Today, I bought 7 J&K Bank @ 645.

Amidst the pandemonium prevailed in the stock markets yesterday, I picked up small lots of Reliance Industries [718.55], Reliance Infra [347.70], Reliance Capital [247.70] and Axis Bank [898.10] within few minutes before closure.

[Saanil]

Guys - does anybody have any advice on any stocks in the autmobile industry? I was thinking of buying TATA Motors and Mahindra & Mahindra...Any views on them? I went through some previous pages but did not find anyone buying automobile stocks? Are people sceptical about the entire sector?

[MuraliR]

Originally Posted by Saanil

Guys - does anybody have any advice on any stocks in the autmobile industry? I was thinking of buying TATA Motors and Mahindra & Mahindra...Any views on them? I went through some previous pages but did not find anyone buying automobile stocks? Are people sceptical about the entire sector?

Saanil, as long as you are a medium term investor, both are good picks.

If you are a short term trader, keep away.

[SmartCat]

Originally Posted by Saanil

Guys - does anybody have any advice on any stocks in the autmobile industry? I was thinking of buying TATA Motors and Mahindra & Mahindra...Any views on them? I went through some previous pages but did not find anyone buying automobile stocks? Are people sceptical about the entire sector?

Tata Motors is a global MNC and a big percentage of its revenues come from JLR. This means, if Europe has issues, Tata Motors stock will suffer badly. Keep this in mind because European debt problem is something that will take time to fix. However, upcoming models from Jaguar & Land Rover Evoque's sales in Europe, US and China is positive for the stock. Tata Motors' India business is doing just about OK.

M&M is more of a India specific story. Buying into M&M will give you exposure to agricultural sector (Tractors), automobile sector (2 wheelers, 3 wheelers, 4 wheelers, commercial vehicles & passenger vehicles) and financial sector (owns M&M Financial).

Keep these two factors in mind when deciding between M&M and Tata Motors.

I think Maruti's management is a bit unethical when it comes to treating their Indian shareholders. Dividends are low while royalty payments to Suzuki Japan are extremely high. I would avoid Maruti stock.

[Saanil]

Originally Posted by MuraliR

Saanil, as long as you are a medium term investor, both are good picks.

If you are a short term trader, keep away.

Yes - I am not looking at them for short term. In fact I do not understand short term. I just do not understand the dynamics of short term. In fact I am thinking of owning them for long term. Just wanted to know what guys here think. Actually this would be my first entry into the stock market. I chose this sector because this interests me. I have decided to put small amount of money every month into stocks. The amount is such that even if I lose the entire sum it does not harm me. I thought investing small amounts would be a good start in developing an understanding of how the stock market works. People suggested me SIP but then I wanted to do my own research and buy stocks.

[Saanil]

Originally Posted by smartcat

Tata Motors is a global MNC and a big percentage of its revenues come from JLR. This means, if Europe has issues, Tata Motors stock will suffer badly. Keep this in mind because European debt problem is something that will take time to fix. However, upcoming models from Jaguar & Land Rover Evoque's sales in Europe, US and China is positive for the stock. Tata Motors' India business is doing just about OK.

I selected TATA motors because their JLR business was doing well (it constitutes a significant portion of their revenues). Recent sales figures of JLR have been impressive especially in China. Of course the Euro threat is always there. I selected M&M because of their diversified portfolio in India. The management is pretty bullish on their sales figures (overall and not only passenger vehicles).

I am doubtful about Maruti because I think their marker share will come under intense pressure in coming time (Hyundai being the major threat). Their margins have been consistently declining. I am kind of Neutral on Maruti.

Sorry for back to back posts. I replied to one post and then I saw another post quoting mine. I did not how to merge both of them.

[faustus77]

Saanil
Hi
M&M is a wee bit better after it took over Punjab Tractors about two and a half years back.(I hold M&M)
Reg Tata I am thinking of buying Tata Motors DVR.It is available at a 50% discount.I personally dont attend any meetings so voting rights dont matter .Think/or check about it.
Technical analysts prefer bajaj auto in this space.I personally prefer 4 wheeler
Regards

[SmartCat]

Originally Posted by faustus77

Saanil

Reg Tata I am thinking of buying Tata Motors DVR.It is available at a 50% discount.I personally dont attend any meetings so voting rights dont matter

Avoid all DVR stocks - they will always trade at a discount to normal stocks. Although voting rights doesn't matter to you, it does for institutional investors (both Indian & foreign).

When there is no institutional interest in the DVR you are holding, there is a big chance of the DVR underperforming the normal stock.

[KSM-Vtec]

Guys what are your views about the NHAI Tax free bonds?
They can be traded on the exchange, but will there be enough volume?

[MuraliR]

Originally Posted by Saanil

Yes - I am not looking at them for short term. In fact I do not understand short term. I just do not understand the dynamics of short term. In fact I am thinking of owning them for long term. Just wanted to know what guys here think. Actually this would be my first entry into the stock market. I chose this sector because this interests me. I have decided to put small amount of money every month into stocks. The amount is such that even if I lose the entire sum it does not harm me. I thought investing small amounts would be a good start in developing an understanding of how the stock market works. People suggested me SIP but then I wanted to do my own research and buy stocks.

Saanil, since you are not a short term trader, do not bother about the price falling from your buy level.
I would suggest you buy a specified qty on a specified date every month.

[devarshi84]

Tata Motors and Hero MotoCorp are being discussed in oodles. Tvs Motors has also been suggested by various brokers.

For long run I would Invest in tata Motors and Hero Moto Corp.

PS: Market cannot be assumed and trade at your own risk.

[Saanil]

Bought 10 stocks of TATA Motors and M&M each today. Now looking for good scripts in some other sector. Any suggestions?

[faustus77]

Saanil
Hi
Stick to large caps/blue chips like TCS,Infy,SBI,ITC,Reliance(I hold all of them)
Add a few more that you fancy like HUL,ACC,L&T etc to them(I hold ACC and L&T).Can you imagine India without them.
Noticed that you bought 10 shares each.When you sell them the depository charges will be more than rs5 per share(HDFC minimum charges rs 50+10%tax per trade)
Heard today on ETNOW that bajaj auto is weak and to be avoided for the time being.I am surprised.

Smartcat
Hi reg Tata Motors DVR it is available at roughly 50% discount whereas at most of the other places the discount is roughly 40%.Also (just checked on a site)FII holding is more than 27% and DII holding is more than 48%.So the institutions do not mind the DVR.In fact they,at least in this case,lapped it up
Regards

[Saanil]

Originally Posted by faustus77

Saanil
Hi
Stick to large caps/blue chips like TCS,Infy,SBI,ITC,Reliance(I hold all of them)
Add a few more that you fancy like HUL,ACC,L&T etc to them(I hold ACC and L&T).Can you imagine India without them.
Noticed that you bought 10 shares each.When you sell them the depository charges will be more than rs5 per share(HDFC minimum charges rs 50+10%tax per trade)

Hello faustus,
Thanks for the advice. I am looking at large caps only. One thing - How much tax one has to pay for gains on stocks. As far as I remember if your holding period is greater than a year (which is what I planning to hold my stocks for) there is not tax on the capital gains. Is this correct? This 10% tax is on what? buy price?