Good Time to Invest in Banking and Energy Sectors?

#1
Hi all,

The markets are down these days. Do you think its right time to invest in the market now? I want to get some shares in the Banking and Energy sector. Which would be the best buys in this section with one year investment point of view?

Thanks,
Oceanic
 

Alchemist

Administrator
Staff member
#2
Hi all,

The markets are down these days. Do you think its right time to invest in the market now? I want to get some shares in the Banking and Energy sector. Which would be the best buys in this section with one year investment point of view?

Thanks,
Oceanic
The markets have only lost 900 odd points from the top. I still find the valuations a bit stretched.

US economy is surely showing first signs of a slowdown. Also earnings growth in India is losing pace.

If you wish to invest, pick stocks that:

-are not dependent on exports especially to the US. Dollar is likely to weaken more in days to come and US consumer demand may also go down.
-are driven by consumer demand in India.
-are not cyclical in nature like steel and textiles.
-are leaders in their sectors and can withstand a downturn.

I like ICICI bank in the banking sector. It would be a good buy between 800-850.

Not sure about valuations of power stocks, but I like NTPC and Reliance Energy as businesses.

(I own ICICI and NTPC).
 
#3
.

I like ICICI bank in the banking sector. It would be a good buy between 800-850.

Not sure about valuations of power stocks, but I like NTPC and Reliance Energy as businesses.

(I own ICICI and NTPC).
Hi Alchemist,

Thanks for ur guidance and great analysis on various threads.:cool:

Can you please elaborate on "valuations"...acually someone told me it is good to buy at a PER of less than 10 and sell at 15. But when i do some search on internet, i dont find any stock less than 50 (!!!)...and say lowest good stock was TATA STEEL today at a PER of 14.5 (price Rs. 843)....

Also I have started trading recently(2 months) and I own GIPCL (nse code GIPCO) because it was available at a PER of 6 (Rs. 80) and belongs to power sector. Does it make sense or we need to consider some more factors.

Also I have been advised prefer debt/equity <1

Kindly advise me on this.

thanks:confused:
 
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