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Showing posts with label 2010 Stock Picks. Show all posts
Showing posts with label 2010 Stock Picks. Show all posts
Wednesday, October 13, 2010
How many stocks do you hold in your portfolio ?
How many stocks do you hold in your portfolio ?
Leave a comment and let us know ! If you like, leave a list of them too !
Monday, September 27, 2010
Thursday, February 18, 2010
Friday, January 15, 2010
Thursday, January 14, 2010
Monday, January 11, 2010
Thursday, January 07, 2010
Back with a bang!
A year ago, the scene on the Dalal Street was strikingly contrary. Where the start of 2009 was quite grim with all the signals on the domestic and global front staying negative, the year 2010 started on a positive note with the BSE Sensex trading at its 52-week high. Whereas in 2009 the prime concern was economic recovery and that happened mainly because of the concerted efforts of the major central banks that infused trillions of dollars in their respective economies, year 2010 will be more of sustaining the recovery that we have witnessed over the last few quarters. With favourable conditions for the markets and the economy turning around (reversing of the interest rate cycle, rising inflation, withdrawal of stimulus etc), all depends on how good are the financials posted by the India Inc. And this will decide the fate of investors in 2010.
In 2009, the BSE Sensex index rose by 80% and the NSE index, Nifty, surged by 75%—the best yearly performance since 1999. The BSE small cap index (BSE SML CAP) rose by 126% beating the 30-stocks benchmark index (BSE Sensex) by huge margins. The economic recovery helped commodity stocks shine the most, with the BSE Metal Index rising by 233%—the highest among the 13 sector indices on the BSE. Pump priming (fiscal stimulus by the government) helped automobile sales and the BSE Auto Index surged by 201%—the second highest among sector indices. The IT Index jumped by 131%, Capital Goods Index rose by 102%. The savior of 2008, the FMCG Index, was the worst performer in 2009 surging the least with 41% yearly appreciation.
Among index stocks, Tata Motors surged by 395%, followed by Jindal Steel and Power that was up by 368%, Mahindra & Mahindra that rose 287% and Sterlite Industries that advanced 229%. Information technology stocks like HCL Technologies and Tata Consultancy Services up by 222% and 210% respectively. The index losers include telecom players like Reliance Communications that was down 24% and Bharti Airtel that slumped 9%. The mid cap gainers include Aurobindo Pharma (up 444%), Mcleod Russel (up 439%), Bhushan Steel (up 363%), HOEC (up 352%), Havells (up 328%), and Shree Cement (up 316%). The non-index gainers include Oracle Financial Services Software (up 400%), Sesa Goa (up 380%), Mphasis (up 360%), Torrent Power (up 320%) and Tech Mahindra (up 300%). Such surge was possible on rise in liquidity levels post March 2009. As per Times of India report, the foreign institutional investors (FII) inflow to Indian equity markets in 2009 stood at Rs80,500 crore—the highest ever in a year and comes a year after they pulled out over Rs50,000 crore. FII inflow so far this year has broken the previous high of Rs71,486 crore parked by foreign fund houses in domestic equities in 2007.
The Sensex made a brisk turnaround from March wherein it surged by over 120% after making a low of 8047. At that point, the index traded at a nominal price/earnings (P/E) and price/book value (P/BV) of 12.68x and 2.47x respectively, while currently it is trading at 17701 with its P/E and P/BV at 22.63x and 4.25x respectively. Thus just like 2009, year 2010 may turn to be a very difficult for investors. The stock pick in 2009 was quite easy, as lower valuations across the board presented the best investment opportunities wherever one laid his hand.
Currently, the domestic indices trade higher to its mean P/E of 17x its earnings. Thus in 2010, stock investing may come with a pinch of salt.
One has to be very selective in considering the right and fundamentally good stocks that are part of the right theme and also are available at attractive valuations. The FII fund flows will also decide the direction of markets in 2010.
Wednesday, January 06, 2010
Tuesday, January 05, 2010
Monday, January 04, 2010
2010 Top Stock Buys, Dark Horses
2010 Top Stock Buys, Dark Horses
What do the DP Readers suggest ? Read the 2010 Top Stock Picks ONLY HERE
Sunday, January 03, 2010
Mutual Funds Investment Picks - 2010
The year 2009 started off on a subdued note for equity investors but by year-end both the BSE Sensex and Nifty were trading 80 per cent higher. With the markets trading at a price-earning multiple of well over 21 times from 11 times at the start of year, the upside in the indices may be limited from here on. So equity investing in 2010 may require greater stock selection skills. Why not select actively managed diversified funds for your portfolio?
In emerging markets such as India there are several diversified funds that have managed to deliver better-than-index returns. However, these funds, even if they deliver better returns, may also, at times, take on higher risk.
While comparing the top performing equity schemes whose returns are identical, investors can look at additional factors such as beta and expense ratio to gauge the risk return profile. Investors planning to take exposure to equity funds should, of course, pick funds with a proven track record over an entire market cycle.
Here there are three funds from the large and mid-cap space that investors can consider for long-term wealth creation.
HDFC Top 200: This fund is among the few to consistently remain on the buy list due to its steady returns across market cycles. Its performance over the year has validated our recommendation.
HDFC Top 200, which invests in the top 200 companies by market capitalisation, despite its ever growing asset size (Rs 5,781 crore) continued to maintain its tempo and beat its benchmark BSE 200 by a wide margin.
For instance, over a three- and five-year period, the fund outpaced its benchmark by 10 percentage points. Even during the market meltdown in 2008 the fund contained the losses better.
In 2008 when most of the funds preferred to move in to cash to protect their portfolios, the fund had the grit to stay invested. This helped in a neat recovery from the market lows; the fund went on to generate returns of 96 per cent over a one-year period and was one among the top ten performers over this time frame. In its November portfolio, the fund's preferred sectors were banks, pharma and consumer non-durables. Despite its huge asset base the fund adopts a buy and hold strategy. To prop up its return, the fund invests 10-15 per cent of the assets in mid-cap stocks (with market capitalisation less than Rs 7,500 crore).
DSP BlackRock Equity: DSPBR Equity and DSPBR Top 100 more or less has similar investment strategy in selecting sectors. But the former invests sizable assets in mid- and small-cap stocks while the latter sticks to its mandate of investing in large caps. The advantage of DSPBR Equity is that the fund prefers to stay invested in equities irrespective of the market condition and despite the presence of the mid and small-cap stocks (this segment being more prone to volatility). This demonstrates the fund's conviction in its investment strategy. Even during 2008, with reasonable exposure to mid and small-cap stocks and lesser cash position it withstood the market correction and contained losses. Clearly, stock-picking strategy has held the key. Though the fund is benchmarked against Nifty, one-third of the assets are invested outside the Nifty basket.
For the risk it has assumed the fund compensated its investors and concurrently outpaced its benchmark by over 10 percentage points over three and five-year periods. Good stock selection strategy and a lower beta than its peer DSPBR Top 100 were key reasons for DSPBR Equity being a better choice for your portfolio. In its November portfolio the fund's top sectors were software, consumer non-durables and pharma.
Birla Sunlife Midcap: A consistent performer across the market cycles, this fund outpaced its benchmark over a three and five-year period by a good margin and can lend support to one's portfolio returns. It is therefore worthy of a place in your core portfolio.
Having said this, some large cap funds with lower risks generated returns as good as the top performing mid-cap funds over the past five years. Midcap funds such as Birla Midcap generated very good returns during the bull phase of the market compared with lesser “beta” stocks, implying that they have the ability to identify the winner ahead of market rallies.
The fund also dilutes its holding risky sectors once there are signs of over-heating and moves to defensive sectors to protect its portfolio.
The fund's one-year performance emphasises that it has timed its sector calls well during this ongoing rally. However, given the extraordinary gains that this fund generates during bull phases, investors would do well to occasionally book profits to cash in on such rallies. In its November portfolio the top three sectors were banks, power and finance which together accounted for less than 30 per cent of the assets. The fund has a well diversified sector allocation and its assets are spread across 22 sectors.
via BL
Saturday, January 02, 2010
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