Tip for 2011

Since all the trends are positive, we expect the Sensex will hit 24000 by the end of 2011.

I think the market will not make much more boom in the first quarter of 2011

The investment in gold will not give much return in 2011 when compared with 2009,2010

Bank deposit is not attractive in this scenario

Start investing in shares because this is the right time and we expect a correction soon.

Please avoid speculation and Day trading.

I prefer yes bank, Bharat forge, Tata global beverages for long time investment.

The details about these shares will be discussed soon.......

( These are my calculations & conclusions, It may vary according to the market mood. So use your ideas and experience b4 investing  )

References:   Dhanam, Sambadhyam, Internet.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "


Different Sectors

Sector wise analysis is very important in the share market. There are different Sectors in BSE & NSE. They include the following

Sectors in BSE

1) Banking & Financial Services ( Andhra bank, Allahabad bank etc)

2) Automotive (Hero Honda, Tata motors, Bosch, Maruti Suzuki etc)

3) Consumer durables (Hitachi Home, Whirlpool etc)

4) Cement & Construction (ACC, Ambuja cements, GMR infra, Jaiprakash Asso etc)

5) Information Technology (Infosys, TCS, Wipro etc)

6) Food & Beverages (Britania, Nestle, GlaxoSmith etc)

7) Engineering & Capital goods (ABB, BHEL, Larsen etc)

8) Consumer non durables (Dabur India, Emami, Colgate etc)

9) Chemicals (Asian paints, Berger paints, Tata Chemicals etc)

10) Conglomerates (Bombay Dyeing, Grasim, Voltas etc)

11) Metals & mining (COAL India, SAIL,Tata Steel etc)

12) Manufacturing (Bharat Forge, Raymond etc)

13) Media & Entertainment (Dish tv India, Sun tv network etc)

14) Oil & Gas (BPCL, Cairn India, MRPL, ONGC, Reliance etc)

15) Real estate (DLF, Sobha Developers etc)

16) Pharmaceuticals (Ranbaxy, Glenmark etc)

17) Telecommunication (Bharti Airtel, Idea cellular, Reliance communication etc)

18) Services (Appolo Hospital, Jet airways etc)

19) Tobacco (ITC, Kothari product etc)

20) Utilities (Reliance infra, NTPC, Reliance power, Tata power, Power grid corp, Neyveli Lignite etc)

21) miscellaneous (Titan industries, V-guard ind etc)

(NSE also has these sectors. But the listed Companies will be different. Some companies listed in both NSE and BSE)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "

Financial Terms

Hello these are the very important terms that we usually hear in connection with the share market.


1) Bid- A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a thing. It can be a company, share or something like that.


2) Block trade- Block trading is actually a large amount of securities being traded, typically at least 10000 shares or something like that.


3) Blue chip stock- A blue chip stock is the stock of a well-established company having stable earnings good management strategies and no extensive liabilities.


4) Buyback-  Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price.


5) Circuit breaker- Circuit Breaker is a system to sustain sanity of the stock market. For example In the third week of January 2008 the BSE SENSEX index went into a free fall. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 AM. Trading was suspended for an hour. 


6) Defensive Stock- A stock that tends to remain stable under difficult economic conditions. 


7) Earnings Per Share (EPS)- Total earnings divided by the number of shares. For example let the share price of a company say 'A' be Rs. 20 and the EPS of A be Rs. 12. It means that the company 'A' makes a profit of Rs.12 annually by using 20 rupees that is invested by an investor.


8) Face Value- Face Value of a share is the value which is decided by the company issuing it, at the time of initial offering 


9) PE (Price Earning Ratio)- The most common measure of how expensive a stock is. The P/E ratio is equal to a stocks market capitalization divided by its Net Income over a 12-month (4 Quarters) period.


10) Penny stocks-  stock that trades at a relatively low price and market capitalization.


11) Speculation- Stock market speculation, by definition, involves taking a position that will benefit from a certain outcome. Speculators doesn't care about the inherent value of the stock. when investors become speculators they are purchasing a stock with the sole purpose of selling it to someone else at a higher price.

12) Stock dividend- A dividend payment made in the form of additional shares, rather than a cash payout.

13) Stock Split- A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the market capitalization of the company remains the same after the split, so that dilution does not occur.

Regards Hari  " लोका समस्ता सुखिनो भवन्तु "