Equity:

SRF 41 @ Rs. 294.13
FDC Ltd. 132 @ Rs. 90.56

Debt:
[All at IPO price of Rs 1000]
5 Muthoot Finance - NCD - Aug'11 - Option 2
10 Manappuram Finance Limited - NCD - Aug'11 - Option 2
45 Tata Capital NCD - Option 4
5 India Infoline Investment services Ltd NCD - Aug'11 - Option 1


Also applied for 10 RELIGARE FINVEST LIMITED - NCD - Sep'11 - Option 2

Added 6 India Infoline Investment services Ltd NCD - Aug'11 - Option 3 @ Rs 926.56

Alloted 10 RELIGARE FINVEST LIMITED - NCD - Sep'11 - Option 2 [From IPO]

Is it for long run or just for fun?

It provides only 11.9 %

Not sure why you are interested n this , while you can get better interest rate NCDs in the market on discount too.

Happy Investing

I just spread some money around on the recent NCDs. The idea was to invest around 10000 each. I will probably hold till maturity.

What other NCDs with better rates can I invest in?

See Number #8

See Number #29

You will get idea if you read the above links.

Happy Investing!

Thanks SanYad, I already have Muthoot and Manappuram NCDs.

Sold 1 lot Mini-Nifty futures (Jan 2012 expiry) @ Rs. 5425 on 28th Oct. [Short position]

Equity:

SRF 41 @ Rs. 294.13
FDC Ltd. 132 @ Rs. 90.56

Debt:

5 Muthoot Finance - NCD - Aug'11 - Option 2 @ Rs. 1000
10 Manappuram Finance Limited - NCD - Aug'11 - Option 2 @ Rs. 1000
45 Tata Capital NCD - Option 4 @ Rs. 1000
5 India Infoline Investment services Ltd NCD - Aug'11 - Option 1 @ Rs. 1000
6 India Infoline Investment services Ltd NCD - Aug'11 - Option 4 @ Rs. 926.56
10 RELIGARE FINVEST LIMITED - NCD - Sep'11 - Option 2 @ Rs. 1000

Trading:
1 lot Mini-Nifty futures (Jan 2012 expiry) @ Rs. 5425 [Short position]

Enticed by falling stock prices, I was tring to create a "shopping List".

The criteria was:
- Must be NIFTY stock
- Low debt
- Good ROCE/RONW
- Good growth over the past 3-4 years
- Not be a bank
- Not make cigarettes / liquor

After some numerical analysis based on moneycontrol.com data, landed up with the following list:

Bajaj Auto
BHEL
Coal India
Sesa Goa
Siemens
Sun Pharma
TCS

If you were to pick ONE stock out of these for long-term investment, which would you choose?

My current inclination is towards Bajaj Auto as it is driven by local consumption and has a strong brand.

Not sure what Siemends does and if it is India driven or export driven. Same for Sun Pharma.

Any reason for omitting the evergreen sectors? .

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Read All Rules Before Making Any Post

A few observations regarding your portfolio. For a growing economy like India the banking sector will outperform the broader market by and large. Volatility cannot be a reason to avoid a prospective sector.

Please do not use moneycontrol data, as they do not use consolidated figures and is often misleading.

The comparisons page from Edelweiss is pretty useful to look at everything at one go. For Bajaj Auto check this

My long term picks would be :

HDFC Bank
Larsen & Toubro
Bharti Airtel
Coal India
ITC Limited. ( Consider as pure play FMCG and not cigarette)

Cigarettes is one business with so much free cash flow and pricing power that it is hard to ignore from investor's point of view.

Even I am a non-smoker and truly dislike smoking, but investment and smoking are two different domains altogether.

Just study Philip Morris international, with their sustainable cash flows they acquired so many companies over the years.

Even in ITC, they are channeling so much cash to non-cigarette FMCG.

Disclosure: Long on VST Industries.

Sun pharma

But not this level

Moreover "License Raj" still exists in banking sector and new banks are rarely allowed to start business in India. .

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I feel there is some pain in store for India's banking sector in the next 3-4 years. HDFC Bank is the best banking pick in the NIFTY but it has too much FII ownership. While FIIs are dumping India stocks, I want to stay away. I may buy HDFC Bank later if I feel that FII dumping risk has been reduced.

Thanks. This is really helpful!

At a fundamental level stocks represent ownership. When you buy ITC stock you become part owner of a business that makes cigarettes. I have a problem with that.

sudhashjee, currently I am tracking Graphite India, Repro, Time Technoplast, Dhanuka Agritech.

Today I bought few shares of Time Technoplast at 45, buy order for dhanuka still pending.

From your picks I like BHEL for long run [at least 3 years] as you mentioned.

regards
ram

Added 228 NHPC @ Rs 21.90 (excluding brokerage and taxes).

I also have 350 shares of NHPC but bought at rs. 35; I don't know when it will reach this figure if at all!

I think you should have no qualm while investing in stocks. A few years ago the ITC share was quoting at a lower rate; but I bypassed buying it for the above reasons and regretted it later.

This stock is never going to give "fantastic" returns. I think 10% per year is the limit. By this, it's going to be a long time before it reaches Rs 35.

As I have mentioned before, owning stock means owning part of the business. I have no doubt ITC will give good returns but I prefer lower returns instead of making cigarettes.

Squared-off the open short position in mini-nifty @ Rs 4795.

By God's grace made a profit of around Rs. 12,425.

I have a feeling that the market will fall more, but thought is prudent to take profits instead of getting greedy.

Sold all FDC @ Rs. 81.00 yesterday.

Stock is up quite a lot today. Was probably waiting for me to sell

Bought 1 lot Mini-Nifty Futures of Jan expiry @ Rs 4640 [Long Position].

Hoping for a short-term bounce.

This time I don't think its a good idea as over all trend is down.

I would rather sell around higher level for Jan NF.

Happy Investing!

Thanks SanYad. I won't be keeping this position for long.

Squared-off the open long position in mini-nifty @ Rs 4742 on 26th Dec.

By God's grace made a profit of around Rs. 1,900.00.

Sold 1 lot Mini-Nifty Futures of Feb expiry @ Rs 4734 [Short Position].

Booked loss in SRF. Sold all SRF shares @ Rs 247.50.

Added to short position. Sold 1 more lot Mini-Nifty Futures of Feb expiry @ Rs 4775.

There is a possibility of a small rally in the near term. I think you should exercise caution with your shorts.

Thanks. Will keep your advice in mind.

I did factor in a small rally but guessed that it won't last in to Feb when the contracts expire.

Let the earnings season begin. Earnings will take "good" care of this unfounded rally. (January Effect)

Booked loss in NHPC. Sold all NHPC Shares @ Rs. 20.00

I had been very busy at work and did not pay attention to the market.

I now find that my NIFTY shorts are showing a huge loss

That's what you get when you play with derivatives and don't pay attention

Now have to decide whether to book loss or hope for some correction by Feb expiry.

It is suicidal to go for naked shorts in this kind of a market.

You should have bought adequate Feb Call Options to cover your position. That way you would have enjoyed unlimited profits on the downside but your losses would have been capped at the upside.

I have no clue of options. How would the case you indicated work? It sounds too good to be true that you get umlimited benefit on one side and losses get capped.

With very high volatility (as there was in Dec end) it is extremely risky to go for naked shorts. A covered short would have worked much better for you.

You shorted one Mini Nifty Feb Future @4742 and other @4775.
Now you had a exposure of -40 units @4758.

Suppose you want to keep a stop loss and buy an out-of-the-money call option of 4800 for 50 Rs premium (say). So total outgo = 50X40=2000.(option premium)

Now there are three possible scenarios.

A) Nifty Feb expires @ 4750

Profit from Futures = 8 X 40 = 320
Loss from Options = -2000 (Options expire worthless)
------------------------------------
Net P&L = -1680


B) Nifty Feb expires @ 5400

Loss from Futures = -642 X 40 = -25680
Profit from Options = 600 X 40 = 24000-2000 (premium amount)=+22000
------------------------------------
Net P&L = -3680


C) Nifty Feb expires @ 4400

Profit from Futures = 358 * 60 = 21480
Loss from Options = -2000 (Options expire worthless)
------------------------------------
Net P&L = 19480.

So using this strategy your downside is limited to max 3680 Rs loss while you have unlimited upside ( 19480 in this case)

Except that the 4800 Feb call with Nifty spot @4750 (in early Jan) and almost a month and a half to expiry, would not be trading @ Rs.50. Maybe closer to Rs.200 (Try a options calculator).

Or try for instance, the 5400 March call (Nifty spot @5380) as of today is Rs.180. The premium paid is closer to Rs. 9,000 and not Rs.2000. If it were so cute, everyone would be buying calls @ Rs.50 and that would drive the price up itself.

So, you would hedge a part of your losses but also give up an equivalent part of your gains. Like you know, if it sounds too good to be true, it probably is.

P.S. I have used Nifty Spot to illustrate my point here. Using Minnifty options would only make it worse since there seems to be absolutely no liquidity and asking price for Mar 5400 call is Rs. 225

Did you cover your shorts? Looks like at least for some time it is not going to turn back to your level.