There is always new information coming into the market. Markets normally over react to the news. Remember the May of 2004 when the markets had tanked by around 600 points to 4500 level and there were no buyers. Those who did buy on that day must be laughing all the way to the bank now.
Last week HCL Infosystems saw a great fall in its share price because it lost its monopoly distribution of Nokia gadgets, yes HCL is a distributor for many companies including NOKIA TOSHIBA etc. It is a bad news for the company, but what price is correct for HCL Infosystem stock will be slowly determined. If u look at the purchases by few leading mutual funds in last few months, they had purchased HCL heavily , while the promoters themselves have sold the stock. Behind all this background it is very difficult to suggest whether to buy or sell this stock.
I am a great fan of Shiv Nadar and also believe if the people behind the company are good , the stock will ultimately perform well. If the budget is going to be favorable to the hardware industry , there r many rumours. My suggestion , go ahead, purchase HCL as well as Zenith computers.
Ranbaxy is another company with lot of bad news floating around. So u can purchase Ranbaxy on declines.
Overall I reiterate the markets will fall after the budget. I am sticking my neck out.
In international market sell the tobacco companies. Read below
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