19 July 2008

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!

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