FREQUENCY OF POSTS

There has been a comment that the posts in this blog has been infrequent.I do agree on this point.The idea behind this blog was to share picks which can create wealth in the long run.I am of the firm belief that trading is a zero sum game.The only way wealth can be created is to invest with a long term outlook and ride the company's growth.Therefore i am forced to post only when i find value in a scrip and the medium to long term outlook is extremly bright.So,barring unforseen circumstances the company should be able to capture growth and that should reflect in the share prices in times to come.

On the rupee front there is no doubt in my mind that it is undervalued substantially.In fact that has been the case for the last several years.It is the wrong assumption of the government that a weak rupee is the only route to ensure that the exports and that includes IT competitive.China for instance has used several tools to make its exports competitive and in many cases enable their exporters to sell their products below their cost of manufacture.In my view if the government had not intervened aggresively in the rupee-dollar equation the rupee would be should be around Rs.20 or lower.This has several implications though.Exports would be hit.But our largest bill on the import side "Oil" would be far cheaper than it is today and imports of capital goods would be grossly cheaper.The last one is very important because it would have helped create a large scale infrastructure in our country at a far cheaper cost than what we are doing today.But i presume the government will not have the guts to do that.

As far as investment in IT companies goes my firm belief is that they will continue to do well in the future (of course the blips will be there because of forex issues etc) because the knowledge and the scale barriere created in this sector will continue to work in our favour in the long run.Therefore i continue to be bullish on TCS,Iflex and a few other companies in the sector.