40 companies which can give promising returns in the long term if we stick with it. In fact one can do more research on this list to construct a well balanced portfolio based on the individual risk potential. If we continue to invest from current price levels irrespective of whether the market goes down or up, there is a strong chance to get above average returns over the 5 year period.
To considered while selecting these Stocks?1. Book Value
2. Current and Past EPS and PE Ratio
3. Debt / Equity Ratio
4. Current Ratio
5. Future Potential(Main reason for Selecting Commodity Stocks)
6. Size of the Company
7. Comparative Advantage or Uniqueness
Listed the companies group/sector wise and
SENSEX STOCKS
1.State Bank of India
2.Larsen&Toubro
3.Reliance Infrastructure
4.NTPC
5.ONGC
6.BHEL
7.Reliance Communications(At current price) or Bharti Airtel(If less than Rs.550)
8.ICICI Bank
9.Tata Steel
Outside Sensex
Banks
10.Axis Bank
11.Punjab National Bank
12.Yes Bank or Bank of India
Power
13.Reliance Power
14.CESC Limited
Agriculture
15.Jain Irrigation
16.Chambal Fertilizers
17.Tata Chemicals
18.Gujarat State Fertilizer Corporation
19.Kaveri Seed Company
Pharmaceutical
20.IPCA Laborotaries
21.Lupin
Finance
22.Reliance Capital
Commodities/Diversified
23.Kesoram Industries or Nava Bharath Ventures(Cement and Sugar) or Ultratech Cement(If less than Rs.400)
24.Sesa Goa
25.Welspun Gujarat
26. Indian Hume Pipe Company
Engineering and Infrastructure
27.IVRCL Infrastructure
28.Hindustan Dorr Oliver Limited
29.Punj Lloyd
30.Elecon Engineering or Lakshmi Machine Works
Technology
31.Rolta India
32.Tulip Telecom
33.Geodesic Information Systems(If you believe in VAS)
34.Compact Disc India (Small Cap) or Crompton Greaves (Mid Cap)
35.Jindal Photo (Small Cap) or Siemens (Mid Cap)
Others
36.GAIL
37.GE Shipping
38.Bilcare
39.Mundra Port and Special Economic Zone
40.Aditya Birla Nuvo or Clariant Chemicals
Tips to Construct a Good Portfolio:
1. Select atleast 7 SENSEX Stocks from this list.
2. Spend 50 percent of your investment in the SENSEX stocks that you have selected.
3. Select 10-15 companies outside of SENSEX from this list or the companies that fit into your scheme of things.
4. Spend another 30 percent in the Large/Midcap stocks you selected.
5. Spend the rest (20 percent) in Small Caps that you selected.
6.Continue investing from current levels irrespective of the Market ups and downs.
7.If the Bull market sets in, then stop investing when the SENSEX gains 75 percent from the current levels (Around 16000). This is for the long term investors only.
8.Do not reconstruct your portfolio unless SATYAM like situation arises for any of your stocks.
9.Never get swayed by any stocks outside of your portfolio once you have selected the best companies after careful research.
10. Just sit and enjoy when the Bull market sets in and book the profit when you reach the desired (Very Important) returns.
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{ 1 comment… read it below or add one }
please guide me in current bull/bear market.