• Ritesh May 3, 2011, 21:22

  After today’s development, i feel for next 3 months, one should trade cautiously in interest rate sensitives: Financials/Real Estate/Auto. Banks will be under pressure as they will find it difficult to maintain their NIM’s due to:

  Time Lag to pass the rate hike to end users, the effect of which will be visible in June and September 2011 numbers.
  Savings rate increased to 4% from 3.5% will further dent margins
  Loan Disbursement/Credit Growth target will be difficult, as demand will slow down.
  Higher Provisioning in sub standard loans declared by RBI
  More NPA’s expected in Power/Infra/Real Estate

  So it will be good for investing, once the BANKEX stabilizes and quality stocks come at decent valuations.

  Presently, i would like to focus on Dividend paying stocks and defensives in Pharma/Education/FMCG and select commodities.

  Reply
  • nooresh May 5, 2011, 11:20

    Hi Ritesh,

    Banks have dropped 15 % so its been taken into the price. But from the policy announcements and general understanding over next 2 qtrs we might be peaking out on Interest rates which seems to be more interesting to me.

    Reply
• Ritesh May 3, 2011, 21:24

  Nooresh,

  How is Ranbaxy, Nocil and Chennai Petroleum for 3 months trading perspective.

  Reply
  • nooresh May 5, 2011, 11:19

    I dont track any of them

    Reply

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