SENSEX Headed For Tough Times???

In spite of the current raging bull run of the BSE Sensex, there are signs that certain sectors may be headed for tough times! Let's take a brief look at it...

• The Sensex in the calendar year 2005 has generated an annualised return of 41 per cent.

• Early signs of a slow down in the secular growth trend are clearly visible and some sectors appear less sturdy than others.

• While breezing through the news, if you read between the lines, you will notice some disturbing trends in a few sectors – airlines, automobiles, steel, etc.

• If you notice any deterioration in the fundamentals of a sector, make an exit.

• Assess your equity portfolio on the basis of your exposure to these sectors and realign it, if necessary.