Before this read, The Venture Guide discourages any random stock tip & teaches you how to pick best Indian stocks yourself in just 1 minute. Indian market is manipulated by the investors but not for a long time. Companies like Tata, Infosys, Nestle, MRF, HCL, Reliance, ITC have strong financials and are hard to manipulate like any other shares.
The idea here is to make some real investments and get good returns after a period. Here are some steps that sums up are a question of
How to pick the best Indian stocks yourself in just 1 minute:
Step 1: Select stock category to invest in:
Indian stock market is divided into multiple sectors where financial services account for the highest share of 38.03%. This means 38.03% of shares listed in the market belong to the finance sector. Apart from finance, 16.77% constitutes the IT sector. Oil & Gas accounts for 11.78%. 11.49% share in the market is taken by consumer products. Automobile, Metal, and Pharma are 5.40%, 3.26%, and 2.80% divided in the market. Now all you have to do is decide and pick the best Indian stocks yourself in just 1 minute. Decide the category you want to invest in.
Step 2: How to select a sector to invest in?
This is the real question that comes to an investor’s mind while selecting a particular sector to invest in. The answers are around you, the things going around you, the trend. For illustration, a few days back Delhi government announced a subsidy for electric vehicles and proposed a plan to make the city full of electric vehicles to fight the problem of AQI getting worse. So this simplifies your selection of stocks and will your invested money till the company is receiving orders and producing revenue.
Step 3: How to select a particular stock to put wealth or to invest in?
As the news has impacted the electric power and vehicles segment, which stocks or companies will be impacted with that? To sort these shares, we can use a free tool which is called Screener which helps in stock analysis and decision making. One has to only visit the website and tab on the screens tab, then there we can select the vehicles or power category. For the electric vehicles segment, stocks like Tata Motors (which already sells EVs), Maruti Suzuki (which is in the process of producing cheap EVs), Amara Raja Batteries & Exide (which makes electric batteries), Tata power & Adani Power which will install electric charging stations. These stocks can be analyzed and then can be added to the portfolio.
Step 5: How to find if that stock will give you desired returns?
The answer lies in proper analysis. From a wide range of stocks to one single category and now to a single, we need to look for its annual reports, management decisions, audit reports, important ratios and we need to do industry analysis as well. For a stock like Tata Motors, we need to see the company’s last year sales and YoY profit. We need to analyse its overall revenue and functioning. After seeing all the reports, we can surely invest in one particular stock which will surely give us positive returns.
Well, the conclusion is that investment in stocks can be really easy if you adopt this 5 pointer strategy while picking up the stocks for investing.