Wannabe_a_techie
Broken In
India’s Broadest Stock Rally Since ’03
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
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Investors likely to face a riskier entry point in market rally
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.
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!
- - - Updated - - -
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.