When Sensex was hitting life highs and shot up by more than 49% in a matter of 7 months, the biggest role to play was that of Reliance Industries which had a weightage of more than 14% on the index. RIL during the period shot up by more than 73% but when the Sensex started falling, RIL corrected by more than 66%. Just shows you the simple application of the 80/20 principle. What came as a surprise to me was that a stock like Binani Cement is down by 89% from its 52 week high and is trading at a dismal Rs30 odd. Similar is the story with Jaiprakash Associates, Suzlon, Tata Steel, DLF, ONGC and ITC. So, would you buy now?Sunday, October 26, 2008
Leaders and Laggards
When Sensex was hitting life highs and shot up by more than 49% in a matter of 7 months, the biggest role to play was that of Reliance Industries which had a weightage of more than 14% on the index. RIL during the period shot up by more than 73% but when the Sensex started falling, RIL corrected by more than 66%. Just shows you the simple application of the 80/20 principle. What came as a surprise to me was that a stock like Binani Cement is down by 89% from its 52 week high and is trading at a dismal Rs30 odd. Similar is the story with Jaiprakash Associates, Suzlon, Tata Steel, DLF, ONGC and ITC. So, would you buy now?
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