Struggle to make money from stocks

Today was a day when the sensex moved up by more than 100 points, in fact by 133 points, to close near an all time high. It is above 14,500, and there is an incredible expectation in the air that a correction is due. People are delaying purchase into the secondary market, a number of people are actually doing profit booking so that they do not get caught when a correction happens. On the other hand, and this gets interesting, there are a number of people who are saying that the upmove also comprises of a movement by midcaps and such movement may be sustainable. No one knows what will happen, but the watch word for now is to be very careful and invest only when you are sure about the stocks that you are investing in. One good recommendation is to use profits to pay off loans, put into FD's (some of them offering upto 10%), and to move into more mutual funds. Of course, for those who have got the stock market taste, investment into the secondary market will continue.
Some of the sectors that I am staying away from is hotels, sugar and textiles. I am fairly invested in engineering, real estate and banking; although I could invest more into banking. As far as the stock market goes, I will continue to invest, although I am thinking of investing some more into these 2 mutual funds: Franklin Flexi-cap and SBI Magnum Global. I have been advised to do a bit of investment into some sector specific funds in addition to diversified funds, but I hesitate a bit over this.
Some stocks that I am currently tracking:
1. Nesco - Rs. 1185
2. Alphageo - Rs. 330
3. Era Construction - Rs. 370
4. IVRCL - Rs. 352
5. JMC Projects - Rs. 273

Labels: Equity, India, Mutual Funds, Stock

To be updated when a new post is made, click on the icon  Site Feed

The sensex is again reaching all time highs, and the buzz is that a correction is now overdue. So, it is a good time to take profits in some shares. Such times are always uncertain because you really don't know whether the market will continue to go high, or take a correction of anywhere between 300-500 points. Such a correction could reduce share prices, so I have taken profit in some shares, but am hopeful that the India story still continues.
I continue to remain very hopeful of the India story, given that the situation still remains conducive. The Government, as can be seen in the tussle over the SEZ's, continues to remain committed to some extent in the development model, and things should remain good for the long term; it is the short term corrections that make somewhat of a difference to our valuations. On the other hand, the government will be mindful of the elections in 200, and will start to hesitant to take the decisions that could come with political cost. If they don't do too much of this, Indian industry remains on a growth track.
Some of the stocks that I am currently tracking:
1. Reliance Industries - Rs. 1766
2. Yes Bank - Rs. 172
3. Indiabull Realty - Rs. 383
4. JMC Projects - Rs. 267
5. Mather Pumps - Rs. 269

Labels: Equity, India, SEZ, Stock

To be updated when a new post is made, click on the icon  Site Feed

Uttar Pradesh elections have come and gone, and a major winner introduced. Mayawati managed to stitch together a grand coalition of forward castes, backward castes and Muslims, and blew away everybody else. Uttar Pradesh is the largest popuplated state in the country, and any administration that can spur economic development in the state would be good for the country as a whole.
Seems like inflation is on the spur of coming down marginally, and that could mean that the RBI will stop squeezing credit growth in the economy. It is necessary to combat inflation, but hurts a lot of people and companies, including people who believed in the booming economy and bought houses taking advantage of cheap loans. Such people are feeling the pinch of increase in their interest rates, and could do with moving to a as-previous low interest regime.
Stocks that I am currently tracking:
1. United Drilling: Rs. 23.15
2. IFCI - Rs. 47.20
3. Reliance Industries - Rs. 1593
4. Yes Bank - Rs. 154
5. Supreme Industries - Rs. 225

Labels: Equity, India, Inflation, Stock

To be updated when a new post is made, click on the icon  Site Feed

Another day, another bout of volatility. It is such days that end up really sapping the will to keep invested in the market. I started out watching the morning sensex being slightly down, and then it rallied to move higher. The sensex stayed higher most of the day, and then profit selling happened again. The stocks that I had seen moving higher started dipping, and I started the day at a point lower than I started the day.
Do I still continue in the market, yes. I believe that the market is taking some time to gather momentum, and should shoot up. However, everywhere I read, the same articles - May is the month when people are away from the stock market, May is the month when everything crashes. Makes a person half want to believe all this and stay away.
The only change I make is that I watch the market more time per day, something that is not advisable. After all, we have other work to do, and unless a person is full time into the market, this is definitely not a good idea.
Stocks that I am currently tracking:
1. Hikal Chemical Industries: Rs. 409
2. Asian Oil Fields: Rs. 61
3. Indiabull Real Estate: Rs. 352 (risky)
4. Avery India: Rs. 58
5. Adhunik Metalics: Rs. 47

Labels: Equity, India, Stock

To be updated when a new post is made, click on the icon  Site Feed

The sensex still seems to be somewhat on the upswing. However, I keep on reading more doomsday stories in the papers and magazines about how things may be just on the edge of falling, and how this will be the last good quarter for corporate results. Why so ? Well, dollars are pouring into India at an incredible rate, pushing up inflation. The RBI cannot buy these excess dollars since that will release more rupees into the local economy (pushing up money supply and hence inflation), and hence has to sit by and watch while the dollar gets hammered down. It is already way down, reaching the likes of 41-42 rather than the 45 level it used to be some time back. This level in turn makes exports more difficult since exports get costlier. Equally, earnings in fixed dollars (for IT sector as well as others) fetches less rupees, and hence export earnings are down.
I have no doubt that this will make an impact. However, India has also a local booming market with its own consumption pattern and demand, and that remains unaffected to some extent by these changes. So, companies will adjust to these changes. Many exporters may start importing more raw materials if they start to get cheaper.
As the UP election gets over, the Government seems to be displaying a reformist tend again, with some corrections spoken after the budget, related to cement prices and to FBT for ESOP's. Plus, under pressure from corporates, the Government may amend the SEZ policy to again allow the state to atleast procure 10% of the land requirement. This is a good step.
Stocks that I am currently tracking:
1. Allianz Securities: Rs. 56
2. Ashiana Housing: Rs. 181
3. Adhunik Metaliks: Rs. 48
4. Era Constructions: Rs. 394
5. JMC Projects: Rs. 231

Labels: Equity, India, Inflation, SEZ, Stock

To be updated when a new post is made, click on the icon  Site Feed