Indian Stock Market

Making money by Investing in stock markets of India is never an easy task. With over 5000 companies listed in NSE and BSE the choice of company to buy shares of becomes an important aspect. Here we provide news and views on prominent stocks with good management record listed in Indian stock markets. Good stocks listed in Indian stock market have consistently given better returns than many other stock markets around the world in Stock market history.

Once you decide on the stock, you need to time the markets well or you have to invest for long term to get good returns on your investment.

One needs to carefully select the stock for investment One needs to know the valuations at which to buy a stock and sell a stock. One should not love a stock which he holds. One should not think much to book profits/losses. Only growth stocks can beat markets and give you consistent returns. Tips and rumors on shares wont help you much. News and research are the real helping tools in picking a winner.



Indian stock market or for that matter the stock markets world over experiencing bad times after going through a good bull run for almost 3 years. Sensex went from 5000 points when the NDA government fell 4 years back to almost 22000 recently. At an optimistic growth rate of 35% in earnings, we should have reached around 16500 points. So 22000 was definitely a high overvalued range.

But now Sensex has fallen to 15700 points now (10.15 am 13th March 2008). The FY2009 projected EPS of Rs. 750 is discounted Almost 21 times.

Expecting the earnings to grow at 18% for next 3 years, The EPS can reach 1250 by FY 2011. Giving a discounting of 23 times (optimistic-market will give this PE for sure at some point of time) Sensex may even test 29000 to 30000 levels.

If the EPS can grow at 25%, FY 2011EPS will be at 1465 and a 23 PE will see Sensex at 33000 to 34000 levels in 2 years.

I advice staying invested in these times in quality stocks.