Invest in Currency Trading & Earn Enormous Returns

Invest in Currency Trading 

&

 Earn Enormous Returns

Forex - Currency Trading - Wait & Watch Policy

Forex - Currency Trading - Wait & Watch Policy

Today our wait and watch policy gave two time opportunities till 2.10 pm.  Watch the trades. 

Understanding RBI action and its implication

Understanding RBI action and its implication

Lets us try and understand how the RBI rate manipulation affects us directly.

Money is basically known as currency and the word is derived from the word current (flow).  The nature of money is circulation, flowing from one hand to the other.  When we buy something, as a buyer your money outflows and at the other end as a seller the money flows in. This exchange of money happens billions of time in a day in a country.

Every time money changes hands value also gets exchanged. Meaning needs and wants are met, profits are made, salaries are paid, assets are created, taxes are collected, etc. This cycle keeps going on and on.

Money flowing furiously creates a good economy with large beneficiaries.  But there is a flip side to this. High money flow ends up increasing the prices of goods and services. This happens primarily because more money is chasing fewer goods.  This is what is known as inflation.

And how is this executed by RBI? 

Repo rate: Bank many a times borrows money from RBI to service its needs. RBI charges interest rate on them and that is called as Repo rate. Higher the repo rate higher will be bank benchmark interest rates. Which means when you place deposits with your bank the interest rate will be high and similarly if you borrow money from the bank the interest rate will be higher.

Cash Reserve Ratio: Simply put, banks are asked to keep a certain percentage of their client’s deposits with RBI. That portion of the money is locked and are not allowed to flow in the economy. Higher the cash reserve ratio, lesser money flow in the economy and lower the cash reserve ratio better the money flow in the economy.

How will these actions impact you?

Cut in repo rate will translate to lower interest rate on your bank deposits and lower interest rate on your loans. 

FII investment crosses $11-bn mark in 2013

Foreign institutional investors (FIIs) may well have slowed the pace of investments in the Indian equity market in the recent past, but their net inflows in the current calendar year has crossed yet another psychological mark. The cumulative inflows of foreign investors in the current calendar year (CY13) has crossed the $11-billion mark.

FIIs have been net buyers at $11.13 billion in CY13, which saw both Sensex and Nifty losing around 0.5 per cent each.

The plunge in global gold and crude oil prices is seen bringing in some respite for India, given the importance these commodities have on the country’s current account and fiscal deficits.

India still figures among the top investment destinations if one compares the flows vis-a-vis other Asian economies.

According to Bloomberg, Japan with $64.21 billion of FII inflows is the only Asian country that has seen higher flows compared to India in CY13.

While South Korea has seen outflows of $4.31 billion in CY13, Indonesia ($1.94 billion), Philippines ($1.25 billion) and Taiwan ($1.46 billion) have all witnessed marginal amount of foreign flows.

Forex Trading - Currency Trading Basics

Forex Trading - Currency Trading Basics

Follow technical, when you don't have any  fundamental news to observe.  Make profit. Wait & Watch.

Currency Trading - Why it is low risky?

Why Currency Trading is said to be low risky?
 29.4.2013  Book Profit 2.00 p.m

What is Currency Trading?

 

What is Forex?

You may have noticed that the value of currencies goes up and down every day. What most people don't realize is that there is a foreign exchange market - or 'Forex' for short - where you can potentially profit from the movement of these currencies. The best known example is George Soros who made a billion dollars in a day by trading currencies. Be aware, however, that currency trading involves significant risk and individuals can lose a substantial part of their investment. As technologies have improved, the Forex market has become more accessible resulting in an unprecedented growth in online trading. One of the great things about trading currencies now is that you no longer have to be a big money manager to trade this market; traders and investors like you and I can trade this market.

How Forex Works

The currency exchange rate is the rate at which one currency can be exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.

Why Trade Currencies?

Forex is the world's largest market, with about 3.2 trillion US dollars in daily volume and 24-hour market action. Some key differences between Forex and Equities markets are:

1.                               Many firms don't charge commissions – you pay only the bid/ask spreads.

2.                               There's 24 hour trading – you dictate when to trade and how to trade.

3.                               You can trade on leverage, but this can magnify potential gains and losses.

4.                               You can focus on picking from a few currencies rather than from 5000 stocks.

5.                               Forex is accessible – you don’t need a lot of money to get started.

Why Currency Trading Is Not For Everyone

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it is advisable to seek advice from an independent financial advisor.

Important: be aware of the risks:

Finally, it cannot be stressed enough that trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, we recommend that you seek advice from an independent financial advisor.

 

What you should know before you get on board.

Lately, currencies have been on a rollercoaster ride with record breaking highs and lows. The world of foreign exchange is dominating news headlines; but what does it mean, and more importantly, what do you need to know before you get on board?

First of all, it's important that you understand that trading the Foreign Exchange market involves a high degree of risk, including the risk of losing money. Any investment in foreign exchange should involve only risk capital and you should never trade with money that you cannot afford to lose.

(xe)

Housing Plan - Housing Loan - Start UP

Building Search

Housing Plan - Housing Loan - Start UP

Gone are the days of websites that were no different 

from newspaper classified advertisement pages. New 

property sites offer a host of value-added services 

apart from listings.

A few notable property sites that have emerged during 

the last few years are 

Housing.co.in, 

MetroPlots.com, 

Favista.com, 

CommonFloor.com, 

BestPropertyDeals.co.in and 

PlanetGhar.com.

Taxes on Trading - STT, CTT - All about Trading Cost

Taxes on Trading - STT, CTT

The Budget proposes a host of changes that will affect both stock and commodity market investors. While equity trading will become a little less taxing, market experts are opposing the proposed commodity transaction tax.

EQUITY TRADING
Investing in stocks is set to become less costly with Finance Minister P Chidambaram proposing a change in the securities transaction tax, or STT, rate. He has recommended a cut in STT on equity futures from 0.017 per cent to 0.01 per cent. This will bring down the transaction cost from Rs 17 per lakh to Rs 10 per lakh.

MUTUAL FUNDS

There is good news for investors in mutual funds (MFs) and exchange-traded funds (ETFs). The finance minister has suggested a cut in redemption fee in case of MFs and ETFs from 0.25 per cent to 0.001 per cent. The STT for sale on exchanges is proposed to be cut from 0.1 per cent to 0.001 per cent.

BUDGET RECAP: Changes in your household budget

This means the STT has been reduced to Re 1 from Rs 250 per lakh on redemption of ETFs/MFs from the fund house and to Re 1 from Rs 100 per lakh on redemption on exchanges.

COMMODITIES

As anticipated, the Budget reintroduced a tax on transaction of non-agricultural commodities on exchanges in order to facilitate a more open and transparent trading process. The commodity transaction tax (CTT) was first proposed in the 2008 Budget but withdrawn in 2009.

The government has proposed to introduce CTT on non-agricultural commodities futures contracts at the same rate as on equity futures, that is, 0.01 per cent of the trade value. In simple terms, the CTT for every Rs 1 crore trade will be Rs 1,000.

Experts say this will hit small investors. For example, if an investor trades (buys and sells) in 1 kg gold contract on the MCX, his turnover will be Rs 59.2 lakh (at Rs 29,600 per 10 gm). He will have to pay Rs 592 CTT for this transaction apart from regular brokerage and taxes, which will affect his profits.

Gold Fall - Is it good or bad?

The fall in gold prices will help bring 

down India's current account deficit

The metal tumbled after news that the Cyprus government planned to sell some of its gold reserves to raise e400 million to fund its bailout. Fears of further central bank gold sales in the eurozone following the Cyprus proposal sent the metal tumbling on the London Bullion Market to a 26-month low of $1,321.50 an ounce on April 15 from $1,565 on April 11. 

Between them, Portugal, Ireland, Italy, Greece and Spain hold more than 3,230 tonnes of gold worth nearly e125 billion. 

The fall in gold prices could not have come at a better time for India. Lower crude oil and gold prices will help bring down the current account deficit (CAD) - excess of imports over exports plus remittances - which will improve the country's investment rating. 

A wide CAD is a sign of economic weakness as it means the country is a large debtor.

Don’t rejoice just yet. Falling gold prices may not reduce CAD

The HSBC analysis shows that while a decline in gold prices would be counterbalanced by an increase in demand for the yellow metal, other factors are likely to help lower the large gold import bill when measured against gross domestic product (GDP). The consumption demand for gold is likely to decelerate due to somewhat slower income growth on the back of deceleration in growth and the gradual easing in inflation pressures. This apart, improving real returns on bank deposits as inflation eases should also help dampen demand for gold.

Gold prices have fallen over 10 percent since last year, lifting sentiment in India, which is the world’s largest gold importer. Policymakers have, for long, been concerned about the hefty gold imports and the concomitant effect on the CAD. The CA deficit has been very high, at 5.1 percent of GDP in 2012, with gold imports alone accounting for 2.9 percent of GDP.

E-GOLD VS GOLD ETF

E-GOLD VS GOLD ETF

E-gold is held electronically in the demat form and can be freely converted into physical gold. In India, e-gold is offered by the National Spot Exchange Limited (NSEL), which gives investors the option to invest in commodities such as gold, silver and platinum online. 

Any investor can buy gold in small quantities on the NSEL and sell it after making a profit. He also has the option of taking physical delivery of the metal.

Another way of taking exposure to gold is gold ETFs, financial instruments that track the price of gold. "Gold ETFs are the same as mutual fund units where each unit is equivalent to one gram gold, though some funds give the option to invest in lower denominations of 0.5 gram as well. 

Conversion of gold ETFs into physical gold is possible only after it exceeds a certain size. This can vary from 500gm to 1kg depending upon the fund house.

In gold ETFs, investors track NAVs, which keep changing with gold prices. In e-gold, investors directly track the price of gold.

TRADING BASICS

16 per cent 

is the average return given by e-gold in 2012 as compared to the 11 per cent average return from gold ETFs

Brokerage: Trading in both gold ETFs and e-gold involves payment of a brokerage fee. For e-gold, it is 0.25 per cent of the purchase rate. The transaction fee for gold ETFs is Rs 1 per lakh compared to Rs 3.5 per lakh for equities, says Rego of Right Horizons.

Taxation: Gold ETFs have an edge over e-gold here. For gold ETFs, one year is considered as the long term; it is three years for e-gold. Also, egold attracts wealth tax.

"E-gold is treated like physical gold and qualifies for long-term capital gains benefits if held for three years or more. However, gold ETFs qualify for long-term capital gains treatment after being held for just one year. Gold ETFs are considered financial assets and hence are exempt from wealth tax, which is not the case with e-gold,

Gains from gold ETFs, if sold within one year, are taxed according to the person's tax slab and at 20 per cent (after indexation) if sold after a year. Gains from e-gold, if it is sold within three years, are taxed according to the tax slab and at 20 per cent (after indexation) if sold after three years.

Indexation is adjusting the purchase price with inflation. It leads to a higher purchase price and lowers the tax liability. For instance, if inflation is 6 per cent and the investment is Rs 1,000, the inflation-adjusted price for taxation will be Rs 1,060. This will lower the capital gains. Market Timings: You can trade egold till 11.30 pm, while gold ETFs are available in the market only till 3.30 pm.

Understand the Market Trends?

Zooming in on Market Cycles

THINK LONG

Long-term performances are what matter. If one had taken investment decisions on the basis of the performance of different asset classes in 2007, one would have been stuck with a large number of infrastructure and power sector funds. The once super performer, Reliance Diversified Power Sector Fund, which returned 138 per cent between January 2007 and January 2008, has been among the worst performers over the last three and five years. This is true of a number of infrastructure, capital goods, power and energy funds as well.

How to read company annual reports

How to read company annual reports

"In terms of marketable securities or new offerings, we've never bought anything that's been pitched to us by an investment banker or broker. We read hundreds and hundreds of annual reports every year." - Legendary investor Warren Buffett.

A company's annual report is an ocean of information for investors . From financial figures to salaries of directors and chief executive officers, it has all the information an investor is likely to need. It also gives an account of how the company has performed in the preceding year and throws light on its future plans. 

While the most searched figures in annual reports are sales, net profit, operating profit and the different financial ratios, there are a lot of other important points that are ignored by all but the most seasoned investors and which can tell a lot about a company.

Director's Report

The director's report talks about developments that have happened after the balance-sheet date. Other than the financials, it talks about expansion plans, employee productivity and near-term growth plans. It also mentions the products and services introduced during the year and their potential, besides abnormal expenditures or negatives that have hit margins. Then there is an assessment of the current year's prospects, which is important for fundamental analysis.

Report on Corporate Governance

It includes disclosures about board of directors, appointment of nonexecutive directors, constraints imposed on management power and ownership concentration, financial information and executive compensation. The level of transparency, fairness and accountability in dealings with the constituents of the business shows how stable and strong the company is.

Events After the Balance-sheet Date

The annual report is usually prepared three-four months after the balance-sheet date and may miss important developments which may have happened in the intervening period. These developments may have at times substantial implications for the company's financials and growth prospect.

Annual reports also contain detailed information about events after the balance-sheet date. One example is a fire accident on the shop floor which may affect production for a while and its likely impact on profits. This must be read carefully if one wants to remain up-to-date about the company.

Remuneration to Directors

Annual reports tell how much the top executives are paid. Experts say there must be continuous monitoring of compensation that the CEOs receive and their performance. "The rewards and salaries should not be just for their designations but performance. Hence, it's important to study the salaries of directors and CEOs," says DK Aggarwal, chairman and managing director, SMC Investments and Advisors.

Management Discussion

The Management Discussion and Analysis (MD&A), usually put at the start of the annual report, is supposed to be a frank commentary on the management's outlook about the company.

"It is a very important section of the report, especially for those analysing the company's fundamentals. The MD&A report is a powerful medium for communicating to shareholders a meaningful assessment of the company's performance, liquidity and prospects," says Aggarwal of SMC Investments and Advisors.

Notes to AccountsThese non-financial notes relate to details about financial numbers and are extremely important for appropriate interpretation of the company's financials.

"The purpose of the notes to accounts is to clarify and qualify the information provided in the accounts. Hence, reading these carefully along with the financial numbers is of utmost importance," says Sudip Bandyopadhyay, managing director and CEO, Destimoney Securities.

Contingent LiabilitiesContingent liabilities are possible future liabilities. Due to lack of certainty, they are mentioned below the balance sheet. However, in certain cases, they can have serious implications. For instance, during the credit crisis of 2008 in the US, several contingent liability instruments such as Collateralised Debt Obligations and Credit Default Swaps became real liabilities, leading to bankruptcy of such big companies as Lehman Brothers and Bear Stearns. Hence, it's important to do a detailed analysis of all contingent liabilities.

Auditor's Report

The auditor's report is an essential tool for reporting financial information. Since many third-party users prefer certification of financial information given in annual reports by independent auditors to ensure it is authentic, many auditees rely on auditor reports to certify their information to attract investors, apply for loans and improve image.

The auditors, when they are in disagreement with the management, qualify the report. It's an independent source for verifying the correctness of statements and facts mentioned in annual reports. The auditors also add notes to balance sheets which highlight lapses in compliance with rules or other abnormalities, deferred revenue expenses, wrong classification of expenses and treatment of deferred revenue expenditure.

by Rahul Oberoi 

Portfolio Management Services- Tailor-Made Investing

Portfolio Management Services 

- Tailor-Made Investing

PMS, offered by various entities registered with the market regulator.  PMS have equity and debt options. Earlier, they used to offer real estate, unlisted shares and structured products options as well, but now these come under the Alternative Investment Fund (AIF) category and are managed according to the market regulator's separate regulations on AIF.

PMS were a big hit before the 2008 market crash but faced accusations of misuse. Many were not registered and indulged in heavy churning. After that, the Securities and Exchange Board of India, or Sebi, introduced stringent regulations. Among other things, it raised the minimum investment limit from Rs 5 lakh to Rs 25 lakh. It also banned pooling of accounts of different investors.

HOW IT WORKS

The investor and the portfolio manager enter into an agreement detailing the investment strategy, goals and other details. The investor can offer either a sum of up to Rs 25 lakh or stocks worth this much. PMS are offered on discretionary as well as non-discretionary basis. In the former, the manager takes investment decisions and has the power of attorney to manage the investor's demat account. In nondiscretionary, he merely suggests investment ideas; the rest is the investor's prerogative.

PMS' closest competition is mutual funds. Both differ in terms of working, fee, Sebi regulations and risk-reward profile. While the main aim of PMS is offering customised services, many brokerages offer investors the choice of different model portfolios. "In this, the service providers have different model portfolios such as large-cap and mid-cap. Investors choose depending upon their needs," says Sandip Sabharwal, CEO of portfolio management services at Prabhudas Lilladher. These models define in which stocks the money will be invested.

ASSET HOLDINGS

In PMS, investors hold stocks, whereas in mutual funds they hold units. In PMS, the investor can know which stocks he is holding at any given point in time by logging in to his demat account. This is difficult in case of mutual funds.

FEE STRUCTURE

The investor can negotiate the fee with PMS providers, unlike in mutual funds. "Most PMS charge a 2% annual fee and get 20% profit beyond a hurdle rate," says Prateek Pant of RBS Private Banking, which offers non-discretionary PMS.

The hurdle rate determines at which level profit-sharing will take place. For example, a 12% rate means the PMS provider will get 20% profit above 12%. "If the hurdle rate is not met, one may end up paying less than what mutual funds charge," says Pant of RBS Private Banking.

However, investors negotiate for a lower fee if the assets to be managed are big. Mutual fund fees are fixed in percentage terms.

MODEL PORTFOLIO

While many PMS providers offer standardised portfolios, some offer investments tailored to clients' goals. For instance, a client may want to invest a large amount in a single stock. This is not possible in mutual funds, as they cannot hold more than 10% net asset value in a single stock. While this spreads risk, a big disadvantage is that mutual funds cannot hold a big stake in a company even if it is a very good investment. PMS do not have this limitation.

FOR THE RECORD

While many PMS providers offer standardised portfolios, some offer investments that are geared to meet clients' specific goals

The performance of mutual funds is in public domain. For PMS, you will have to take the provider's word. This is because different PMS clients have different objectives and want different strategies. However, it is easy to get a performance report card in case of a model PMS portfolio.

ACCOUNTABILITY

Unlike mutual fund managers, PMS managers are directly accountable to the client, who can seek clarifications, especially in the discretionary portfolio.

TAKING A CALL

"You can look at PMS if you are getting services that are really customised. But how many portfolio managers can offer you such a service?" asks Mallick. In today's competitive market, PMS providers need more clients and so prefer to offer mass pre-fabricated products.

But what about PMS offered by asset management companies or AMCs? "PMS of AMCs don't make much difference as they offer products that are similar to their mutual funds schemes," says a portfolio manager who offers non-discretionary services.

Penny Stocks - Returns

Penny Stocks - Returns

The number of shares traded in a day is an important criterion for investing in a stock. This is because good liquidity can make it easy for an investor to sell whenever he wants to.

According to the list, mutual funds held illiquid securities worth Rs 1,582 crore on November 3, 0.2 per cent of the industry's assets under management of Rs 7,47,332 crore.

These stocks, most of which are not tracked by brokerage houses due to low public float, may turn out to be multi-baggers in the coming years.

"Many such illiquid stocks are of companies with high promoter holding. A few also belong to multinational companies. The financial performance of these companies is not bad. The stocks are illiquid just because of low public holding," says Tulsiyan. Experts say many of these companies are also delisting candidates.

LOW VOLUMES, HIGH INTEREST

In nine out of the 38 stocks, the amount invested by the funds is more than Rs 25 crore. Let's see if they are worthy of your money, say experts.

SML Isuzu:

Sumitomo Corporation and Isuzu Motors hold a 54.96 per cent stake in the commercial vehicle maker, formerly known as Swaraj Mazda. Isuzu, the largest commercial vehicle maker in Japan with a strong global presence, raised its stake in SML Isuzu by over 5 per cent around May.

"There has been a lack of clear leadership and guidance at the top level and that's why the company has been languishing," says Kartik Mehta, assistant vice president, research, Sushil Financial Services.

Mehta has a target of Rs 472 for the stock. On December 26, it was at Rs 448. It's a good and compact company, he says. The company has a capacity to make 18,000 units that it plans to increase to 24,000-30,000 units, which will improve margins considerably, says Mehta.

The company has a good record of paying dividends. The stock can be bought at Rs 400-420, says Mehta.

Kirloskar Pneumatic:

What makes this maker of compressors attractive is the dividend yield of 2.47. Dividend yield shows how much a company pays as dividend every year relative to its stock price. The stock rose 16 per cent in the first 11 months of 2012. The company posted a net profit of Rs 61.9 crore in 2011-12, 40 per cent more than Rs 43.91 crore in 2010-11.

"The fundamentals are good. Net sales and profit after tax are expected to grow at 20 per cent a year. It's a debtfree company with high promoter holding. About 20 per cent stake is held by institutions, leading to low public float. It's worth a buy at every decline. We expect the stock to reach Rs 700 in the long run," says Sunil Pachisia, vice president, Pratibhuti Viniyog, a brokerage that caters to institutional investors. It was at Rs 492 on December 26.

3M India:

The technology company caters to health care, oil & gas, construction, safety and retail industries. It has invested a lot in research & development (R&D) centres. While it has not been paying dividends regularly, its major attraction is the shareholding pattern. About 76 per cent is held by the parent, 3M Company, and 14.7 per cent by institutional investors and corporate bodies. The remaining 10 per cent is with individual shareholders, trusts and non-resident Indians. The company, say experts, is a perfect delisting candidate as the parent wants to increase its stake.

"If they initiate a buyback, the buyback price may be up to Rs 5,000 a share," says Tulsiyan. It's a good bet for the long term but not for investors who want very good gains in a year or two.

Oriental Hotels:

Part of Taj Hotels and Resorts, Oriental Hotels operates in the southern region of India. The company may face challenges in the short term due to low demand but the stock can give good returns if one keeps it for long, say experts. This is because it has invested a significant amount in renovating its properties. The stock has languished this year and is available at a good valuation. Retail investors with a horizon of more than three-four years can buy it current levels, say experts.

Kirloskar Industries:

Held by funds under schemes such as Principal Dividend Yield, Reliance Equity Opportunities Fund and UTI Infrastructure Fund, the company has been posting good growth in bottom line over the past three years. The company, which runs seven windmills in Maharashtra, has been paying dividends regularly.

"It has made a substantial investment in windmill projects. So, one must have a very long perspective for investing in this stock. It is not advised for retail investors," says Pachisia of Pratibhuti Viniyog.

Maharashtra Seamless:

Mutual funds and institutional investors had invested over Rs 135 crore in this Jindal group company as on November 3. The largest manufacturer of seamless pipes and tubes in India has a robust business model, say market experts.

"Maharashtra Seamless is an industry leader with 37-42 per cent share of the seamless pipe market. The management has invested a significant amount in R&D and increasing presence in South America and Canada. It is aiming to earn 30 per cent revenue from exports compared to 10 per cent at present. Also, the company has a debt of just Rs 20 crore, which gives it space to expand," says Soumyadip Raha, an analyst at Kolkata-based research firm Microsec Securities.

Raha has set a target of Rs 433 for the stock. It was at Rs 280 on December 26. The company will be the biggest beneficiary of pickup in the infrastructure sector. Another indication of growth prospects is the recent orders bagged by BHEL, its biggest client.

"This may translate into some orders for the company as well," says Raha.

Wabco India:

The unit of Clayton Dewandre Holdings is a market leader in airbrake systems for medium and heavy commercial vehicles. It commands an 85 per cent share of the braking applications market and has been able to clock over 18 per cent compounded annual growth between 2007-08 and 2011-12. It has many products that it has not yet started offering to Indian automobile makers. However, with competition in the commercial vehicle segment intensifying, many manufacturers are looking to offer more advanced products, which is likely to improve the demand for Wabco's offerings. The government is also putting a thrust on vehicle safety by making it mandatory for school buses and commercial vehicles carrying hazardous goods to have anti-lock braking systems.

"The company is technically sound with its parent being a global leader in braking applications. There has been a focus on emerging markets as the US and European markets are maturing. The only way to grow revenue and profitability is to turn to emerging markets such as India and China," says Mehta of Sushil Financial Services.

The company looks a good investment bet as more and more vehicle makers adopt more advanced technologies. "Wabco is a preferred vendor to Daimler for braking and control systems and will be one of the biggest beneficiaries of Daimler's move to start operations in India from 2013-14," says Pachisia.

However, while it's a long-term story yet to be played out fully, the stock can be bought on dips, with Rs 1,400 being a good entry point, says Mehta. It was at Rs 1,695 on December 13.

Sanofi India:

The pharmaceutical company is the most preferred by mutual funds, which had invested Rs 563 crore in it as on November 3. The company is debt-free and has good cash reserves. The promoters hold 60.4 per cent while 27.7 per cent is owned by institutional investors and 6 per cent by corporate bodies. "The company is aggressive, as seen by recent acquisition of brands. It also plans to enter the animal health-care business," says Pachisia of Pratibhuti Viniyog.

"We expect the company's net sales to log 17 per cent compounded annual growth between 2011 and 2013, driven by the domestic formulation business. We expect net sales to post 17 per cent compounded annual growth to Rs 1,682 crore and earnings per share to register 12 per cent compounded annual growth to Rs 104.4 between 2011 and 2013," says Sarabjit Nangra, vice president, research, Angel Broking. She says the stock is expensive at current levels. However, experts say that any 5-10 per cent correction is a good entry point for long-term investors.

Vardhman Textiles:

The largest spinning company in India has 22 manufacturing facilities. It makes fibre, yarn, sewing thread and fabrics. Promoters hold over 61 per cent while domestic institutional investors hold nearly 23 per cent in the company. One reason experts prefer Vardhman is that there are not many spinning companies in India that are listed. Also, spinning companies have been doing well of late due to fall in cotton prices and good demand in both export and domestic markets.

However, it faces threats from the policies of Gujarat and Maharashtra governments, which offer power subsidy and tax incentives for the industry, and excess capacity.

"The company plans heavy capital expenditure in a year. So, investors with a long horizon can lock into the stock at Rs 220-225 levels compared with the current level of around Rs 250," says Pachisia.