The stock market is highly volatile now but there are quite a few stocks that you can pick up for a discount. We take this opportunity to list a few stocks that will generate good returns in a 6-month to a year's time, nevertheless, depending as and when the targets are achieved. Here are my picks for the year 2008:
A) IT Stocks
1) Infosys (current price: 1534.5 ........target price: 2000)
2) Wipro (current price: 465.95 .........target price: 650-700)
3) TCS (current price: 965.0 ........target price: 1250-1300)
B) Realty / Infrastructure
1) Parsvnath Developers (current: 470.0 ......target: 700 minimum)
2) Ganesh Housing (current: 691.0 .......target: 1200)
3) Srei Infrastructure (current: 258.0 ........target: 400)
4) Marg Constructions (current: 492.15 .....target: 850)
C) Financial Services
1) IndiaBulls Financial Services (current: 870.0 ......target: 1000 minimum .. There are talks of a few more demergers happening in this company. .So stay invested if you are holding this stock..)
2) Motilal Oswal (current: 1919.0 .......target: 2500)
D) Auto
1) Maruti Suzuki (current: 855.0 ....target: 1300 but only if 2H08 sales are good and launch of the new model goes as planned.)
2) Tata Motors (current: 763.0 ......target: 900-1000; again I expect the company to rocket skywards in the second half of 2008.)
E) Pharma
1) Ranbaxy (current: 399.45 ......target: 500; talks of a demerger are on. The demerger, if it happens, will likely take place in the second half of 2008. We believe the demerger will help unlock the value in the company.)
2) Aurobindo Pharma (current: 477.0 .....target: 900 in 2-3 years time)
F) Dark Horses
1) Reliance, Reliance and Reliance -- From RNRL to the forthcoming Reliance Power IPO, the Reliance pack is set to shine bright even in 2008! All records will be broken and rewritten or so we hope! If you are invested in it, then stay invested!!
G) Telecom
1) Bharti Airtel (current: 910.5 ......target: 1200)
2) RCOM (current: 805.2 ......target: 925 in short term, 1000 within 6-8 months)
[I've listed the reasons to invest in these stocks in one of my earlier posts; please refer to the same for more clarification - Varun Parwal..]
H) Aviation
1) Jet Airways (current: 895.0 .......target: 1400-1500)
I) Oil and gas
1) ONGC (current: 1299.7 .......target: 1650, achievement of the target is dependend on the oil and gas prices set by govt.) but awesome long-term investment!!
J) 3-Year Term Outlook: Go for DLF, NTPC and PowerGrid. However, wait for correction before buying into any of these stocks. A speculative bet would be an investment in NTPC currently. The Reliance Power IPO could help this stock cross the Rs. 300 mark.
However, these are just a FEW stocks that we are primarily bullish on. There are others too that you could look forward too. As for the mutual funds, equity-based funds have greater returns, so we recommend picking up one of these funds: Franklin Templeton, Reliance, SBI Magnum or HDFC.
We hope our picks help you generate good returns going forward. Please send in your feedback and any other queries; we will try and answer as many as we can.
[Co-authored with Meenakshi Sharma, CFP]
Monday, January 14, 2008
Saturday, January 12, 2008
IT Stocks --- Ta da di da dum...
Many of you must be wondering why I'm so so bullish on IT stocks, especially when all the other sectors are performing so well while the IT stocks continue to stoop to new lows! Well, here I take a chance to showcase you some of my reasons for being bullish on IT:
1) Decreasing dependance on U.S. economy; future growth to be driven by outsourcing work from the European and Asian countries.
2) A stabilizing money --- I suspect RBI is giving rupee a helping hand because I feel that without governmental influence, rupee will find resistance against dollar only at Rs. 35-Rs. 36 mark.. It appears as if there are certain market forces which are buying exceptionally high amounts of dollars, in $ billions, to keep the exchange rate above Rs. 39/$ ...
3) U.S. is slowly waking up to the realisation that it may be entering another period of recession. To avert such a situation, the Fed bank has hinted at another round of rate cuts. This should boost the economy while other measures, in discussion at the Congress, should serve to revive the economy further..
Oopsies.. Got to cut my post here only.. My battery is almost dead.. More on the IT space tomorrow people!! Goodnight and sweet dreams!
1) Decreasing dependance on U.S. economy; future growth to be driven by outsourcing work from the European and Asian countries.
2) A stabilizing money --- I suspect RBI is giving rupee a helping hand because I feel that without governmental influence, rupee will find resistance against dollar only at Rs. 35-Rs. 36 mark.. It appears as if there are certain market forces which are buying exceptionally high amounts of dollars, in $ billions, to keep the exchange rate above Rs. 39/$ ...
3) U.S. is slowly waking up to the realisation that it may be entering another period of recession. To avert such a situation, the Fed bank has hinted at another round of rate cuts. This should boost the economy while other measures, in discussion at the Congress, should serve to revive the economy further..
Oopsies.. Got to cut my post here only.. My battery is almost dead.. More on the IT space tomorrow people!! Goodnight and sweet dreams!
Friday, January 11, 2008
Stocks to watch in 2008
The markets have been treading choppy waters for the last couple of trading sessions; the IT pack, especially Infosys, has taken quite a beating.. However, I remain convinced that signs of U.S. economy's recovery will drive the IT pack higher! Also, the second half of 2008 could hold a lot of significance for the auto stocks.. Here are my picks for the year 2008:
A) IT Stocks
1) Infosys
2) Wipro
3) TCS
B) Realty / Infrastructure
1) Parsvnath Developers
2) Ganesh Housing
3) Srei Infrastructure
4) Marg Constructions
C) Financial Services
1) IndiaBulls Financial Services
2) Motilal Oswal
D) Auto
1) Maruti Suzuki
2) Tata Motors
E) Pharma
1) Ranbaxy
2) Aurobindo Pharma
F) Dark Horses
1) Reliance, Reliance and Reliance -- From RNRL to the forthcoming Reliance Power IPO, the Reliance pack is set to shine bright even in 2008! All records will be broken and rewritten or so I hope!
G) Telecom
1) Bharti Airtel
2) RCOM
H) Aviation
1) Jet Airways
Disclosure: It would be prudent to assume that I own or have an interest in one or more of tehse stocks!! hey hey, just in case, no one takes me wrongly! Also, please understand that these are not the only stocks which will shine in 2008 and beyond. There are a few more interesting companies; however, base your investment on your own research and understanding of the stock! Invest in these companies with an investment horizon of 3 years..
A) IT Stocks
1) Infosys
2) Wipro
3) TCS
B) Realty / Infrastructure
1) Parsvnath Developers
2) Ganesh Housing
3) Srei Infrastructure
4) Marg Constructions
C) Financial Services
1) IndiaBulls Financial Services
2) Motilal Oswal
D) Auto
1) Maruti Suzuki
2) Tata Motors
E) Pharma
1) Ranbaxy
2) Aurobindo Pharma
F) Dark Horses
1) Reliance, Reliance and Reliance -- From RNRL to the forthcoming Reliance Power IPO, the Reliance pack is set to shine bright even in 2008! All records will be broken and rewritten or so I hope!
G) Telecom
1) Bharti Airtel
2) RCOM
H) Aviation
1) Jet Airways
Disclosure: It would be prudent to assume that I own or have an interest in one or more of tehse stocks!! hey hey, just in case, no one takes me wrongly! Also, please understand that these are not the only stocks which will shine in 2008 and beyond. There are a few more interesting companies; however, base your investment on your own research and understanding of the stock! Invest in these companies with an investment horizon of 3 years..
Einstein in Heaven
Einstein dies and goes to heaven only to be informed that his room is not yet ready. "I hope you will not mind waiting in a dormitory. We are very sorry, but it's the best we can do and you will have to share the room with others" he is told by the doorman.
Einstein says that this is no problem at all and that there is no need to make such a great fuss. So the doorman leads him to the dorm. They enter and Albert is introduced to all of the present inhabitants. "See, Here is your first room mate. He has an IQ of 180!"
"Why that's wonderful!" Says Albert. "We can discuss mathematics!"
"And here is your second room mate. His IQ is 150!"
"Why that's wonderful!" Says Albert. "We can discuss physics!"
"And here is your third room mate. His IQ is 100!"
"That Wonderful! We can discuss the latest plays at the theater!"
Just then another man moves out to capture Albert's hand and shake it. "I'm your last room mate and I'm sorry, but my IQ is only 70."
Albert smiles back at him and says, "So, where do you think the stock market is headed?
Einstein says that this is no problem at all and that there is no need to make such a great fuss. So the doorman leads him to the dorm. They enter and Albert is introduced to all of the present inhabitants. "See, Here is your first room mate. He has an IQ of 180!"
"Why that's wonderful!" Says Albert. "We can discuss mathematics!"
"And here is your second room mate. His IQ is 150!"
"Why that's wonderful!" Says Albert. "We can discuss physics!"
"And here is your third room mate. His IQ is 100!"
"That Wonderful! We can discuss the latest plays at the theater!"
Just then another man moves out to capture Albert's hand and shake it. "I'm your last room mate and I'm sorry, but my IQ is only 70."
Albert smiles back at him and says, "So, where do you think the stock market is headed?
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