“FAITH” in long term investment is the mantra of survival on Dalal Street, chances are that those who hadn’t cooled their nerves to stay in the market, when the financial crisis stepped in are biting dust now & are cursing for their wrong decisions. While the others who decided to hang on are richer now.
On September 26, 2007 the sensex had for the first time gone over the 17000 mark, over the next seven months it crossed several milestones to top 21000 mark in early January 2008, but within the next ten months the sensex shed almost two-third of its value to a multi-year low of 7700 in the late October of the year. Now within a year the sensex is back with bang at 17000. The best part here is that investors wealth is now Rs. 6L Crore more than that what it was when the Sensex had earlier crossed the 17000 mark earlier.
Since that late September 2007 session of the 30 sensex stocks, 20 have given positive return they have ended at a higher level than what they were in the September 26 , 2007 session. If you had put 1Lakh in each of these sensex stocks despite the volatilities & crashes of the last 2 years then you had still been richer by about 4Lakh or 13%. Since the period is over a year this gain is tax free this shows that faith in long term in Dalal Street does have its rewards.
Top five stocks in positive growth:
1. Hero Honda
2. Maruti Suzuki
3. Tata Power
4. Sun Pharma
5. Wipro
Top five stocks in negative growth
1. Reliance Comm
2. DLF
3. ACC
4. Tata Steel
5. Grasim
First time the sensex went above 17k was on Sept 26, 2007.
Last time the sensex saw 17k level was on May 23, 2008.
In the last 16 months the investors wealth has risen by Rs.17.2L Crore with BSE market capitalization now at Rs. 56.9L Crore
The past few months have been unusually good for the sensex, it has more than doubled in almost six months the road ahead too looks free of any financial for the Bull to fierce towards crossing the K-milestones. There are many reasons as to why we can believe the Indian market will give stronger returns over the longer run. Firstly, it’s the strong resilience has boosted the faith of overseas investors on our economy, sample this FII inflow has crossed 60K Crore mark. Secondly, the emerging markets will outperform most others & India is among these outperformers. Third reason is the stronger belief in the Indian domestic market, the production steel and cement are up, and car sales have soared in recent months. Fourth reason is the level of confidence in the continuity of the economic policy because of the stable government at the centre. Next reason is Industrial output, which accounts for nearly a quarter of India’s gross domestic product, has shown signs of revival. The industrial production has shown a strong growth for the second month in a row. After growing at 8.2% in June over the same month last year, the index for industrial production (IIP) went up by 6.8% in July against 6.4% last year when the global financial crisis was yet to surface. Sixth reason being the production of consumer durables, which include TV, fridge and automobiles among others, expanded by 19.8% in July even on a high base of 13.9% a year ago. In June the sector had witnessed a growth of 16.1%.
According to recent NASSCOM report the biggies of the IT sector have started declaring pay hikes to their employees; this in turn will have a huge positive impact on all sectors especially in the realty sector which was struggling to cope up with low sales. IT bigwig Infosys had recently declared that the Co. will start a new Campus which will lead to mass hiring of around 10 k engineers. Another IT bigwig HCL has declared that the Co. will do a mass hiring of 5000 engineers. This is surely hinting that the Bull will not face too many hurdles to fierce forward and cross the K-milestones.
LOKESH REDDY http://www.bizaddict.appspot.com “Mirror our negatives to see positives on screen”
For IPO analysis, business deals, mergers and aquisitions analysis visit us, we give you an analysis of the deals and give out a verdict as to whether you can invest in a particular IPO or not, what the deal means to you as an investor.