Let’s face it. It’ll be a cardinal sin if you’re not making money on the Indian stock market. Your portfolio may be small, just about a few lakhs of rupees or may be lesser, or as big as one running into tens of lakhs of rupees. HNIs (or high net-worth individuals) may pardon me – they can deploy their money with top fund managers.
I’m talking about SNIs or small net-worth individuals, those that flock to the stock market as the last group of entrants when the prices have already reached stratosphere, only to burn their fingers as the prices crash while the biggies cash in their profits.
If you are one of these SNIs, take heart. You may be late to join the party, but still you can hope to make money as things now stand. The portent is pretty good, and there is fair chance that the moneymaking bandwagon will continue to roll forward for quite some time to come.
Why am I so gung-ho? Is it that I’ve some inside knowledge that many others don’t?
The answer is I’ve my eyes and ears open that allow me to consume the same stories that everyone does, and while doing so I’m able to retain certain parts of them to make what is popularly called ‘informed’ decisions.
Okay, let me touch the ground before taking off again.
We all know things like India’s high level of growth, burgeoning middle class, increasing penetration of items like mobile phones among semi-urban and rural populace, growth in malls and plexes, and suchlike.
Some of these are not apparent to eyes like high level of growth and burgeoning middle class. Others are clearly visible like the malls, the plazas, the highrises, the plexes, and the popularity of mobile phones.
What these mean is that a portion of our populace has good amount of money with them to spend on whatever they feel like. And this money they have earned by working somewhere, which is to say that money-earning activities have increased and is continually increasing.
Money-earning activities increase when economic activities increase, which in turn increase when people with money are willing to spend or hawk theirs to earn more profits.
Coming to the point, from all indications it is becoming clear that India stands on the threshold of ginormous – meaning gigantic+enormous – economic progress, something never seen in the country.
Take Japan’s remarkable post-WW2 economic miracle that catapulted the nation’s economy from shambles to dizzy heights. During this time the Tokyo Stock Exchange’s bellwether index, the Nikkei-225, rose almost unabated for about 4 decades to reach an all-time high of nearly 39,000 in December 1989.
Our northern neighbor, China, too has been growing at a breakneck speed since the last 2-3 decades. And as the country prepares to host the Olympics next year in Beijing, the talk is that the event is being planned as one unparalleled in living memory.
So, what’s the picture? Evidently, in Japan and China there have been sustained investments for decades at a stretch that uplifted their economy to enable them become global economic powerhouses.
India is today in the same position. Just a few days back the ET has in a pullout, called the Western Business Review, discussed about ‘10 projects that can change the face of the western region’. Mind you similar projects are happening elsewhere in the country too.
What is common to most of these initiatives is that many of these are related to the infrastructure – mainly roads, bridges, buildings, power, ports, etc. That being so, here is the first hint of making money on the bourses.
Look closely at some of the front-ranked infrastructure related stocks, like ABB, L&T, Siemens, BHEL and the likes, and you’ll see their prices have risen unbelievably in the past few months.
If you feel there is less scope of these stocks’ rising any further, you may be in for a rude jolt. Why? It’s because each of these companies are posting fabulous results and each of their order books is choc-a-bloc with new projects for several coming years at a stretch.
Companies that are in sectors like power, telecom, retail, realty, banking, housing, etc will also likely see phenomenal growth. If you visualize how Japan and China have attained sustained growth for many years, you’ll understand that a similar growth pattern is very much possible in our country.
And we’ve just started. Which means even now is not too late to join the ranks of millions in order to make money in the stock market.
Ride the fun of creating wealth. And enjoy it too.