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Originally Posted by pinkunarayanCFA hi I AM RAHUL NARAYAN M.COM(APPLIED ECONOMICS),CFA
I DONT SUBSCRIBE TO THE VIEW OF PURCHASING ANY BANK STOCKS.
REASONS ARE:
PRESSURE ON MARGINS DUE TO RISING YIELDS
FALLING TREASURY INCOMES WHICH HAD IN RECENT YEARS BOOSTED PROFITS.
VERY STRONG PROVISIONING REQUIREMENTS SPECIALLY AFTER MNETRY REVIEW ON 18/04/06 .PUTTING ADDITIONAL PRESSURE ON BANKS LENDING TO CASH COW SECTOR OF HOUSING AND INFRASTRUCTURE FINANCE.
ALLMOST ALL BANKS ALREADY TRADING AT HIGH P/E OF 6 TO 10 WHICH IN THIS SECTOR IS BIT STRECHED.
MY PICKS:
NTPC
RPL(AS AND WHEN IT GET LISTED.
PETRONET LNG.
IDFC. |
well said sir, the banks are definitely going to see the pressure, also stocks like ITC , HLL can suffer if we go by the Meteorological dept of India's forecast which has estimated 93% monsoon and India depends 80% on Monsoon, and hence farmers can see some bad days ahead...
so it seems more prudent for our PM to open the retail sector (which incorporates Food as an important part) and give more elbow room for big companies which indirectly supports Contract farming...
also RPL has got Rs. 20 -30 opening premium in grey markets of Gujarat...also this stock is expected to give Rs. 150 + in two years (as per experts opinion)..also the greenfield refinery is expected to be operationaly by 2009 so hold this stock till this dead line and see the fabulous returns...
ah..after a long time a good scrip to buy...will buy more on listing...
cheers
rishi