Sunday, December 30, 2007

Equities - Markets in 2008?

GeGiven the superb performance of Sensex and Nifty for the last 3-4 years, what is in store in Year 2008 for investors??

In general, the investors made more than 30% per year on Indian Stocks, be it large cap, mid cap or small cap in the last 3-4 years. There were few specific stocks which were laggards but overall a general trend was that of stocks going up in bulk. So, the risk was limited and the returns were great!

For year 2008, we predict the increase in Sensex and Nifty to be 10-15% only. Also, there will be more stocks which will be laggards and there will be more stock specific increase in 2008. Sectors like Infrastructure, Real Estate will continue to attract investment for some more time. There will definately be lots of ups and downs in 2008. Best is to invest when markets have moved considerably down (10% or so) and then invest in some good large caps and mid caps stocks. For 2008, we would not recommend investing in small cap stocks as they have considerably moved up. The upside is limited but the downside can be very huge. So, there is more risk with not high return. The best investment in stocks would be in large caps in infrastructure and real estate stocks as the would be safest in relative terms. The upside can be 20% with downside also limited. Though, in 2008 we don't see that happening as these sectors will continue to attract FII investment. For folks with more risk appetite, they can look at mid caps also.

We would publish some very good stocks to invest in this blog going forward. These should be looked at when the markets are down so you enter the stock at the best price.

Happy Investing and have a very Prosperous New Year 2008!


1 comments:

Post a Comment