Should you Buy SBI ( State bank of India ) now ???

The big question with current market after todays crash is that should one buy the India's largest bank State bank of India at current level. The stock is now trading at 52 year low of 1,787 which is around 50% lower than its 52 week high of around 3500.

My answer to the above question is yes one should start buying state bank of India at current level, as the stock is currently at very cheap price which we may not get in coming days. As the mood of global market is not good and RBI is bitter instance of increasing the interest rates has put a negative outlook on the banking industry in near to medium term, but the situation is not to get away but to get the stock as such low levels. If market sentiment starts to feel better they this is the stock which would lead the rally and there would not be stopping after that. Moreover, SBI is planning a 20,000 Cr rights issue which government will only clear after the market mood cheers up and SBI moves in the range of 2500 as we have seen in the case of ONGC the govt. has delayed the follow up issue due to lower valuations.

Hence, start putting the SBI in your demat account and see the value of portfolio grow to higher valuation.

Buy EROS International

Investors and traders with low to medium risk appetite can now start buy Eros Media currently market price of 236 with all time high of 258 made last week.

The fundamentals of the company looks very strong and the media industry in coming days is likely to be recession proof.

With major movies lined up for release in coming months , the profitablity of which will show on the movement of the stock which may go around 400 in coming 4 to 6 months an appreciation of around 60% from current level.

Hence start accumulating Eros Media at current market price.

Eros media upcoming releases :

1. Rock star ... starring Ranbir Kapoor 11 Nov
2. Desi Boyz...starring Akshay, John, Deepika 25 Nov
3. Raone...starring Shahruk Khan
4. Rana...starring superstar Rajnikanth
5. Agent Vinod..starring Saif Ali and Kareena
   

Top Tax Saving Mutual Funds

Here is the list of Top tax saving ELSS mutual fund ( Equity tax planning funds )
There have been arrived by doing various research on the funds in this category.

1. Canara Robeco Equity Tax Saver.... Net asset 290 Cr, 3 Yr return 24.57%
2. Religare Tax Plan ...............................Net asset 108 Cr, 3 Yr return 20%
3. Fidelty tax advantage.........................Net asset 1240 Cr, 3 Yr return 18.7%
4. Taurus tax shield.................................Net asset 69 Cr, 3 Yr return 16.3%

The above are top tax saving mutual funds which have lock in period of 3 years.
With market nearing 16,000 ( BSE Sensex ) it would be right time to invest some amount in these funds if you want to save tax for the financial year 2011-12 , not in whole but do investment in staggered manner as currently economic situation globally not good hence it would be advisable to invest around 30% of your portfolio for tax saving mutual funds now and rest later on.

Please do keep visiting the blog in future on latest updates on Indian equity market and muutal funds as well as tips of investment and stock market hot picks.