Summary
Hooking The Hidden Ones
When the market's kissing 11,000, good deals are hard to come by. But not impossible. Discover the hidden picks in this bull market.See the full content of this document
Extract
Money News
Anand Adhikari
For a while now, in fact, ever since the stock market touched 10k, analysts and commentators have been tying themselves into knots trying to figure out whether the market is vaulting too high. The BSE Sensex has since been playing footsie with the 11k mark, but valuations still seem just about right-it's a Goldilocks market.However, with the Sensex price-earnings (P-E) multiple reigning at about 20, experts advise caution-not so much because the P-E ratio is too high, but because markets by nature are cyclical. After all, we have had three consecutive years of high returns and now, as interest rates inch higher, we could be looking at the beginning of the end of the consumption-led boom. Right now, though, stocks seem in no mood to listen.While cautious investors will be selling now and salting away the profits, the ambitious ones still want to play the field. Or, they might have missed the rally, but now want a piece of the action. For such investors, it's frustrating to see how expensive the market has become. They cannot take part in the frenzied buying that's going on at the counters of frontline stocks, and realise it will be foolish to look at penny stocks. What then?What few people realise is that the market still has some good, fundamentally strong stocks going at fair prices. These have, for various reasons, not participated in the rally. They offer both a good opportunity for long-term capital appreciation and carry minimum downside risk. Some have listed recently and are trying to adjust to a market that always demands more, and are, hence, facing short-term blips. Some are frontline stocks with high dividend yields, which have been subdued in the last one-and-a-half months despite the almost 10 per cent rise in the Sensex. There are the turnaround stories, which will take a while to make their mark; and then there are the upcoming IPOs (initi...See the full content of this document
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