Get Ready for Reliance Power IPO

Finally SEBI approved Reliance Power IPO and it is expected at any time. As a retail investor you can invest upto Rs 100000 and investment in this IPO is highly recommended. This is a golden opportunity for investors who have missed the Reliance Petro IPO. I will add more details on this IPO as and when available.

Power company stocks will go up with the announcement of this IPO and will remain hot till the listing of Reliance Power. Even otherwise, enough steam is left in power company stocks like Power Grid, NTPC, Techno Electric, Bharat Bijlee, easun Reyrole and Transformers and Rectifiers.

My next blog will be about the market prediction for year 2008 and about some of the best buys for year 2008. Stay tuned:)

Good Mutual Funds for year 2008 and Beyond

There are three good mutual funds in technology sector one can invest from a contrarian perspective as technology stocks have taken a beating because of Rupee appreciation and US recession worries.

1. DSPML technology.com (36.06)
2. ICICI Pru technology (16.20)
3. Franklin Infotech (TCS and Infosys main holdings) (46.75)

There are four other MFs worth considering.

1. DSPML TIGER (58. 40)
2. Reliance diversified power (80.38)
3. JM Basic (38. 36)
4. Franklin India high growth companies fund (13.77)


Disclaimer:

It is safe to assume that Artha and his close family members have positions in the above mutual funds.

Portfolio of Rs 100000 in the current market

Indian market is witnessing unprecedented bull market and the question everybody has in mind is how long this will sustain. Is it the right time to invest in the market? There is no right or wrong time to invest as long as we identify good growth companies. Here is an investment portfolio of Rs 100000 from 2 years perspective.

Company Number of Shares to invest market price Total

1. Bartronocs 100 240 24,000
2. Reliance Petro 100 229 22,900
3. Crompton greaves 25 416 10,400
4. Power Grid 100 49 14,900
5. ICICI Bank 10 1290 12900
6. Mcnally Bharat 25 297 7425
7. Hotel Leela 100 65 6500

Total 99025

Disclaimer: It is safe to assume that Artha and his close family members have positions in the above stocks.

Tax Saving Mutual Funds

Time has come for tax saving!!

Some good tax saving mutual funds are listed below. Invest as per your risk apetite. Do not be greedy and invest all the money in mutual funds. Invest at least 50% of your savings in PPF, NSC or Bank Fixed deposits. Also invest in at least 3 of the following mutual funds. NAV as of today is given in brackets for growth option.

High Risk, High return category (mostly mid cap fund)

Prudential ICICI Tax Saver (122.29)
HDFC Long term advantage (125.36)
SBI Magnum tax gain(68.30)

Medium Risk, Medium Return (mostly large cap fund)

HDFC Tax saver (204.99)
Sundaram Tax saver(46.16)
Reliance tax saver (relatively new fund) (20.44)

Low risk, low return

Franklin India tax saver (196.92)

Fed rate cut bad for IT companies, good for stock market

Fed has a cut interest rate by quarter percentage point yesterday. US stocks slumped as some investors were looking for a bigger cut.

Indian market may correct today as a reaction to US market correction. However, Fed rate cut is a good news for Indian markets and it is a good time to invest in some blue chip companies.

Dollar may weaken further and so IT company stocks may correct further. Investing in IT company stocks is not recommended for the time being.

Wait for opportunities to enter into stocks like Punj Lyod, BHEL, L&T, Reliance Petro, Power Grid, Reliance communications. Investment is recommended in these stocks if there is a market correction. Banking stocks are also good investment bets. Watch City union bank.

Buy Recommendation - Hotel Leela

Buy Hotel Leela at around Rs 60. This is a good investment bet from one year perspective. Keep a stop loss of Rs 50 and expect 100% appreciation within a year. I will try adding technical analysis and fundamental analysis of this company this week.

Other hotel stocks like Indian Hotel (Rs 140), Viceroy Hotel (Rs 120) EIH hotel and taj GVK are worth considering to build a good "Hotel Portfolio".

Note: Do not trade in these stocks and consider from investment perspective only. Artha has currently positions in Hotel Leela and Viceroy hotels.