Equity Markets

This is something that has fascinated me since childhood. No surprises since it seemed to be the easiest way to make money. But why should u invest in Equity markets where the risks are so high and we have seen investors losing the money? Oneโ€ฆ

This is something that has fascinated me since childhood. No surprises since it seemed to be the easiest way to make money. But why should u invest in Equity markets where the risks are so high and we have seen investors losing the money?

One rational could be the fact that the inflation is hovering under the 5% mark. Fixed Deposit rates are at an all time low. So FD returns do not cover for the rise in inflation. Last year BSE Sensex gained 83% :shock: Can any of the banks beat that?

So with sensex poised to touch the 6000 mark again. Was just wondering what the ppl out here were thinking. What is the prognosis for the future? What are the instruments that ppl follow to track stock markets?

Read an article on how Infosys has created share holder wealth for the investing public
Imagine a retail investor putting in money in the Infy IPO in 1993 at Rs 95 a share getting 100 shares allotted. If he had gone on vanvas and returned back only yesterday these number of shares wld have appreciated to 6400 shares.

9500 Rs -> 3.5 Crores :shock: in 11 years

I have not been that lucky in my investments though ๐Ÿ˜ž but i also do satta(day trading) just to gamble away money.

But iam sure the current volatility would settle down and the trend is still secular post the elections. What say?

Hmmm....interesting topic...something I also wanted to put up on the message board!!!

Well...As I have found out in the last year, stock markets are a good way of making money(but certainly not the easiest)

If anyone wants to share a few good picks and stuff like that, then pool in!!!

I have some favs too in the market, stocks that have good foundation and can bring in good returns. Infosys is one of them. It is a truly amazing one to have. Wipro has one of the highest P/Es in market, again a vindication of investor confidence.

What do you say people?
Anything else up for grabs?


I have not been that lucky in my investments though ๐Ÿ˜ž but i also do satta(day trading) just to gamble away money.




well, photon could plz. put some light on ur portfolio and how u actually started into investing and satta...nivoces like me could largely benefit.

thankx.
bow.
Hmmm....interesting topic...something I also wanted to put up on the message board!!!

Wipro has one of the highest P/Es in market, again a vindication of investor confidence.



D00d..Wipro does have a high P/E..and thts wht im worried bout !!! :shock: ..why ya think high P/E shows investor confidence? ?!!!...even infy has only 30 as against wipro's +40 P/Es...
btb do u hold Infy ???!! :shock: :shock: ....d00d thn it shud be celebs time for u .....!!!! ๐Ÿ˜ƒ cheers...

And for all investors (esp. future) dont jump in the bandwagon jus cause some cousin made some easy dough in himachal futuristics/silverline tech.....Fundamentally though i still believe in The india shining story.....10+ growth maynot be sustainable going forward but i still think there is more of upside in the marlets frm current levels...but keep in mind tht analysts who gives forwards growth estimates are paid for doing jus tht !!!....be ur own counsel !!! do research and dont be greedy...
happy investing Pgites !! ;)
Disclaimer :- "the usual ones"!!!


Added :- for novices interested in trading..start of learning the fundamentals...
try www.moneycontrol.com
www.sharekhan.com
www.icicidirect.com..for starters...


well, photon could plz. put some light on ur portfolio and how u actually started into investing and satta...nivoces like me could largely benefit.

thankx.
bow.


Some of the learnings that i have experienced was
1. Dont look out for penny stocks. Those stocks that are trading at prices less than 10 Rs. You have this big dream that they would go to 100 in a month or so. There is good reason why the stock is trading at sub 10 Rs. Avoid it.
2. Do lots of study before entering the market. But its better if you can say to urself. "Get an online demat account. Here is 5000 Rs. Let me put it into the market. Iam ready for this entire capital getting wiped out. Iam here to learn."
3. Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few. I know these stocks cost a lot infact out of the reach of retail investors. But see it this way. If the market is gonna pick up which companies are gonna do well. The market leaders ofcourse.
4. IPOs are a very good for beginners cause there is not much downside. In the recent past some of the stars have been: Divi's Labs, Maruti, Biocon, PTC. Well allotment is a matter of luck. So put ur best foot forward.

Portfolio? I now own only Petronet. I exited out of ICICI, Dabur, Glenmark Pharma, IPCL, Satyam. I have this feeling that these heights will not sustain and we shall bottom down again and the rise will be only after the elections.

Satta? I am just doing it for two months or so. There is a stat. 95% of all day traders lose money. Iam one among them. So i dont have much to share here. Will post up when i consistenly start making money.

Nope...dont hold Infy but planning to buy it for the bonus issue

Well said about the greedy part...
Its something that can ruin in at the markets...

And yes...there is a still lot of upside left in the market...specially after the elections are over and NDA comes to power(I guess thats what the markets want right now)

So keep the faith people and good luck!!!

Hi da
Nice thread . It speaks abt loosers also. All b mags tell us the rosy side.
anyways NDTV IPO is coming up

http://in.rediff.com/money/2004/apr/14ndtv.htm

ciao ciao
Nik



2. Do lots of study before entering the market. But its better if you can say to urself. "Get an online demat account. Here is 5000 Rs. Let me put it into the market. Iam ready for this entire capital getting wiped out. Iam here to learn."

this was the best advice i must admit. can u give some more details as to how a novice like me can open an online demat account or in short get into stock investing.


3. Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few. I know these stocks cost a lot infact out of the reach of retail investors. But see it this way. If the market is gonna pick up which companies are gonna do well. The market leaders ofcourse.


a gr8 idea as well. but i believe one needs to have sufficient money to make suffucient money if he is holding the blue chip ones. on the other hand 10Rs. scrips if held in large multiples may be able to generate some money for a decent appreciation. plz. help me clear my doubts on this one.


4. IPOs are a very good for beginners cause there is not much downside. In the recent past some of the stars have been: Divi's Labs, Maruti, Biocon, PTC. Well allotment is a matter of luck. So put ur best foot forward.

again photon, how can i student like me apply for a kitty in IPOs. the process i mean.


Satta? I am just doing it for two months or so. There is a stat. 95% of all day traders lose money. Iam one among them. So i dont have much to share here. Will post up when i consistenly start making money.


some info. into how this is done would be illusionary!
asking for too much man, but u r the only one out here with the practical exp.

thankx.
bow.

this was the best advice i must admit. can u give some more details as to how a novice like me can open an online demat account or in short get into stock investing.


I just filled up ICICIDirect's registration form at ICICI bank. Paid up the registration fees of Rs 750. Activation takes arnd 15 days. Put some money into the icici account that comes with the package. Start trading. You can trade with amounts as low as 1000 bucks.

Businessworld did a study of all online services. Their study showed that 5paisa.com was rated the best service provider. I guess their website should have details of registration. I guess u need to have a bank account with HDFC for that. I must admit icicidirect is quite slow.


a gr8 idea as well. but i believe one needs to have sufficient money to make suffucient money if he is holding the blue chip ones. on the other hand 10Rs. scrips if held in large multiples may be able to generate some money for a decent appreciation. plz. help me clear my doubts on this one.


I agree. Another good methodology is to look for select midcaps or good stories. For example a bank like IOB quoting at 65+.
Something that i also look for in the ET everyday is two colums
Highest Deliveries at the NSE and Lowest Deliveries at the NSE
What is High delivery? It means the stock is being accumulated or people are buying the stock and holding. Ex i have been observing is "Morgan Stanley" which has been arnd 80% delivery for the past few weeks. It is quoting at 17+
What is Low delivery? Ppl just speculate on this stocks. You will be surprised to find out that good stories like TELCO or TISCO or SAIL the delivery taken everyday is an abyssmal 10-15%. Rest all is satta.


again photon, how can i student like me apply for a kitty in IPOs. the process i mean.

Once you have a demat account. You can apply directly through the web thorugh your broker. In icicidirect there is the IPO section where u choose the ipo put the amount of money you want to invest and Click ok. ๐Ÿ˜


some info. into how this is done would be illusionary!
asking for too much man, but u r the only one out here with the practical exp.


Everyday you bet on whatz gonna happen to a stock. For ex when the rupee appreciated to the Dollar, a direct consequence could be IT companies taking a hit on their profits. So u go into the market early and say SELL satyam shares at market rate(w/o actually having the stock ). You hope that the bad news will be factored into the stock price today and so u expect satyam stock to fall. All day trading orders are complemented by a subsequent cover order. So for this order there will be a BUY order also. So once the satyam price has fallen, you go into the market again and make the cover order to buy the stock. This procedure is called short selling cause u sold the shares first before buying them. The reverse procedure is also possible. You BUY first and SELL later.

Surprising to note that no one has spoken about Mutual Funds.

For the novice investor, they surely represent the best entry-mode into the Equity Markets.

Cheers
Neil

this one cud be only a perception, i guess. its rather a choice b/w high risk, high gains and low risk, low gains.

Mutual Funds...
Safe...yes
Fun...No!!!

Lol...I thought making money was fun enough :wink:

back aftr lunch

Mutual Funds are yes safe give good steady returns are handled by Professional Fund Managers. But again its like you putting all the money to buy the car and make a driver take the car out. You just cant feel the power. Most ppl's ego wouldn't let them trust a fund manager when it comes to a question of their money.

Hey neil

I will have to disagree with you on that one...
Even though they give goo moey but Mutual Funds are totally boring...
I mean whats the fun in coming to the office, seeing your stupid NAV(which would have gone up barely .05 points) and going to work...

Stocks is where the fun is dude..
you always have to keep your ears open to whats going on!!!
Nine o clock means India Business Hour
When a smiling Udayan Mukherjee makes your day!!!
Thats fun man...

Plus i seriously think that one can make a lot more money by playing stocks then MFs!!!

Whats do you say big guy?

voila.
stocks. so many invest and so few understand.
my feeling is that anyone should 1st understand a stock bfore investing in it. don't know bout it, don't invest in it.simple.
i dislike the satta. do it as less as possible(30% of transaction is enough).go for long term investment. anyway that's my thought only.
mutual funds. hmmmm a little better than fd's.but if u know ur fundas,why do it?

snan bhai, list is good but u missed old fav. stock section in economictimes.com .it gives gr8 display if u want to analyse a stock. also i went to sharekhan a few times and couldn't find anything. probably u had to register.

photon wrote:

Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few.

boy,had u seen their rates these days? i think 1 or 2 r sufficient although wait fr the market to cool a little(although it won't go down much).
also CNBC is a must fr anybody.see it as much as possible.
btw, getting in INFY is not good now.jitna badna tha, bar chuka.
added later: ya uddayan is a big brand himself.he attract many to CNBC.also view classroom on sundays(CNBC).heard it is good(par main hamesha bhool jata hoon ).


mux

Dude...the Infy price may look steep but with the bonus issue kicked in....not a bad bet at all...
Plus you are covering 115 bucks per share for the dividend alone!!!

What do you say?

buddy,
that was good bfore they announced the goodies. it has increased by Rs 350 already in a day.good buy is that one which is picked before increase or which will keep increasing.
mux

Okay lets see...

you buy one share from the market tomorrow...
say for a price of 5500...
after some time you get 3 more shares, so now you have four.

The price per share however will drop significantly.
Lets see it goes to as low as 2500.
But you still have 4 shares, so that Rs. 10000 for you.
Plus a dividend of Rs. 115(that will more than take care of your brokerage too!!!)

Not a bad deal afterall