The markets have fallen more than 2000 points in a span of one month after touching a lifetime high of 14723 levels with a major part of selling in banking & technology stocks on Domestic and Global signals that were the driving factors for the collapse.

However I am of the belief that the steep fall in the past has created attractive buy

openings in the mid-cap space and the, earnings growth outlook is still robust that prompts me to write this on record.
I will try to analyze the happenings in the recent past that were the driving force behind the massacre.

• Money supply, growing at a vicious 22.1%
• Inflation above 6% that was invitation for the steep fall
• CRR hiked to 6% from 4% absorbing the liquidity from the economy
• Budget proposals on price curbs that further damped the sentiments.
  Contributors to the recent massacre were the likes of Infosys, Satyam, Wipro, HDFC BANK, ICICI BANK, SBI BANK,
  Now I try to analyze what lies ahead for the markets
• Economic fundamentals are sound and this being the base for the market forecast.
• GDP to grow 8% that is very likely.
• Infrastructure spending to double that is on the cards.
• Improving corporate fundamentals.
• Owing to factors lined up above I can foresee that the corporate earnings will keep going.
• 
  

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  Stocks that are likely to benefit from the factors ruled up above according to me most likely are ACC, BHEL, and Hindalco Industries Hindustan Lever Dr Reddy Lab, Infosys.
  Now this does not necessarily mean all the above scrips will gain while some of them in their prices have already factored in the foreseeable augmentation.
  Hindalco Industries, Infosys Tech according to me remains to be a very strong buy owing to their past hammering, and likely rebound candidates, in the offing.
  And further more I am of the belief of the belief that early this financial year has thrown up lots of opportunities in the Mid Caps and Small Caps I have identified some strong buys that will perform irrespective of market direction hereon.
• The only likely concern remains to be of severe slowdown in the US Economy can trigger global meltdown.

Contributed By :: StockExpert

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