More than our fair share of pain: Sharekhan Market Outlook dated June 03, 2006

[Sunil]

 

Market Outlook [June 03, 2006] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents MARKET OUTLOOK More than our fair share of pain We believe that the concerns over the Indian equity market are being overdone. We believe that the worst is over for our market. While the correction in our market as well as in the other equity and commodity markets across the emerging economies happened because of the fear that the US Federal Reserve (Fed) may continue to hike the Fed rate, we believe that the rate hike has already been discounted by market players. Consequently any pause taken by the Fed in the rate hike exercise will be a big positive for them. To be on the safer side, we prefer to take exposure to large-cap stocks rather than mid-cap and small-cap ones. With a good run-up in the prices of the mid-cap and small-cap stocks, the gap between the valuation of the CNX Mid-cap 200 and the Sensex has narrowed down significantly over the last two years.

Regards, The Sharekhan Research Team myac...@sharekhan.com