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Beginners in Share Market

CA Nikita (Chartered Accountant) (4158 Points)

29 August 2007

hi!!

This thread is created so that we can get clear with the terms used n the way the stock market is read.. experts plz help the beginners...

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(Guest)

me wanna start investment in Shares, Presently my budget is 25000/- and me interested to add 25000/- in my portfolio each quater. Bit conservative kind of person BUT ready to take some Risks Suggest any suitable Shares & ALSO suggest how I should manage to invest for deduction u/s 80 C. Thanks n Regards.

Rajesh Itty Eapen (111 Points)
Replied 29 August 2007

is there any share which would fetch u ded u/s 80c...i dont think so..except for mF's... well, wit 25000 u can try mid caps as of now.... play it slow.... u can only get exemptions in case of LTCG....

Yash Arya (Profession) (128 Points)
Replied 31 August 2007

Hy Dixit, You need to set targets in terms of time and returns. First decide on returns, then the time period and accordingly the scrips can be choosen with the varied intensity of risk. Currently earning 20% p.a. in stock market is achievable. You may prefer to go for Mutual Funds also. GOOD LUCK

(Guest)

Try to invest in Infosys,IFCI,Rel Comm,Airtel.Try to invest in IFCI as much as possible

SAIRAM (Chartered Accountant) (88 Points)
Replied 04 September 2007

Hi Vimal. I agree with you. IFCI is at the verge of selling its stake sale.They have invited bids and decision will be taken at AGM to be held on 15th.There is rumour in market that investors are ready to pick the stock at Rs.85/- As per my calculations IFCI is worth Rs 105 a share. The whole stake sale is expected be closed by Jan-08. They highest bidders/winner of bids should additionally purchase 20% from the public. This is a safe stock to be invested in this volitile market. One can expect this stock to touch Rs 80 before AGM

SAIRAM (Chartered Accountant) (88 Points)
Replied 04 September 2007

One can also invest in Nagarjuna Fertilisers(NFCL). It is trading at Rs.42. This stock got movement from the anouncement of fert. subsidy of Rs7000 crore worth bonds.As a topping for this Reliance(RIL) want to takeover this company. NFCL is the only gas based company in India (to my knowledge) and is situated at Kakinada. Investment by RIL in NFCL is a Good bet for both the co's.NFCL has a mrk share of 7% and mrk capitalisation of 1700 crores. Based on the mrk share it can get a subsidy of 490 crores. It got a vacant land which worth around 500 crores. Its refinary business got support from Tatas and expected to start business from next year. Purchasing NFCL at this levels is a very good investment.

Shashwat Shekhar (Assistant Manager) (3528 Points)
Replied 05 September 2007

Read Dalal Street and for initial few weeks try to see whether scrips suggested by them r good or not. This way u will learn the basics. Later u go and invest on urself

(Guest)

please send me the knowledge about working of share market

SAIRAM (Chartered Accountant) (88 Points)
Replied 14 September 2007

HI Everyone. IFCI had touched Rs 80 in todays trading but gave up the gains after market fall. Unconfirmed sources say Reliance capital had kept its bid at Rs 105. Risk appetite investors can enter this stock to take a chance. Others keep out of this stock at current levels.

SAIRAM (Chartered Accountant) (88 Points)
Replied 14 September 2007

GOM has approved Relaince gas pricing at 4.2mmscd. And Petroleum minister said they will be decreasing fertilizer subsidy by 4000crores. This a big negative news for fertilizer companies including for NFCL (recommended before).Can see a fall in prices for these companies in near term. Have to wait and see for any positive news!!

SAIRAM (Chartered Accountant) (88 Points)
Replied 14 September 2007

Good scripts at current level:

Aftek Limited @ Rs.83/- moved by 32% in two days.This stock at current price got market capitalisation of around 742 crores.

a)The fully owned subsidary of Aftek hold 25.6% in seekport(search engine) which was listed at Frankfort stock exchange.The returns on this his investment is 660 crores to Aftek (around 90% of current mrkt cap).

b) consolidated diluted EPS of for previous year is around Rs 11/. 10 times PE ratio (currently for front line stocks line Infosys has a PE of 18) will convert the stock price to 110.

So my near term (3 months) price target on this stock is around Rs 180 (optimistic view). Dont get surprised if stock touches Rs.120 within next 10 trading days

Bala Ca (Assistant Manager) (42 Points)
Replied 18 September 2007

Hi Friends, For the long term horizon investment in Reliance Petroleum may be considered at this level.

Bala Ca (Assistant Manager) (42 Points)
Replied 18 September 2007

Hi Akshay,

It is purely based on the demand and supply for the shares dealt with in it. If someone is willing to buy and someone is willing to sell then both orders will be matched and a trade take place.