morning thoughts...
The markets continued its journey upwards and achieved our logical and advanced targets of 7900 on nifty front.
Technically 7950 is a resistance and tiring zone for the markets and mild reaction and profit booking can be expected.
On the lower side good supports and cushion exists around 7800 levels.
Astrologically jupiter is out of combust mode which will support pharma and steel stocks and most of the pharma stocks are likely to outperform the markets and rise against the trend.
However,apart from the fact that most investors today were not even aware of an asset class called 'stocks', way back in 1991, the Indian equity market itself was nascent. By the end of 1991 the BSE Sensex was near 2,000. Since then it has multiplied 13 times or 1300%. Over this period, India's nominal GDP has grown about 5.4 times or 540%.
Hence for investors today the idea of riding such a huge rally in stocks seems surreal. Most believe that since the markets itself were nascent in 1991, any and every stock was bound to grow multiple times and become a multibagger. That the economy or the fundamentals of the stocks then had anything to do with the mind boggling returns is completely discounted.
Now over this time, companies like L&T, Nestle, Voltas and ACC that were part of the Sensex way back in 1991 went on to create unimaginable wealth. The stocks of L&T and Nestle, for instance, gained 65 times and 47 times respectively since 1991. Now, as we know, it is not as if the Indian stock markets were on a secular uptrend during the past two decades. In fact thanks to several domestic and external factors, stocks markets have seen several bull as well as bear phases during this period.
However, the fact that helped each of these stocks come out unscathed from each market cycle, was that they were the key beneficiaries of what we call 'Mega trends'.
The Mega Trends have diverse meanings and impact for different industries and companies. As the economic dynamics globally are changing rapidly, new competencies are coming into play at half the lifecycle speed of the past decade. The Mega Trends are therefore a vital cog in a company's future strategy, development and innovation process. Especially since it influences product and technology planning. Mega Trends can be used as a base for strategic decision-making in organizational functions such as marketing, R&D budget spending, product planning and development, human resource management, technology planning and innovation scouting.
According to us, several such Mega Trends are set to play out over the next decade or so. Ones that could create so much wealth that by 2025, investors will find the stock prices of today as puny as we find the ones in 1991.
Those who believe that investing based on such Mega Trends can hardly yield results should not forget that India's outsourcing opportunity was nothing but a Mega Trend way back in 1991. One that led to the creation of IT behemoths like Infosys,Wipro and TCS, as we know them today.
So the key is to accurately identify such Mega Trends that could play out over the next decade, irrespective of geo-political, economic and social headwinds. Having done that, one needs to zero in on companies that have rock solid managements and balance sheets to capitalize on the trend, come what may.
And for investors who never had the chance to invest in stocks in 1991, this could be a once-in a lifetime opportunity to revisit 1991. A chance to witness what it is like to invest in companies that will be the biggest game changers over the next decade and more.
Coming to the commodity markets bullions will show mixed trend with a negative bias.
Base metals and energy are likely to trade positive in the coming session.
Wednesday wealth creators
Buy zinc , copper , crude
Sell gold , silver , natural gas
Fii and jackpot - buy ktil , bpcl
With jupiter out of combust mode pharma stocks will outperform
Indoco remedies , shasun chemicals , drl , sun pharma , ranbaxy , ind swift labs looks the strongest buy candidates
The markets continued its journey upwards and achieved our logical and advanced targets of 7900 on nifty front.
Technically 7950 is a resistance and tiring zone for the markets and mild reaction and profit booking can be expected.
On the lower side good supports and cushion exists around 7800 levels.
Astrologically jupiter is out of combust mode which will support pharma and steel stocks and most of the pharma stocks are likely to outperform the markets and rise against the trend.
However,apart from the fact that most investors today were not even aware of an asset class called 'stocks', way back in 1991, the Indian equity market itself was nascent. By the end of 1991 the BSE Sensex was near 2,000. Since then it has multiplied 13 times or 1300%. Over this period, India's nominal GDP has grown about 5.4 times or 540%.
Hence for investors today the idea of riding such a huge rally in stocks seems surreal. Most believe that since the markets itself were nascent in 1991, any and every stock was bound to grow multiple times and become a multibagger. That the economy or the fundamentals of the stocks then had anything to do with the mind boggling returns is completely discounted.
Now over this time, companies like L&T, Nestle, Voltas and ACC that were part of the Sensex way back in 1991 went on to create unimaginable wealth. The stocks of L&T and Nestle, for instance, gained 65 times and 47 times respectively since 1991. Now, as we know, it is not as if the Indian stock markets were on a secular uptrend during the past two decades. In fact thanks to several domestic and external factors, stocks markets have seen several bull as well as bear phases during this period.
However, the fact that helped each of these stocks come out unscathed from each market cycle, was that they were the key beneficiaries of what we call 'Mega trends'.
The Mega Trends have diverse meanings and impact for different industries and companies. As the economic dynamics globally are changing rapidly, new competencies are coming into play at half the lifecycle speed of the past decade. The Mega Trends are therefore a vital cog in a company's future strategy, development and innovation process. Especially since it influences product and technology planning. Mega Trends can be used as a base for strategic decision-making in organizational functions such as marketing, R&D budget spending, product planning and development, human resource management, technology planning and innovation scouting.
According to us, several such Mega Trends are set to play out over the next decade or so. Ones that could create so much wealth that by 2025, investors will find the stock prices of today as puny as we find the ones in 1991.
Those who believe that investing based on such Mega Trends can hardly yield results should not forget that India's outsourcing opportunity was nothing but a Mega Trend way back in 1991. One that led to the creation of IT behemoths like Infosys,Wipro and TCS, as we know them today.
So the key is to accurately identify such Mega Trends that could play out over the next decade, irrespective of geo-political, economic and social headwinds. Having done that, one needs to zero in on companies that have rock solid managements and balance sheets to capitalize on the trend, come what may.
And for investors who never had the chance to invest in stocks in 1991, this could be a once-in a lifetime opportunity to revisit 1991. A chance to witness what it is like to invest in companies that will be the biggest game changers over the next decade and more.
Coming to the commodity markets bullions will show mixed trend with a negative bias.
Base metals and energy are likely to trade positive in the coming session.
Wednesday wealth creators
Buy zinc , copper , crude
Sell gold , silver , natural gas
Fii and jackpot - buy ktil , bpcl
With jupiter out of combust mode pharma stocks will outperform
Indoco remedies , shasun chemicals , drl , sun pharma , ranbaxy , ind swift labs looks the strongest buy candidates
