Friday, February 19, 2016

Market Movement & Industry Performance

We like debt free companies with good cash,  i feel investors too should aim same for own    portfolio  that is good bottom line  along with good cash in hand parked in liquid funds /tax free bonds . This will give regular annuity income & regular cash flow.

We have seen down grade of rating for Saudi Arabia & Bahrain  it is possible  that it may have negative impact as  many of Indian companies have businesses over there & few Indian banks have branches over there . there is talk of  that down grading may lead to devaluation of currencies too. thus  uncertainty to prevail.

This may lead to more NPA ,  and banking to have more pains .

Investors need to  be cautious even in pvt banks too.

Fortunately we avoided  banking / metals / psu stocks / engineering business related with oil& gases   over last few years , it is very important  where  not to invest,

It is always better to stay  with performing businesses .

We may see  good business opportunities in view of falling raw material prices  at the same time it may not be easy to earn decent  gains in portfolio in 2016/17.

Investors need to spend good time on study & practical  approach  to identify sectors .

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