The present fall of Indian stock market is so violent and vicious it forced me out of my slumber of so called bloggers block. The sudden and completely unanticipated tanking of the market is the result of many factors and the factors were cumulative. That is the reason of this violent fall trailing with some bloody aftermath after every fall.
I was shivering in front of my computer when I saw the freefall of the market as if there is no bottom, interestingly similar feelings was there when the market was going up at a frenetic pace (my earlier blog). Such wild movement of the market is definitely not good for the small investors.
But market reign supreme. The market is very vindictive in the hands of market operators. Probably it calls for proactive Regulators which do not yield to the stage managed hulla-bol of unscrupulous element.
Probably, after a long time, the market is reinventing value, and discarding momentum. In that case what will be our next logical step to rise like Phoenix from the ashes of our portfolios?
Should we cherry-pick some good mid cap stocks, large cap stocks, dividend paying stock and what not at some attractive price as some experts are dishing out their advice.
(Sometime I can not stand some experts who pose as Mr. Know-all and have some preconceived ideas which in most cases turn out to be wrong, but never accepted it. aka. ONGC, RNRL, L&T haters )
For me sit tight and watch is the best policy for the time being and buy my stock only after the market turns around from the bottom of this abyss.
I am very much sure we have a bull market ahead of us and may be these developments are for the best interest of us.
Showing posts with label dividend policy. Show all posts
Showing posts with label dividend policy. Show all posts
22 January, 2008
06 July, 2007
IS SENSEX ONLY A NUMBER?
Yesterday another milestone (15,000) achieved by Sensex or Indian Capital Market. Though market pundits tried to down play it by statingthat it was just another number waiting to be crossed, everyone including them were ecstatic. The Really Small and Helpless Investor (RSHI) will have renewed believe in the market.
Literally Sensex./ Nifty means nothing to small investors with very small amounts to invest in pricey Large-cap stocks. The dismal amount of dividends the index stocks yields in comparison to money invested is nothing. One of my friends (another RSHI) invested some good money around twenty Grands in ten shares of Infosys, the recent dividend he received was some pittance sixty five rupees only. It seems and is really worthless to have ten shares of an costly index stock, most of that sixty five rupees will be taken away by bank as transfer commission. I wonder why the dividends are not deposited in bank account directly. All Demat account holders must have a bank account and must be submitted while opening the Demat.
You can see the dividend declared by ONGC is another pinch of salt to injury. Had they not declared the dividends the stock price would have gone up leaving the small investors benefited. He would not have to deposit his cheque which the Bank Clark frown upon. The dividend payment policy is beneficial only to Big Investors and (for PSU) the Government, not to small investors. This is one of the main reasons the Really Small and Helpless Investor (RSHI) stays away from big index stocks, though the Large-cap stocks have shown excellent momentum in recent months.
The less costly Mid-cap and Micro-cap (Oh terminology! actually Small-cap) stocks do not provide this dilemma. The profits in most cases are utilized in expansion and stock price reacts.
(RSHI should preferably stay away from PSUs, I will have a public musing in this blog in coming days.)
I am very happy about the performance of Yes Bank, the run is not smooth but that’s a stock should do, correcting itself while going up.
Concern was about my second investment of HCL Technology, but CLSA predicted earning growth should be 62% for the next result. Only thing is rupee devaluation, Infy will lead the way as everybody believes. Probably wishes are shy away.
I purchased 100 stocks of IDBI at 117.90/- yesterday (with little conviction that market will not go down), but I have my own doubts. It was a spurt decision, will I repent later?
Literally Sensex./ Nifty means nothing to small investors with very small amounts to invest in pricey Large-cap stocks. The dismal amount of dividends the index stocks yields in comparison to money invested is nothing. One of my friends (another RSHI) invested some good money around twenty Grands in ten shares of Infosys, the recent dividend he received was some pittance sixty five rupees only. It seems and is really worthless to have ten shares of an costly index stock, most of that sixty five rupees will be taken away by bank as transfer commission. I wonder why the dividends are not deposited in bank account directly. All Demat account holders must have a bank account and must be submitted while opening the Demat.
You can see the dividend declared by ONGC is another pinch of salt to injury. Had they not declared the dividends the stock price would have gone up leaving the small investors benefited. He would not have to deposit his cheque which the Bank Clark frown upon. The dividend payment policy is beneficial only to Big Investors and (for PSU) the Government, not to small investors. This is one of the main reasons the Really Small and Helpless Investor (RSHI) stays away from big index stocks, though the Large-cap stocks have shown excellent momentum in recent months.
The less costly Mid-cap and Micro-cap (Oh terminology! actually Small-cap) stocks do not provide this dilemma. The profits in most cases are utilized in expansion and stock price reacts.
(RSHI should preferably stay away from PSUs, I will have a public musing in this blog in coming days.)
I am very happy about the performance of Yes Bank, the run is not smooth but that’s a stock should do, correcting itself while going up.
Concern was about my second investment of HCL Technology, but CLSA predicted earning growth should be 62% for the next result. Only thing is rupee devaluation, Infy will lead the way as everybody believes. Probably wishes are shy away.
I purchased 100 stocks of IDBI at 117.90/- yesterday (with little conviction that market will not go down), but I have my own doubts. It was a spurt decision, will I repent later?
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