Copper has breached its 2011 support and is heading down. In fact all commodities seem to be breaking strong supports. A depression is predicted for Europe. Now how will it translate for India? Cheap commodities are great and we can build our infrastructure but a depression or even continuing recession in Europe could hit US, China and rest of the world economy and can impact money flowing into India. So falling commodity prices need not help Indian stock market -- unless India is "rediscovered" by global investors as the only economy that benefits from a global recession.

Strange, unrealistic bull markets can develop and surge without fundamentals, from the ashes of despair. Like the technology boom of 1999. I am not predicting one in India. But watch out for high volumes. if institutions are piling into India even as the rest of the world falls to pieces, we should not wait to pitch in.

As I always say, volumes, VOLUMES is the key.

Pilatos ji : I have never written anyting which can hurt anyone. If you find my posts below your understanding of standard, kindly ignore it.

Regards.

based on your recommendations, we put all our money in the power sector before budget and standing coolly at a capital erosion of 10%.

Now we will sell off our power investments on Monday and buy dynamic bind funds.

As I read, KK`s theory is simple. Market is not here due to fundamental reasons and can fall anytime; so keep some shorts but with hedge.

I will search some options to invest in bonds.

Typo : Bind - Bond........We - I !!

@Karvarnnan : UM is correct. We should invest some of our invest able surplus to MFs, but I believe, not in ETFs. Indian Index is not such trustworthy.
Investing in dynamic Bind Funds (DEbt)may yield higher return than Bank FDs now. I prefer SBI Dy Bond Fund (G).
Now, as Midcap index corrected a lot, HDFC Midcap Opp and SBI Emering Biz Fund may be considered also.
Very good board on MMB - MF Investment Help (in Personal Fin.)

yes, one should invest their surplus in markets, either way. But, that should be surplus. G-20 meetings note in the second week of last month, do suggest Monetary policy needs to be tightened or atleast should be just accomadative not slack to give lee way for fiscal consolidation. We will be into wider trouble, if 2013 turns out to be another rainless, painfully unimplemented infra policy year like the couple of years that went by.

KK Inc., may not be in much better situation given the meek speculation FII`s has unleashed. Positional trades are going to be nightmare(if i have understood KK ji rightly).

Best wishes, and hope KK Inc guides us.

UM himself now says invest in Mutual fund or ETF and relax. I have applied to join KK Associates and waiting for appointment letter.

the way global events are taking tolls, otherwise panning out - there seem to be no solutions but to make use of fiscal cliffs and country bankruptcy.

There could be currency wars - though many just squeak-out and consider mostly as joke. The world unfortunately becoming more uncertain than any one can fore see. Specially after going through many of the UM`s previous posts over a year and half, i felt that the situations and policy scenarios that existed and the probable solutions that were thought off were no more practical. Our budget is the finest example. Its not that PC wanted to make this one as the best vote-get budget, but he can`t, for any such move would have disastrous consequences on the common public. This govt again under PC dashed with RBI for the growth forecast and their own survey stated what RBI said - 5 percent growth.

Our economy and perception(call it sentiment if someone wish so) are slowly turning from "we are better" to "we were better". Companies, however good are undergoing lesser investment opportunities, shrinking profits, increasing raw material costs, and above all loss of market if they didn`t survive with their existing products in the market(fear of taken over by outsiders). Here, no company is safe. The budget squeeze is going all around, sooner or later we will be witnessing unexpected inflation ditching all our hopes globally.

i think stock selection should be very aggressively thought out one and certainly with stop loss at comfortable zones.

Nothing special, Clariant was in an e-mail sent by broker..... just published for the attention of all. Felt like a safe business also.

looking into chemicals a lot, any spl reasons

LOL...babbooRATING will award AAA rating when India Shines in May 2014.

Yes,Jyothi Lab is already in my DP.My buying Price is 156.55

Okay I will go through Clariant Chemicals.....


Sanjay

Sanjay Ji,
I hope you bought Jyothylab to keep in DP for long term. Its Promoters have bought a lot during last correction and now CEO is on a buying spree. We can witness a lot action in this.
Geojit have recommended Clariant Chemicals as a high dividend payer. Just have a look.