Market Recovers

Today the markets opened lower and were down till noon because of the fear of the interest rate hike due to the inflationary preassure. Later towards the close of the day there was a turnaround with Sensex and Nifty both gaining above one percent.

The stock market was greatly affected by the increase in the inflation from 4.72% to 5.24% with a week. For more information go to economy-india.blogspot.com.The lowest for the sensex today was 10,075 and it closed at 10,401 up 125 from the openning price. The Nifty also showed similar gains with 48 point rally and a closing of 3,042. The 6 month outlook for the markets still looks bearish and we would end the year below the 52 week highs. But still there are many value stocks available with good potential and limitied risks.

Midcap Picks

I have two midcap value picks: Tata Elxsi and Surya Lakshmi Cotton.

Tata Elxsi
It is a company with diverse business in electronics and graphics. Also the business is managed in good hands and the dirt cheap valuations makes it a good investment with 2 year horizon.
Surya Lakshmi Cotton
It is textile company with a very good expansion plan. Investing in Denim capacity would be very fruitful and would reflect in the balance sheet within 2 years. This will also make it the 3rd largest Denim manufacturer in India.

Keep reading this space and expect more value picks and analysis of market in these volatile times.