Skip to main content

Indian Stock Market on 2017

Image
By
With key events such as developments in the European Union (Brexit), policy initiatives by Donald Trump after he assumes office as the US President, monetary policy framework of global central banks, outcome of Assembly elections back home and the demonetisation impact on corporate earnings, progress on implementation of the goods and services tax (GST) bill, calendar year 2017 promises to be an eventful year for equity investors.




I am offering the same advice which J.P. Morgan gave to the young man who approached him with the question “Where do you think the stock market will go?”. Mr. Morgan took a pause and placed his hands on the young man’s shoulder and said “It will Fluctuate”.

Well the stock market did fluctuate in 2017. It will in 2018 - Yes. 2019, 2020, 2021, 2022 - Yes. Eternity - Yes.

Well, this dampener of an answer is not to discourage people from asking. It is to intrigue the seeker to ask better questions.

We have to focus on our investing process and the companies/funds we have invested in. The managements we have bet on and their performance. The general stock market movement is of very little consequence in long term wealth creation. I would like to end the answer by sharing what Peter Lynch said about General Stock Market movement “I spend 15 minutes a year to think about where the stock market will go”.

So my picks for 2017 are

  1. Eicher Motor
  2. Maruti Suzuki
  3. Bosch
  4. L&T
  5. NTPC and
  6. Powergrid

Comments

Post a Comment

Popular posts from this blog

Indian Penny Stock Pick: Sunil Hitech Engineers Ltd

By
Shares of Sunil Hitech Engineer s surged nearly 10 per cent on Thursday after the company informed the bourses that it had been awarded four road projects worth of Rs 935 crore in Maharashtra on the EPC mode.  View Full news here. Penny Stocks are low value stocks and majority of companies belongs to Penny stock category are either Loss making companies or companies which lack Fundamentals and credibility.Investor sometime mistakes all low value company as penny stocks but this is not true.In most case the face value of company is Rs 10 but some company will reduce the face value to Rs 1 in that case their stock will also be 1/10 th of similar company which have face value of Rs 10.fo ex if company A has stock value of Rs 8 and face value Rs 10.Another company B has the same stock value of Rs 8 but its face value is Rs 1.In this case if we equate the face value of company B ie face value *10 and stock value also had to multiply by 10 so stock value become Rs 80 So in th
5 comments
Read more

Power of compound intrest.

By
T alking about investing power, quite a few of us would have been involved in financial investments (i.e. deposits, mutual funds, shares, or other). We would have read about windfall gains made by investment gurus and conversely also heard/seen the major risks in equity investments . Let’s take a couple of big examples from the Indian IT space: Wipro and Infosys . The market enthusiasts would already know where I am leading this discussion to, and may want to skip the reading. But for the benefit of the general population, let’s understand how these companies fared since their inception for a shareholder . Case 1: Investing in Wipro What if you / your father could invest 100 shares of Wipro in the year 1980 and did nothing since then? Wipro was founded in 1941 with 17,000 equity shares and incorporated in 1945. As the base price or face value per share price used to be Rs 100 at that time. Assuming a minimum purchase of 100 shares (as was the norm in the era),
1 comment
Read more

Top Indian Penny stocks for week 23/9/2017

By
This week has been an exciting one for Indian penny stocks. So without further delay, lets look into the list. These have been the profitable penny stocks this week. And let us know in the comments section on your suggestions for next week’s. for more info, do check out these articles Best Indian Penny Stocks of 2016 Profiting with Indian Penny stocks How to make Huge Profits with Indian Penny stocks
3 comments
Read more

How to start investing in Stock Markets

By
Many people message me through mail and whatsapp, on how one can invest in stock markets  And I am sharing the information regarding How to open and demat account and participate in share trading or investment in Stock Markets. Once demat account is opened you excute the trades either yourself through software provided by broker or you can call and ask your broker to excute the transaction on your behalf. To open a Demat account you have to provide the documents which fulfill the requirements of KYC (Know your cutomer) norms. You have to sign a contract with Stock broker. Documents Needed to Open a Demat Account   The documents required to open a demat account include a proof of address and proof of identity. In addition, applicants will need to submit a copy of their PAN card and passport-sized photographs. PAN (Co mpulsory) Bank statement One cancelled check Address Proof Income Tax Return Demat Account Opening Procedures The procedure to open a demat
Post a Comment
Read more

How can YOU be a Crorepati with stock returns!!

By
There have been numerous such companies that have given great returns to investors, like Reliance, Titan, Dr. Reddy Labs, etc. No one can predict which company would grow to such a huge levels before 30 years. Remember, for every Wipro like story, there are thousands of companies which has eroded investors wealth and become penny stocks. Investing in equities alone isn’t enough, investing in the right company at the right time is even more important. Power Of Compound Interest Even if someone invested in the best company in the world, its basic human psychology to book profits when the stock prices increase so many fold. Some investors don’t feel comfortable even for a 50% increase in their investment . No one would have the patience to hold such a stock when he sees how volatile the market is in short-term. If you really want such phenomenal returns, you would have to do lot of fundamental research, do your due diligence on the company and invest in it when it
Post a Comment
Read more