Aug 05, 2011 was the black friday for indian stock market after year 2008. This day Sensex crashed by 702 points in intraday trading, but at end of day NIFTY and SENSEX was managed to down by 120 and 387 points.
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| NiftyChart as on Aug 05, 2011 |
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| Sensex Chart, as on Aug 05, 2011 |
Sectors which was affected most was: -
| Sector | Points | Down by |
| ______________ | ______________ | ______________ |
| BSE Metals | 13061.95 | -326.30 |
| BSE Info Tech | 5459.02 | -223.04 |
| BANKEX | 11833.22 | -201.58 |
| Capital Goods | 12277.80 | -201.66 |
| BSE Small Cap | -248.00 | 7815.05 |
| Bank Nifty | 10354.50 | -182.55 |
I suggest an investor should keep away from the IT sector, because IT sector affects the most when US market hits. Healthcare could be a safe bet at this time.
I also suggest investor should accumulate the Bank stocks but should not invest all at once in Banking sector. This is because of increased repo rate done by RBI, the repo rate may get increased further. At current levels banking stocks look very attractive for longer run. Also, because of increased repo rate, alo stay away from realty and auto stocks.
As I said, pharma stocks are safe bet at current volatile market, couple of good pharma stocks which are having very good fundamentals and are available at attractive rates are: -
- Aurobindo Pharma
- Glenmark
- Cipla
- Ranbaxy
- Ipca Labs
Couple of my favorite stock where you can invest are: -
- HDFC
- IDFC
- SBI
- Yes Bank
- Larsen
- REC
- Power Finance Company (PFC)
- Coal India
- Shriram Transports
- S Kumar
These stocks are having very strong management, strong fundamentals and could give you very attractive returns in the longer run. But my recommendation is to put 'STOP LOSS' on each stock you buy. This way you will play safe and wont get surprises even if market crashes.
Current situation is just a situation of wait n watch... Its time for newbie to have an eye in the market and make profit in the longer run...
