The correction has taken time coming, but the investors who had saved the cash for such a correction would have been amply rewarded.
Time to start accumulating now.
L&T, BHEL amongst Capital Goods.
and largecap banks like ICICI Bank, SBI look good.
Rationale: High growth momentum of CG companies to sustain. Unlike power companies, which start making profit later on, these guys are making profit now and growing around 30-50% year on year.That will continue, so prefer CG over Power. Power is a very long term view.
The recent depreciation of rupee(last 2 days) and fall in markets will dissuade the RBI from taking a CRR hike now, coming this month end. So CRR should stay firm, so also interest rates, dont see any directional move being taken now.
Any upmove will hurt sentiments and is extremely unlikely. Any downmove will coz extra profits for stock scavengers. So make your choice and go on!
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