Couple of weeks back, we had seen Satyam Fraudulence case. Its important to know which stocks are not at safe side at this time of crises. As we all know Precaution is better than cure, it’s better to get rid of few stocks by this time and book profits in those stocks.
A poll carried out by a leading business daily, Mint, has identified that the Reliance-ADAG Group, the Mukesh Ambani group, and realty companies are the least trusted in corporate governance practices in India. Fund managers, stock brokers are market analysts constituted the audience for this poll.
Too many cash dealings and opaque nature of transactions were among the key reasons these groups were considered poor on the ethical parameter.
So this is the time to get rid of all the stocks of
- RNRL as nobody knows what business they are doing.
- Reliance capital
- Reliance Industries (not at all good in corporate governance)
- All Real Estate stocks
We would suggest to book profits in these stocks and should get rid of all these stocks at this time (may be you can buy it later, when market recovers back.). And include some other stocks which are good at corporate governance like tata group stocks.
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