Wednesday, May 9, 2012

BHEL is at 2008 Lows

Even amidst the carnage that we are witnessing in the stock market, BHEL stands out as an exceptional disaster. BHEL, one of India's best public sector companies is now trading at the 2008 bear market lows. In 2008, the Nifty had touched a low of 2200. Currently, it is around 5000. While the Nifty is much above its bear market lows, BHEL at 215 is almost close to its 2008 low of 197.

True, there are other large stocks which have actually broken their 2008 lows - RCom, RPower, Reliance Capital, but they cannot be compared with BHEL. BHEL represents India's manufacturing abilities, a Navratna, the finest PSU.

Like the country, I am also going through these mood swings. There was the India shining period, then recession, then Bull market tops, then big sub prime declines then optimism, and now again - a sense of despondency - where are we going?

Please remember that my mood swings do not affect the market. We analyze the markets without emotion, using technical methods, but still...


rocky said...

BHEL was split last year 10-2, so we do need to consider that as well , right?

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