GauravBlog Logo

A Lion’s eye on the Bulls and Bears

“In India, companies may fall sick, but promoters rarely do!”

Gaurav's Blog

Categories

October 9, 2008

There Was Just No Place to Hide as even BLUE Chips turned Stark RED

The Plunge in even the BLUE Chips shows that there was just no place to hide in Indian Equities in 2008…no matter what is your risk profile.Top Five such selections all plunged into the RED

On January 10,2008 our Sensex recorded an all time high of 21206.77 but closed lower at 20582…From this date till now see how even the top five blue chips have plunged.This was inevitable as the Sensex too plunged and these blue chips have a strong combined weightage of 36.93% in the Sensex.RelianceIndustries alone has a weightage of 15.63% in the Sensex.Prices of these Scrips are in ‘Rs’  

Sr No

Five Blue Chips

Closing on

January 10,2008

Closing on

 October 9 ,2008

% Capitulation

 

Sensex

20582

11328

45

1

Larsen & Toubro

2104

(4207 adj for Bonus)

967

54

2

Reliance Industries

3027

1650

45

3

HDFC Bank

3129

1889

40

4

TCS

975

547

44

5

Infosys

1602

1254

22

Some Consolation to those who hold the above is that some other upcoming and touted blue chips in the making like Jaiprakash  and DLF have eroded over 80% in the same period !

Ironically it was only HUL ( Hindustan Lever) that has seen it’s share price stay in the Rs 230 range in this period and protect capital this year…However Investors in HUL have not gained in the past Five years as they have in other Blue Chips.

The IT Giant,TCS, has lost 44% of it’s market cap,twice that of it’s competitor, Infosys….The reason is that there has been some heavy selling in TCS even by it’s promoter,the Tatas’, to raise funds for their courageous, high profile and big ticket overseas acquisitions in the Steel and Automobile Sectors 

The fear is that these Blue Chips may plunge further as the Sensex seeks lower levels of 10000 and even below…a very real fear as you are convinced of some more pain ahead in Equities….If the Sensex plunges further on current worsening sentiment, the  combined sensex weightage of 36.93 % of the five scrips will ensure that these scrips too will plunge

What I’m saying is that there is no hurry to Buy into these Scrips Now for those who are looking for Opportunities and want to invest in relatively safe core scrips

Happy Dussehra & Happy Vijayadashmi to all

On This Holy Dussehra Day Wish all of you a Great Day and Year Ahead

May Good always Triumph over Evil

Thanks to all  you Friends,Family,Clients,Workshop Participants,Students and Associates who have called,emailed and send SMS wishing me today

I’m saving costs…so No return SMS or Calls !…Just like I told my wife that we’ll be having a CandleLight Dinner and she was thrilled at the romance of it all till I told her it was to save on electricity ! 

Thanks Daughter for your Lovely Email carrying this Shloka

bandhuratmatmanastasya yenatmaivatmana jitah ll
 
 anatmanastu satrutve vartetatmaiva satruvat ll 
 

which translates into
 
May the strength of your mind
bring you greater glories in life. 

 Go and Buy some Gold…it’s auspicious to do so today and will also protect you from Equities !…But Be careful…Banks selling 2gms,5 gms,8gms,10 gms Gold Coins always have a 15% to 20% mark up over Market Prices…They claim it’s because of the  99.9 Purity..Now they have another excuse…Rupee has depreciated 25% this year to near Rs 49 to the Dollar making Imports Costly…ofcourse their Inventory was created when the Rupee was more solid

I got up earlier than usual this Morning…So what if it was already 7.45 am…bathed and left….Traditionally got those Flower Garlands for the Car and House and delivered Hot ‘Jalebis’ and ‘Papdi’ to Houses of Near and Dear ones

However this time I did something more satisfying and beautiful….I actually did ‘Darshan’ at Six Religious Temples in South Mumbai of ‘Ambaji Mata’,’Saraswati Mata’,’Mahalakshmi Mata,’Sai Baba'(Do so every Thursday ) and Jain Tirthankaras and at Three Temples of Learning,a School and Two Commerce Colleges where My Wife and I studied and where my Children are now Studying…Felt Great Positive Vibes

Jai Mata Di !

Scroll to Top