It has been status quo since our cover story on stock markets 'Which way to go?' hit the stands on March 25. On that day, the Sensex closed at 18,815. As I am writing to you on July 14, a day after another macabre and mindless round of terror played out in Mumbai, the Sensex rose 22 points to end at 18,616.
The markets have been hovering within a narrow range for many months now. For the investing community it is a 'corridor of uncertainty', a difficult play for the uninitiated or the not so adept.
Domestic and global cues have not helped in pointing out a direction. Inflation worries persist on the home front forcing the RBI to tighten monetary policy at the expense of growth. FII inflows are coming in fits and starts. The global situation is also worrisome.
The wiring remains weak, with the faults that are showing up at distressing regularity threatening to short-circuit and trip the entire system.
A stumble can cause disruption of capital flows and hammer down markets. As an equity investor, you are probably unsure of the next move. However, the silver lining is that the India story is still very much alive.
Perhaps the best way to play this market is to pick good stocks and hold them for the long term. That begs the question: which stocks should you buy? In our cover package we guide you on this by providing details of stocks that are emerging as the favourite buys of institutional investors.
With their fund management expertise and research backing, they are a step ahead. You can get some clues from the data culled by us.
We also bring to you the views of a dozen leading brokerages on various sectors and their top picks in each. But then, this is not a market for making quick gains.
And if you still remain uncertain and are risk-averse, as they advise in cricket that if the ball is 'in the corridor of uncertainty' and one is struggling on shot selection, the best move is to shoulder arms and let it pass.
A clearer picture is sure to emerge soon.
