After so many years, finally Indian stock markets seem to act on fundamentals. Albeit I agree that sentiments till play a role when need arises, atleast the markets learn how to react when there are companies declaring sound results.
There are two recent instances that made me form the above opinion. One, the UPA govt announcing oil price hike that comes as a huge relief to oil companies. The relief is really really huge....its so huge that its expected to save around 10,000 crore rupees for oil companies in the current fiscal year. No wonder HPCL, BPCL, Reliance and Refineries surged ahead.
The second news, banks hiking interest rates. RBI allowing banks to revise their interest rates and ICICI taking the first step to hike housing loan rates. Bankex would have gained atleast 20% in a week. This is a clear sign how secondary market is reacting to the news or facts that really help companies. I am certain there were rumours before the hike in interest rates, but they could not change the picture much than an action from ICICI did.
All said and done, 'its elementary Watson !'. Keep the eyes and ears open for the news and be aware of the surroundings and I feel its easy to be a good investor.
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