Stock markets globally have taken a sharp U-turn and are plunging southwards. The trend was imminent with the emergence of subprime crisis in the US, even though there were desperate measures in the form of rescue packages and plans to write-off debt, in some cases. As a fallout of the tumbling US economy, the global investors had started looking at Asian markets, hoping to find the much needed growth economies.
The Indian market had been performing exceptionally well, backed by strong fundamentals and a booming economy. Over the last two weeks, share prices have fallen so fast that an attempt at a rally seems challenging. The market seems to be taking cues from the global exchanges, which are going into the red. Today has been another day when markets hit rock bottom.
For me, this is the perfect buying opportunity!
The big daddy of IPOs was around the corner. And voila! It took India by storm. Everyone I know has been talking about the IPO and there is hardly anyone who has not invested in this. As per market reports, the offer has been oversubscribed 73 times. This is the first for an IPO in India. The herd mentality being followed by investors is purely based on the fact that the Reliance Power shares might give them manifold listing gains.
As much as I would like to believe in this hypothesis, there is a good chance that the hype that has built up is going to dilute its listing. I would rather take a cue from similar stocks listed on the market. I believe that Reliance Power might take a significant time to return value to the shareholders. Remember Reliance Petroleum, which is yet to start production? I want to write more but I do not want to be too negative here. Personally, I would love to enter this stock, but only when the valuations seems right. For now, I would rather watch from the sidelines. And of course, the multibaggers in market are aplenty.
Veni, Vidi, Vici!!
Recent Comments