Feb,26,2013, 16:00 hrs
Ambareesh Baliga , Independent Analyst
There a number of stocks which can give you good profits but I should know your time horizon and return expectation. If you are expecting a 15% per annum over the next 3-4 years buy ITC, Reliance, L&T, SBI but remember that it will not be a one way street. The markets are going a painful period currently and it could continue for a while longer. So be prepared to see a cut in your portfolio before you start seeing profits.
It is futile checking on any mid cap stocks currently. No one can give a proper advice on where these stocks could move in the short term. There is absolute loss of confidence in mid caps but at the same time it is giving an opportunity to buy good quality mid caps in this carnage. Unity Infra and Praj are both average when it comes to management quality hence you can hold and let the storm pass by.
When investors stop believing what the management says and lose confidence in the people who run the company - then there is a run on the stock. This is the story across a number of mid cap companies and scenario today is that these managements have to prove that they are innocent and mean good for the retail investors - otherwise it is assumed that they are there to cheat the gulliable investor.