Stock market investing

W

India’s Broadest Stock Rally Since ’03

All but one of the 30 stocks in the S&P BSE Sensex have risen this year, up from 16 in 2013, as the benchmark index surged 26 percent for the best performance among the world’s 10 biggest markets.

The last time a rally was this comprehensive, in 2003, the Sensex extended its advance for another four years.

I have been a big gainer from this rally, which started last year when Modi was selected PM candidate by BJP. I would like to know how many people are positioned to take advantage of this multi-year bull run in stocks?

1) Using traditional human broker or online broker? I am using online: HDFC securities

2) Use laptop or smartphone for investing? Using my laptop.

3) How do you research stocks? I use websites like moneycontrol and all the TV business channels.

4) Buy stocks, bonds, mutual funds or all? I started in mutual funds but shifted to stocks for better returns.

My investments have tripled and now I have started intraday and margin trading. So far not a great experience!

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Still waiting for Modi magic

In August 2013, the Indian rupee was the worst currency to have owned in the Emerging Market universe and the Indian stock market was one of the worst places to be invested. Today, India is a darling destination of foreign money and for local punters, who are back in the game.

Global events have helped propel share prices. The price of oil has tumbled, gold is still in a rut and even the smuggled price of gold has reportedly slipped. This has reduced India's import bill and the current account deficit.

To move further - or even to maintain the levels it is at now - stock markets need to see growth in earnings to be closer to 20 per cent.

In August, retail investors have - for the fifth time since 2005 - pumped in more than $1 billion into domestic equity mutual funds.

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Investors likely to face a riskier entry point in market rally

With the Sensex at the 27,000 levels, many expect it to hit 30,000 in one year. That may sound impressive, but in simple arithmetic, that is a return of 10%. Fixed deposits yield 9% for one year. And, while FDs are not likely to lose their capital value, investment in equity mutual funds, or individual stocks, can see a substantial erosion of wealth if the "market sentiment" sours, as it has on several occasions in the past.

Over the long-term, markets are driven by the earnings power of companies. So far, there is little to suggest that corporate India has seen any uptick in its ability to expand profits beyond the present mediocre rate of 10% per annum. The Modi victory has led to expectations, but the reality is lagging.

The risk-reward ratio is no longer in favour of investors. The safe point of entry, from a "value" investor's perspective, probably ended around the 22,000 levels for the BSE-30 Index. Yet, retail investors must have an exposure to equity as an asset class.

This is one reason why I am also doing trading to generate daily income. If there is a big crack in the market then I will again think of adding stocks to my portfolio.

I didn't understand a damn thing you said.

R2K said:
I didn't understand a damn thing you said.

W

Then you don't know what a "stock market" is.

Wannabe_a_techie said:
My investments have tripled and now I have started intraday and margin trading. So far not a great experience!

And it will never be until it sucks all your damn money. When it does it will be a great experience though

Anyway, too much reading, technical especially, meaningless charts etc. will lead you nowhere. Stick with blue chip, fundamentally strong companies, and try to find the newcomers with a bright future. I can't / don't want to reveal my sources here, but with the help of internet nothing is secret any more.

R2K said:
I didn't understand a damn thing you said.

I will translate for you.

Highly Educated White Gambling, where odds are stacked against you.
And as always the rich people and the house usually wins. (The sock broking website/Big firms controlling the markets)

W

ithehappy said:
Stick with blue chip, fundamentally strong companies, and try to find the newcomers with a bright future.

Yes I am planning on that. But I don't want to enter the blue chips at these high levels.

Keep waiting for a correction but hota hi nahin!! Nifty doesn't go below 7850 levels.

Stock market is anything but gambling, unless you want it to be.

W

a_k_s_h_a_y said:
Highly Educated White Gambling, where odds are stacked against you.

I believe that is true for trading. Ordinary people cannot compete with professional traders who do this for a living.

But in the long run, like [MENTION=99398]ithehappy[/MENTION] said, buying stocks of the good companies is the best wealth creator.

Wannabe_a_techie said:
Yes I am planning on that. But I don't want to enter the blue chips at these high levels.
Keep waiting for a correction but hota hi nahin!! Nifty doesn't go below 7850 levels.

And you should not. Wait for the correction. It will come anyway. Patience as usual is the key here. And buy in loads when market crashes, and all the news channel and other technical analysts say sell everything

Inceptionist said:
Stock market is anything but gambling, unless you want it to be.

I don't have any idea about gambling, but stock market is a reflection of a country's economy, always was, and will be.

W

ithehappy said:
And you should not. Wait for the correction. It will come anyway. Patience as usual is the key here. And buy in loads when market crashes, and all the news channel and other technical analysts say sell everything

What is the best software for tracking multiple stocks?

Using HDFC securities or Moneycontrol is slow and inefficient.

I don't have a clue about how stock market works but Does any of these stock actually give us more than 10 % return or profit per year if you play it safe? ANd by "playing safe" I mean not losing the money you actually invested.

Is there any good articles or books for getting started etc

W

R2K said:
I don't have a clue about how stock market works but Does any of these stock actually give us more than 10 % return or profit per year if you play it safe? ANd by "playing safe" I mean not losing the money you actually invested.

Safe option for investing in stock markets:

1. Exchange Traded Funds (ETF)

2. Mutual Funds

For mutual funds you still have to do some research in selecting, so the ETF route is better. And you can buy ETF units just like you buy shares; no need to fill forms.

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All about investing in ETF

A

Just noticed you thread Wannabe_a_techie. It is good topics, specially to generate fund for building a gaming rig et al. I could understand almost all the things you wanted to mention.

I entered in direct equity market from Jan this year in confident terms. My focus is smallcap zero /low debt companies with good fundamentals and earning potential.

I had tried for day trading few years before and found that this is only a money sucker and drainer. I dont do it now, neither encourage others to do it. But pure investment in stocks for 6 months or more than a year horizon is the best option. There will be few multibaggers, some good scripts and few average scripts in the portfolio. I don't have capability to spot only multibaggers in portfolio. After all Stock market is a very interesting place full of happenings.

I also request the members not to shy away from investing in equity market, because it is a beautiful asset class and will help in beating inflation in long run. Accept it as a spice of life. Follow the rules and don't be greedy.

Cheers.

W

AMITNOIDA said:
I entered in direct equity market from Jan this year in confident terms. My focus is smallcap zero /low debt companies with good fundamentals and earning potential.

Same here. Last year I found a good IT company called Sonata Software.

I bought the share at 28. During the election rally it moved to 40 then 60 and 80. I bought some more at 75 and again Sonata Software moved to 130. It also gives good dividends. I am staying invested in Sonata and will buy more in corrections.

One bad company I invested in was Jayshree Tea.

I bought it at 87 last year but it just did not move in the election rally! I finally got rid of Jayshree Tea at 102 last month. Today it is worth 92 LOL.

W

Time to revive this thread?

After a major correction last month, the stock markets around the world are stabilizing. In India the upmove is stronger because the company results are coming this month, and the Bihar elections will be another factor.

During the correction I bought many new stocks:

JB Chemicals bought at 264, got a fantastic dividend of 14 rupees, current price 289

Thirumalai Chemicals bought at 168, dividend of 4 rupees, and current price 227

GM Breweries bought at 175 current price 500

Stocks I bought that did not do well are karnataka bank, Deepak Fertilizer, Talbros Auto, and I cut my losses in them. But still I got dividends in them.

Sonata Software still doing well at 150 and may reach 180 levels by the time of its results.

Where and how to start guys.. Have icici direct..

W

You need to have objectives in mind.

Like you have a job and get regular income so you can keep buying small amounts of shares every month.

Or you have got a large amount of money, so you wait for a big correction (like last month), and buy loads of different stocks.

Maximum stability and minimum risk is seen in blue chip companies. Maximum returns can come from smaller companies but they carry big risk.

ithehappy said:
And you should not. Wait for the correction. It will come anyway. Patience as usual is the key here. And buy in loads when market crashes, and all the news channel and other technical analysts say sell everything

I don't have any idea about gambling, but stock market is a reflection of a country's economy, always was, and will be.

So we can't invest in other countries companies stocks??

ariftwister said:
So we can't invest in other countries companies stocks??

Yes you can, but the investment, gain, loss will be higher

M

Most of the Investment funds ( HEDGE FUNDS) from the developed nations ( US, Uk, japan etc ) are investing in India. They are bringing money into india because they see india as one of the fastest growing economies in the world. So the idea of indians going out and investing in foreign companies does not make any sense. fyi, an average of 1 lakh crore has been invested by foreign funds in the last 3 years!