Monday, December 19, 2011

BUY L&T, ICICI AND TATA STEEL

The negativism on the euro zone crisis and expected GDP growth has been over done. The bears have taken advantage of both the external and internal factors and have created fear psychosis in the market. The coalition completion is making it difficult for UPA-2 to take major reform initiatives. The retract of retail FDI, the 2G scam and Lokpal logjam have added fuel to the fire. The market is driven by sentiments, news flow rather than the fundamentals. The situation locally or in the euro zone is not as bad as is perceived. RBI is likely to cut CRR rates in Jan 2012. Major policy decisions are likely to be cleared in the next 3-4 weeks. Markets have almost bottomed out. Stay invested in quality stocks.

In this series, First Choice IPO recommends to buy Tata Steel (Rs 364), ICICI Bank (Rs 673) and L&T (Rs 1061).

10 comments:

  1. axis bank made me cry today.. Sir, while googling i have read somewhere that during tough times bank shares may trade even below their book value? Is it make sense that this sentence prove itself any time during next year... Now my brain getting distracted on the front of trust :(

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  2. i too hopeless:( :( :(
    market will increase only after people and mutual funds stop buying shares from fii... Till then fundamentals means noting dear friends.fii's puppet hai puri market.

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  3. It is one of the best private sector bank. Stay invested.

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  4. Your thoughts on NHPC? It is trading at 18.90 (CMP). The PRICE/BOOK -0.95 and PE is 8.8. Is it good time to accumulate?

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  5. What about SJVN??? equity is smaller compared to NHPC. Therefore, scope for capital appreciation is greater compared to NHPC.

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  6. SJVN is equity is not small. It has equity of Rs 4136Cr. Likely to post an EPS of Rs 2 for FY12. Take a call.

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  7. Sir, do you track Geodesic? Seems like a very good value pick. What do you think?

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  8. ok thanks a ton sirji

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