Sunday, November 21, 2010

How the crash worked?

Dear Readers,

Sensex crashed 1419.52 points (6.76%) from its ever high from 21004.96 on 05 November 2010 to 19585.44 by 19 November 2010. We can expect few more in this series, adding fuel by the ongoing issues related to 2G Spectrum and further its political consequences. However, I would like to place few interesting statistics for readers from my master file happened in past 9 market sessions.

You can find stocks gained or lost more than 20% during the past 9 market session at following link.

Comment please....

Shabu Thachat

Monday, November 1, 2010

Decorate your Portfolio

Dear Readers,

The Sensex is floating around 20K levels, just few points back to its record heights. Foreign Institutional Investors were pumped around Rs. 80000 cr to our market in the year 2009. In 2010, it is almost a record breaking Rs.113500c r till this October end. Such huge involvements of foreign money can formulate some temporary upsets in the market, but I hope this flow will continue for few more years because India is remaining as one of the most dependable economy in the world. Our stocks will surely be expensive but a serious thinking on safe and long term investment in Indian equities is still worthy considering the thrilling verve developing around us.

People, who approach long term investment as a passion, seeking credible sectors and companies to invest. Further, our media and experts are busy in debates/forecasts on probable emerging sectors including Infrastructure, Power/Energy, Finance, Agriculture, Automobile, Technology, etc.etc. Few of these sectors or most of them will shine in the days to come by stepping with the Indian growth graph. When an economy is getting bold, every portion of the system has to perform in a steady manner. So, its sure, all the above sectors will shine with their own magnitude and might give us good returns in the future.

Today, I wish to light on a less discussed segment considering it's infinite growth trajectory. Can we spot an industry where all the above hot sectors can collectively influence them to perform a superior pace of business? Do you noticed an area of business where each and every growing sectors/companies, majority of their products/services, entire infrastructure spectrum continuously consume their products directly or indirectly?

I am talking about the evergreen decorative segment or the paint industry. It seems majority of our investors, media and experts are not paying adequate attention to this area of business in contrast with their other hot topics. I wish to place few statistics on this segment; moreover history attested the real strength of this business already, even in the most critical times. Its one of the very few industries which shown remarkable resistance in the worst ever phase of economy, moreover recovered faster, further busted their existing record heights in the shortest span of time. The positive environment is just sprouting after the pit, what ahead is ,how this industry going to perform when everything under a fine tune?

From its unprecedented peak at 08 Jan 2008, the BSE Sensex was declined around 60% by 09 Mar 2009. The collective market cap of our 5 major players in the decorative segment were dipped just around 40%. Interestingly, when things reversed, (09 Mar 2009 to 09 Sep 2010) they gained more than 230% compared to Sensex’s 130% ramble.

The growth of decorative segment is entirely associated with the growth of economy. We can find a lot of positive symptoms around us which might fortify this tenable sector. Increased(ing) number of companies under construction/infrastructure band including revival of real estate business, gigantic figures under planning on projected infrastructural development by Govt, escalated growth pace of automobile industry, growing consumption of industrial hardwares, higher disposable income of our middle men, average Indian’s awkward and opulent spending behavior to decorate his own and only abode, availability of alluring decorative house hold products including furnitures etc.. etc.. I hope all these rationales are enough to explode the decorative segment in coming years. And no doubt, we will repaint everything in certain frequency whether its automotive coating, industrial products or premises. In addition, we have sufficient traditional custom oriented festivals to re-paint/refresh everything.

There is hardly anyone between us who keeps a qualm on the apparent growth of our great nation. We had enough talk on this theme, the obvious growth prospects of India from different angles. I wish to roar it again to the investor community considering the entire observable symptoms; “don’t miss the decade ahead”. I hope, the decorative segment and companies involved in the sphere will turn as real as well reliable winners behind the screen among all other sectors contributing to the optimism.

Comment please…

Shabu Thachat



The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.

Total Pageviews