There are bargains to be found in companies that can take advantage of economic revival. Rajiv Naidu and Rakesh P Sharma present seven good picks
The market is perched on a fence. Which way will it move? It's hard to say, but the consensus is if the Kargil conflict eases off, the market is headed for a decent bull run. That surge won't be just from sheer relief but because the market has discounted the uncertainty of elections and the economy is clearly on the mend.
Already, the Index of Industrial Production (IIP) has jumped 6.8 per cent in April 1999 over 3.9 per cent in the corresponding previous month last year. A closer break up of the IIP shows that the manufacturing sector growing by 7.8 per cent in April 1999 against 4.3 per cent in the corresponding period last year.
More good news: Centre for Monitoring Indian Economy's investment survey revealed that investments in April 1999 have shown a nominal growth of 4.8 per cent over previous year. This comes after a period in which investment projects have seen a massive decline.
The inference is obvious. Fresh investment in industry and the economy will entail higher growth for companies whose fortune are closely linked to the economy. And this is the best time to pick them up. The Smart Investor presents seven good bargains -- all of them poised to ride the revival because they have lean, restructured operations and healthy
ABB
Asea Brown Boveri (ABB) is a major in the power sector. ABB had three divisions
