Reference Auto

Post-Diwali blues have hit the Sensex of the Bombay Stock Exchange or BSE again. Not that this trend is unusual. In fact, the benchmark stock indices - the Sensex as well as the Nifty (comprising 50 stocks) of the National Stock Exchange or NSE - which are an indicator of the overall stock market sentiment, mostly tend to correct after soaring during the festive season.

The 30-share Sensex dropped 432 points to close at 20,156 on Friday. The Nifty fell 122 points to 6,071 points. Both these key indices have tanked over four per cent since Diwali’s Muhurat trading on November 5.

Foreign institutional investors have offloaded stocks worth Rs 782 crore in the cash segment on Friday. Domestic institutions were buyers at Rs 245 crore. Over 72 per cent or 2,263 stocks fell and 753 stocks headed north. On Friday, the Realty index slid the highest and the Consumer Durables, Metals as well as Mid Caps trailed significantly (in the range of 2.5 to 3.5 per cent).

There are fears that the Indian markets may correct further as the US economy remains weak. But the flip side is that India Inc has shown robust performance and this is reason enough for the stock markets to soar to new heights again.

In fact, some stock analysts suggest the Sensex could see its highest closing and in fact may breach the 21,000-mark (closing) on Friday (November 19).

The Indian trend last week had been replicated in other Asian markets as well, where the Shanghai Composite was the biggest loser, down 5.16 per cent on Friday. Key indices in Seoul, Hong Kong, Jakarta, Tokyo, Singapore and Taiwan tanked between 0.08 and 2.1 per cent.

Coming to the US, the Dow traded 0.70 per cent lower early on Friday. In Europe, key benchmark indices in Paris, Frankfurt and London were down between 0.50 per cent and 1.80 per cent.

Now, we at The Paperless.in can help you invest (which means, holding on to stocks for at least one year) and not speculate (short-term gains). Well, if you happen to be an investor, try to pick the following stocks: ICICI Bank, State Bank, Infosys, TCS and L&T.

We feel these are hot stocks and can give you at least 30 per cent return after an year (Compare this with the interest offered by bank fixed deposits, which give you a return of only seven per cent or almost one fifth of what you can get from these hot picks).

If you did manage to get hold of the Coal India stock, you would be judicious to keep it for at least a couple of years. The share is currently hovering around the Rs 320-mark. In two years, we feel the stock’s price would at least double. So, happy investing!