dalalstreet (Indian Stock Market)

Saturday, August 29, 2009

Most of Worlds money is at mercy of few Mutual Funds,Bans and Financial Corporations

A recent analysis of the 2007 financial markets of 48 countries has revealed that the world's finances are in the hands of just a few mutual funds, banks, and corporations. This is the first clear picture of the global concentration of financial power, and point out the worldwide financial system's vulnerability as it stood on the brink of the current economic crisis.

Read on ..

Wednesday, June 10, 2009

If you thought economy is recovering, then think again !!

Desparate (innocent) car owners turn to fraud (forced to fraud)
US medical aid for citizens, how does it work ?
BIggest Bear Trap in History
Latest : Oil above $71
The Depression quietly deepens

Read them all and decide if you still wnat to put your hard earned money

Are we being trapped again

The recent rally in stock markets around the world seems rather too unreal and very crazy. The reason I am saying unreal is there is no real fundamental changes in the economies around, may be the extra money printed by many central banks around the world have printed is finding its way back again in to stock market due to some false or altered numbers like the number of layoffs or companies/banks getting closed. All governments around are getting positive without any real reason. All the numbers weather it be industrial output or exports or inflations are at record levels and still the so called experts are giving positive signs.
As a common man I suggest the common small investor to stay away from the market , please continue saving , have at least 6 months to 1 Year of your monthly living expenses which includes all your loans as side in a bank as ready cash. May be have it as a RD or FD or mix of both and some in Postal schemes.
Invest in Gold ETF via SIP this can be 5-10% on a monthly basis.
Coming to stocks , it is highly recommended to avoid investing directly in equity rather its better to take the Mutual Fund route , there are at least 1-2 start MF schemes from all the leading fund houses in India. One good source to select would be the ratings provided by Value Research a independent analysis company. They also have an array of useful tools available , give it a try.
Example : You can quickly see which fund has returned > 20% in the past 5 Years
5 Start Funds
They have the ratings for all types of funds , Equity, Balanced,Tax saving etc
They also publish good articles on a weekly basis which are worth reading for a common investor like us.
Also it is recommended to take the SIP way of investing.
One thing I have been doing in the current rally is selling some sick and stupid stocks which I had chased during the bull run and had paid premium rate which was not worth. So I also suggest to exit all stocks which are not fundamentally ok to hold and use the current rally to exit all such stocks.
A word of caution please do not go by the BUY recommedations given be fund houses or brokerage houses or some TV channel , please avoid , would you rely on some strangers advice and waste you hard earned money.

Read this interesting article on the current rally

Monday, May 25, 2009

Is the current rally in Indian Stocks rEaL !!

Since the election results (16-May-2009) Indian stock market has been on a roll , reason being expectation that the re-elected Govt will announce more
Measures for economic growth and stability. But again what we are seeing is the ugly raise of the P-note gambling money coming back and moving the stock prices high , if one observes the BSE Small and Mid-Cap and NSE 100 have raised higher than the benchmark index, more than 1000 stocks have raised more than 50% from their lows in a span of 3 weeks !!!!! . My view is to be more cautious and wait till the new FM announces the interim Budget 2009 in July. With many views that global economy is stabilizing and so on , only time will tell us how it will all span out. For now pls choose gold as your investment for some time, you can either buy actual gold or better yet invest in Gold ETF funds like BENCHMARK GOLD ETF, KOTAK GOLD ETF, QUANTUM GOLD ETF , RELIANCE GOLD ETF and UTI GOLD ETF . NOTE : Only QUANTUM GOLD ETF offers the best deal for small investors , they allow you to buy 0.5gm instead of 1gm gold by all others which means their unit price is 50% less than other listed ETFs which is very good for small investors, thanks Quantum.
As of 27-May-2009 these are the ETF prices
QUANTUM GOLD ETF - 717.02/-
All other GOLD ETSs - 1410/ (Avg)

Tuesday, May 12, 2009

Is Maruti planning to compete with TATA Nano ?

In a press release today Maruti has announced that its increasing its R&D head count to help tune M800 & Omni engines to comply with BS IV norms
If they crack this then we are well on a way for some heated price competition between M800 and TATA Nano , such competition is welcome since the customer is up for gains. Best wishes to Maruti and its R&D Team.
Maruti is also expecting it exports to increase due to demand for small cars from all developed nations, now even they feel cars need to be fuel efficient and economical.
According to a leading daily Maruti is expanding its rural reach by doubling its rural outlets , according to the press release its set to increase its rural outlets from 231 to 450 in the next two years. By this time, the total number across the country will be closer to 1,000, up from the existing 680 dealerships.
With most of its recent release being major success, its set its eye on the new Launch Maruti 'Ritz' which is set to launch on 15-May-2009, its all going weel with Maruti,Maruti is a good stock to invest in long term.

Monday, May 11, 2009

Recent Rally in BSE and NSE

The recent rally in all markets across the global seems more like speculators gamble to get them out and trap innocent and small investors. Small investors always end up in timing the market and end up in such traps. If you see some stock in BSE & NSE they have almost doubled in the past 40 days
But there are no sound reasons for this. According to a leading daily some 300 odd companies have seen there stocks double in from their lows during last 3-6 months and its interesting to see that all kinds of stocks mid-cap,large and small caps have this pattern of sudden interest and increase in value. It is also nice to see real estate stocks moving up.
With election results round the corner (16-May-2009) our markets will be very volatile and if there is no stable Govt in the center then we are in deeper trouble , as though the world crisis was not enough for us we will also have local instability. Any party other than Congress lead or BJP lead form the Govt its going to be a reverse gear for many of the reforms , they would only work on their own party agenda and most of these local parties don’t have national interest nor do they have ministers capable of handling our economy.
Its better to stay away till month end and then start investing in chunks (SIP) rather than investing in single mode and we are in a way blessed in such markets that we can buy some quality stocks at reasonable price and expect good returns in a time frame of 4-6 Yrs.

Thursday, March 12, 2009

What will happen to Stock Makets

It has all been too chaotic and full of confusion across all markets in the world. Not even the so called Guru's were not aware that the whole sub-prime issue would turn out like this , they were always busy making more money out of other people's money and getting huge pay packages & crazy bonus. Most of them were just doing gambling in the stock market with our hard earned money .
Now that all this happened , who is on the receiving end , its again us , we are losing jobs and they have made enough that they can chill their life anywhere for their life time.
Now to Indian market, SEBI is still thinking if P-Notes are to be banned or not , I guess its high time they ban this gambling route. Our so called stock broking houses have made enough commissions from these trades now let them face some reality and do business the ethical & legal way, this will help us. I think its the right time as well to get rid of these P-notes and fix the issues in them which are being mis-utilized, its hight time, SEBI stats protecting our interests than working for broker houses and financial institutes.
Indian markets are looking good, since valuations of most of the stock looks realistic now , with all the fancy prices being kicked out of the door. inverters(we) have to be very careful while investing in such unknown market conditions, its better to do Systematic investments in stocks in these conditions and its also a good time to pick your dream blue chip stocks like Infosys, RIL , L&T etc
Also diversify you portfolio with across sectors and also invest in selected Large and Mid-Cap stocks, for now avoid Small Cap stocks.

Wednesday, October 03, 2007

SPICE Communications looks attractive

With lot of global & local biggies eying a pie of Indian Mobile market, small players like SPICE Communications looks attractive. Recently DLF, Mahindra, Videocon and many others have applied for Mobile Service Provider Licenses for all 22 circles in India.
With India teledensity at 22% there is still lot of scope for growth for new players.
The valuations of Existing Telecom players and their customer base growing at a fast phase Indian Telecom market is poised to grow and I hope customers will get greater benefit.
With this kind of demand & valuations SPICE Communications does look good at 58.70 (at 11:45 on 04-Oct-2007) looks as a good investment.SPICE Communications operates in Karnataka & Punjab with about 4 million customers (Sorce : http://www.spiceindia.com/invester_relation/corporate_profile.asp)

Get Latest Quote for SPICE Communications on BSE http://bseindia.com/price_finder/stockreach.asp?scripcd=532863