The BSE Sensex ended the
first quarter of the current financial year virtually where it began. On 2 April 2012, the first trading day of 2012-13, the index opened at 17,404.20 and
ended the day at 17,478.15. At the end of the quarter,
on 29 June, the Sensex closed at 17,469.15.
The index movement suggests a surface as flat as can be over a three-month trading cycle. However, beneath the calm, there has been definite movement when it comes to individual stocks.
A total of 83 stocks touched their 52-week high during the first quarter while over 110 stocks hit their 52-week low during the same period. The two quotes-52-week highs and 52-week lows-appear every day alongside regular stock quotes.
Do these tables hold a
message for the investor community?
In the current environment, the 52-week highs may indicate strong stocks that can continue their rally if the overall sentiments improve. However, given the general uncertainty on the economic and policy front, the risks may be high.
On the other hand, are there value picks among the stocks that have hit their 52-week lows?
In our cover story, we look at
how investors should view stocks that have hit their year's low and the ways to assess their worth. There appears no single prescription and investors have to be extremely choosy even while bottom-fishing.
There may be great picks among the pack that hit their year's low between April and June, especially with names such as Hindalco, Bank of Baroda, BHEL, M&M and Punjab National Bank figuring in the list. We also bring to you some of the best investment options along with the rationale of experts to back their claims.
But, beware! Big names may not always deliver big returns. In our story on bluechips that have belied investor expectations, we do an analysis of some major stocks that have given negative returns over the past three years and tell you how to look at them for the future.
Also tucked in this issue is our yearly analysis of favourite picks of foreign institutional investors. The list may hold some interesting pointers to stocks that you should keep a watch on in the days to come.
The investment climate can also be impacted by the way the monsoon story unfolds. As of now, the rainfall predictions have not brought much cheer. Rains have been deficient in June and not so good in July. If they do not pick up steam, agriculture may take a beating and the resultant shortage may increase commodity prices.
So is this a good time to look at investing in agri-commodities? We look at farm commodities in our story on the monsoon impact and stocks that may react to monsoon trends.
Sarbajeet K Sen
Executive Editor
