Expert Zone
Straight from the Specialists
Indian stocks: Paradise for value investors
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The BSE Sensex romance with the 16,000 level seems to have been rekindled, with the Sensex closing below it on August 26, after a gap of more than 18 months during which it touched a high of 21,109 (missing the all-time high of 21,207 by a whisker).
As is the case, when a key sentimental support level is broken, most experts on business TV channels (a strong contrarian indicator) started giving short calls on the market the moment 16,000 was broken. Why is the level so important? What does it mean for the near-term outlook for markets? What should the investors do now? These are some of the questions that must be roiling the mind of every equity investor in India.
For starters, the Sensex closing at 15,848 on Friday is the lowest weekly close after nearly two years. This means investors who had invested in index funds made only 1.66 pct p.a. on an average in the last two years (as on Aug 26). Those in diversified equity funds fared somewhat better getting 5.4 pct p.a. in large cap funds, 9.9 pct p.a. in mid-cap funds and 9.2 pct p.a. in flexi cap funds.
Next week crucial as markets at tipping point
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Nifty finally gave in to selling pressure and fell below 4,800 in spite of a fragile attempt to hold on to those levels during the week.
Political implications of Lokpal bill to weigh on markets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian stock markets continued to languish with benchmark indices down by 4 pct for the week and 13 pct for the month. Global stock markets crashed on fears of a recession in the U.S. combined with debt troubles in Europe.
India markets weekahead: High inflation, fear of rate hikes to make markets jittery
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Markets continued to go on a losing spree with benchmark indices in India falling further by 2.6 pct. As if the axing of the U.S. rating was not enough, talks of a France credit rating downgrade lingered, chopping around 4 pct from global indices in a single day during the week.
India Markets Weekahead: Tough week seen after U.S. rating downgrade
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The week that started on a positive note after the U.S. agreed to raise the debt ceiling had to soon face the heat of global market turmoil. Fears of double-dip recession and worsening European sovereign debt woes dragged Indian equities lower to a 14-month low and a cut of 5 percent for the week.
The credit policy and after
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Indian stock markets are in such a state of nervousness these days that the moment somebody shouts ‘Boo’, it triggers a bout of panic selling.
Where is the Indian stock market heading?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The BSE Sensex has left us guessing about where it is headed. It’s not an easy task considering it had touched 20,509 in Jan 2010 and peaked at 21,207 in Jan 2008.
Watch out for early signs of peaking inflation and slowing growth
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian equities, after recovering smartly during much of 2009 and 2010, have again started exhibiting high volatility over the last six months. At a global level, this time it is emerging markets which are leading the downside in equities. Even among emerging markets, Indian stocks have looked weaker.
Time to look for some contra bets
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indices were able to show some respite after a dismal performance in the last five weeks. However, foreign investors failed to push the Nifty beyond its well established 5600 levels. The increased option activity at 5600 and 5400 also confirms a trading range with a downward bias.
Five things to do before you turn 30 — financially
(The views expressed in this column are the author’s own and do not represent those of Reuters)
1) Start investing in Mutual Funds
There is a reason why I mention this as the first point in the article. Mutual funds are by far the best starting tool for any investor. And this holds true for any type of investor — extremely aggressive ones and those who do not know much about investments.
The tough part of managing the portfolio is best left to the experienced funds managers who have adequate resources and the knowledge to best maintain the returns on their funds portfolio and manage the associate risks. They are far better informed than an individual can expect to be in most cases.
