I am new to the share market. I have opened a new demat account with Religare. And I know it is not a good time to invest in shares, but I still want to take the risk. Need guidance for the following:
1. My total portfolio is of maximum Rs15,000. My broker tells me to keep a complete portfolio, i.e., having diverse companies. For example, one from the power sector, one from software, one from construction and energy, and so forth. What do you suggest?
2. Which companies can I trust during such times? I really want to buy some shares to keep my money rolling in as right now I am doing MBA.
3. Can you suggest some other investment (the maximum money I can invest is Rs20,000) so that for the two years that I am studying my money will still keep rolling in and will provide good benefits by the time I finish my MBA?
It is a good idea to have a diversified portfolio. However, with your kind of risk profile I would suggest you focus more on initial public offerings and that too of public sector companies, which would be on offer in the coming weeks. This would not only ensure your investment at the most attractive prices, but would also leave good scope for appreciation.
Since the size of your investment is small, it would be better if you focus more on value rather than sectors.
As far as good companies in the current scenario are concerned, I would place my bet on Larsen and Toubro Ltd, State Bank of India, Yes Bank Ltd, Cairn India Ltd, and Steel Authority of India Ltd.
I hold 10,000 shares of JCT Ltd purchased at Rs22 per share some five-six years ago. Should I hold or sell at the current price?
JCT is a typical momentum stock. Since momentum stocks are not in favour currently, this stock is trading at a very low price.
However, with the market expected to gather momentum in the coming months, I would expect momentum stocks also to see some action. So, in the present scenario, you may hold this stock and reconsider this stock around January.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.