Dead Presidents! - India Equity Research: India Investment Strategy

Showing posts with label India Investment Strategy. Show all posts

Sunday, September 09, 2012

Is it a good strategy to invest in FDs ?

State Bank of India (SBI), the country’s largest lender, today cut fixed deposit (FDs) rates by 50 basis points across tenures. For instance, for FDs below Rs 15 lakh with maturity of one year to less than two years will be 8.50 percent. Rates on FDs above Rs 15 lakh and less than Rs 1 crore too have been cut. For instance, a 180-day FD, which had 8%, will have 7.50%. The rates are effective from 7 September. Should you invest now: Other banks are expected to follow SBI. So, should you start parking funds in FD before other banks too cut rates? “Yes” says, Pankaj Mathpal, Mumbai-based, Certified Financial Planners. “Rates are expected to fall further. If you are looking for a risk-free investment, investing in an FD, now is a good idea.”

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Wednesday, January 04, 2012

Investment Strategy

Monday, October 10, 2011

Investment Strategy

Friday, February 27, 2009

Investment Strategy - No Pledge Companies

Saturday, February 21, 2009

Investment Strategy - Feb 21 2009

Wednesday, January 21, 2009

India Investment Stocks - 2009

Wednesday, October 15, 2008

India Investment Strategy

Saturday, July 12, 2008

Investment Strategy

Sunday, December 09, 2007

Sectors to invest

The domestic markets have been in a bull run since the last few years. The main drivers of this bull run include inflows from the foreign funds, consistent growth in the economy and positive sentiments of investors and traders here. There has been a lot of volatility in this bull run, especially in the last couple of years. We have seen many phases of short term rallies and consolidation in this long bull run. These shorter rallies were always dominated by some sector stocks or the other, based on market conditions and investor sentiments.

Historically, it has been proven that investments in equity give better results than any other investments over the long term. These are some of the sectors that are looking good for a long-term investment perspective. Investors can build their portfolios by picking good stocks from some of these sectors.

Infrastructure and real estate

Domestic consumption and investments in infrastructure are the prime drivers of growth for the domestic economy. That is why infrastructure is one of the most focused on sectors. There is a huge demand of infrastructure development in the hotel and hospitality industry, airports, housing, development of malls, special economic zones (SEZ) and rail/road infrastructure. Many new schemes are coming under the public-private partnership (PPP) scheme. The Government is also promoting the housing sector by providing tax sops to home loan borrowers. Investors can hold on their investments in real estate companies and can accumulate at dips.

Power and energy

The domestic economy is growing at around nine percent per annum. India's per capita consumption of energy is growing quite fast. Companies are going in for capacity addition to fulfill the growing demand of energy. As a result, we are seeing a lot of optimism in the power and energy sector stocks. Investors can hold on to their investments in power companies and can accumulate at dips. Sectors like power generation, power distribution, and oil and gas companies are quite attractive from a long term perspective.

Banking

Banking is another sector which is expected to be on the investors' radar in the long term. Private and foreign banks increased competition in the banking sector by introducing new services. The profitability of private sector banks is quite high due to the usage of technology and innovative ways to serve the customers better. Also, it is expected that a lot of value will get unlocked by integration of smaller PSU banks and there is a good opportunity to make good returns in the long term.
Retail

This sector is one of the hottest sectors in India. The share of the organised retail sector is less than five percent of the total retail market in India. However, the share of the organised retail sector is growing at a healthy pace year after year. Many big players have already jumped into the fray and many others are showing active interest in this sector.

FMCG

Traditionally, FMCG is considered a defensive sector. Growth in the economy has resulted in better earnings for the middle income segment which in turn translated to more consumption of FMCG goods. This sector started performing well from the latter part of 2005 and consolidated in 2006. FMCG companies could find new markets in rural areas as well. FMCG companies also hiked the prices of their products. The momentum in the retail sector is expected to increase their penetration levels. Investors can invest in FMCG stocks to diversify their long-term portfolio.

Telecom

India is one of the fastest-growing mobile markets in the world. Mobile companies are seeing their market growing month after month. Telecom penetration in India is less than 25 percent which is quite less in comparison to near 100 percent in developed economies. There is a huge potential for growth of telecom companies in India. Investors should hold on to their investments in telecom companies and can accumulate at dips.

These are the sectors that look attractive in the long term. However, it is advisable that investors in equities should keep a regular track of their investments and shuffle (book profit/loss once target is achieved, revise target etc) their portfolio from time to time. Tracking of news, results and price movements of your stocks is as important as investing in them. Investors who cannot afford to track their investments regularly will be better off investing in a mix of equity mutual funds.

Via ET

Monday, October 15, 2007

Investment Strategy

Sunday, September 23, 2007

Sunshine in sun outage?

The 'R' factor (Reliance) dominated the proceedings for the week, especially on Friday. The indices are perched at new highs and the coming week may see it kiss yet another high before some consolidation starts. The sun outage coupled with the F&O expiry will keep bulls and bears on tenterhooks. Volumes could see a drop for the next couple of days except during Wednesday and Thursday.

Punters are banking on some move from the RBI in terms of a rate cut. But we haven't heard anything concrete so far. Should such a development take place, the laggards in recent times will skyrocket to dizzy heights. The quarterly earnings are the next hope for positive triggers. But there is still some time. Most of the positives on the earnings front have been factored in the price. Companies will have to come out with more bullish outlook to keep the sentiment intact. If all else goes against the market, the liquidity factor in terms of FII flows can give bulls reason to widen their smile.

Saturday, July 14, 2007

India Equity Strategy

INVESTMENT STRATEGY

The bulls are showing no signs of getting dizzy at the top. Stock specific or rather result specific approach needs to be adopted at this stage. Bears will hope that the bulls cave in after spending some time at the peak. Only a global meltdown could dampen sentiment at this stage.

While valuations may seem expensive, investors don’t seem to be in a hurry to book profits. With many more results awaited, a sudden collapse is always in the cards. We don’t want to sound pessimistic. Just reiterating caution at these levels. Expect alternate bouts of gains and pains in the week ahead.

TCS, Zee News, Petronet LNG, GDL, LIC Housing Finance, Cummins, Tata Tea, REL, IDBI, RNRL, Polaris, ACC, L&T, Tech Mahindra, Ranbaxy and Satyam Comp are among the major companies, which are expected to deliver their earnings in the coming week.

Liquidity seems to flow in with FIIs investing around Rs20bn (excluding Friday’s figures) in the cash segment.

Either stay put with fundamentally sound stocks or do your churning and exit counters which have run up too quickly, especially during the last couple of weeks.