11 September 2007

AXISBANK



Axis Bank(formerly UTI Bank) is a good investment candidate in the private banking space. This stock now trades at around Rs 590, which is a multiple of 29 times its FY-07 earnings and five times its book value. The stock has generated average annual returns of around 45 per cent since the company’s IPO in 1998.

Future returns may not match that of the past eight-nine years. But this banking stock could be a core long-term investment on account of the solid underlying financial performance of the company and good prospects of such performance being sustained, the niche positioning it is trying to achieve in the overall market and a strategically-driven management, all of which appear to have laid the foundation for long-term growth.

At these levels, the stock does appear a little pricey. But if one considers the company’s track record and the relative performance of the stock vis-À-vis its private sector peers, it would seem that the valuations are catching up only now.

NOW WE CAN BUY IT WITH A TARGET OF 800 SHORT TIME TRAGET 705 AND BOOK PROFIT ON HERE

by erectusplus at 16:30:00 | 0 comments (create) - (View)

GLOBALCUES

he phrase ’global cues’ is a way of explaining the positive/negative effect of events in other markets on Indian stocks. Global cues have an impact on Indian stocks because of two factors. First, India’s financial markets and its economy have developed greater linkages with the rest of the world, as companies trade, expand their operations, acquire and borrow actively overseas.

Second, there has emerged a large class of global institutions and funds that dabble in and actively switch money between stocks, bonds and currencies from across the world. Such investors today play a key role in stock market movements.

As equity markets in Europe and the US mature, those seeking higher returns on their investments have made a beeline towards the emerging markets, India included. Foreign Institutional Investors have pumped in nearly $60 billion (over Rs 2.5 lakh crore) in Indian equities so far and are major stakeholders in Indian companies. As their radar is always on for the best investment opportunities worldwide, any change in interest rates or stock prices at any of the major global markets has a bearing on their investment decisions for India.

by erectusplus at 16:29:00 | 0 comments (create) - (View)