Friday, August 24, 2007

Where Is The Stock Market Headed?

Ride the Sensex if you looking for a joyride.
With no sign of containing volatility in the stock markets, the next move on the exchange is anybodies guess.
"A good time to invest" adds to the cliche one hears everytime the markets go down. But should one invest now or wait for he markets to go down further. Experts will tell you that one cannot expect to catch the bottom, so invest when one feels comfortable. True for most times. But I would rather wait for the political scenario to pan out either ways before making an investment decision. Simply because if the government falls, then bottom will be much lower than what is expected by most. Lingering uncertainty will also drag the indices down.
So wait for a good bargain, you may get the bluechips you always wanted to buy but missed the rally last time.

Thursday, August 23, 2007

3 Wheeler Market To Grow In UP?

When the market leader looks to expand in the region, then the market is bound to grow. Bajaj Auto the leader in 3 wheeler segment is looking to expand in UP, the most populous state in India.
While the strategy may be in place, the spoke in the wheel could might as well be the government rules and regulation regarding the transport norms. Apparently in UP one cannot go beyond the limit of 16 kms from the place where the vehicle is registered. This when 3 wheelers would obviously be an important source of transport in such a state.
Other market players in the 3 wheeler segment like Piaggio and Atul Auto might be hoping Bajaj's aggressive strategy would change or modify the rules and help them to enter this market as well.
For more information on this you would like to see: http://www.bluebytes.info/newscheck/DetailedNews.aspx?compid=214&id=213531

Real Estate Prices Set To Fall?

With major real estate players cutting down the prices on some of their properties, looks like the bubble is finally bursting.
DLF, the largest real estate player has reduced the prices by 25% for their upcoming property in Chennai. More and more builders especialy the smaller ones are finding difficult to sell at the prices which some say were unrealistic.
With the credit squeeze enforced by RBI sometime back on the real estate sector, the business cycle is set towards a downtrend. With reports coming in from US & Europe, regarding the subprime lending woes, the financial market in India has already gone into tizzy without analysing the real implication of the same on the Indian real estate sector. Emaar, a Dubai based builder and maker of the world's tallest building at Burj Dubai, is also facing the heat resulting in the share prices dropping to its lowest in 3 years.
So will the inevitable drop in prices benefit the consumers? Not immediately, say experts. When the prices take downward trend, consumers typically wait for the prices to bottom out. With the investors vanishing in such scenario, only the genuine needy customer takes the plunge. The situation would then improve for the builders when the interest rate on home loan starts reducing and demand becomes buoyant again.
While it is not a doomsday scenario for the builders, atleast not yet, certainly the grass is not as green as before.
For more information on, this you would like to see: http://www.bluebytes.info/newscheck/DetailedNews.aspx?compid=227&id=213519