Stocks
Nifty, Sensex, Bank Nifty bullish: Thursday Closing Report
Only a sudden reversal below 8,330 will be bearish for Nifty
 
We had mentioned in Wednesday’s closing report, India’s benchmark NSE’s CNX Nifty may move sideways now. A firm move above 8,450 would be needed to head higher and a decline below 8,300 could be bearish, we had said. As expected, the Indian indices were range-bound and recorded minor gains.
 
 
Making a strong pitch for investments, Finance Minister Arun Jaitley has asked long-term US investors to start investing without any delay as India's growth story is on a firm footing and all outstanding issues are under the government's active consideration. In his meeting with a group of US investors, Jaitley, who concluded his nine-day US tour Wednesday, alluded to the extensive reforms that have been launched by the Indian government during the last one year. Addressing long-term investors at a roundtable organised by CII and Kotak in San Francisco, Jaitley said the economic fundamentals are very strong, making India one of the most attractive investment destinations. This is the same pitch, former finance minister P Chidambaram used to make.
 
Shares of Information technology (IT) companies were under pressure, declining by up to 9% in an otherwise firm market. KPIT Technologies closed at Rs90.15, down 9.08% on BSE and Mindtree closed at Rs1,294.35, down 5.05%. KPIT Technologies shares also saw a spurt in volume with 40 lakh shares traded on the BSE as compared to a 2-week average of 1.26 lakh. Ravi Pandit, chairman and group CEO of KPIT Technologies, denied rumours of promoters selling stake in the company. He also clarified that the company has not issued a profit warning. The share price of KPIT touched its 52-week low of Rs85.05 on BSE.
 
State Bank of India (SBI) said it will install 10 lakh payment card swipe machines (point of sales, or PoS, terminals) across the country. It will double the number of places where card payment is accepted. The bank is also launching a huge campaign to promote cash withdrawal of up to Rs1,000 at these PoS terminals, which will reduce pressure on automated teller machines (ATMs). SBI shares closed at Rs265, up 1.01% on NSE.
 
Axis Bank has launched a new debit card Secure+ which will protect the customer from frauds of up to Rs75,000, even in cases where the fraudster has obtained the PIN number. The secure card also comes with a service that enables customers to store details of all their cards (including other banks) and block all of them with a single call in case of the wallet being lost. Axis Bank shares closed at Rs570, down 0.26% on NSE.
 
The top gainers and losers in main categories in the stock market are given in the following table:
 
 
The closing figures of other indices in India and abroad is given in the table below:
 
 
Among European indices, FTSE 100 was trading at 6,863.92, up 0.28% and DAX was at 11,555.78, up 0.74%. Athex Composite Share Price Index was at 786.50, up 0.72%. 
 
The US index futures were in the green.

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Changes to Our Stocks Section

Beginning this issue, we are dropping the Street Beat section and Long-term model portfolio

 

Regular readers would have noticed that we have now made extensive changes to the stock information we publish. Earlier, our stocks section consisted of analysis of one company in the Street Beat section; there was one item about stock manipulation, a list of value stocks and a model portfolio. We then added a new section—Stock Watch—which vastly expanded the section even as we dropped the list of value stocks. With this issue, we are making two important changes. We are dropping the Street Beat section and ending the model long-term portfolio we had started in 21 February 2013. We will retain the Unquoted section in the Stock Watch section, as it showcases, in every issue, examples of blatant price manipulation.
 
The Street Beat section has been an outstanding performer over the years, handsomely beating most top mutual fund schemes. In fact, as our report card on page 38 shows, over the past year, we have notched up a return of 50%. The long-term stock portfolio, consisting of many large cap stocks, has also easily beaten the Nifty over this period. So, why are we closing these two sections that have been an essential part of the magazine? 
 
We now put out a gamut of stock information and there is a need to avoid overlap between them to avoid confusion. Many readers of the magazine are also subscribers of the stockletters. They have often asked: between Street Beat stocks, long-term model portfolio stocks and also stocks in stockletters, which are the ones they should focus on? This confusion is now eliminated by dropping the Street Beat and model portfolio sections. The magazine will now focus on stocks and sectoral updates and thematic studies under the extensive Stock Watch section. The actual identification of stocks is done in stockletters, which will eventually be housed under Moneylife Smart Savers, the platform for choosing the right financial products.
 
The Stock Watch section, we trust, offers much food for thought for the serious stock-picker. We share our perception on results and offer insights into valuation from multiple angles, bearing in mind that it is valuation that makes or breaks returns. This section will expand your understanding of sectors and stocks but will not offer any definitive recommendations any more.
 
Readers, of course, eventually want to know which stocks to buy. The best of our ideas will be available only in stockletters, from now on. Indeed, there was always a question in our minds about which stocks to include in the Street Beat section and which stocks in the stockletters. This conflict will no longer hamper us. 
 
There was one more reason to drop the Street Beat section. It was a fixture of every issue and had to be filled up with a good stock once every fortnight. This was not a problem earlier; but has become a problem over the past 7-8 months, after the market ran up and made many small- and micro-cap stocks expensive. After all, it is small- and micro-caps that we focused on, to offer a distinctive choice to our readers. 
 
With such distractions out of the way, our stock team can now focus on honing various smart tools, such as systematic investment plans for investing in stocks. As and when we launch them, they will be available on savers.moneylife.in.
 
 
Moneylife Long Term Portfolio (MLTP) had 50 stocks, weighted equally & was benchmarked against Nifty and large-cap equity funds. But MLTP returns were not adjusted to the cost & constraints of equity schemes: 1) Yearly equity fund charges of around 2%  2) Buying & selling, based on purchase or redemption pressures 3) Impact cost in buying/selling

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COMMENTS

Chandradeep Khalate

6 months ago

I appreciate the Stock Letters and I am also a subscriber to two of them . As Novice investors people are always very inquisitive and what they need to know is a projected target price for the chosen stocks . Is it possible to add this estimating the price target for the next one year

Chandradeep Khalate

6 months ago

I appreciate the Stock Letters and I am also a subscriber to two of them . As Novice investors people are always very inquisitive and what they need to know is a projected target price for the chosen stocks . Is it possible to add this estimating the price target for the next one year

Chandradeep Khalate

6 months ago

I appreciate the Stock Letters and I am also a subscriber to two of them . As Novice investors people are always very inquisitive and what they need to know is a projected target price for the chosen stocks . Is it possible to add this estimating the price target for the next one year

Chandradeep Khalate

6 months ago

I appreciate the Stock Letters and I am also a subscriber to two of them . As Novice investors people are always very inquisitive and what they need to know is a projected target price for the chosen stocks . Is it possible to add this estimating the price target for the next one year

Sudharshan Katipally

2 years ago

Magazinaes are not a free content, it is premium content and are charged accordingly. Magazine should continue investor knowledge section specifically equity specific, be it model portfolio or stocks fundamental insight.

REPLY

Debashis Basu

In Reply to Sudharshan Katipally 2 years ago

You seem not to have noticed that we have EXPANDED the stocks section

Sudharshan Katipally

2 years ago

You should not stop completely, magazine will loose its weightage. There are 4 stock letters and each stock letter has upto 50 stock recommendations which will make a total of 200 stocks which could cause confusion to investors and also the performance is questionable as there are stocks which have fallen more than 25% in couple of weeks after they are recommended.

REPLY

Debashis Basu

In Reply to Sudharshan Katipally 2 years ago

You say each stockletter has 50 stocks. This is false. Every issue clearly says it will have maximum of 30-35. We have 20-22.

webkitendfullscreen

2 years ago

Good move as free advice is never taken seriously and most of the paid advice in stocks promise get rich quick ideas. As a premium member of MSSN I can vouch that stock letter advice is good and realistic. Also there is no confusion in choosing the stocks.

Muru R

2 years ago

ML-"Best of the rest '

R Balakrishnan

2 years ago

Nice move. Free advice is never appreciated.

REPLY

Nilesh KAMERKAR

In Reply to R Balakrishnan 2 years ago

Very true . . . "If you don't value your time, neither will others. Stop giving away your time & talents. Value what you know & start charging for it." - Kim Garst

Arpita Padiyar

In Reply to Nilesh KAMERKAR 2 years ago

It is not free. People pay for the magazine.

Sucheta Dalal

In Reply to Arpita Padiyar 2 years ago



There are new SEBI rules too that you may want to touch base with

Nilesh KAMERKAR

In Reply to Arpita Padiyar 2 years ago

Now pray, do consider the foll:

More than 60% of the stocks in MLTP have given a return of 20% per annum or more;

If you had invested say, Rs.1000/- only in any five of 'those' stocks . . . Then you would have made profit, anywhere in the range of Rs.1000 to Rs.Rs.3000 (conservative estimate) on an investment of Rs.5000/-

Now from the above, we say, it is the stock recommendations that paid for the magazine - & not the other way round.

Debashis Basu

In Reply to Arpita Padiyar 2 years ago

Yes. we appreciate it. As we explained, we have EXPANDED the stocks section

Suketu Shah

2 years ago

nice changes and congrats for the successful returns.

V ganesan

2 years ago

This is another unethical way from moneylife to force readers indirectly to subscribe moneylife stockletters.Recently u have raised magazine subscribtion by 50 percent. I am not expecting this kind from a magazine like moneylife.How a reader can find a stock whether to hold or sell or buy without a subscriber of moneylife stock letter.Kindly provide

REPLY

Debashis Basu

In Reply to V ganesan 2 years ago

"Another unethical way"? Hope you can cite our previous "unethical ways" too. You seem to be full of anger, hostility and bile about Moneylife. I am sure you will find more ethical and higher quality resources at lower cost to satisfy you :)

Rakesh

In Reply to V ganesan 2 years ago

You pay up for quality. Hope you know that good quality scrips are always expensive :-)

Rakesh

In Reply to V ganesan 2 years ago

There are lots of information source totally free like moneycontrol and CNBC. Wonder why you have been reading an unethical publication so long.

Suketu Shah

In Reply to Rakesh 2 years ago

mc and cnmc are best to suggest to yr enemies they provide 4/5 wrong picks! lol

How Did We Do in 2014?
Stocks from our Street Beat section were up 50% and those from our Cover Story of 20 March 2014 were up 79% in one year. From this issue, we are closing the Street Beat section and model long-term portfolio
 
31 March 2015, rose on an average of 50% (since the date of recommendation) when the Sensex rose just 15% on an average. Cover Story stocks managed to give an average return of 79% when the Sensex managed to gain 28% for the relevant period. An ‘active stock’ refers to a stock which has not been exited up to 31 March 2015. Our Street Beat section focused on many small-cap stocks because these are not tracked by analysts and fly below the radar of institutional investors. Such stocks had a great run in 2014. Here is our report card.
 
Of the 26 stocks recommended in our Street Beat section, four stocks were exited at profit. Aarti Drugs, mentioned in our issue dated 3 April 2014, was added on the merits of the company’s ability to launch bulk actives at low cost and provide contract research and manufacturing to partners in the developed markets. This stock was added at a price of Rs263.30 (when it was trading at a price/earnings of 5.95). Within a span of four months (18 July 2014), the stock reached at PE of 11.72. This was close to its highest PE (10.78) since September 2005. We booked a profit of 127%. 
 
Similar was the price performance of Aarti Industries which was exited at profit of 65% (issue dated 7 August 2014) as it came close to its highest PE level since June 2007. PBM Polytex, a cotton textiles company, was added in our issue dated 15 May 2014 when it was trading at Rs57.50. The stock soon surged from this level to Rs93.05 on 12 September 2014. We exited from the stock, in our issue dated 16 October 2014, booking a profit of 31%. At the time of exit, it was trading at PE of 3.41 which was its highest since September 2012. APM Industries, yet another textiles sector stock, which is into manufacturing and marketing of synthetic blended yarn, surged 55% from the time we added it. We exited at a profit of 36% in our issue dated 16 October 2014. The stock hit its highest PE of 3.91 since June 2009. Grindwell Norton, which was added in our issue dated 13 November 2014, never hit its recommended price.
 
Of the remaining 21 stocks, our assessment went wrong about Jaysynth Dyestuff which was recommended when it was trading at Rs61.85. From there, it went to hit its 52-week high closing at Rs69.80 on 27 August 2014. However, deteriorating fundamentals pulled the stock to its 52-week low closing at Rs33 on 26 March 2015. It was trading 44% below its recommended price on 31 March 2015. 
 
There were a few more in this category, namely, National Peroxide, Kirloskar Pneumatic and MOIL which closed lower on 31 March 2015. National Peroxide rose 34% by January 2015 from the recommended price but since then, the stock moved down. Excel Crop Care, technical-grade manufacturer and formulator of agro-inputs, was mentioned in our issue dated 16 October 2014 at Rs900. The stock hit the price on 9 February 2015. By 19 March 2015, it rose 8%. The five stocks which closed lower were, on an average, down by 15%.
 
 
As many as 16 stocks surged an average of 70%. Acrysil, aspiring to become a one-stop lifestyle kitchen products manufacturer, was added when it was trading at PE 9.78. By September 2014, it surged to a PE level of 31.69. At the end of March 2015 (based on four quarter trailing net profit for quarter ended December 2014), the stock was trading a PE of 28.11. This is among the top two gainers (204%) in our list. Finolex Cables, the top gainer in our list, closed 238% up. The lowest gainer has been Navneet Education which gained 4% since it was recommended. 
 
Our cover story of 20 March 2014 on stocks with dividend yield worked out very well. These stocks delivered 84% returns (79% on price and 5% on dividend). Of the 11 stocks only Andhra Bank did not declare dividend between 1 April 2014 to 31 March 2015. Akzo Nobel paid the highest dividend of 750%. It delivered 87% (inclusive of dividend). 

User

COMMENTS

Geoffrey Allen

2 years ago

If Street Beat and the Model Long term Portfolio is to be discontinued from the next issue....is there any thing similar that would take its place. Would very much appreciate if you could reply on this subject.

Thanks and Regards

Sudharshan Katipally

2 years ago

consider to keep them active.

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