investment quandry

At a time when the sensex has touched the highs in May 2006 and then the subsequent fall to a low of 9000 levels in June, investors in the indian market have been confused whether this is the time to invest in the stock markets.Though market timing is the most difficult thing to do (in any market) all analyst are giving various targets for the individual stocks and the index for the short term or they are all saying it is good for long term.The trick in the stock markets is to pick companies with a sustainable business model and which will have a resonable pricing power in forseeable future to ensure growth in topline and bottomline.Most of the investments made by wealth creators are commonsense investment.To give an example -investment in Hero Honda when the Indian two wheeler market were turning from a scooter market to a bike market.The advantage of the Hero honda was that it brought in products which were contemprary and which came in with the fuel economy tagline (the bajaj scooter used to give a mileage of only 35-40 kmpl as against the Hero Honda bike which came in with 60+ mileage.

Let me start today by giving my fundamental pick in the market:

Grindwell norton-MNC,Debt free company catering to the steel sector.With a huge expansion of the steel sector (Tata steel,SAIL,POSCO,Mittal Steel all annoucing huge plans for the sector) it is a given that the company will have huge growth in the next few years.Sustainable growth of over 20% seen in the next 5 years.Financial details of the company will be posted soon.