When it comes to investing it's always the largely unknown companies which give returns which are out of this world but at the same time the risks involved would be equally great. It is for these people that Nifty is an option for. All of the companies listed in the companies are stable, trustworthy and capable of providing smart and stable returns. But a deeper study would tell you some scrips do exist within the Nifty which are capable of returns which are more than just 'good'.
The Nifty's been on a rough ride for the past 3 months. The previous week a huge recovery rally was visible in the European front, backed by the better economic data from the major economies, had impacted the Indian markets, which helped a positive closing. Considering the global market situation to close the week, the Indian market may set a positive opening of the week ahead, but might not sustain at higher levels.
In this critical situation it was essential to invest carefully drawing a fine line between the trustworthy but mature companies and the emerging but raw ones. It's a daunting task to invest in these times when the market has gone for a true roller coaster ride consistently hitting new ups and downs. These is my choice of a list of six companies which I want to shift your attention to and are also already part of my portfolio. Incidentally all of them are from varied sectors ensuring you safety as well as diversity in your precious investments.
HDFC BANK
HDFC Bank is headquartered in Mumbai. The Bank has a network of 1,725 branches spread in 771 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centers across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base.
Why HDFC?
According to Bank Statistics monthly report released by RBI on 1st September, 2010 HDFC Bank stands at number one position when it comes to number of e-transactions taking place in India. ICICI Bank, even though has largest network of Bank branches in India comes in at number 3 behind HDFC and SBI in number of transaction. The fact that ICICI bank is on a free fall and HDFC bank has a reasonable fall has helped this. Though this difference might be wiped out in a week it is something to cheer about for HDFC bank and a lot to think for ICICI Bank.
ICICI bank has been very aggressive with their loans, overseas expansion and portfolio of products. HDFC has been cautious about lending the whole time. Banks are those institutions which grow with the country's Economic progress, our GDP is surging ahead. It was inevitable to put part of your funds into a financial institution; I recommend HDFC and am staying positive on its performance.
Ranbaxy
Ranbaxy Laboratories Limited is India's largest pharmaceutical company. Incorporated in 1961, Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.
Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical developers, though a significant percentage of their products are off-patent drugs that are manufactured and distributed without licensing from the original manufacturer because the patents on such drugs have expired.
Why Ranbaxy?
Ranbaxy has opened its new state-of-the-art manufacturing facility, at Roodepoort, Johannesburg, South Africa. The new facility, built with an investment of USD 30 million will manufacture Analgesics, Cold, Cough and Flu preparations, Anti-Histamines, Anti-Hypertensive, CNS Drugs, Vitamins and Minerals as well as a comprehensive range of over-the-counter medication. The products manufactured will comprise tablets and hard gelatin capsules that will be supplied to current registered regions.
The design of the new facility is determined by the current tablet and capsule production requirements and the plant is capable of producing approximately 1.75 billion units and packaging of two billion units, annually. Possible expansion could bring about the addition of new products. Additionally, the company also offers high quality, affordable, generic anti-retroviral medicines to the needy patients in Africa, supporting African governments in their efforts to control the Aids epidemic.
Since pharmaceuticals is an evergreen sector when I thought of a company to choose, I had no problems what so ever in choosing Ranbaxy as our investment option. Be it short term or long term, Ranbaxy is going to reap huge profits in South Africa, a country with 33% of the people infected with HIV and longing for medical help.
Mahindra & Mahindra Limited
Mahindra & Mahindra grew from being a maker of army vehicles to a major automobile and tractor manufacturer. It has acquired plants in China and the United Kingdom, and has three assembly plants in the USA. M&M has partnerships with international companies like Renault SA, France and International Truck and Engine Corporation, USA. M&M has a global presence and its products are exported to several countries. Its global subsidiaries include Mahindra Europe- based in Italy, Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
M&M is one of the leading tractor brands in the world. It is also the largest manufacturer of tractors in India with sustained market leadership of over 25 years. It designs, develops, manufactures and markets tractors as well as farm implements. Mahindra Tractors (China) Co. Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products for the American market.
Why Mahindra & Mahindra?
The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its 'Global 200: The World's Best Corporate Reputations' list. Mahindra & Mahindra has controlling stakes in Reva electric and has submitted letter of Intent for South Korea's SsangYong, this will help Mahindra to get Korean expertise and Engineering in its products similar how Tata flourished with their Daewoo acquisition. Mahindra is currently preparing to sell the diesel SUVs and pickup trucks starting in mid-September 2010 in North America, through an independent distributor, Global Vehicles USA. Mahindra has also entered the two wheeler segment recently. Mahindra Two Wheelers, has further consolidated its presence in the two wheeler segment, with record sales of 15,165 units in August 2010. Mahindra Two Wheelers today announced that its sales for the month of August 2010 stood at 15165 units, as against 4005 units in August 2009, an increase of 279%. I am sure that you will get encouraging results going with Mahindra & Mahindra and have chosen it as our Automobile Sector investment.
Bharti Airtel Limited
Bharti Airtel Limited offers services in 19 countries. It is the largest cellular service provider in India, with more than 150 million subscriptions as of August 2010. It is the world's third largest, single-country mobile operator and fifth largest telecom operator in the world with a subscriber base of over 180 million. The company provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.
It is known for being the first mobile phone company in the world to outsource everything except marketing and sales and finance. Its network (base stations, microwave links, etc.) is maintained by Ericsson and Nokia Siemens Network, business support by IBM and transmission towers by another company. Ericsson agreed for the first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enables the company to provide pan-India phone call rates of Rs.1/minute (U$0.02/minute). During the last financial year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business.
Why Airtel?
With 3G spectrum allocation on schedule, mobile operator BhartiAirtel has put its 3G launch plans on high speed. Bharti is expecting to launch its 3G service by December this year. Airtel won a majority of the 3G allocation ahead of Vodafone, Idea and Reliance.
Airtel is India's own MNC reaping from the emerging 19 economies in Africa. They have the advantage of utilizing the technological monopoly there and face very less competition compared to an European or a North American market. Recently, Airtel has achieved Gold Certification from Cisco. With this, it becomes the first Indian telecom service provider to achieve this certification. Airtel has integrated Cisco Lifecycle Services into its offerings and is required to maintain high levels of customer satisfaction. Cisco Gold Certification gives the provider access to sales, technical, and lifecycle services training and support available from Cisco. With support from support from Cisco their quality of service will only increase seven fold; therefore I remain positive on Airtel as an investment in the booming communication sector.
HCL Technologies
HCL Technologies (HCLT) is a global IT Services company headquartered in Noida, India. It is the IT services arm of HCL, a US$5 billion global Technology and IT Enterprise. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$2.6 billion, as on 31st March 2010, and employed more than 60,000 people. HCL serves a broad range of industries including Financial Services, Education, Hi-tech & Manufacturing, Aerospace & Defense, Telecom, Retail & CPG, Life Sciences, Healthcare, Media & Entertainment, Travel, Transportation & Logistics, Automotive, Government, and Energy & Utilities.
Why HCL?
On September 2nd , 2010 HCL Technologies Ltd won the tender to manufacture 100,000 low-cost computers under a government project to boost the role of technology in education. The meeting of the national mission on education through information and communication technology allocated 30 crores for the project, and decided to procure the $35 computers before 10 January. The computers, unveiled on 23 July, will be made available to university-level students from the second half of next year.
This initiative will boost HCL, once India's biggest IT company in improving its good will and also skyrocket it's profits. I am confident about HCL as our investment in the IT sector as Infosys and TCS growth is slowly stagnating.
Suzlon Energy
Suzlon Energy is a global wind power company based in India. In terms of market share, the company is the largest wind turbine manufacturer in Asia (and the 5th largest worldwide. In terms of net worth, it is the world's most valuable wind power company. Suzlon delivers end-to-end wind power solutions from assembly, installation to commissioning. The company manufactures blades, generators, panels, and towers in-house, as well as gearboxes. Suzlon operates the largest wind park in the world, the 584 MW wind park in the Western Ghats-Tamil Nadu.
Why Suzlon?
There were widespread media reports that MukeshAmbani controlled Reliance Industries will acquire stake in the wind power major.
These Reports were found to be rumours.Still Suzlon is Best Bet in India in green Energy . RIL or Some other power Giants will surely acquire emerging wind power giant, so I am confident in suggesting you to put a part of our investment in Suzlon.
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