Importantly, after the interest rate rises by the Reserve Bank of India (RBI) in the recent past, there is a high probability of corporate India getting hit on profits.
Companies together have lost about Rs 20,000 crore (Rs 200 billion) in market value since the arrest of former telecom minister, A Raja, leading to historically low valuations.
India's largest pharma companies by market capitalisation Sun Pharma, Dr Reddy's and Cipla have seen their share prices drop 5-20 per cent over the last two weeks on results that were below Street expectations.
Management quality and issue price are key concerns for investors; over 60 per cent of the issues this financial year are trading below issue price.
The BSE Realty index fell 11 per cent over the last month and eight per cent over the week as real estate companies reported margin pressures in the September quarter.
The Street has welcomed the sustained demand and higher sales for two-wheeler makers in September by pushing up stock prices of the three key companies by three to seven per cent over the past week.
While demand for consumer durables has been growing fast, investors need to be selective as stock valuations have risen even faster.
While experts suggest that the outlook remains positive, there is also a need to be cautious due to the sharp rise in prices and the fact that markets have already started to factor in 2011-12 earnings.
With the broader indices continuing to power ahead and valuations trading at a premium, investors tend to look at small and mid-cap companies for bargains.
Following a strategy that is different from the herd could help increase returns in a market trading at premium valuations.
A rise in consumer confidence, improvement in profitability and aggressive expansion plans signal better tidings for listed players in the organised retail space.
Fund houses bet on growth, divestment and deregulation.
The IMD dispelled fears by forecasting a normal monsoon for June-September. Rainfall is expected to be 98 per cent of the long period average, significantly higher compared to last year's 77 per cent LPA.
Monetary policy measures give temporary respite to rate-sensitive companies.
The steel sector's fortunes are very closely linked with growth in the economy and industrial activities in the country. The consumption of steel in India and globally has been growing over decades except for a few years of economic slowdown.
These schemes are the Axis Equity Fund, Sundaram BNP Paribas PSU Opportunities Fund, DSP BlackRock World Mining Fund and the Fidelity Equity Fund
Developers are tweaking their business model by launching smaller apartment sizes and playing the volume game to keep prices low and create buyer interest.
While a unique business model, growth opportunity and consistent track record are the positives for the issue, the pricing appears stiff.
Tough market conditions and low valuations are the key hurdles for the Wockhardt management as it tries to tide over its debt problems.
Expect markets to remain volatile as the poll dates come closer as well as if uncertainty prevails post-May 2009.
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