To reorganise Portfolio

I have recently entered into the market after a gap of 8 years. Bought few stocks 2 months ago and all have fallen dramatically. My intention is to build a solid asset base in a period of 5 to 8 years. The stocks which I bought are

SBI - @ 277
Tata Motors - @ 388
Mukta Arts - @ 53 (worst)
NTPC - @ 123
VRL Logistics - @ 407
Eveready - @ 331
Union Bank - @ 215
Nectar Life sciences - @ 38.50
IDBI - @ 66
IDFC - @ 138.50

Can someone guide me please as to how I can realign the current portfolio?

 

Dear Swaaminathan Narayanan ji,

your portfolio size is very good .... but your portfolio is needed some corrections ...
most of the investment in banking sector and PSU related , so please reduce that portion according to market rallies ...each sector invest in one company only

Exit from :

1.Mukta Arts
2.Union Bank
3.IDBI
4.VRL LOGISTICS

and add one oil company and also one metals company in your portfolio
like " NMDC , or GMDC , ONGC , or Reliance like that ... in metals sector their is a good correction happened

Instead of " VRL LOGISTICS " CONCOR is best

my suggestion is " Mid cap " stocks not exceed 50 % in your portfolio ...
maintain 20-30 % cash and invest in market falls
do according to your analysis and risk apatite

ALL THE BEST

 

Thank you so much Ramamurthy Ji for your time and prompt response. I bought IDBI Bk recently after FM's statement that the Govt would maintain arm's length to provide better autonomy for PSU banks and IDBI Bk would be the first test case. Hence my decision to buy. I take your suggestion to rejig my PF at the soonest possible time. Thanks again..

 

Dear Swaaminathan Narayanan ji ,
Thank You Very Much ...

please dont depend on new based completely .... If FM or any body
please go through the anual reports and study ...
in banking sector main key point is " NPA" so look into the that matter first ....
If NPA increasing quality of management is reflecting is indeed ...

quality of management is more important ....
in my 29 years stock market experience ..... i was fallen so many news issues and after that
company was shirking in that news like MOU s and expansion plans ...
so i never read such type of news based investments ....

please based on accounting numbers some extent ( in satyam computers case so many investors depend on accounts cash balance Rs.8000 cr. and result we are all know very well )

so in Indian markets transparency is not very well ...so always try to find out management faults and weakness through annual reports and management abilities ...it is a biggest problem ..but common investor search in this only .....

yes bank and indusind bank are best examples in banking industry ....

please compare NPA s with other companies .....

 

@Swaaminathan Narayanan ji, I would suggest that you exit IDBI and get into Syndicate bank. I feel that is the best PSU bank. If you see its credit growth, NII growth and NPAs, they are the best in the PSU bank basket. Also it has a nearly 5% dividend yield. Currently available at a really cheap price. If you are thinking of investing in a private sector bank, then I suggest Axis. I would also suggest the following shift:

1. Nectar - > Granules
2. VRL -> Snowman/Concor
3. TaMo -> M&M/Maruti
4. Mukta Arts -> Shemaroo

Dont know much about Eveready business to give any view.

 

Dinesh Kapoor Ji

Thank you so much for your time & valuable suggestion.

At the soonest possible time I would try and switch.

 

Narayanan Ji,

After 8 years what compelled you to come to the market again, just asking to get the perspective of investors like you ?

 

RamaMurthy Ji,

You have mentioned that you are in stock mkt since last 29 years. Its really great to find such ppl in this forum and you might provide good guidance. Which companies worked for you till date where you made a lot money large cap or small cap ? Asking this because the large cap now might be still large cap 29 years ago ? If we have 10 to 15 years horizon from now then should we invest in large cap now or search for small or mid caps.

Thanks in advance
Ajay

 

Dear Ajay ji ,
My initial investment Rs . 1000 /- given by my father in my 13 th birth day in 1986 and i invested in the name of my father in " master share " UTI mutual fund and i sold at 30 /- i got profit rs. 2000 /- after that i entered in IPO Business , My father and my cousin are my first gurus and in 1991 in my business i improved my capital to almost 1 lakh , in 1992 " Harshad mehta " Scam i lost nearly 60 % of my total capital ....at that time i am studying B.com. , i review my trading and investment , after that i entered into complete trading in " A " Group stocks only .... my main trading stock is Tata Steel ...
my success formula is i was calculate bank interest and double the bank interest after expenses , i sold my stocks , in those day physical certificates are available and high brokerage, T + 15 settlements , in 1997
after that in " Ketan Parekh " scam i think 1999 , i lost nearly 25 % of my total capital ....

after that i learned so many things in that crash i changed my trading and investment strategies
I have completed 4 NCFM Certifications , and In Andhra University i completed with distention in first batch " Diploma in Capital Markets " and after that i joined in a stock broking worked as a system operator for 5 years, after that i was change my life with full time trader and investor

after 2000 year i never suffer in any crash ...... before 2008 jan crash i sold my entire portfolio .....before one month in 2007 December .... that is a major turn in my life .... after crash i slowly infuse my amount in
market and i earned lot in that investments .....

now i am comfortable in my trading and investment .....

my major susses in IPO 's SBI , Plastiblends , M.S Show east , and other also

my investment success in " JSW STEEL , sintex , Lic housing , Tvs Motor , Lupin , Britania , Monsanto , Swaraj Engine , Reliance Ind , sund finance , can fin home , tata steel , Rcom , Tata Elexi , etc .....

i never invest in a tight portfolio , i invest in my portfolio below 25 stocks ....
60 % with large cap , 25 % in mid cap , 15 % in small cap only

my main trading is in Nifty Options segment and also equity trading & investment

in my experience " Entry and Exit also " very important for sucess

ALL THE BEST....

 

Ajay ji, To answer your query, am not a fresher to the market. I have been in the financial market for close to about 20 years, worked as an authorised assistant in the physical outcry system, in MF, in R&T, Indian Custodian and now with an MNC Bank taking care of Custody for International clients. I was very active in the market till about 7 years ago but only doing day trading (F&O) losing quite a bit of money in the 2008 crash. Now I want to revive but want to build my portfolio in a more structured way with more multi baggers. Dont have much time to go through Reports / Data. Hope to have clarified your query. Tks..

 

Thanks Ramamurhy Ji for the valuable information, I am a software engineer and I am in stock mkt since last 7 years basic knowledge but I was able to make 10 thousand per month basis most of the time(during this 7 years period) when I was active but never made big money and was happy with this but recently I have taken break from my work life. Some how I came to know abt Basant Maheshwari and studied Basant Maheshwari's book Thought Ful Investor and to gain more insight saw some videos in youtube available of various Indian investor that changed my perception that wealth can be created in stock market not just petty income. Thats why I asked question from you that how you guys have made money and I really thankful to you for sharing your journey.

I have heard from most of the ppl that Trading in FnO is deadly but seems you made money in that too.
You are the 1st person I found who made money in trading. I guess by trading you mean trading in FnO.

Once again thanks for sharing your views !

 

Thanks NarayananJi for the valuable information, I am a software engineer and I am in stock mkt since last 7 years basic knowledge but I was able to make 10 thousand per month basis most of the time(during this 7 years period) when I was active but never made big money and was happy with this but recently I have taken break from my work life. Some how I came to know abt Basant Maheshwari and studied Basant Maheshwari's book Thought Ful Investor and to gain more insight saw some videos in youtube available of various Indian investor that changed my perception that wealth can be created in stock market not just petty income. Thats why I asked question from you that how you guys have made money and I really thankful to you for sharing your journey.

I did some FnO some time 2 years before but never made any money out of it. I avoid FnO trading now a days.

Once again thanks for answering my query.

 

Dear ajay ji ,
Yes , my main income source is option trading .... i am a positional option trader ...
and some times day trading also ....

Basant Maheswari is a great investor , my advise is first decide you are a trader or Investor , short term or medium term or long term investor or day trader or F& O trader , your capital size , responsibilities in financial future needs and commitments ,which is comfortable and according to your own risk apatite ,knowledge levels and trade setups or investment strategies, First read all successful traders and Investors
books ...and improve knowledge and make your own business strategy which should be " Emotionless "


ALL THE BEST ...

 

Dear Ajay, Rama Murthy, Swaminathan ji, I found this thread very informative as people are sharing their journey of share market. I also wanted to share if it helps someone.
I am software engineer, started my share market journey in 2007 when returned from US and have some spare money. Earned 50-60% in 2007 mostly small caps and it halved over the period of next 3 years. By 2012, I had seen couple of rise and fall and epic fall of 2008 and was left with 60% of invested capital. All my friends quit share market with this experience.
I have a good interest in politics and in the early of 2013, my analysis suggested 90-95% chances of BJP winning and 70% chances of Modi becoming PM. I pumped the money again in Midcaps for a medium/Long term investments. I recovered and marched to good profit now and with a portfolio of Quality stocks which I will be happy to keep lifetime.
Some of the winners - Indiabulls housing, Granules, Dish tv, PFS, Sintex
Some of the losers - 3i Infotech, Geodesic, KS Oil, Jai corp

 

O

Hello,

Don't know your name but Thanks for sharing your thoughts and good to know that ppl having knowlege on politics too are in this forum. Thanks to Arun/Meenakshi for regularly updating content which is attracting ppl from different exp and background.
I also observed that ppl who did not quit the market have recovered their losses who invested in mkt since 2003 and remain invested.

What is your view on Bihar Election and chances of winning BJP there if BJP comes then definitely boost mkt sentiment.

Thanks
Ajay