Black Friday for Indian share market investors

D-Day finally arrived. Indian stock markets will be suffered huge losses and will see a panic selling from investors on black Friday. Nifty will fall below the final support point that exists at 4090 and BSE Sensex may lose 300-400 points. Long term investors can buy sound stocks at attractive price after the heavy fall. Though fall in markets is bad, it is good for long term investors.

Sentiment: Indian investors will see second biggest crash of 2007. All the global markets have suffered huge losses especially Dow Jones and Japan and Taiwan markets.

Sector of the day: IT and Sugar shares will be in lime light due to Government decision to allow sugar mills to retain central excise for 3 years from 2007 July.

Good signs:
1. Inflation is under control and it will be around 5%. Stocks may bounce back in the afternoon session due to inflation data or over correction.
2. Dollar may gain on weak currency.

Stock of the Day: Patni computers.

My stocks:

Enter into these stocks after the crash. Risk taking investors can take future positions in good stocks.

1. Sterlite India Industries.
2. Hindustan construction company (HCC)-Medium term.
3. Ispat industries – Long term.
4. Mahindra and Mahindra- short-medium term.
5. Idea Cellular.
6. Reliance Communications.
7. Patni Computers.
8. Cambridge Solutions.
9. Tata Chemicals.
10. Suzlon Energy.
11. Aurobindo Pharma and Glenmark Pharma.
12. AIA Engineering.
13. Alok Industries.

Significant stock news:

1. Textile sector will get relief package from government within a week or so. Take short term bet on textile stocks.
2. Tamilnadu petrochemicals- short-medium term with some risk.

Stock advice:

1. Mahindra and Mahindra will be going to rise in short term due to lack of options in auto sector.
2. I don’t believe in this Hindalco rise. It is a clear sign of herd mentality and I can’t understand why investors always fell in the trap of operators.
3. Risk taking investors can take short position in Tata tea.

Positive stock News:

1. Tantia construction received $1.8 billion order.
2. Patni computers will continue to rise on stake sale.
3. HCC got contract from Tata Steel.
4. Biocon signed MOU with an Australian University.
5. ONGC Board approved Rs 1200 crore investment to develop oss-shore fields in Mumbai high. 6. Mahindra and Mahindra is in acquisition mood in Italy.
7. Marico industries in restructuring mood and good bet for medium term.
8. Biotech industry touched $2 billion revenue in 2006-07 financial year.
9. Cambridge solutions is a good bet for short term.

Negative stock news:

1. Idea and Spice telecom called off merger deal. Invest in Spice IPO.
2. Tata motors decreased car production by 20% and delayed launch for India. Closely watch Tata motors, it may available at attractive value by mid July.
3. Negative momentum in Auto stocks will continue for another 10-15 days.
4. Hindalco will lose more around 7-10%.
5. Hindustan Zinc will suffer losses due to fall in Zinc prices.
6. Oil refining stocks will lose yesterday’s gains.

Day traders should stay away from Indian markets. Today is black Friday.

Please share your comments on my stock recommendations and analysis. Please share your views.

Business world issue on India’s most respected companies

Business world magazine has released special issue on India’s most respected companies. Investors should read this magazine as it gives an idea about the various companies from insiders.
Most respected companies:

1. Automobiles – Maruti Udyog, Tata Motors
2. Auto Ancillaries – MRF, Bharat Forge
3. Banking – ICICI Bank, Citibank
4. BPO – IBM Daksh, Infosys BPO
5. Consumer durables – Nokia, LG
6. FMCG – HLL, Britannia
7. Food Retail – Mc Donald’s, Café Coffee Day
8. Infrastructure – Tata Steel, L&T
9. Insurance – LIC, ICICI Prudential Life Insurance
10. Information technology – Infosys, Microsoft India
11. Media & Entertainment – NDTV, Bennett, Colemon & Co
12. Petroleum – Castrol, HPCL
13. Pharma – Ranbaxy, Cipla
14. Retail – Shopper’s Stop, Reliance Retail
15. Telecom – Bharti Airtel, Reliance Infocomm
16. Textiles – Raymond, Arvind Mills
17. Travel – Indian hotels, ITC Hotels

Long term investors may invest in the following companies:

Apollo Tyres, Castrol, Cipla,
Dabur India, TATA Teleservices

NDTV, Arvind Mills, Ranbaxy
Indian Hotels and TATA Motors.

Shares like Arvind Mills are quoting at attractive prices.

Most respected companies list provides an insight into what is happening in corporate India. These companies are rated high by the insiders. It is a measure of their credibility which is vital for the long term growth of the companies.

Magazine highlighted the fact that these companies will find it easy to hire the best talent. Their customers feel secure buying their products; their employees feel proud working for them. These attributes are necessary for the growth of any company.

Read more.