After Diwali we have seen too many bad news both from global as well as domestic fronts. Globally we had tension building up between North Korea & South Korea. This may create war-like situation which market fears the most. After QE2 (Second round of Quantitative Easing) everyone was expecting dollar to weaken & money inflows to chase asset class like commodities & emerging markets. But to everybody’s surprise reverse happened & dollar strengthened. This is why markets became choppy & volatile. On the domestic front Scam season is going on. After CWG, Adarsh Housing & 2G now its bribery case of the top officials of LIC Housing Finance along with some top personnel of some leading banks. This created panic like situation in the market as nobody was sure of the quantum.
But now it seems market has digested the bad news and was down almost 9-10% from its high. Normal Bull market can anytime have 7-10-15% correction which should not puncture the Bull Run & investors should be prepared for it. Market may consolidate for some time & should gather steam for the next up move above 21000. We have started discounting FY11 & will start discounting FY12 soon. On FY12 basis market seems attractive. This correction is an opportunity to buy into the good quality stocks. Both our PMS schemes did well in this fall as we had been quality conscious from the very first day of the start of PMS.
