[ijeet]

What you guys think. Is it right time to take a contrarian call on banks, Specially SBI and ICICI. I know there is fear of NPA's but at current price point both these look interesting for long term say 5-10 years. I am thinking of starting SIP, like picking up 25 shares every time it goes down.

BTW is there a way to find out the % of corporate and retail lending for banks?

-Ijeet

[swiftnfurious]

I have been hearing about the market correction to a possible 7300 (Nifty). Anyone else who thinks a good correction is due?

[Ferrari1976]

Originally Posted by ijeet

What you guys think. Is it right time to take a contrarian call on banks, Specially SBI and ICICI. I know there is fear of NPA's but at current price point both these look interesting for long term say 5-10 years. I am thinking of starting SIP, like picking up 25 shares every time it goes down.

BTW is there a way to find out the % of corporate and retail lending for banks?

-Ijeet

I had the same feeling...based on this simple valuation model:

http://valumonics.com/wp-content/upl...anks-worth.pdf

Comments are appreciated!

SBI Valuation based on this model: (using Sep Qrtr data)

Deposits NPAs Value Number of Shares Value Per Share
15,76,793.24 56,834.28 179684.70 746.57 240.6803193

[freedom]

Originally Posted by swiftnfurious

I have been hearing about the market correction to a possible 7300 (Nifty). Anyone else who thinks a good correction is due?

Nifty at 7300 or 7000 or 8000. If you are a long term investor (10 years+), just start putting in money every month. Buy a mix of blue chips and you will never (yes I will say NEVER) lose money.

You can make a killing in penny stocks and Midcaps, but Large Cap Index stocks will give you peace of mind and a very healthy return in the long term.

[sukhoi]

Originally Posted by deepv

Not very sure if there is another thread about this, quick search didn't point to any.

Would like to seek suggestions upon which demat/trading account to go for.
How does the low cost ones like Zerodha work out?

Am currently using ICICI Direct and happy with their services. The only drawback, they are relatively costly in terms of brokerages compared to some other providers. For example, they charge a flat brokerage in their iSecure plan only if you have purchase of 6.5K~7K odd or above else it is a % of trade which is a higher amount. This restricts you that when you buy you buy shares in quantity that it works out to this amount and hence minimum brokerage or else you may have to pay a slightly higher brokerage per share.

Zerodha on the other hand offers ZERO brokerage for delivery based trades and for trading / futures n options the brokerage is quite low (INR 20 or a % of trade which ever is lower).

One drawback of Zerodha as of today is that you would not be able to apply for IPOs, buy tax free bonds, NCDs, Mutual Funds (though I guess most of us would be moving to direct investments now). These are features that they are planning to add we they move along but today are absent. Another point, which I am not very sure of, is that there is a cost associated with transferring money from your bank to zerodha (from where deductions would happen for your trades). Other forum members who use Zerodha could confirm on this aspect.

Am planning to open a new account in Zerodha and do all my equity investment from that account and retain ICICIDirect for IPOs, TFBs etc.

Hope this helps.

Cheers,
S

My buy order of 100 Karnataka Bank @ 98 was executed just before the closure of today's trading at NSE.

[shajufx]

Just curious to know whats the best quarterly and annual return one can make through stocks in India ! I have been training and trading in international forex since 2001, managing a pool up fund since October 2015 and its going as per plan. I have never tried stocks and no clue about the possible annual figures. If its interesting, I like to give it a shot !

[faustus77]

Hi everybody.
A peek into the past and based on it a forecast of the future. Whether the market will go up or down is anybody's guess.
http://epaperbeta.timesofindia.com/A...14012016009034.
Happy investing.
Regards

[Ferrari1976]

This article written in the context of Chinese banks is directly applicable to the current situation of Indian Banks. A lengthy article but must read for all those wanting to invest in Banks:

http://blog.mpettis.com/2014/02/what...-about-growth/

[anand_lukose]

I think its a good time to start investing in portfolios that matches with your age and or risk profile. Folks who have been in on SIPs with their Mutual Funds should start increasing their SIP amounts if they can.

Investments should never be in lumpsum and there is no point trying to bottom fish and find the lowest point the markets can go to. It may go down to 7300 or even 7000 but would advise to start picking up good quality companies. If GST bill passes then we would start another bull run for sure.

Foreign investors have been selling out from every country and it is our domestic funds that have been supporting us so far. India among the Emerging Markets is still one of the best and safest but with pricier valuations. I am of the opinion that a much more stable yet growing economy nowadays can command more valuations. So, once FIIs realize that and return we should be already invested.

[spookey]

Originally Posted by shajufx

Just curious to know whats the best quarterly and annual return one can make through stocks in India ! !

Hi Shajufx ,

I started trading for a living since July 2013. I only trade in NSE stock futures and write options and dont do delivery based trading. My Annual returns (not compounded) were:
In Fy 2013-14 = 19 % , Fy 2015-16= 34 % , Current Fy 2015-16= 83 % so far. I prefer shorting stocks and write options.

[deepv]

Originally Posted by sukhoi

Am currently using ICICI Direct and happy with their services. ...

One drawback of Zerodha as of today is that you would not be able to apply for IPOs, buy tax free bonds, NCDs, Mutual Funds (though I guess most of us would be moving to direct investments now). ...

Thanks for your insight .. Sukhoi!

I have been looking at Zerodha's pricing and options for some time, and haven't been jumping for it due to lack of IPO support.
But you are right, it would make sense to have two accounts and use them according to suitability.

[spookey]

Originally Posted by spookey

Hi Shajufx ,

Fy 2015-16= 34 %

Sorry for the typo please read it as Fy 2014-15

Bought 50 Coal India @ 310. It has a dividend yield of 6.6% at this price.

[Ravijai]

Originally Posted by VindyWheels

Hi, not sure...everything small is cracking today.

Cupid, I had bought at 270 and would not buy at current price as margin of safety is less as per me. If it corrects to 300, would be quite interesting. Have a look at Pharma stocks like Jubilant Lifescience and Neuland Labs. Take solutions also look good after the corrections.

Hi Vindywheels,

What is the strategy you are following at this correction phase, any new picks or are you adding your old picks. Please share your views!!