"As the economy is growing, there are newer opportunities for businesses and companies. Even for seasoned investors, there is an unfolding story in the Indian economy," says Sankar Sharma, director, Mumbai-based broking firm First Global.
There are a few good signs too. Unlike the earlier runaway boom in 1998-2000, when investors bought all and sundry technology stocks, there is some caution in the air. Investors shunned stars of the previous years like Ranbaxy and Dr Reddy Laboratories, as these companies keep up to their promise of profit growth. Domestic investors too put most of their money in mutual funds, which used their research capabilities to select only those businesses that showed further promise.
Says a Chennai-based mutual fund manager: "As money went to seasoned money manager, there seems to be a feeling of security among retail investors. This, in turn, is bringing more of their savings to the market."
The confidence also seems to emanate from the fact that local companies are also investing big money to build assets for future demand. Companies like Tata Steel, Tata Tea and Hindalco cut huge international deals that will grow them many times in size. The Tata Steel stock dipped soon after its announcement to takeover Anglo-Dutch steel maket Corus. Since then though, it has recovered smartly as investors now seem to agree that it is the right way to go.
Says Deven Choksey, MD of stock broking firm K R Choksey: "At any peak you can expect some profit taking from investors. But, the fact is, there is a still of lot of room for investors to put their money in." Choksey says that sectors like cement, metal and banking have underperformed during the last few months.
Source: http://timesofindia.indiatimes.com/Cos_building_assets_for_future_demand/articleshow/2183435.cms
There are a few good signs too. Unlike the earlier runaway boom in 1998-2000, when investors bought all and sundry technology stocks, there is some caution in the air. Investors shunned stars of the previous years like Ranbaxy and Dr Reddy Laboratories, as these companies keep up to their promise of profit growth. Domestic investors too put most of their money in mutual funds, which used their research capabilities to select only those businesses that showed further promise.
Says a Chennai-based mutual fund manager: "As money went to seasoned money manager, there seems to be a feeling of security among retail investors. This, in turn, is bringing more of their savings to the market."
The confidence also seems to emanate from the fact that local companies are also investing big money to build assets for future demand. Companies like Tata Steel, Tata Tea and Hindalco cut huge international deals that will grow them many times in size. The Tata Steel stock dipped soon after its announcement to takeover Anglo-Dutch steel maket Corus. Since then though, it has recovered smartly as investors now seem to agree that it is the right way to go.
Says Deven Choksey, MD of stock broking firm K R Choksey: "At any peak you can expect some profit taking from investors. But, the fact is, there is a still of lot of room for investors to put their money in." Choksey says that sectors like cement, metal and banking have underperformed during the last few months.
Source: http://timesofindia.indiatimes.com/Cos_building_assets_for_future_demand/articleshow/2183435.cms