Index to touch new highs
The BSE Sensex is poised to touch new highs in the next 3 months. In the new year 2006, the index will cross the previous high in the first 2 or 3 months.
The reason for the markets to reach new highs
- New Global Players are poised to enter into India. A lot of Global Investors have collected funds specific to India. This needs to be invested and normally the investments start flowing in the first quarter in the new year. This includes a major inflow from Japan.
- The indian mutual fund is sitting on a sizeable cash pile. With clarity coming up on ELSS schemes, the retail investor will definitely invest in these schemes. Also, the salaried people invest their funds for tax benefits during this quarter.
- Several sectors are poised for good growth including hospitality, travel and tourism and retail. The other booming sectors like IT and pharma will continue to do well.
The key local factors which might induce a correction are
- HNI and Operators selling to square of their year end during march
- Budget proposals
This writer feels that individuals can invest in mutual funds especially the Bluechip related funds since these are the stocks that will take the BSE Sensex to 5 digits and beyond. SIPs in these funds can be considered to average the cost of holding for a time period of atleast one year for good returns.
Monday, December 26, 2005
Thursday, December 15, 2005
Hotel Leela Ventures - Investment can be considered for Long Term in Hotel Leela.
Hotel Leela has hotels in Bangalore, Mumbai and Goa and all are in Prime Locations. The group is also planning to expand in other cities including chennai. Over the last one year, the Average Room Rate and the Occupancy Rates have gone up. The festival season and the increase in business visits will improve the rates. With India's visibility increasing, the tourism industry is in for a boost.
Buying is suggested at current levels and at dips for a long term investment period of 3 years. Buyers can buy in small quantities and can average as and when correction happens.
Hotel Leela has hotels in Bangalore, Mumbai and Goa and all are in Prime Locations. The group is also planning to expand in other cities including chennai. Over the last one year, the Average Room Rate and the Occupancy Rates have gone up. The festival season and the increase in business visits will improve the rates. With India's visibility increasing, the tourism industry is in for a boost.
Buying is suggested at current levels and at dips for a long term investment period of 3 years. Buyers can buy in small quantities and can average as and when correction happens.
Saturday, December 10, 2005
Buy Petronet LNG and Tata Tele Services (10-Dec-2005)
Long term investors can buy into Petronet LNG and Tata Teleservices.
In an energy starved country like India, LNG will be a major source of energy. Petronet LNG is into building and maintain storage terminals as well as regassifiction. This company is a buy and hold for a period of 3 years.
Tata Teleservices provides telephone servies and has close to 6 million subscribers. Tata Group has recently stressed that it will invest moer into the Teleco business. The stock has on thursday (08-Dec-2005) crossed the 10 Day, 50 Day and 200 Day Simple DMA. This clearly indicates that this stock is in for an upmove. This again is a long term hold.
Long term investors can buy into Petronet LNG and Tata Teleservices.
In an energy starved country like India, LNG will be a major source of energy. Petronet LNG is into building and maintain storage terminals as well as regassifiction. This company is a buy and hold for a period of 3 years.
Tata Teleservices provides telephone servies and has close to 6 million subscribers. Tata Group has recently stressed that it will invest moer into the Teleco business. The stock has on thursday (08-Dec-2005) crossed the 10 Day, 50 Day and 200 Day Simple DMA. This clearly indicates that this stock is in for an upmove. This again is a long term hold.
