Lean time for markets

Generally December, for Indian Stock markets is the month of lackluster activity, which is clearly reflected in the drop in daily volumes of our markets. This slowdown is generally because of Christmas and new year vacation by FII's. They generally become active in the second week of January. So as a retail investor one must sit on sidelines with cash and after getting direction from January may take call on the markets.

Presently the valuation s seems to be stretched, though long term growth story remains intact.

Some jitters can be felt in the markets in short term because of failure of our government to tame the inflation. One should be patient at this point of time and wait for the right time to Invest.

Capital Markets, way ahead...........

As we are in H2 of 2010 Indian capital markets are still struggling to leave there own mark. From long time they are trading in narrow range making it tough times for investors to remain invested in this kind of lacklusture market.

The Big question that is ruling n common man's mind is "how the markets will behave in rest of the H2(second half of 2010)

The answer is still unpredictable but when we try to understand the macro economic indicators, we'll see that the global environment is still very much uncertain because of which global markets are showing no indication of strength, rather these markets are moving on news flows.

Same pattern is exactly seen in Indian markets resulting in very range bound markets. Stocks are performing mainly on the back of news flows that are entering the market.It may be the case of Cairn-Vedanta deal or any policy driven news from Government front.

Over all its very testing times for the investors, one should protect his cash by waiting on sidelines for more clearer picture of these jittery markets and look for good times for investments.probability of markets to slide by around 5-10% is very high and that would be right time time to select fundamental strong stocks for long term value creation.

"95 % people loose money in day trading- Beware."

Global jitters driving Indian Markets

2010 for Indian stock markets remains very challenging and in the past 6 months we are seeing that our markets are trading in a range with no clear directions on the either side.

Though Indian economy is showing good signs of recovery, as it is clear from GDP figures and Industrial output numbers, But global markets are in doldrums especially after the emergence of European crises. These negative global cues are weighing the domestic positive indications, because of this Indian indices Nifty and sensex are struggling to show clear breakouts on the upside, every upmove is followed by selling pressure thus leading these indices to be in a range indicating that markets are waiting for clear direction from the western world.

Talking about Indian fundamentals, more or less they are still strong from the long term point of view, as an investor one should remain invested with 20% cash on the sidelines which will help to average our holding price in case of deep cuts because of uncertain global environment

Always remember " Be an investor and make markets as your friend u will win rather than being a trader, who burns his figures in this beautiful game"

Markets after Budget

Finally on 26th of February the Budget is out, Finance Minister Pranab Mukherjee has presented a good budget which aimed at reducing fiscal deficit, Price control measures and disinvestment as the main agenda.

It was time for salaried class people to cheer as the slabs of income tax were revised giving tax benefits to salaried class giving a reason for them to smile. the minimum alternative tax was revised putting some burden on corporates. The excise duty on petroleum products was increased which lead to increase in petrol and diesel prices across the nation.The fiscal deficit targets were trimmed to 5.5 percent in the coming years.

All of these measures were taken positively by the market and markets are performing well after the budgets as a result the nifty is trading above 5000 and BSE Sensex is close to 17,000 mark showing thumbs up reaction to Pranab Dada budget, Its time to watch that were the budget bonanza can lift the markets.Overall the markets sentiments are positive specially sectors Like capital goods, infrastructure are in good mood.

The key remains with the implementation of various announcements. Lets c whats the real outcome of budget in the coming months.

Markets in 2010.......................?

As we all know that our capital markets have performed really well in 2009.Major Indices ..i.e Nifty and Sensex have given return of around 70% in the year 2009, making Indian markets one of the best performing markets among emerging nations.

Also our markets have entered 2010 on strong note.. but the major issue is that, what will be the market mood in 2010, many analysts are predicting the upward momentum for the market to continue for H1(first Half of 2010) and are optimistic that markets will make life time highs, but i m bit pessimistic about this upward movement of the markets and highly cautious in the present scenario.......there are several reasonf for this

-Inflation is set to bring clouds on economy which will prompt action from the RBI to reduce liquidity in the system, and the interest rates would increasing impacting our capital markets.

-The market movement is really surprising and those stocks are hitting upper circuits which have no fundamentals at all or they are having poor fundamentals.

All n all be cautious while investing and do your study thorougly before going for any decision.

At last my sectorial priority for investment is

1.Energy

2.Banking

3. Consumer Durables

Be aware and informed investor

Good Luck

Where are opportunities to invest at present....

Hello,

Volatility is ruling the markets these days as we are seeing no clear direction for the markets.. as i have written in my last blog that markets made a great run from 8000 to 16ooo in case of sensex n 2650 to 5100 in case of Nifty and are still ruling at these levels with very high volatility

The question for the investors is that if they want to deploy there money presently , what r the avenues or which sectors are there to enter at present levels

The first one to be invested is sugar industry, all the sugar stocks are showing good strength because there is huge shortage of sugar worldwide which is supporting the sugar prices. Presently sugar prices in retail are 40/- Kg which assures good profit for sugar companies and these prices will remain firm till fY010

The Second sector could be the Power sector. India have huge shortage of Power and Government is also showing good interest to promote this sector, Lot many power projects are being executed by these companies and future is really bright here.

Last but not the least Engineering and Infra space is very lucrative to be invested. India have intact growth story and the infra companies will play good role for the Gropwth of Modern India and will definitely benefit from it.

This is my outlook to be in the markets in current scenario.Have a gr8 time

Wats the mood of markets now....?

Hi,

After a long confusion n laziness i am finally writing my first blog, without wasting your time i am directly moving to the topic

From Last Diwali to Diwali of 2009,Nifty gained 91% and there was approximate same gain in the Sensex, means approx 100% return in equities in 1 yr as compared to 7% in banks. Most of the indices have moved sharply in the same time period including Metal,Autos n Banking. Most of the stocks have given wonderful return in the tune of 100% etc.

The main question arises here is that, How many of investors gained from this rally?... ans is that very few retail investors are beneficiaries of this movement, there is feeling of left alone in this rally in their minds.

Wat to do now?

Another question is that wat now these people can do?

Again there is confusion... whether to invest or to wait for correction... nobody can actual predict the market movement.But the fact is that market is moving ahead of its fundamentals. The current PE is 18X FY10 earnings which is not the cheapest valuations among the emerging markets

keeping the above things in mind now one should not be in hurry now to invest, rather v should wait for correction, n selectively pump our money in fundamentally strong stocks to get good returns.

"Fear when everybody is greedy, be greedy when everybody is fearing"

-Warren Buffet