Top Indian Stocks To Buy, Stock Picks : Which companies are attractive now in the Indian Stock Market?

I like few companies that are very attractive for investing/trading on the Indian Stock Market

For investment purposes I like Bartronics (No bad news here), IDFC (I think slowdown in infra lending considered here ) and Suzlon (I think it has been battered enough and all the bad news has been incorporated). I will buy Bartronics at the current levels but will wait for IDFC and Suzlon to fall a little since they have run up quite a bit in the last week or so.

For trading purpose I like banks - Axis and ICICI. This sector again was the most affected and I think only better times are ahead for this sector esp with the falling lending/interest rates. Axis is a definitely a buy at current price but ICICI has to go down to around 350 or less to be a buying stock.

RK

Stocks to Invest during the month of September

I had mentioned in my other blog post the stocks that I am looking at the moment to put in, in fact I already did, my money. One of them is Tata Steel. I thought I will look at the various analyst/brokerage houses predictions for Tata Steel and see whose estimate was closer to the actual stock price.

My decision to buy Tata Steel is purely on its reaching its 52 week low. I do hear news about steel prices cooling down which will in turn reduce the margins of these companies but I assume this information has been reflected in the stock price which should be according to the efficient market theories.

The following gives the estimates from 4 houses which I picked from Rediff. One interesting thing is that Tata Steel's price has nose dived in the last few days which were after these houses published their recommendation. I don't know the reasons for this but lets see how far these houses are right. I will keep updating this post for any new estimates and track this stock progress.

Broking house Action Date Price (Rs)

Edelweiss Research Buy Sep 10, 08 1,035.00

Indiabulls Hold Sep 10, 08 605.00

Religare Buy Sep 09, 08 780.00

Merrill Lynch Buy Sep 04, 08 700.00

RK

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Indian Retail slow down claims another victim - a big one!!

A RIL spokesperson said in an email, "We started the mart with 1,55,000 sq ft. We have right sized to 1,00,000 sq ft. We plan to use the excess space generated for other retail ventures in the pipeline."

This statement speaks the story. This is what was stated in CNBC

Reliance had to slowdown expansion and even downsize its hypermarkets, just two years since the launch of its retail operations. In Ahmedabad, it is leasing out an entire floor to other retail players, possibly an American restaurant. The hypermarket that started out over three floors is being reduced to two, the third being leased out

Too many players entered into retail in too short a period of time. This happens time and again -businesses trying to get pie of a market that has huge growth potential subsequently creating a bubble which can then only grow as big before it bursts. Virtue of patience is lost by individuals and businesses alike. Everybody wants to have those profits right now, can't wait for few years. This includes me as well, I don't have the patience to hold on to stocks that are stagnant but have good potential in few months time.

Warren Buffet is right when he says

"The stock market is designed to transfer money from the active to the patient."

RK
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Investment opportunities for the month of September

I am looking at Tata Steel and Indian Hotels for investments during September. I follow the Value averaging method of investing. I already picked up some shares of Tata Steel today at 525 apiece. I really think it is available at a discount with minimal downside.

I really would like to pick up Indian Hotels, they had announced today to set up 50 new hotels under Gateway name. But I ran of money for this month since I picked up some piece of Reliance Communication which is also available at a great price with limited downside.

I am selling off some of the non-performing stocks to get the rupees to invest these good stocks. But I am confused if I should put in more money this month or should I wait for October. I think the markets will still be as volatile as now for the next 2-3 months so I should be able to pick them up at prices closer to what they are right now. Lets see!

RK

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