Bulls or Bears? Buy or Sell?

For those following the markets for the past two months or so, the crisis faced by a number of banks, hedge funds and even rating agencies (criticised for not down-grading issues in time) have been taking a toll on their heart rates, especially when their exposures are to the banking sector. While the networth of investors in European and American financial institutions has been eroded through the fall in the market prices, this effect seems to have carried over to the Indian markets as well. While the liquidity crunch we face is real and any recession in U.S will influence our economy too, I think this would be a good time to pick up banking stocks. Indian banks have been conservative and unlike their Chinese counterparts, do not have exposures to the U.S sub-prime market. The correction we have seen in the SENSEX and Nifty now provides an intelligent investor with opportunities to cash in on the panic, the prices are exceedingly attractive at these levels and I for one, am bullish on banking stocks this week and consider them as the pick to bet on in the Indian markets.

Please note that these are my views and in no way should be considered as the formula to make a quick buck. If you want to invest in any share, the best way to do so is to compare the market price with the value you percieve in the stock. Do not act on any advice provided without going through it with a fine-tooth comb. The final call to invest should be yours and be ready to accept the responsibility for the same.

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