Are we witnessing a black swan event? The news headlines from US read “Dow Dives 1,900 Points, NYSE Halts Trading As Stock Indexes Plummet”. At home, the benchmark index, the BSE Sensex fell over 2300 points intraday, to recover some ground and close with a fall of 1,941.67 points
As a quick re-cap of the Sensex’s roller-coater ride
- May 2019, Sensex closed at 39,714 – the Sensex riding on the euphoria of second term for the Modi government.
- Aug 2019, Sensex closed at 37,333 – amidst fears of U.S./China trade wars resulting in global slowdown and at home, weak auto sales combined with fears of recession and lowering estimates of GDP growth. Following the trend, the first half of Sep 2019 began on a weak note for the Indian equites and the last Sale! was announced in Sep 2019 The Grand Indian Equity Sale – Buy ideas📝.
- Sep 2019, Sensex closed at 38,667 – when the Finance Minister came to the rescue announcing in the final week of Sep 2019 a cut in the corporate tax rate from 30% to 22% to combat weak growth.
- Dec 2019, Sensex closed at 41,254 😘
- And now on 9 March 2020, Sensex closed at 35,634.95 −1,941.67
Sale is ON in the stock market !! And isn’t this the perfect time to buy some shares !? So many companies to choose from and as always money is limited😀.
The financial advisors including Buffet always advises investors to draw up a list of what you want to buy in the event of such a sale. Buffet says that you don’t go to a sale and buy a little bit of everything you see just because they are selling at a discount. You should already have a list of stuff that you want to buy and use the sale to get a good bargain. Be extremely choosy even during a sale; else you will end up with a lot of junk, you will later wish you hadn’t bought in the first place.
Unfortunately these sales come unexpectedly and if you are prudent you will have some amount of cash stashed away for buying when the price is right. But as they say ideas are free, it’s the execution which is a challenge. I agree.
I had a list drawn up in Sep 19 and I am sticking to that list for now.
[1] VIP Industries – CMP Rs. 365.70/- (NSE)
[2] TVS Motors – CMP Rs. 399.70/- (NSE)
[3] Federal Bank – CMP Rs. 72.85/- (NSE)
[4] Quess Corp – CMP Rs.496.95/- (NSE)
[5] ITC – CMP Rs. 177.20/- (NSE)
Also adding a few companies to the watchlist:
[1] SIS
[2] HDFC AMC
[3] ICICI Lombard
[4] Berger Paints
[5] TTK Prestige
As always, it’s wise to buy in small amounts and average the cost because the week has just started and nobody knows which way things will turn in the coming days. Tomorrow is a holiday for the Indian equity markets on account of the festival of colours – Holi.
Happy Holi 💙 💚💜 and happy investing !!
Till next post, take care !!
Miles and smiles 