Tuesday, October 02, 2012
India stock market update - October 2, 2012
The gloom over the past couple of years have suddenly receded in the past couple of weeks. The scam hit Government was also losing the past few state elections, which further cost it more political capital. It would seem like that the political leadership of the Congress finally decided that the cost of not doing something was far more to the future of the Congress than any pressure that the allies would bring to bear on it. The prediction that, other than Mamta Banerjee, all the other allies could be brought in line because of various issues against them and their reluctance to face elections. And so the Government finally brought in reforms to project an improved image, to pick up some political capital, and though Mamta Banerjee went ahead of the expectations of the Congress by withdrawing support rather than just pushing for the resignation of her ministers, the Congress was assured of a majority that would still support them.
The market as expected welcomed the improvement in the air, also because there was no expectation of any such measures over the past many months; the market had come to expect that there would be ongoing policy paralysis and eventual reduction in the rating of the country and companies. The market as such has been seeing an increase in the index values and many shares that have been down-trodden have started climbing up from their yearly lows. However, there is a high amount of risk. The policies of the Government towards reform are not deep, nor are they because of any deep belief, especially since many members of the Congress are fearsome of the public backlash to the reform.
There is an improvement in engineering stocks, because of a belief that the economy will start improving, including in infrastructural, construction and other stocks. So for the short term, some risk can be worth it by investing in these stocks.
Reliance seems to be slowly recovering, although the share has been depressed for quite some time.
There are some other stocks that are worth investing in such as:
West Coast Paper
Weizman Forex
Tata Global Beverages
Godrej Industries
Zenith Fibres
Govind Rubber
Keep in mind that some of these stocks have already run up in the past few weeks, and there is a risk in buying into the equity market.
The market as expected welcomed the improvement in the air, also because there was no expectation of any such measures over the past many months; the market had come to expect that there would be ongoing policy paralysis and eventual reduction in the rating of the country and companies. The market as such has been seeing an increase in the index values and many shares that have been down-trodden have started climbing up from their yearly lows. However, there is a high amount of risk. The policies of the Government towards reform are not deep, nor are they because of any deep belief, especially since many members of the Congress are fearsome of the public backlash to the reform.
There is an improvement in engineering stocks, because of a belief that the economy will start improving, including in infrastructural, construction and other stocks. So for the short term, some risk can be worth it by investing in these stocks.
Reliance seems to be slowly recovering, although the share has been depressed for quite some time.
There are some other stocks that are worth investing in such as:
West Coast Paper
Weizman Forex
Tata Global Beverages
Godrej Industries
Zenith Fibres
Govind Rubber
Keep in mind that some of these stocks have already run up in the past few weeks, and there is a risk in buying into the equity market.
Labels: Construction, Economy, Engineering, Equity, Equity Market, Future, India, Stock, Stock Market, Stocks
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Wednesday, June 01, 2011
Some tips for better and safer investing
• Never trade with money you can't afford to lose. Don't take loans for the purpose of investing in the stock market.
• Always have a plan of action for your trading. People who have a plan and follow it (and modify the plan from time to time depending on the market situation) make more money from the stock market.
• Always follow your plan of action.
• Don't hold on to losing stock. It's termed as catching a falling knife, which can cause more damage to your investment.
• Even if your stock continues to rise, you should still sell in accordance with your plan.
• Don't hold on to winning stock longer than you planned; things can all too easily turn against you. Greed is something that needs to be controlled.
• Set a limit for how much you can afford to lose in a day. Use a stop loss judiciously.
• If you lose your limit, get up and walk away; stop trading. If you continue, you could even lose your shirt.
• Accept that you will lose money sometimes and be prepared.
Labels: Investing in the market, Investment, Safe Investments, Stock, Stock Market, Tips
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Thursday, January 13, 2011
India stock market update - 13 Jan 2011
As a result of all this, and because there seems to be a slight positive movement in the economy of the United States, FII's seem to be selling in the domestic market, and are also repelled by the amount of the scams, which increases the perception of a high degree of corruption in India as a whole, something that is seem as harmful to the working of companies.
In the past 2-3 months, there has been a sharp fall in the value of mid-caps with many portfolios falling by 20-25%, a sharp drop that is not fully mirrored by the value of the Sensex. So what does one do about stocks ? If you believe (as I do) that in the next 2-3 years, there will be a continuing fast growth, then a drop in mid-caps and some large caps is a good opportunity to buy, so am tracking stocks such as:
1. Elecon Engineering
2. Reliance Industries
3. Bharti Airtel
4. Pipav Shipyards
5. Hindustan Construction
Labels: Economy, Equity, Equity Market, Future, India, Indian, Stock, Stock Market
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Saturday, October 16, 2010
India stock market update as of 15 October 2010
Inspite of the fact that past statements of caution and doom seem to have been defeated by the market, we should continue to remain cautious and be careful with putting more money in the market. Stocks that remain fundamentally safe are fine to hold, but if there are stocks that have jumped up significantly, then cashing out for atleast a portion of such profits is the sensible approach. Some of the shares that I am currently tracking:
Western Shipyards
KNR Constructions
Action Construction Equipment
Coromandel Fertilizers
Andhra Sugar
Bajaj Finserve
Labels: Calls, Economy, Equity, Equity Market, India, Stock, Stock Market
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Thursday, September 23, 2010
India stock market update as of 23 September 2010
For the last many weeks, most retail investors have actually tried to increase their cash levels by selling out those scripts where there is a profit, and trying to stay on the sidelines in this volatility. This is what is recommended to most investors, unless they are confident of their involvement in the market, and about the script they are holding and can take the losses that may occur. At the same time, there is news about sugar scripts that may be worth buying, given some losses in sugar crops and a potential hardening of the prices.
Some scripts that I am actively tracking:
Voltas
United Phosphorus
Jyoti Limited
Punjab Woolcomber
Ponni Sugar
Labels: Equity, Equity Market, India, Investment, Stock, Stock Market
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Thursday, September 16, 2010
Indian stock market update as of 16 September 2010
There are positive news for the medium and long term - the figures for industrial growth were higher than expected, which means that Indian industry will pick up; at the same time, there will be a need for more credit and working capital, as a result, most predictions are that the Reserve Bank will increase interest rates to head off the expected increase in inflation.
Some stocks that I am currently tracking:
Reliance Industries - the stock remains a safe bet, and has shrugged off some recent weakness where there were predictions that the stock could fall to 600 levels
Uflex - the stock has run up sharply in the last couple of months, but the company remains a fundamentally good company in a good sector
Kirloskar Pneumatics - Run up a bit in the last 1 month
Rajesh Exports - Looking good technically
Rama Newsprint - A turnaround story
Shanti Gears
Cosmo Films
Labels: BSE, Equity, Equity Market, India, Market, Midcaps, NSE, Recommendations, Stock, Stock Market
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Wednesday, September 08, 2010
Indian stock market update as of 08 September 2010
The US economy seems to be taking a slight up for the better, and that is a good sign overall. The Indian economy needs to hear that the talk of a double-dip recession is not going to happen, and that things will remain good and that the Indian economy will continue to have a good rate of growth. If this continues, there will be periodic dips in the market but the overall trend will be positive, which is what the stock investors of the country need.
Some stocks that I am tracking:
Action Construction Equipment
Ashhiana Housing
Jindal Poly (has gone up hugely in the last few weeks, but some scope still remaining)
Rama Newsprint (more long term)
Talwarkars
Western India Shipyards
Labels: Economy, Equity, Future, India, Indian, Stock
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