Sunday, November 22, 2009
Indian stock market update as of 22 November 2009
For the middle and long term however, things are much more positive, with the overall global economy having seen an uptick, and both India and China looking much more positive. India seems to have overcome the worry of a failed monsoon, although it is likely to impact Government policies in terms of foodstocks and its food imports. So what are the stocks to be watched out ?
1. Mahindra Ugine Steel Company Ltd (good for the medium and long term, but needs patience)
2. Ashiaana Housing (if housing market is not a bubble, then very good for the long term)
3. JBF Industries
4. Shilpa Medical (risky, but can grow multiple fold)
5. Elecon Engineering
6. Central bank of India
Also, started to look at more technical information. What is the difference between Technical and Fundamental Analysis (very briefly) ?
Fundamental Analysis is the study of the fundamentals of the market. Fundamentals are all things that affect the supply and demand of the underlying commodity.
Technical Analysis, on the other hand, is the study of the market based on a chart of its price data, and assumes that you can do some amount of prediction of the price and volume movements based on past trends.
Labels: Economy, Equity, Fundamentals, Future, India, Learn, Market, Technical
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Wednesday, October 07, 2009
Finding the right company to invest in
You can select the following parameters:
LTP
Market Cap
EPS
PE
From the site:
This section will enable you to fine tune your search of stocks. Here you can search stocks based on the 4 fundamental parameters of the company's performance.
Labels: BSE, India, Parameters, Search, Stock
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Tuesday, September 29, 2009
Recommendations for the Indian stock market as of 29 Sept 2009
The US economic data seems better, but there are blips when the economic data seems to suggest that one needs to watch signs of recovery carefully, and not assume that everything will go fine. What this translates into for the retail investor is that you should be careful, do not start to again assume that stocks will only go up. If you have made a lot of profit, then remove some of that profit and put into safer instruments, and use the remainder to play in the market. One thing we learnt from last time is that there is no easily defined floor below which the market would not fall - it kept on falling for many months, and retail investors kept on waiting.
Stock that I am current tracking (or buying):
1. Rishi Lasers
2. KLG Systel
3. Supreme Industries
4. Patel Airtemp
5. Nilkamal
6. VST Tillers
7. Reliance (long term)
Labels: Economy, Equity, Future, India, Profit, Stock, US
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Thursday, September 24, 2009
Indian stock market update as of 25 September 2009
The Index of Industrial Production has gone up slightly, realty and consumer goods are starting to pick up, and so on. At the same time, the market has jumped to good heights in the last few months, and there is an over-whelming feeling that the market may be due for a correction, with a contra statement that times are going to be better, and the market is just factoring that in. At these times of high, it is good to get rid of junk and penny stocks.
Stocks that I am currently tracking:
1. Divis Laboratories (more stable, long term)
2. Jaihind Projects (more risky)
3. Nirlon (risky)
4. Unity Infra (risky)
5. Rishi Laser (long term)
6. Godrej Industries (short term)
7. Asahi India Glass
Labels: Equity, India, Indian, Opinion, Price, Shares, Stock
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Sunday, September 13, 2009
Indian stock market recommendations as of 13 September 2009
- The rainfall over the past few weeks has reduced the overall rainfall deficit for the year drastically, as a result, the Government is now feeling a lower negative impact on overall growth
- The market has gained over the past few months, to the extent that there is a feeling that the market is now over-heated and a correction is now impending. If you read economic and equity stories, you will hear about how stock are now seen as expensive, and that fund managers are feeling pressure to invest else they will feel left behind, even though they feel stocks are now expensive
- The overall world economy seems to have stabilised and seems to be on the road to recovery, and this has been stated by many top economists and others (even if some of them are trying to make optimistic projections, there is a touch of reality)
- In India, the IPO market has suffered a setback because 2 recent issues of Adani Power and NHPC did not leave any value for investors, and hence the stock is already below the issue price. At the same time, there are huge institutional investments into IPO's, signifying that money is available to invest.
With all this information, what should the retail investor do ? This is really not the time to take too much risk, so be careful about bringing fresh money into the equity market. I, am going to keep evaluating certain stocks to see whether there is potential to invest in these stocks, and also trying to sell a portion of other stocks that have jumped a lot.
1. Nirlon: This is a risky stock. If the market goes down, this stock also goes down. However, if the realty sector and commercial rents pick up, then Nirlon is a good stock to own.
2. Ashiana Housing. Another realty company. The company share has been oscillating for the past few days, and I am looking to own these shares for atleast a period of 1-3 years, and hence am picking up shares on a gradual basis.
3. Mawana Sugar. In India, sugar is a difficult area right now, with sugar being in shortfall and overseas price high because of expectations of imports by India.
4. Cairns. It's oil wells in Rajasthan have started producing oil, and on the back of a global recovery, there is an expectation that oil prices will start increasing to ever higher levels.
5. Sharyans resources. The company's share took a major hit with the economic downturn, but now looks to be again regaining hope.
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Tuesday, September 01, 2009
India stock market recommendations as of 1 September 2009
Mid-caps seem to be again the flavour of the season, and some of my mid-caps (risky ones though) have gained a bit in the last one month, atleast 15-30%, which is good growth. These are across sectors. Some of these stocks are:
Nirlon- This is a real estate story, with the company having developed some good commercial real estate, and if commercial rents pick up, then the company has a good story on its hands.
Ashiana Housing - the revival of the realty story means that well regarded companies do well, and Ashiana Housing is one of these companies. The company has gained from a low of 45 to currently 62.
Hindustan Constructions - The company has yet to gain significantly, but I am cautious about the long term prospects of the company.
JMC Projects - The company is doing well, and is a well regarded small player in the construction / engineering area
KLG Systel - The company has seen a massive fall in its valuations since January 2008, but is now on the recovery path, having increased to 2.5 times its value of last October. It is a well regarded provider of solutions to the Government.
Labels: Equity, Finance, India, Money, Stock
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Saturday, August 22, 2009
Indian stock market recommendations as of 22 August 2009
Even other critical parameters such as consumer purchasing (critical for an economy like the US) are not delivering on the promise of a improved recovery. In addition, there is some real bad news coming out from China where the market has reacted pretty adversely, giving jitters to the market overall. However, and this is the most confusing part, it would seem that the markets worldwide (especially in the US and India) seem to be fore-casting a recovery in the next 6 months to 1 year.
In India, there are some reasons to be cautious about such a recovery, even though India never went into a recession; the growth got reduced, sentiment was very badly hurt, and the stock market had a literal collapse. Right now, the drought has complicated matters, and both the drought combined with the still increasing swine flu will knock a couple of points off the growth rate and cause severe jitters to the Government.
The time is not bad to make investments in some stocks, and here are some stocks that I am tracking:
Whirlpool - With more Indians entering the middle class, the growth rate of consumer appliances is only likely to go up in the long term, and Whirlpool is poised to join in that growth
Bartronics - The company had shown a lot of promise in the year 1998, but the crash had crushed any positive news of the company. However, now reports are increasing the prospects of the company being able to gain from projected boon in RFID usage
Companies in the infra-structure area will increase as the rate of GDP growth increases, even though there remain concerns about stretching themselves thin, and having working capital problems. Companies in this area include Gayathri Projects, Core Projects, Kalindi Rail, Hindustan Contstruction, Gujrat Apollo, Jaihind Projects, JMC Projects
I am also starting to evaluate more risky areas, such as when companies are seen as potential targets, and you get multiple companies fighting for these. There is some good short term money to be made if you can identify.
Labels: Economy, Equity, Future, GDP, Growth, India, Indian, Infrastructure, Investment, Stock
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