Advertisement

Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
Advertisement
  Discuss this Article   |      Email this Article   |      Print this Article

Market fall? Good time to buy stocks
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
Advertisement
March 19, 2008 16:52 IST

Maintaining a bullish stance despite the meltdown in the stock market, renowned fund manager Madhusudan Kela on Wednesday said the current fall gives great opportunity to buy good stocks.

"Market will be in consolidation mode for the next 4-6 months. Investors should start buying into high conviction ideas," Kela, head of equities at Reliance [Get Quote] Mutual Fund, said in an interview to a private news channel.

India continues to be an investment-led story and the markets are in an intermediate downturn, Kela said.

Asked about the cash pile the fund house was sitting on, Kela said "We had about Rs 8,000 crore (Rs 80 billion) in cash a month ago, which we are gradually deploying in the market. We have invested Rs 4,000 crore (Rs 40 billion) from January and we will deploy the cash further at the right time and in the right opportunities we get in good stocks".

On the sectoral front, for the next 2-3 months bank stocks may not see any great news and the amount of derivative losses is yet to be measured, Kela said.

While mines and minerals sector would continue to do well and even if there is a recession, the stocks from the sector would be the last to fall. Soon after the current down-slide in the local stock market begun in mid-January, Kela had said that Indian bourses command a premium to global markets but are still linked and cannot operate in isolation.

He had advised investors to rein in their expectations from return on investments in equities and said that they should adopt a long term strategy to buy good companies at proper valuations. 


© Copyright 2008 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 Email this Article      Print this Article

© 2008 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback