The correction comes in the Large Caps stocks at last:

But the undercurrent is still bullish:

The large caps at last came for heavy correction ahead of moving towards 12, 000 mark. I have said long back that large cap stocks are a little overvalued at the current phase considering the past trends but if we look at the India growth story I do not think the SENSEX at a P/E of around 18-20 does not look too highly priced. During the infamous bull run of the Harshad Mehta time Sensex had much higher P/E and at that time India economy was just aligning witih the global markets. Now that Indian economy has alreay opened up and aligned with the global markets, hence with this growth figures I do not think that stock market should fare badly in the days to come. But what I was telling these days were the undervalued Mid and Small cap space, where lies the actual value. Most of the people who have invested at the mid and small caps during all these days have gained during the past few days. One of my earlier recommended pick: Sika Interplants Systems Ltd became double in the last 10 days. I exited the counter. I had averaged out at Rs.32 when the stock came down heavily from their highs it made in May, 2006. Book Profits in Hazoor Media and Power Ltd and also in Adiyta International Ltd. U must book profits in the latter as there are chances of getting trapped in this counter. The stock notoriously rise before the results are declared as the promoters and also office staff play heavily on this counter. The company neither has any web-site nor is clear as what it does. So please be aware of this company. I had recommended the stock in the past just on speculative buying.....those who are still holding please take the opportunity to exit the counter now. The Nikkei average dropped 1.78% today as weak machinery orders data spurred selling in Fanuc Ltd. and other machinery stocks. But we do not have to track the Asian markets all the time, as I mentioned time and again that Indian economy most of the time runs on domestic demand unlike Japanese economy which is heavily dependent on the US economy. The mid and small cap space still looks undervalued and one can take exposure in this space once the market stabilises. Also invest in brewerie companies as the sugar prices have come down heavily and will further comes down due to a lot of factors as mentioned earlier. Alembic Glass after I recommended on Friday on the news that the company has huge property in Bangalore, hit the circuits today also.Keep holdign the counter. Also Marsons Ltd has risen ahead of fundamentals so be careful. More on the following mails....... Best wishes, Suman Mukherjee India.