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Thursday, October 4, 2012

Last 2 Years Performance of Sensex, Mid & Small Cap Index

Starting Sept'12, FIIs are continuously pouring their money in India. Since last one month, Nifty and Sensex have risen by almost 8%. Thanks to continuous inflows from FIIs which are buying into Indian equities. Credit goes to FED announcement of QE3 which increased liquidity and inflows in global stock markets and also big annoucement on much awaited reforms from our Government. Its liquidity driven market, hence concerns related to fundamentals like high inflation, high interest rates, rising crude oil prices, high fiscal deficit along with weak IIP numbers still remains.
Due to these factors, retail participation is still low and DIIs are net sellers in Indian stock market on almost daily basis. Can you imagine, retail participation in India in terms of investments in stock market was at 4 years low in Aug-Sept 2012.

But good times are going to come sooner than later, in case of any corrections, DIIs will get into the market and buy on dips. Another positive is weakness in dollar and Rupee appreciation which hits 5 month high. This will ease some pressure of govt in terms of importing crude oil.

There are hundred of stocks which tested 52 week lows in the month of July and August and now are available at decent valuations.

Lets look at Past Performance of Small and Mid Cap Index - Last 2 Years

Small Cap Index during end of Sept 2010 was at around 10000 which made a high of 11367 on 11th Nov 2010 and today closed at 7186. Hence, Small Cap Index has given negative returns of -28% in last 2 years. If we look at Mid Cap Index, it was at around 8000 levels two years back and today closed at 6704, down by -16% in last 2 years. Similarly, Sensex is down by -6% in last 2 years.

What a disappointing performance of both indices including Sensex? A strong reason why your mutual funds are not performing. Isn't it? But are your fund managers smart enough to outperform major indices. We don't think so, more than 80% of equity mutual fund schemes have underperformed major indices which means that your mutual fund is giving you lesser returns compared to these indices.

Is this really bad? Are you worried? You should not!

Its a fact that nobody in this universe can time the stock market but its wise for medium & long term investors to invest during tough times. Using this approach, Investors can bet on stocks which are fundamentally strong and are trading below their intrinsic value, you can get them cheap due to poor economic conditions and negative sentiments in market. And once sentiments turn to positive, it rewards investors who entered during market lows giving great returns to them on their investments. A right approach towards equities - buy at low, sell at high. But more important is to invest in right stocks.

Hence, you must consider this as an opportunity to invest in fundamentally good stocks for medium to long term.

So in which stocks you can invest in?

You can invest in small, mid as well as large cap stocks of sectors which are heavily discounted. Small and Mid cap stocks are more volatile compared to large cap because of low liquidity. Hence, during bad times, they experience more pain in terms of falling prices. But good small and mid cap companies with sound fundamentals can give you multibagger returns in medium to long term.

Past performance of Saral Gyan - Hidden Gems

It gives us immense pleasure to share that Saral Gyan - Hidden Gems (unexplored multibagger micro/small cap stocks) outperformed all major indices during last two year giving excellent returns to Hidden Gems subscribers during bad times of stock market.

7 out of 21 Saral Gyan Hidden Gems stocks (Sept 2010 - May 2012) gave more than 100% returns to our investors. Average returns of Hidden Gems (as on date) is +36% (maximum average returns is 70%) compared to negative average returns of -5% of small cap index. Moreover, we suggested partial profit booking in those stocks which have given more than 100% returns in short span of time. Hence actual returns are more compared to average return as indicated in below table.

Below is the performance of Hidden Gems of last 2 years (upto Jun'12) recommended by our equity analyst team:

(Click on the image if not visible)

Below are the 4 Hidden Gems of 2011 which have given more than 100% returns.

You can download complete research report using below links:

1. Camlin Fine Sciences (BSE Code - 532834) : Camlin Fine Sciences was recommended by our equity analysts at price of 60 (price adjusted due to stock split) considering positive developments in the company. And after 8 months suggested partial profit booking by selling 50% holding of Camlin Fine Sciences at price range of Rs. 130 (price adjusted due to stock split), returns of 115% in short span of 8 months. Remaining 50% stock holding is free for Hidden Gem subscribers.

Camlin Fine Sciences Research Report - Read/Download

2. Cravatex (BSE Code - 509472) : Cravatex belongs to consumer segment and was attractively valued before bonus issue, company own rights to sell brands like Fila and Proline and was expanding its reach to customers in different geographies of the country, stock was recommended at price of Rs. 700 (bonus adjusted) in May 2011 by our equity analysts. Stock made high of Rs. 799 in April this year registering maximum returns of almost 130%. Partial profit booking was recommended above 100% returns.

Cravatex Research Report - Read/Download

3. WPIL (BSE Code - 505872) : Our equity analysts noticed that WPIL promoters are doing aggresive open market purchase. Later our analysts tried to dig out the reasons and found that WPIL has made few acquisition/ tie ups globally to synergize their business and is going to be benefitted tremendously in coming quarters, same was reflected later in company's quarterly results. Stock recommended at average price of Rs. 182.5 made high of Rs. 442 during this week. We suggested partial profit booking to our subscribers by selling 50% of stock holding at Rs. 425 (returns of 130%) and holding the remaining quantity for long term.

WPIL Research Report - Read/Download

4. Cera Sanitaryware (BSE Code - 532443) : Cera Sanitaryware was attractively priced and was trading below its intrinsic value in Dec 2011. Our analysts were confident enough about decent returns in this scrip and suggested a buy at price of Rs. 157, stock has made 52 week high of 381 recently and doubled the investments of our subscribers in short span of 8 months. As valuations are still attractive, we suggest our subscribers to hold the stock.

Cera Sanitaryware Research Report - Read/Download

Shri Adhikari Brother - Sept'10, De Nora Ltd - Nov'10 and Indag Rubber - Jan'12 also gave 100% plus returns, partial profit booking in these stocks already suggested to our members.

Equity analysts team at Saral Gyan gives 100% to identify the best investment candidates, objective is not only to protect your capital but also to grow it at healthy rate.

We do not just recommend the stocks but also share the authentic and unbiased research reports which help you to understand the company's business along with growth opportunities and guide you to make an educated investment decision.

Grab Best 3 Small Cap Stocks

Now, you have an opportunity to grab best 3 small cap stocks by subscribing to Hidden Gems annual subscription. Yes, you read it right! We will share 3 Hidden Gems research reports published in past by our equity analysts team in which you can make fresh investments for long term.

These 3 Hidden Gems are the small cap companies which belong to different sectors and can do extremely well on bourses in next 4-6 quarters. These companies have registered impressive  topline and bottom line growth in FY2011-12 and Q1 of this financial year, have limited downside risk and can be added in your portfolio.

Subscribe to Hidden Gems and Grab Best 3 Small Cap Stocks to power your equity portfolio. You need not to pay any additional cost other than annual subscription charge (Rs. 7500 / $ 150) for grabbing best 3 Hidden Gem stocks to add in your portfolio.

Under annual subscription, you with receive total 12 Hidden Gems monthly research reports along with 3 stocks research reports of past for fresh investment. We will also share Hidden Gems - Flash Back report (update of 21 previously recommended Hidden Gems).

Now you can pay online using your credit card, online fund transfer using NEFT of by depositing cheque. Click here to view the payment options available.

Do write to us in case of any queries.

Wish you happy & safe investing!

Team - Saral Gyan.
Saral Gyan Capital Services