Buy List of Stocks ... as on 9th Dec 2010

India got the attention of 'mature' investors of being a 'Nation of Scamsters'. Started with Common Wealth Games, Adharsh Housing flat scam, 2G Scam, Housing finance scam with Radia tapes in the peak, market got jittery after FII's sold stocks worth 600 million in the past 3 days.

No doubt the direction of FII Money is very important to the direction of market, a few realities need to be understood by 'panicking' investors:

(1) Financial year for many Foreign investors is January to December. Hence in the month of december, they would be busy closing their accounts, booking profits, trasfering funds back to their company/country and declaring staff bonuses. If not they sell, they would by all logic not pump in any money since it is a month of account closure. Hence FII's selling a part of their portfolio for profit is natural and normal.

(2) Indian market had run non stop from 8000 to 17000 then to 20000+. And there was rarely any profit booking. In the mean time PE ratio of the Index stands at 23.5, very well above the long term average of 18.1 and close to its all time high in the past 10 years. Hence market would be viewed as expensive.

(3) Inspite of scam's, high PE and FII selling, Good monsoon is likely to trigger good corporate results in India. That would bring down the PE ratio of the index may be by a percentage point or two. This can bring back the 'Rich' investors from overseas. And market may start moving up again.

(4) Healthy Primary market is a sign of strong secondary market. The disinvestment proposal by government aimed initially to fund it’s fiscal deficit has is on the right track. Government companies like Coal India did make lots of investors rich and there is now a mad rush for IPO. Though the allotment level is low, profit is profit. And for the government strategies like disinvestment by IPO and FPO along with decisions like deregulation of petrol price has come as a huge relief. Unlike foreign countries, India is on much safer side due to these bold decisions by government and the confidence restored by Indian Investors.

(5) All the above factors which are signs of a mature market made the US President Mr.Barack Obama say “India is not simply emerging: India has already emerged”. And the US president was thrilled by the “unity in diversity” of Indian democracy.

Hence this is not a time to panic, but a time to pick the right stock for your portfolio. Below mentioned is a list of stock which are close to their one year low price with good business model. Do stay in touch with us to buy them for your portfolio.