tips to buy best stocks buying and selling researched stocks in India

Important note - Still Indian Markets are directionless and indecisive due to which any further market correction may bring some more pressure on all researched stocks mentioned in following subsections.
The market volatility situation is for short term duration and in long term the markets will recover as Indian companies are having good fundamentals and good growth prospects.
Taking into consideration current market situation it is advisable to buy stocks in steps rather than buying in bulk in single trade.

Broking Sector

Reason to invest in this sector
After giving stupendous returns, stock prices of broking companies took a sharp U-turn since the markets crashed in mid - January 2008. within three months of touching their respective 52-week highs, stock prices of most of the broking firm touched their 52-week lows.

Bad news altogether
There has been bad news on the domestic as well as global front. Globally factors like the credit crisis, weakening US dollar, rising inflation and economic slowdown, have been playing negatively on the market sentiment. In India, growth in corporate earnings, industrial production and credit off take have been slowing down, while concerns over high inflation and foreign currency derivative exposure of India Inc have been looming large.

Overall
Long term prospects from 3 to 5 years the broking companies will provide good to excellent returns based on their individual growth strategies.

India infoline
1. India infoline has the most de-risk revenue model with a little over 55% of the total revenues coming from the equity brokerages
    business.
2. This is probably one reason for the company being the best pick among most mutual fund managers.
3. Going ahead, its institutional broking and lending businesses are expected to gain more scale and will be the revenue drives.
4. The partnership with New York based brokerages firm, Auerbach Grayson and Co will increase its access to institutional clients in
    the US and offer them access to Indian capital markets.
5. Also, its lending portfolio comprising of margin finance and consumer finance products (mortgages, personal loans, business loans
    and loans against shares) should grow at higher rate.
6. The company’s newly set up subsidiary for wealth management and its move to set up an asset management company should lead
    to positive results in the respective businesses.

Returns
CMP - Rs.36.05
Buying price - Below Rs.25.
Returns above 60% in next 2 to 3 years.

Taking into consideration Rs.36.05 as buying price following are the returns
343% Target acheived in month of 19 May 2009. It went high till Rs.160 (Updated - 22 May 2009)

Indiabulls Securities
Indiabulls Securities got listed on April 2, 2008 after the de-merger of stock broking business from Indiabulls Financial Services, which now operates the financial services business.

Returns
CMP - Rs.29
Buying price near Rs.15. (It went down till Rs.16.85)
Returns above 60% in next 2 to 3 years.

Taking into consideration Rs.16.85 as buying price following are the returns.
159% Target acheived in month of 20 May 2009. It went high till Rs.43.80 (Updated - 22 May 2009)

Motilal Oswal Financial Services
1. Motilal Oswal, product portfolio includes institutional equity broking and commodity broking, investment banking, discretionary
    portfolio management, venture capital management, and third party product distribution.
2. The company has rapidly expanded its network with presence in 432 cities through 1,430 outlets.
3. Its recently formed investment banking and venture capital (VC) management business are gaining traction.
4. On the retail side, the company aims to move up the value chain by offering wealth management and asset management services.
5. It also plans to scale up its margin finance and third party product distribution businesses.
6. Strong management, diversification in revenues and superior research capabilities instill confidence in the company’s growth
    prospects.

Returns
CMP - Rs.64
Buying price below Rs.50   (It went down till Rs.43.60)
Returns above 40% in next 2 to 3 years.

Taking into consideration Rs.43.60 as buying price following are the returns
287% Target acheived in month of 20 May 2009. It went high till Rs.168.80    (Updated - 22 May 2009)

Edelweiss Capital
1. Edelweiss Capital is also a large broking company with strong presence in institutional broking and superior research capability.
2. The company is among the largest in the institutional broking segment with 9 per cent market share and is a leader in the
    derivatives segment with more than a 13 per cent market share.
3. It also has the strong domestic investment banking business and one of the highest operating margins of more than 30 per cent in
    the industry.
4. Edelweiss is making attempts to have a well diversified portfolio to include finance against shares, asset and wealth management,
    insurance and third party distribution from the current brokerage and arbitrage activities.

Returns
CMP - Rs.300
Buying price near Rs.200. (It went down till Rs.218)
Returns above 50% in next 2 to 3 years.

Taking into consideration Rs.218 as buying price following are the returns
111% Target acheived in month of 20 May 2009. It went high till Rs.461    (Updated - 22 May 2009)

Religare Enterprises
1. Religare Enterprises is the holding company of various subsidiaries, whose businesses are classified into three main verticals-retail,
    institutional and wealth spectrums and is among the larger retail brokerages in India.
2. It has one of the biggest networks with presence in more than 1,300 locations across over 400 cities and towns.
3. The company also offers a diversified bouquet of services ranging from equities, commodities and insurance broking to wealth
    management, portfolio management services, personal financial services, investment banking and institutional broking services.
4. Its UK subsidiary recently got an approval from the Financial Services Authority (FSA) for acquiring Hichens, Harrison & Co,
    London’s oldest broking firm. Hichens, Harrison has been in the business for over 200 years, and offers services like corporate
    broking institutional broking and sales.
5. For the domestic market, the company has partnered with one of the global leaders, Aegon, to launch life insurance and mutual fund
    products in India and has also entered into a joint venture with Macquarie for wealth management services.
6. Though the company is increasingly diversifying its revenue profile, it will continue to significantly depend on retail broking (about 90
    per cent of total revenues.

Returns
CMP - Rs.317
Buying price near Rs.250.
Returns above 50% in next 2 to 3 years.

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