Sunday, October 10, 2010

Anniversary notes

Dear Readers,

The blog and associated Portfolio Advisory Service is completing 3rd successful year by October 2010. I would like to sincerely thank you all for the active and coherent support extended during the period.

The service

It was a challenging experience of preserving portfolios in the midst of uncertain or highly volatile market conditions. We have witnessed the peak levels of market and craziest falls in the history during these three years. When looking back, it seems I have successfully managed to preserve the funds of clients, moreover channeled them to have superior returns keeping the best level of transparency. Anyhow, I am not the person to evaluate the success rate or decency level of this service; instead clients can cite their experiences in the comment session. Further, I am getting contented reactions from readers who have enjoyed fabulous returns from the stocks suggested through this blog (multibagger series) by time to time. (Kitex , Om Metals, Hanung, Manjushree, Parekh Aluminex etc..)

Now, the market is once again parked near the crest. Benchmark indices are close to their previous heights and the investor community is at optimum buoyancy on breaking previous heights. Every one of us seriously concerned on market indices and these numbers are playing a crucial role in our investment decisions. Today, I would like to place few personal notions on the topic considering the current Indian scenario or the mounting energy level of our economy.

Ignore Indices!

I think, we can simply shut our senses towards these index figures (Sensex, Nifty etc) in view of the current Indian milieu. I am seriously thinking to adopt this practice with a full heart and hope its the strategy of time. Bothering these jumbling numbers are quiet futile as it may soar few more thousands up or can be down few in the days to come. I don’t believe, these figures have much importance, especially in a country like India at its ongoing status.

You may feel odd on the above statement as, how we can neglect the so called benchmark indices? Most of us did or doing everything considering these figures, resistance levels etc. Is it possible to invest in Indian stocks with out considering this level of mercury? A number of questions are there to rise. But I think we can!, especially at the current phase. All the above are genuine queries at their respective levels and I will not argue on. But I wish to affirm that, we can invest now, not considering any of these benchmark indices but with sheer logics., further we can limit the importance of these figures to have better entry points.

India, our beloved motherland is undergoing the highest economical growth pace in its history. It is expected that our trillion dollar economy will accomplish a two fold growth in next 5-6 years. The unavoidable transformation of this great nation to a super economical power is already ignited. Try to understand the long term growth prospects of this sleeping lion, smell the strong economical fundamentals, unbeaten outlook and the conquering emotion of this community to grow despite of upsetting negatives. You can feel it from your surroundings if watch closely.

My reasons to affirm this point are numerous. A stable Government leading by a band of visionary professionals(no politics), increasing infrastructural spending in billions, steadily growing economical platforms, strengthening rupee between international currencies, strongest banking sector both private and public players, skilled and low cost work force, powerful & transparent financial bodies/regulatory mechanisms, escalating number of youths, rising focus on agricultural developments, strengthening village bases, growing communication developments, solid state reserves, band of honest and visionary entrepreneurs etc.. etc..

Try to find out good companies, intellectual entrepreneurs, evaluate their visions which can make miracles for us instead of hanging around the indices. The share market of such a growing economy must give incredible returns to the investors, if we plant our money in a genuine and cautious manner. The recent economic symptoms are assuring this fact that we are moving at a fastest pace ever to our inevitable destination. Its estimated that our growth will be around 8.5% in current FY. We are one of the very few economies recovered from the ever worst slowdowns in the history, moreover, it is expected that we will switch to double digits within next 2-3 years. I strongly believe, we never had a real recession but just hangovers imposed on us. Any way, we have almost recovered, moreover immunized upto an extent unlike the rest.

You must have selective on stocks with high degree of logics considering the business model and the management efficiency. My point is, an alluring horizon is developing around us to make money in legitimate way by investing in good Indian companies. What we underwent is the past. The scenario has totally changed and its the time we have to realize and be proud on the power of this great nation. Every one of us must have to develop a fool proof strategy to exploit this rare opportunity positively. I hope the next decade is ours, will transform this great nation to unreachable heights, and its sure the age will be carved in golden letters in the history of India.

We, few Indians are the only people underestimating ourselves. The entire world is so positive or bit scared on our growth prospectus. Check details of Barrack Obama’s speeches whenever he spells on India. I feel, he is the only US president who iswell convinced or so disturbed on the apparent Indian growth story and mechanical in expressing his views unlike his cautious predecessors. The entire world is stunned on our growth as how we manage all these. We are growing between bundles of negatives. The blood shed and horrific terrorism activities supported by neighbors, internal security issues including naxelism spread over more than half of the states, growth blocking trade union practices, substandard education/literacy level in the mainstream, largely corrupted politicians, heavy number of unemployed and poor, heavy numbers of polluted bureaucrats, unbeaten underworld dawns, casts/religions/ethnic groups ready to fight on simple issues, unsolved national and international issues, lack of roads, rails & airways and other infrastructural requirements etc.. But still we are growing!

Excess media freedom is another issue. Our media is more interested on unwanted surgeries than positive findings. It seems India has surplus number of media stuff and everyone needs negative news to promote themselves. I never noticed any Indian media educating all those positive developments around us with real patriotism rather they are people born to criticize each and everything.

Let me conclude. All the above statements does not means, you can invest in any stock considering India is growing and every stock will provide you extra ordinary returns. The impacts of heavy fluctuations on indices will definitely reflect on stock prices, but genuine stocks will recover promptly and the rest will cornered to their respective levels. Heavy storms can make only slight jolts on brawny trees or leans them a bit.

Try to understand our strengths rather constraints of this great nation and it’s economy. All those limitations are there but we are growing rapidly. The final result will be gorgeous like a handicapped contestant wins the medals between wholesome racers. I wish to place few interesting news threads at following links, a must read for every one of us.

India’s GDP to touch 205 Trillion Rupees by 2020: Edelweiss Report

India to develop its own futuristic computer operating system

Learn to live like they do in Dharavi: Prince Charles to UK

In praise of India .. what they see..

India's September Domestic Motor Vehicle Sales

Share market is a place where we can grab unbelievable gains as well unaffordable loses, both adequate to change our lives for ever. If you are proficient to observe the pulses of stocks/business/company/industry, you can avoid loses up to an extent. Still, making better returns are away. You have to develop skills to analyze those pulses logically.

I would like to invite all kind of investors to the Indian market, because it’s the final destination you are searching for. I would like to repeat the same words to freshers. “If you are not yet started investing in equities, you will soon be, its sure everyone of you must do that, if not now, later with the crowd, be a part of this impressive growth fusion developing around us and don’t miss it”.

"India is, the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. our most valuable and most instructive materials in the history of man are treasured up in India only."

Mark Twain,

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.

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