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Showing posts from May 17, 2009

PSU stocks: On divestment hopes

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With the UPA set to form the Government without the support of the Left but with a number of smaller parties, the PSU firms are expected to tap the stock market route in an aggressive way for raising resources as the smaller parties have no ideological objection to the arrangement. Counters such as BEML, Bharat Electronics, BHEL, Container Corporation, Dredging Corporation, Engineers India and Neyveli Lignite Corporation could see immense activity in the days ahead. Banks: Betting on reforms Expectations are high that financial sector reforms may see a big push. Relaxation of FDI cap in insurance, a free hand for banks in branch and ATM expansion and consolidation of the sector by merging underperforming small banks and stake dilution in some public sector banks are some of key reforms that might happen soon. Watch out for stocks such as Central Bank of India, Canara Bank, Indian Bank and Bank of Maharashtra besides banking behemoth SBI . Retailing: ...

When to sell your stock

When to sell your stock Good investment decisions involve not only buying at the right price, but also selling at the right moment. Here are some guidelines to help you.   A.V. Pai Consider a situation where you have to buy a stock at, say, Rs 100. See it climb to Rs 200 and then plunge back to may be Rs 80 in no time. Then it takes months or may be years for that stock to reach Rs 200. You rue your decision not to sell when the stock had touched Rs 200. Investor behaviour is motivated by greed. That makes us think that a rising stock will climb further. But until you sell, the capital appreciation is only on paper and, therefore, likely to vanish if prices start tumbling. Yet, the right time to unload shares is one of the toughest calls an investor has to make. Even investment analysts and fund managers admit it can be difficult. Here are a few guidelines you can follow while making the decision: Targeted return : Whenever you buy a stock maintain a target p...