News Views & More

Anyone who is a regular visitor on moneycontrol will be pleased to know that moneycontrol is available on mobile or to say there is a mobile version of moneycontrol available on mobile . I found it really intuitive . I was earlier using same type of application from reliance money but the version from moneycontrol is leaps and bound ahead of rmoney version in terma of technology . On content side I think moneycontrol is already ahead of rmoney .

One can download the application by going to wap.moneycontrol.com

Economy, Stocks, Tech Stocks, Tech

With sensex rising (& falling) it provides both an opportunity and challenge for the retail investor .One don’t want to miss the party by not investing in quality stocks and also don’t end up buying stocks which have stretched there valuation, so here I am with my own guide on investing .

Rise of Sensex provide opportunity for retail investor to be part of “India Story” as everyone calls it. Here are will put some strategy which I normally follow , note that I am no expert at investing and had no formal training on same. Whatever put here are musings then an expert advice so take it with pinch of salt . Having set the ground rules let’s go for the meat

Rule 1 Don’t treat market as Russian roulette , investing is buying stake in a company so don’t buy by gut , tips , suggestion . It is a more of a factor of your due diligence then luck. Dont try to beat the probability invest wisely.

Rule 2 Know your financial limits make a note of how much u can invest , for how long you can invest and what is the (realistic) target you are looking , remember that stocks normally return good returns in 1.5 yrs - 3 yrs so patience is needed and you need to lock money.

Rule 3 Identify a company and do lot of research , search on news.google.com , moneycontrol , ndtvprofit and any other site which you are comfortable with , see what the company is doing what there future plans are , how is there core business doing , is there any good or bad vibes going about the company.

Rule 4 Understand P/E , here is a brief definition (source Wikipedia) :

The P/E ratio (price-to-earnings ratio) of a stock (also called its “earnings multiple”, or simply “multiple”, “P/E”, or “PE”) is a measure of the price paid for a share relative to the income or profit earned by the firm per share. A higher P/E ratio means that investors are paying more for each unit of income. It is a valuation ratio included in other financial ratios.

It is very important ratio and is available for each stock on most of the sites , good company with good management has ratio around 15-20 so look for companies in that range anything above represent a high growth company or a mere speculation trading below that means company is either overlooked by the market (chance very low) or company not doing.

Rule 5 Check dividend history good company normally give dividends at regular interval , there profitability . management & board profile who there client is , what product they make and would you be interested in doing business with that company so if it is a mobile company would you be interested in taking there mobile services.

I know it is difficult to track stocks with so many parameters but to apply these rules better to create a set of around 10 -15 companies depending on the time in hand and money to invest . Set can be chosen based on a sector like infrastructure , IT , banking or can be chosen using indexes like BSE 30 (which I track) , BSE 100 or can be chosen using market caps be it midcap , smallcap or it can be chosen from the companies in news.

Gathering information and following certain pattern for investing requires some practice once you have that it becomes a habit and will be fun and fulfilling . There are no short cuts and hot tips such things might work but it will not give returns always . On parting note here is last rule When in confusion don’t buy and if you are still hell bent on buying in the state of confusion buy Reliance.

Happy Investing !!

Stocks bse, nse, sensex, Stocks

Sensex crossed 20000 and has become one of the few stock markets in the world to trade above 20K (cheers !!!!) , but the question is should retail investor enter the market at this point ? My reading is one can still get into good stocks as the market is till cheap compared to China , per TOI the market is trading at PE of 25 whereas china is trading at PE of 50 and developed market economy is getting stagnant so investors dont have much options to invest . Indian market is a long term story and economy can clock 9-10% growth next 5-6 years as per PM .

Having said that we need to be cautious and pick quality stocks , be long term player and be cautious till USA sub prime market woos settle down.

Economy, India, Stocks Economy, sensex, Stocks

With P-Notes (what are p-notes ?) being surely going to be stopped , there seems no stopping sensex going downward. With the kind of crazy high we have seen in the last month with so much money being pumped in by FII’s (roughly 80b$ of which around 50% is through p-notes) so now there seems to be rush of taking money out and hence the fall seems to be no stopping.

Really speaking it was expected because as FM said he was not comfortable with the rise of the rupee and sensex not reflecting the state of the economy , whereby sensex seems overheated but economy was cool.

What does future hold for investors like me ? One thing is for sure Indian economy outlook is great for the long term as it is expected to grow by 8-10% so if you are for long term then spend in quality stock and hold on and make informative decisions.

Economy, India Stocks