Should you sell or buy specific stocks?
As the results for the fourth quarter start pouring in, there are a few key pointers that are emerging. Firstly, there seems to be a pick-up in volumes in key industries like automobiles, cement and telecom. That is a good sign, although it also needs to translate into profits. Secondly, since November, there has been a pick-up in exports, bank credit, IIP growth and manufacturing growth. These are signs of a stage being set for a long term re-rating of markets. Lastly, Indian valuations at 17-19 times forward earnings are hardly cheap by global standards. So what should your equity strategy be? Continue reading