Daily Call - NHPC - Sep 1 2009

NHPC is on top of every investor’s mind today. We believe investors will do well to hold on to the share for the long term. After initial jig on listing day, if we have our say, it should stabilize beyond 42, and if you must sell, do it when it nears 44.

September is by far the worst month for the US markets. It has posted an average decline of 1.3 percent since 1929 in this surly month. For our markets the dubious distinction goes to October, a month where many markets have seen an average 2% decline and some of its worst crashes.


China is tossing and turning many asset classes like never before. China is down 25% from its recent high and experiencing a major market meltdown. It is remarkable to see our markets where they are, as the same set of cues could put sensex 10% lower from here and no one would ask, why? Metals and IT stocks have seen short build up, while NBFCs are finding favor. Mid-caps are partying, and that is where we are also focused. Music will stop if Nifty were to close below 4630.