A critical milestone was reached this month for the markets, with the Sensex reaching an all time high of 13,000. On the other hand, the broader market, including the large cap oriented Nifty has not performed in line. Markets have been led by strong earnings growth, lower fear of inflation. Oil price correction globally has helped improve business confidence.
Our portfolio has been performing in line with the Sensex for the month and the year. Results for the half for companies have broadly been ahead of expectation. Even value oriented companies like Plastiblend grew by over 35%. We are also seeing some good value in the market despite the Sensex at new highs.
Next few months seems optimistic from a growth perspective and availability of reasonable value in the market. Apart from the threat of any major slow down in US (which can have an impact on Indian markets), one can have reasonable confidence in portfolio performance over the coming months.