Investors can ignore Infosys for a while

Rs 1,783 on Infosys, I haven�t seen that of level in a very long time. Rs 45 down 2.5%.  When people don�t like a sector they find various reasons to paste it so first it was the rupee now the rupee has recovered somewhat now they are saying it�s the BFSI. Its just sector which the market does not want to buy it could be a variety of reasons it could be the fact that the next 6-months next one and half year looks murky deep down people believe that the rupee will continue to appreciate against the dollar and there is no respite in the long term against that or it could simply be a realization that the last bull run was led by technology and this bull run does not belong to that sector and it�s a silly way to look at things at one levels saying what is two different bull runs got to do with the merits of the stocks but these things inevitably play out and I think a lot of traders might be saying technology had its time in the sun. Yes, last time it was nothing but tech this time around it�s been an underperformer and we don�t want to get into that sector because chances are given the currency that sector will not be the leader of this pack anymore. There could be technical bounce back from time to time but that�s not the sector which will create as much wealth or nearly as much wealth as it did last time around. It could be that as well and too many people on the street seem to be saying the best days from a stock performance perspective might be over for that sector.

Tough call for people who have come into markets 2000 onwards many analyst etc and they�ve seen Infosys being an iconic kind of stock, it was a poster boy and suddenly last one year its done nothing its lost money for investors and the way its going it could give you technical snap back at one point in second quarter etc but otherwise its just losing scene here.

You keep thinking about Hindustan Unileaver, before it started its downtrend 3-4 years back it was the hottest stock it was the ultimate blue chip and in just 4-years it completely kept on losing money. I just hope and at that point Hindustan Unileaver was the best managed stock everybody would say wow what management great this that and then suddenly it became a dog of a stock I don�t know whether this sector is going that way but this initial signs are not good every small pull back gets sold into. The institutional investors are slowly milking away some of their holdings and nobody in the domestic market wants to buy it so frankly when the first quarter results came out my thought was  it would hold in range between Rs 1850 to Rs 2100. its not even gone anywhere close to Rs 2,100 barring one or two days and keeps grinding down to that Rs 1800-1900 zone. Its not comforting the market or the screen is telling you something and you can ignore it for a while but you can�t ignore it for a very long time.

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