Results Update Q3

Kothari Petro, Waterbase, JK Agri, Chemfab, Xpro has posted poor results with drop in top and bottom line. These companies suffered due to weak demand and severe rain and flood during Q3 in southern states. 

Technocraft, DTIL, Donear, Surana Solar, Pondy Oxides, Kamdhenu has posted better results with some improvement on top or bottom line. Overall results are good in comparison to their peers and by seeing the weak market conditions.

During Q3, China crisis has resulted oversupply of differents products in the world market and now the situation is improving, it has little effect on Indian companies and Govt. has imposed minimum import price (MIP) duty on steel products to protect Indian companies from cheap oversupply.

No change in fundamental of any company and stock price fluctuation is based on weak market sentiments due to NPA and provision issue related to banking sector. Hopefully market will reverse the trend with coming budget and all stocks will regain its value. Oil prices still hovering around 30 $/b and it is big positive for Indian economy.

Several new investors are facing first time this type of situation and disappointment is visible in comments and emails. Below story of Japan gives enough reason to see our market in positive way.

Event

On Friday 11 March 2011, earthquake and tsunami hit the Japan. There was huge destruction everywhere and more than million buildings damaged, 20000 people died, 100000 injured, most of the roads and railways tracks damaged, more than million cars washed away, several ships washed on land area, radioactive fluid leakage from Daiichi nuclear power plant, several buildings caught fire and many uncounted damages left behind. It was the biggest destruction after atomic bomb attack on the Japanese city of Hiroshima and Nagasaki in 1945.

After Tsunami all world media were showing very negative reports about Japan economy and forecasting 8 -10 years to come back at same position.

Results 

No Japanese citizens migrated from the country due to fear of another Tsunami in future.

Toyota regain its position of top car manufacturer in the world. 

Within year every damage repaired and rebuild.

Japan economy become more stronger than ever.

Action

They achieved their targets with persistent effort and determination. It is not achieved by great talent but by great will power. 

Our market in context to above story

Current Indian economic conditions are the best in the history of Indian stock market and it is just beginning. Recent floods and weak Q3 results, market correction due to fear of banking NPA cleanup, Chinese economy meltdown are small issues but media has expanded it big enough to create panic selloff by small investors. They sold the shares as if market is never going to change the negative trend.

"Stock market will reward you only when you refuse to quit. It will show you the time when you will feel that every thing you are going to lose but that movement is the start of success and you can win it by courage". 

'All investors can succeed in stock market if they can drop the idea of huge gain in short period.'

'Fear of failure is only state of mind which will not allow our body to act on time. We have to do what looser afraid to do.'