Infotech to Infratech…..

The strong bottom is necessary for an assured up move that can stay for a longer period of time which can start with a good note at any time has been extended due to inflation worries. The external pressures are intact to put a cap on the speedy upward movement of Nifty. The bottom building is enough incase Infy, Wipro and TCS doesn’t loose much on forex hedging. The greater cause of concern which was confined to books for time being is going to be disclosed with in few weeks.

The Nifty is oscillating between 4550 to 5000 levels- a 10% move for one more month is assured as things stand as of now. The markets may loose some bottom in case the RBI increases CRR by 50 basis points. The markets are reeling under pressure due these issue are of temporary in nature can settle with in 3 months. The growth story of the Indian economy is intact and can expect better investment opportunities in the years to come.

The Infotech story of 2000 can be seen in Infratech in 2010 and after. The best thing is to start investing in infratech companies that can offer huge potential for growth along with the health care sector including pharma. The long-term investors can stay invested in companies engaged in the projects that are under execution that can last more than 36 months. For short term investors best ting is to invest in FMCG that got benefit on palm oil imports. The Nifty is now good at 4500 and so long RIL stays above 2120 the danger to Nifty is safe guarded.

The worst ghost is now focusing on capital goods sector and the silver lining can be seen in tech stocks. The markets are weak due to the inflation numbers and the fear that can come from RBI side are vanished then the worst is over to our markets for at least 6 months as the Nuclear issue can be handled by the new Govt. in office after the elections. The business can be as usual and the policy decisions can be expected as a first sign came from the Central Cabinet that was reshuffled. The message that the Govt. wanted to send to the people and investors is clear that there was no immediate threat from the Left. On this occasion we welcome the new ministers with cheers at the D-street.