Monday, March 3, 2008

Free Stock Tips for March, 2008

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The finance minister unveiled the budget last week. A few points which are impacting the stock market:
  • Short Term Gains tax is hiked to 15% from 10%
  • Rs. 65,000 crore loan waiver for farmers. The confusion is whether banks have to bear the burden or will government bear the same.
  • No reduction of corporate tax.

Apart from the budget, which is bearing a negative impact on the stock market, the global situation is also not helping out. The fears of US recession is leading to weakening of global stock markets because of which we witnessed 900 points fall in sensex today.

However, this gives great opportunity to investors to do pick some great stocks at low price. The Indian story is intact. Even if US markets go down, most of the indian industries are looking at other markets. The investments inflow is going to increase in asian countries even more because of weakening developed countries' economies. Even though earnings of Indian companies may not be as high as last year, they will still be more than US and Eurpoean companies. Some of the stocks that we would recommend investors to buy at this time are:

  • Reliance Industries (P/E of ~18, a great investment)
  • Maruti Suzuki (The stock is trading near 52 week low, P/E is ~13, the budget has announced favorable news for car manufacturers by lowering the excise duty)
  • State Bank of India (lost 9% today itself, P/E of 19, the government cannot afford to let banks abosrb all the Rs 65,000 crore loan waiver to farmers)
  • Infosys (Great IT company available at a significant discount, P/E ~16)
  • Bharti Airtel (It has significantly come off its highs)
  • DLF (Again, it has significantly come off its highs and is nearing its listing price)
  • NTPC (available at very low P/E)
  • Praj Industries (Good mid cap stock to invest in, big investors have put their money in it)

Some of these stock recommendations are of previous month. We are sure investors made good profit last month because of these recommendations. Remember to sell the stocks when you get 10-20% profit. We are not in a bull market anymore that we could watch the stock always go high. There are going to be ups and downs. Buy at low price in situations like that of today and sell at high price. Do not let greed bias your investment decision. After all you will still earn more than fixed deposit. However you should not aim to become a millionaire overnight!

Happy Investing!

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