markettrend766
28-09-2008, 10:00 AM
If you are a long-term investor, it is advisable to hold on to quality stocks, even if they get decimated in this market. Remember, some FIIs sold stocks, not because the companies in question have a bleak future but because they themselves are having trouble with liquidity.
Stocks such as Tata Power and Jaiprakash Associates, sold by some prominent global investors last week, are a case in point. These stocks hold significant upside potential over the long term and the mere dumping of these shares by a few big investors isn’t reason to sell them, especially at beaten down prices.
Another point worth mentioning is that some of the stocks that recently cropped up in the ‘sell’ lists, going by the bulk deals data, were only a transfer of shares by the P-note client. For instance, the sale of Mastek shares by Lehman Brothers or Carborundum Universal by Merrill Lynch was just a transfer of shares from these FIIs to Nalanda India Fund, another FII.
Stocks such as Tata Power and Jaiprakash Associates, sold by some prominent global investors last week, are a case in point. These stocks hold significant upside potential over the long term and the mere dumping of these shares by a few big investors isn’t reason to sell them, especially at beaten down prices.
Another point worth mentioning is that some of the stocks that recently cropped up in the ‘sell’ lists, going by the bulk deals data, were only a transfer of shares by the P-note client. For instance, the sale of Mastek shares by Lehman Brothers or Carborundum Universal by Merrill Lynch was just a transfer of shares from these FIIs to Nalanda India Fund, another FII.