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Making sense of the Sensex definitely calls for brave hearts, if not strong minds, given the extremely volatile  markets we have had in recent times. Blame it on the new system, set to make its debut soon, which has been adding to the swinging markets. The demise of deferral products like badla is causing the nervousness in the market place and thereby creating a chaos like situation. The dancing Nasdaq is just adding to the chaos.

Amidst all this, the technology train seems to be losing steam, and has been making many restless as those heady valuations seem on their way to the rocky terrain. Glamor girls (scrips) of media sector look like mirage in the dessert, sometimes alluring, sometimes fatal. The Fast Moving express (FMCG scrips) is no longer in the express zone, the so-called defensive counters where the markets used to find solace is no longer considered a safe yard, blame it on the menace called down trading (shift in consumer's preference from premium products to popular ones). Among others, not all pharma bandwagons are in the pink of health, majority of them battling the survival battle as the doctor WTO is writing a panic prescription, post-2005. And, cement corners are getting cracks, more often than not. The fancy telecom story is untold as the script abroad is lying unfinished in the hands of troubled telecom writers like Lucent and Alcatel. This leaves one in complete wilderness. Is there a way out, is just what one would like to ask at this chaotic juncture. The answer is a firm yes.     

The optimism arises from the belief that diehards will be there at least in the immediate future. The chaos created in the market place out of the panic, in the wake of a full fledged onset of a derivative market, is not going to drastically affect them; in fact it is believed that this will actually broaden the market. And as the future unravels, they might even emerge stronger and healthier and may have deadly charm. Sticking with the top guns would be the best thing to do, in order to stay away from the panicky mob. The R&D driver will keep pushing the local top dogs ahead in the global pharma sweepstakes. Technology bandwagon might be getting slowed down, however, the first movers would be staying afloat. The old czars (PSUs) too could come handy in this hour of crisis, as they would remain neighbor's envy (read prospective acquirers') and would keep attracting many. However, Fast Mover's field (FMCG) remains challenged and could be open to more dog fighting. Staying with the sleek and nimble footed could payoff well, going ahead. The untold telecom story leaves behind a tricky plot, however, the innovators with less flab could be getting connected to success, in the end. Hope you capitalize on this opportunity thrown out by the current chaos to capture long-term winners dirt chip.

Amit Singh

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