronicle advised it's readers not to sell following shares with a disclaimer that they are not advocating buying of the same at this juncture. They are Reliance Communications, Tata Steel, Tata Motars, HCL Tech and Hindalco.
Following stocks can be bought with a profit target of 10-15% gains.
Power Finance Corp Ltd, Reliance Power Ltd, GMR Infrastructure Ltd, LIC Housing Finance Ltd, NTPC Ltd, Tata Steel Ltd
Yesterday's Financial Chronicle advised it's readers not to sell following shares with a disclaimer that they are not advocating buying of the same at this juncture. They are Reliance Communications, Tata Steel, Tata Motars, HCL Tech and Hindalco.
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