This is my findings from stock market and I am sharing it with my clients and followers
1)FIIs pumped in a net $24 billion (Rs 127,480 crore) so far in 2012, the second highest investment in India since 1992, data shows.
2)Nifty pe now trading at 18.89.
3)When nifty trading at ever time high of 6357 on 2008 nifty pe ratio was at 28.
Conclusion
As FII invested record level during 2012 I strongly believe they wont withdraw fund immediately.I think nifty is not expensive when compared to pe ratio earlier in 2008.Our market is attractive while compared to Nikkei,Shangai and other asian and emerging markets
With the positive reforms measures taken by Govt like Retail FDI,FDI in Aviation,Cut in subsidy burden and Rise in Petrol prices,lowering fiscal defecit of Indian economy and better macro economic condition in world economy and passing of fiscal cliff deal in USA,I expect nifty to hit new highs on better global economic conditions in coming months
My Advise
So I recommend my clients to continue investments and hold positions for more returns.But finding good stock for investments is obiviously a difficult task.I have researched and find out some good companies which are superior in fundamentals and having good biz models for long run.These companies are either having low debt,good top line and bottom line figure and potential multi-baggers in long run.So I advise clients to invest in these ten companies for next 5 years through SIP mode of minimum Rs.1000 per month for better returns.Select one company which is attractive levels out of this ten each month and invest every month
COMPANY NAME | SECTOR | CMP | 52WEEK LOW/HIGH | VALUATION | MKT CAP |
---|---|---|---|---|---|
ECLERX | KPO SOFTWARE | 700 | 571-910 | ATTRACTIVE | MIDCAP |
AVT NATURAL | FMCG | 35 | 27-45 | ATTRACTIVE | SMALL CAP |
IRB INFRA | CONSTRUCTION | 130 | 100-210 | ATTRACTIVE | MIDCAP |
GREAVES COTTON | AUTO ENGINES | 84 | 60-94 | ATTRACTIVE | MIDCAP |
SIB | BANKING | 28 | 20-30 | ATTRACTIVE | MIDCAP |
TVS MOTORS | AUTOS | 48 | 31-55 | ATTRACTIVE | MIDCAP |
DISHMAN | PHARMA | 116 | 41-125 | FAIR | SMALL CAP |
OBEROI REALTY | REALTY | 285 | 205-323 | FAIR | MIDCAP |
VGUARD | HOME APPLIANCE | 509 | 161-547 | EXPENSIVE | MIDCAP |
LTFH | NBFC | 90 | 40-97 | EXPENSIVE | LARGE CAP |
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