Where is the Bull?

Party is over in Dalal Street. One of the longest bull-run has come to an end. Thanks to Inflation and not so enthusiastic growth figures from various sectors. Oil prices are at an all time high. In the middle of this uncertain environment, there are people with some disposable income but not sure where to put the money.
The Banks are giving handsome returns in Fixed Deposits. Suddenly 9% return from FD is looking more lucrative than share market.
There are ways to beat the negative returns from the market. Try looking for those sectors which are somewhat secured from these negatives factors. Firstly I will go for the media and entertainment sector. No one is going to stop watching movies (read PVR, ADLABS).These big multiplex groups are into movie production as well. Our film industry is doing well which in turn will lead to better numbers for these companies. Still the mantra is to buy and hold these shares as you won’t get some extraordinary returns in short term.
Another share which looks good from a long term perspective is Dish TV. It’s the only listed company in its category. Currently they are busy in capturing the market as the biggest challenge is to move Indian viewers from cable operators to set top box. Hence free set top box scheme will definitely make a dent in the financial books in short term but in the long term the picture looks bright. They will start getting the subscription fees which will improve the cash inflow. At current levels this share looks good. In a span of two years it will definitely give some handsome return.
Beating the street may not be easy but people are making money. Happy Investing!

Lakhtakiya !!!

Launch of Lakhtakiya (Tata Motors' Nano) was one of the much awaited events of the year. Ratan Tata managed to put the base price at 1 Lakh. Higher version will cost more based on the additional features.
Things have changed a lot from the announcement date till now.
Thanks to Mamata effect, the manufacturing plant completion is already behind the schedule. Project delay means cost overrun. If we go by the market rumor, TATA motor has already lowered their procurement figures from various vendors. This means that the launch may not be on a large scale. Initial rollout of Nano will be less in numbers.
Rise in the input costs will also put a lot of pressure on the margin. Rise in steel price and other input materials will definitely hit the bottomline. They have put an upper cap of 1 Lakh on the selling price (for base model) but putting a freeze on the cost is not possible. It is something that is determined by the market forces. Inflation figures are already making some new high every week.
Third hit would be from the competitors like Maruti and Bajaj. Maruti has already announced its plan to bring a trim down version of its ‘Maruti 800’ model. With so much experience in India car market and the already depreciated machinery, reducing the cost will not be a big challenge for Maruti. Existing distribution network and vendors will add to the advantage.
Ratan Tata has always come out in flying colors in the time of adversity. People were apprehensive at the time of Indica launch. I am sure Nano will not only clear these hurdles but win the hearts of the middle class who wants a safe vehicle. With so much innovation I am sure things would improve by the launch time. They have already filed for 34 patents. I am sure TATAs will come out with some new distribution model to reduce the cost. Adding to this is the cute look of the car which every middle class Indian want to own.