A Happening August Brings In Adequate Excitement On D-Street

A wonderful finish to win month that we just left behind—August. Markets have touched their 16-month high and still have been looking good to invest. New policies and promises earlier made by the government have taken off during the same month and the long-awaited Goods and Services Tax regime also has started shaping up in the same month. To make it more exciting for individual investors, Indian Meteorological Department has observed a ‘satisfactory’ monsoon letting further cheer infused on the Dalal Street. A new Governor for the country’s apex bank also has been named in this August and Urjit Patel is someone who can efficiently continue with his predecessor Raghuram Rajan’s regime. Month of happiness, I must say.

Talking micro about equity investments, I find still enough space to put your money in select sectors’ stocks. Carefully make your choice and put your money in the chosen set of stocks. To make it easier, in the small-cap space, we have come up with a list of 400 thriving small-cap stocks and also our research team has identified five small-cap stocks which can give you good return over a period of time. I am sure, the entire exhaustive report will be a matter of delight for all of you from investment and reading prospects. To rightly back up the small-cap report, we also have featured a special report on valuation gap.

Small-cap stocks have a great amount of potential. One has to be careful before investing in small-caps but once the right decisions are taken, you can expect getting handsome returns for your money invested in this space. While making choices, I will say, focus should be on dividend distributing companies which have consistently distributed dividends for three to four years. Also low debt small-cap companies with marketable products should be actively considered. One should avoid those stocks where the promoters have pledged their shares.

At the time of going to press on August 31, Sensex comfortably hovers at 28,500 level and during our last few editions, we have been talking about Sensex at 30,000 level by next March, if not much before. The numbers scripted right now on Dalal Street’s score-board seconds our predictions and expectations from the markets.

Meanwhile, banks are looking good and attractive after first-round of cleansing act internally—in reference to NPAs and their dull balance-sheets. I must say, Rajan has done his job and efficiently. We will look forward to such a fantastic delivery coming from his successor, Patel, believed to be hand-picked by country’s Prime Minister, Narendra Modi.

By the time you read this, the entire country will be celebrating Ganesh Chaturthi. I take this opportunity to wish you all a very happy and prosperous festive time ahead.