Watch the interview of Manish Hathiramani of Deen Dayal Investment with Reema Tendulkar & Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Watch the interview of Manish Hathiramani of Deen Dayal Investment with Reema Tendulkar & Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.
Daljeet S Kohli, Head of Research at Indianivesh Securities feels that Indoco Remedies may touch Rs 392.
Daljeet S Kohli, Head of Research at Indianivesh Securities told CNBC-TV18, "For Indoco Remedies the target is Rs 392, the basic call here again is this story is very well-known, almost last six-seven months everybody has looked at this company and that US business will come. Now the basic thing will be execution from here onwards. They have already got two approvals from US. There are another 17 products pending waiting for an approval from that. So just for these two products, the numbers right now are looking like the growth from US business is so substantial and if the other products get added, obviously next three-four years - this will be a story for many more years to play as and when these approvals will come."
"On the domestic part, the thing is they are right now into only the acute category, which is not growing very soft and where the margins are stable or very low still they have been growing near the industry average 12-14 percent. Now they are moving towards chronic segment which is a big growth area. Most of the companies are in that region. So if they are able to get some more market share there, again they will have a combined effect of US and India business doing very well in next two-three years. Execution will be the key thing to watch out. We are banking that this company has capability of doing that and though the stock has already moved in terms of valuations from 12-18 times, we think that it can easily go up to 20-22 times as the larger peers do," he added.
Disclosure: Analyst holds Pennar Industries.
Washing clothes during childhood days needed plenty of patience. We had to put our hands to work for long duration. We were asked to understand the techniques of washing with help from parents and elders. Collecting clothes for washing, preparing for washing and learning to use detergents and brushing of clothes were taught to us by our parents. Not that all of a sudden you would take over the washing duties of the entire family. It would have started small and gradually the washing duties would have become your portfolio, once the parent felt that you were doing a good job, isn't it? Washing is a skill that all of us would have learnt over a period of time by practicing regularly. It was essential in those days especially in middle class families.
What this has to do with investing?
With Nifty and Sensex touching new 'till date' (not all time) highs regularly, I am receiving many calls from retail clients asking me to suggest a few stocks to invest. With no prediction on where the market is headed, my question to investors (is that the right word for these individuals?) like these is "Do you have at least a couple of hours a day ?" If yes, then maybe you can take the plunge. Not because the market is euphoric but because there is the luxury of time at their hands.
Having said that, it is neither all rosy nor as easy as it appears to be. Like how a young one is trained to wash clothes gradually, taking baby steps initially and taking full charge of washing over a period of time, investors willing to buy businesses (stocks) have a wonderful lesson to be learnt from hand washing. It requires, understanding the nitty gritty of stock market investing, hand holding of a mentor during the initial phase (like how a parent guides the children in washing), starting off small and gradually moving with bigger investments (like how an individual gets transformed over a period of time taking charge of washing for the entire family), gathering more information and improving the domain knowledge and finally staying with patience to allow for the investments to grow (like leaving the clothes soaked in detergents for ample time).
So, as I always keep emphasizing, time, knowledge and patience are the three key pillars to successful investing, especially in the stock market. All these were taught to us patiently by our parents. Those fruitful lessons have to be applied to stock market investing too. If you are willing, then any time is the right time.
What I taught my son?
It is very unfortunate that all the lessons that I had learnt during my young days, could not be passed on to my son, as the scenario is completely different now. I find that this new generation has lot of challenges with regard to time and patience. They are either restless or lazy in this competitive world. With the entry of washing machines in our homes, things have become easier too! I never had to take the pain of putting my child's mind to the long and strenuous process of learning hand washing. All I did was to show him how to use our washing machine, like adding washing powder, opening the door for squeezing clothes inside the machine and setting the right configuration. The rest is taken care by the machine and once it is done, it even calls you for attention!
So simple and my son would sit in front of his PC or gadget during the entire phase to carry on with his work or entertainment. It was just a matter of a day for me to teach him washing! Once he gets the discipline part right, the others are automatic and does not require further action from my end.
Likewise, investing also offers you such a luxury these days! And it comes to you in the form of 'Mutual Funds'. If you would like to invest in stocks, all you have to do is buy a diversified equity scheme from a reputed fund house. Decide how you want to buy, whether monthly or once in a while! Then get the act of discipline in force and you are done with. Just like how you spend on your washing machine, you need to pay a small sum to the fund Managers and your job of investing in stocks is taken care of. So, why bother about learning the art of hand washing (read 'art of investing in stocks') and strain yourself?
Decide which is right for you and take the right choice! Both forms are part art and part science and both require patience. Once decided stick on with that decision and reap the benefits. Wishing you a successful investing year in 2015!
Manas Jaiswal of manasjaiswal.com feels any dip in the market is a great buying opportunity, as Nifty can breach records and soar higher backed by banking stocks.
In an interview with CNBC-TV18's Sonia Shenoy and Senthil Chengalvarayan, Dilip Bhat of Prabhudas Lilladher, Pashupati Advani of NBIE along with Manas Jaiswal of manasjaiswal.com share their outlook on various stock specific bets and where the market is headed hereon.
According to Jaiswal, there is a clear breakout in the market with higher tops and higher bottoms. Going ahead, he believes Nifty has potential to touch its all-time high of 8625 and investors must go long at current levels with a stop loss at 8280.
Furthermore, he feels any dip in the market is a great buying opportunity, as Nifty can breach records and soar higher backed by banking stocks.
Advani too has very high policy expectations from the ongoing bankers meet. He sees a lot of goods stuff entering the markets, as a number of RHPs are being filed. He advises investors to keep an eye on them and see what they have to offer.
Meanwhile, Bhat remains upbeat on housing finance companies, mainly HDFC as it does not seem overly expensive. Besides, he see market routing from HDFC Bank , L&T , PSU banks, Lupin , Cipla and Glenmark in the frontlines.
A meaningful improvement in the state of power companies is unlikely even if the government achieves its states aim of increasing coal production till as long as the health of state electricity boards remains weak, according to Harshvardhan Dole of IIFL. But the power analyst added that state-run NTPC could be one major beneficiary of such a move.
A meaningful improvement in the state of power companies is unlikely even if the government achieves its states aim of increasing coal production till as long as the health of state electricity boards remains weak, according to Harshvardhan Dole of IIFL.
But the power analyst added that state-run NTPC could be one major beneficiary of such a move.
Dole was commenting on reports that Coal India, which enjoys a virtual monopoly on coal mining in the country, plans to increase its output by 8 percent to 510 million tonne in 2015.
About two-thirds of India's power plants run on coal and Coal India's inability to scale up production has left a lot of them starved of the fuel. This has been cited as a major reason for the distress in the power sector.
Power and coal Minister Piyush Goyal has said that Coal India will aim to more than double its output to 1 billion tonne in 2019.
But the other side of the argument, Dole pointed out, is that many power plants have been running at below optimal plant load factors (PLF), indicating less than ideal demand from state electricity distribution companies, many of which have been bogged down by regulated tariff in recent years.
Also read: Coal India to target output of 510 mt in 2015: Coal Secy
In his blog, Uday Kotak, Executive Vice-Chairman and Managing Director of Kotak Mahindra Bank, speaks on the country's business outlook in 2015.
2015-Phenomenal growth opportunities for India: In this context as I look at 2015, I think India is going to benefit from a slower commodity price cycle in its macroeconomic aspects. India's current account numbers, inflation and fiscal deficit will overtime benefit from these global factors. Macroeconomic India, therefore, looks better. But at the same time, due to deflationary pressures, it will be difficult for India to pick and increase its growth momentum. I am of the view that for the year ending March 2015, India's GDP growth should be around the 5.3 percent mark, and I would be delighted if in March 2016, that is at the end of the following financial year and thereafter, India moves closer to 6 percent growth. India has to do a lot more in terms of its structural acts to get the growth engine firing faster. It is here I feel that we have a very significant challenge and opportunity as a country in front of us in 2015. At the same time, I am genuinely of the view that the Indian marathon is playing its way. I see India having a phenomenal future for the next decade.
Also Read: Drivers of eco recovery in 2015 - Reforms, rate cut: Kotak
Sudarshan Sukhani of s2analytics.com advises shorting Mahindra and Mahindra and buying Maruti Suzuki.
Sudarshan Sukhani of s2analytics.com told CNBC-TV18, "Technically the only trade is go short. Since I hate going short in a bull market this is a sort of avoid for me. However, if somebody were say brave enough, wise enough or savvy professional trader, you short Mahindra and Mahindra (M&M) and you buy Maruti Suzuki ."
Mahindra and Mahindra ended at Rs 1,236.20, up Rs 1.70, or 0.14 percent on the BSE.
The share touched its 52-week high Rs 1,421 and 52-week low Rs 847 on 04 September, 2014 and 04 February, 2014, respectively.
Around Diwali last year when equity benchmarks were consistently making new highs, every second market expert was saying that India had now entered a multi-year structural bull market. By December end, after the meltdown in crude oil and the Russian rouble, most investors appeared to have tempered down their expectations.
The widely held view among market gurus now is that 2015 is unlikely to be as great a year as 2014 for equity returns. This forecast seems to be based on a belief in the law of averages more than anything. Last year's Nifty return of 31 percent was the best in five years, and most investors can't still believe their luck. Even those who firmly think that India is in the midst of a multi-year bull market find it hard to believe the market can rise 31 percent two years in a row.
But this has happened in the previous bull run, and not once, but three years in a row. Of course, this is not to say that it will recur in the future just because it has happened in the past. But the broader point is that consensus view on the likely returns in the coming year has been way off target too many times for investors to use it as an indicator.
In 2005, the Nifty gained 36 percent. That led many pundits to predict that equity returns in 2006 were unlikely to be as good, and that the market was likely to consolidate for a while. That forecast seemed spot on when the Nifty slipped into negative territory by mid-June. But the index reversed course from then on and closed the year with a 40 percent gain over the previous year.
After two consecutive years of handsome gains, most pundits felt the law of averages was bound to catch up in 2007. Accordingly they warned investors to keep their expectations realistic even if the trend was likely to be positive. The Nifty rose 55 percent that year.
By now, market experts were of the view that this party was likely to continue forever. Fancy (even atrocious) Sensex and Nifty targets were bandied about, and the camp of prophets calling for caution had shrunk considerably.
But 2008 turned to be a disastrous year, with the Nifty crashing 52 percent, way more than the wildest imagination of the most die-hard of bears.
For 2009, the consensus view was one of more gloom ahead. It was based on the assumption that things were likely to worsen further globally, and India would not be immune to the turn of events.
But global markets rallied in 2009 thanks to the monetary stimuli in US and Europe, and India was among the best performing markets with a 76 percent return.
It is a much different world than what it used to be back then. And no two bulls markets are driven by the same factors, even if there may be some common elements like liquidity for one.
Anecdotal evidence shows that markets tend to rise when the majority view is cautious and fall when there are too many optimists around.
Past may be no indicator of the future as far as financial markets are concerned. But if there is something the markets love to do consistently, that is proving the majority wrong.
Also read: Market gains in '15 unlikely to outperform '14: Morgan Stanley
According to Neeraj Deewan of Quantum Securities, one may avoid FMCG and metal space.
Neeraj Deewan of Quantum Securities told CNBC-TV18, "There is FMCG where I don't see too much of an upside potential. Outperformance can't happen from that sector because valuations are very rich there. Even metals if we see some clarity on what has happening with the demand supply there, till that clarity comes I will avoid metals also."
"FMCG and metals though there will be some stocks that will be looking attractive but for an outperformance point of view I will avoid these sectors for the time being," he added.
Tata Steel ended at Rs 399.35, up Rs 2.90, or 0.73 percent on the BSE.
Sudarshan Sukhani of s2analytics.com told CNBC-TV18, "There is a potential on the charts and momentum is in favour Britannia Industries and Pidilite Industries both. I don't track Talwalkars ; I wouldn't go for it anyway."
"For Pidilite the rally has just started and we have seen how good quality midcaps can do very well. This one qualifies as that, perhaps a minor correction is a buying opportunity," he added.
