Commandment 1: Don't attempt to time the market

Timing the market is no guessing matter. To the little investor, timing the market is like taking a random walk. Most people only recognise the correct path after already having set foot on the wrong one. One exception to this is “bottom-fishing”, an approach to buy stocks that you want in your portfolio at prices below the prevailing levels. This entails biding your time and buying into a market downturn before the others do (the age-old philosophy of buying low, selling high). The downside of this approach being that the stock you want may never see the downside you expect.

Commandment 2: Don't try to outguess the market

Market psychology is for shrinks, not for couch potatoes like we humans. What captures the imagination of the market is transient. This means that what is “in” today is “out” tomorrow. Most people only recognise the pattern after it has become apparent to almost everyone else and is too late to act upon. For example, if investment in technology appears to be the current flavour, you are probably already too late to cash in on the trend. In this instance, you should only invest in technology as part of a long-term balanced approach.

Commandment 3: Treat investing like marriage--go for the long haul

Short-term investing could go either way. Invest for the long term. Almost all market pundits and investment studies show that stock investing should be part of a long-term strategy, lasting for five to ten, or even 20, years or longer. Beware that not every year will result in a positive return on your investment. However, over time the plus will likely overwhelm the minus by a substantial margin.

Commandment 4: Stay clear of broker's advice, hot tips and "multibaggers"

Every portfolio advisor is not Sharekhan (J) who swears by sound investment principles. Think. Wouldn't most brokers be tempted to make their living by goading their clients to constantly move in and out of positions, thus garnering commissions? This is diametrically opposite to Commandments 1, 2 and 3. For most people, stock advice is like a game--of darts! Only accept advice if the person has your financial interest in mind and is not making a living by selling your stock. Of course never buy from someone who calls on you and gives you advice. J

Commandment 5: Almost always invest in blue chips and blue chips-to-be

Do invest in companies that are considered blue chips. These include not only the BSE 100, but also the others that are slowly stepping into the big league. Invest only in established companies with a good track record. Beware that not every blue chip will rise after you buy it, and that even these otherwise stellar performers will have their good months/years and bad months/years. But over time, the fluctuations will even out and you would be left with a considerable net plus. Also invest in companies that have a good record of declaring dividends (and if you find the solitary one that increases its dividend pay-out each year...you know what to do).

Commandment 6: Prefer steady installment-like buying of stock to buying at one go

Investing should never be done in panic or be treated as an emergency. Purchasing your favourite few is best accomplished at a steady rate over time, so as to avoid the ups and downs of the market. This is called rupee cost averaging and is one of the safest approaches to investing. It works just like any other habit: you buy, regardless whether the price is up or down, until you reach the desired number of shares of that stock.

Commandment 7: Diversify, diversify and diversify

Do diversify your portfolio, both within your selected sectors and within the overall industry. For example, don't invest in only technology because it happens to be in vogue but consider the other industries as well.

Commandment 8: No shopping with borrowed money and maintain a core reserve

Never use margin money to buy stocks. You should not invest money you don't have. A simple and basic rule is to not leverage yourself to an extent that when the tide turns against you, all you are left with is nothing.

You never know when a financial emergency might arise. That's why you must keep a comfortable cash reserve in your savings account, so you do not have to tap into your long-term investments. A reserve equal to six months of salary should be just about ideal.

Commandment 9: Set realistic financial goals

Treat a 500% return with as much derision as you would a 5% return. Decide what you need the money for: To retire early, to finance your kid's college education or to fund your daughter's marriage or just to preserve and build wealth? Whatever the goal you set, make sure it is reasonable and attainable. Expecting too much will only lead to disappointment down the road. Aim for an expected return level that is realistic--not mediocre or overambitious.

Commandment 10: There are 10 more commandments

For those who thought that was the last of the ten commandments I have good news. There's more. Ensure that your portfolio size is controllable (15 stocks is about ideal) and your stocks are well researched. Checkpoints: Is the management quality above board? Does the company have a positive cash flow? Does it have the capability to compete on a global scale? Most importantly, is it shareholder friendly?

Finally, leave your emotions behind when you enter the world of investing. Follow the ten commandments. Time is on your side. Investment success won't happen overnight, so stay focused on long-term returns and avoid overreacting to short-term market swings. Remember, investment success depends on time, not timing.
Sharekhan has the best stocks under its coverage. Invest in them for the long term for healthy returns.

Country's largest carmaker Maruti Suzuki India (MSI) reported a 5.5 percent decline in total sales in March at 1,13,350 units as against 1,19,937 units in the same month last year. The company said its domestic sales declined  by 5.2 percent during the month to 1,02,269 units as against 1,07,890 units in March 2013. Sales of mini segment cars, including M800, Alto, A-Star and WagonR, declined by 11 percent to 40,085 units as compared to 45,047 units in the year-ago month, MSI said in a statement.
The company said sales of the compact segment comprising Swift, Estilo, Ritz rose by 9.3 percent to 28,285 units in March this year as against 25,868 units last year, reports PTI. 12:50pm HSBC's India manufacturing PMI down in March HSBC's India manufacturing PMI declined in March at 51.3 versus 52.5 in February, but remained above the waterline, indicating positive growth. "Growth in the manufacturing sector eased on the back of weaker growth in output and a slowdown in order flows from domestic clients.
By goods, consumer goods firmed, but the production of investment goods remains subdued according to panellists. Looking ahead, the recovery is likely to prove protracted. Meanwhile, inflation eased in March, with the PMI index for input and output prices falling," the HSBC report said.
12:45pm Expert on RBI policy Kunal Shah, fund manager-debt, Kotak Mahindra Old Mutual Life Insurance said, "RBI has maintained status quo as per our and consensus expectations, though not clearly spelled out in policy but RBI is incrementally concerned about sticky growth underperformance." According to him, RBI has hinted that lead indicators do not point to any sustained revival in industry or services & hence believes that slower activity will help disinflate the economy which will support the fight against inflation. "Till these processes evolve RBI feels current policy rates are appropriate and may not require further tightening," he added. "We expect current disinflation process to continue and core inflation to moderate further however sharp fall is unlikely in short-term. Monsoon will be key to watch as it can create short-term volatility in inflation path," Shah said.
12:40pm Rate hike unlikely if inflation does not rise further The Reserve Bank’s policy stance will be firmly focussed on keeping the economy on a disinflationary glide path that is intended to hit 8 per cent CPI inflation by January 2015 and 6 per cent by January 2016, the central bank said. It further said that at the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy. Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, the RBI said.
12:35pm RBI says Since December 2013, the sharper than expected disinflation in vegetable prices has enabled a sizable fall in headline inflation. Looking ahead, vegetable prices have entered their seasonal trough and further softening is unlikely. Meanwhile, CPI inflation excluding food and fuel has remained flat. There are risks to the central forecast of 8 percent CPI inflation by January 2015 stemming from a less-than-normal monsoon due to possible el nino effects; uncertainty on the setting of minimum support prices for agricultural commodities and the setting of other administered prices, especially of fuel, fertiliser and electricity; the outlook for fiscal policy; geo-political developments and their impact on international commodity prices. 12:30pm Market falls further, banks extend losses Equity benchmarks extended losses in afternoon trade weighed down by banking and financial stocks.
The Sensex is down 81.76 points to 22304.51 and the Nifty down 20.25 points to 6683.95. India's biggest lender State Bank of India plunged 2 percent while rival HDFC Bank slipped 1.9 percent. Top private sector lender ICICI Bank and housing finance company HDFC dropped over a percent. Shares of L&T, ITC, HUL, Bharti Airtel, Maruti Suzuki, Bajaj Auto, BHEL and Coal India declined over 1 percent.

However, TCS held its early gains, up 2 percent followed by Wipro and ONGC with more than 1.5 percent. Infosys and Tata Motors climbed over 0.5 percent. 12:25pm RBI says Retail inflation measured by the consumer price index (CPI) moderated for the third month in succession in February 2014, driven lower by the sharp disinflation in food prices, although prices of fruits, milk and products have started to firm up. Excluding food and fuel, however, retail inflation remained sticky at around 8 percent. This suggests that some demand pressures are still at play.
12:20pm RBI increases the liquidity provided under 7-day and 14-day term repos from 0.5 percent of net demand and time liability (NDTL) of the banking system to 0.75 percent. It decreases the liquidity provided under overnight repos under the liquidity adjustment facility (LAF) from 0.5 percent of bank-wise NDTL to 0.25 percent with immediate effect.
12:15pm Rajan says the bank may need to push foreign banks to follow subsidiary model. Foreign banks avoid subsidiary route on priority sector norm, he adds.
12:10pm While addressing press conference after an announcement of bi-monthly review, RBI governor Raghuram Rajan said the bank had responded to Election Commission queries on banking licences. "We took Election Commission (EC) opinion on banking licences to stay away from controversy. Bimal Jalan had also suggested getting EC nod for banking licences," Rajan said. He further said the window for differentiated banking licences would be opened soon. 12:05pm Reserve Bank of India kept repo rate, at which banks borrow money from RBI, unchanged at 8 percent and cash reserve ratio at 4 percent. The central bank also left marginal standing facility rate and bank rate unchanged at 9 percent.
12:00pm The market remains volatile after the Reserve Bank of India kept policy rates unchanged that is in-line with expectations. The Sensex slips 15.12 points to 22371.15 and the Nifty declines 4.75 points to 6699.45. About 1174 shares have advanced, 1042 shares declined, and 131 shares are unchanged.   Top lenders State Bank of India, ICICI Bank and HDFC Bank decline 0.5-0.8 percent. Housing finance company HDFC slips 0.66 percent. State-run power equipment maker BHEL drops 1.7 percent, and engineering and construction major L&T is down 1.3 percent.

Nandan Chakraborty, MD, Institutional Equity Research, Axis Capital recommends investors to have a judicious mix of defensives and cyclicals in their portfolios now.
Sharing views on the current market rally, Chakraborty told CNBC-TV18 that in upmoves, consumer discretionary and BFSI stocks rise first. He expects 15 percent growth in Sensex levels by year-end. He sees big upside in select engineering and infrastructure  stocks.
Also, certain pockets of banking stocks may see large upmove going ahead. From the PSU banking pack, he is positive on  SBI  and PNB  . One can bet on auto ancillary stocks like  Motherson Sumi  in the midcap auto space, he added.
 Further, he added that earnings upgrade is seen only for companies with improvement in balance sheet, he said. Meanwhile, he expects further appreciation in the Indian currency.

IDFC and L&T Finance Holdings extended gains to 6 percent and 4.6 percent, respectively on hopes of banking license. 
The decision of whether to issue banking license or not during elections period is in hands of Election Commission and not the government. 
Election Commissioner VS Sampath on Tuesday said he has not taken a final call on the banking license issue. "
We will take up this issue on Monday," he added. Election Commission has raised legal ethical issues on banking licenses matter. 
12:20pm Talwalkars in focus Shares of Talwalkars Better Value Fitness rose 11 percent as buzz of stake sale gathered steam. According to media reports UK's health and fitness group David Lloyd is looking to buy 20 percent stake in the Indian health and fitness company. "The management of David Lloyd is in talks to pick up an equity stake in Talwalkars. This will help both companies to expand their current relationship," the report quoted an investment banker. 
12:10pm FII View Credit Suisse is bullish on India and considers elections to be a turning point for the country. Speaking exclusively to CNBC-TV18 on the sidelines of the Credit Suisse Asia Conference in Hong Kong, Sakthi Siva, Asia Strategist, Credit Suisse said that atleast 5-10 percent upside in the Indian market is possible from current levels in the near-term. Siva is quite confident that though India’s growth last year was the lowest in the past 10 years, but with politics, potential change, there could be a turning point for the Indian market and the economy. 
12:00pm The market extended an upmove in noon trade with the Sensex rising over 100 points supported by banks, capital goods and auto stocks. The Sensex rose 107.58 points to 22202.88 and the Nifty climbed 38.45 points to 6639.85. About 1468 shares have advanced, 869 shares declined, and 141 shares are unchanged. Top lender State Bank of India jumped 3.5 percent after Goldman Sachs has upgraded the PSU bank to buy from neutral rating and revised target price to Rs 2,080 from Rs 1,440 apiece. 
PNB and Bank of Baroda gained 2.5-3 percent while rivals HDFC Bank and ICICI Bank advanced 0.7 percent each. Axis Bank rallied 2 percent. Brokerage house Morgan Stanley added Axis Bank to its Asia ex-Japan model portfolio. The firm is positive on the stock given company's reducing risks in books. 
Telecom operator Bharti Airtel surged 3 percent followed by Hindustan Unilever, M&M, Hero Motocorp, BHEL and NTPC with 1-2 percent. However, state-run oil & gas major Oil and Natural Gas Corporation's stock (ONGC) is quoting ex- dividend today. It fell nearly a percent. The board of directors on March 24 have approved second interim dividend of Rs 4.25 per equity share of Rs 5 each for the financial year 2013-14.  
 Drug majors Sun Pharma and Dr Reddy's Labs declined more than 1 percent. Dr Reddy's Labs has launched Amlodipine Besylate (to treat high blood pressure) and Atorvastatin calcium tablets in US market.

10:30am Oberoi Realty jumps over 10%
 Oberoi Realty bought Tata Steel’s defunct manufacturing plant in Borivali, a western suburb in Mumbai. Oberoi Realty jumped 10 percent while Tata Steel rose 2 percent after the real estate developer announced buying the 25-acre land for Rs 1155 crore through e-auction
"The Committee of Independent Directors appointed for the oversight and governance of the sale process by the Tata Steel Board declared Oberoi Realty Limited as the highest bidder of the auction on the basis of their final bid of Rs 1,155 crore, after several rounds of bidding," Tata Steel said in a statement

MCX | Financial Technologies | Arshiya International | ONGC | ACC | Tech Mahindra | United Spirits | Dabur India | PNB | Tata Power | Mahindra & Mahindra Financial Services | Bharti Infratel | Mindtree and Axis Bank are stocks, which are in the news today.

Here is a list of ten stocks which are in focus in trade today:

Goldman Sachs has upgraded India to 'overweight' and has put an aggressive target of 7,600 for the Nifty in the next 12 months, which implies 17% upside from current levels.

Citing the reasons for the same, the global investment bank said in a report: "The cyclical macro adjustments in India have reduced external vulnerability. We now expect domestic fundamentals to improve as growth recovers in 2Q. Corporate earnings downgrades seem to have bottomed out, with more signs of improvement in the investment cycle. Headline valuations have recently expanded but cyclical sectors remain inexpensive compared to history and are relatively under-owned."

The Indian stock markets today extended gains and hit fresh all-time high as inflows continued on the back of positive cues from global markets. The benchmark Sensex was trading above 22,000.

Banks, auto oil & gas and realty sectors were the top sectoral performers in intraday trade.

Goldman said the upcoming parliamentary elections in April could have an impact on reforms progress.

NEW YORK: US stocks traded mostly higher on Tuesday, paring initial losses, as home prices and consumer data offset a decline in regional business activity.

Technology stocks led the gainers in the S&P 500, which closed at a record high on Monday. The benchmark index was on track to post its sixth consecutive month of gains.

Apple shares rose 2.3 per cent to $438.83 to lead the S&P 500 slightly higher. The iPhone maker came to market with what could turn out to be the largest non-bank bond sale in history, as it seeks funding to return cash to shareholders.

On the economic front, US home prices rose in February at their fastest rate in almost seven years while consumer confidence rebounded in April. However, business activity in the US Midwest unexpectedly contracted in April to its lowest level since September 2009.

Any pullback in the market has been viewed as a buying opportunity, traders and analysts said.

"The consumer confidence data seemed to mark the lows in the market," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"The continued market strength is drawing people reluctantly off the sidelines and into equities. Whether you want to buy stocks or not, the strength is forcing your hand."

The Dow Jones industrial average fell 10.12 points or 0.07 per cent, to 14,808.63. The S&P 500 gained 1.04 points or 0.07 per cent, to 1,594.65. The Nasdaq Composite added 14.8 points or 0.45 per cent, to 3,321.82. Equities continue to draw support from expectations that central banks will maintain low interest rates and other economic stimulus measures. A statement from the Federal Reserve due Wednesday is expected to keep in place the central bank's pace of bond buying to stimulate the economy.

The European Central Bank will meet on Thursday. A Reuters poll of economists showed policymakers are expected to cut interest rates.

The S&P 500 ended at an all-time high on Monday as growth-oriented stocks, including energy and technology shares, drove the index's sixth rise in the past seven sessions.

A positive finish to April would deliver a sixth straight month of gains. That would be the longest winning streak since September 2009, when the S&P 500 rallied for seven straight months. The broad market index is up 1.6 per cent for the month.

"Short interest is rising, but the market continues to move higher. If the S&P were to break over 1,600, we could see a monster short squeeze," said Jim Brown, editor of options analytics firm optioninvestor.com, in a note late on Monday.

Pfizer shares weighed on the Dow industrials after the drug maker posted lower-than-expected quarterly earnings and revenue, and trimmed its full-year profit outlook. Its stock fell 3.3 per cent to $29.42.

US retailer Best Buy retreated from its ill-fated European expansion by selling its stake in a joint venture to Carphone Warehouse Group for less than half what it paid five years ago. Best Buy shares jumped 8 per cent to $26.14.

Shares of security software maker Symantec Corp dropped 10 per cent in a span of a few seconds before trading was halted. Equity traders called the move another single-stock "flash crash," in reference to the May 2010 selloff when the Dow fall more than 600 points in a matter of minutes. Symantec was down 1.2 per cent at $24.30 at midday.

NEW DELHI: The S&P BSE Sensex was trading in a narrow range with a positive bias on Tuesday, led by gains in realty, metals, banks and capital goods sectors on the back of supportive cues from global peers.

According to analysts, corporate earnings for quarter ended March and global economic situation are likely to decide the course of market in the near term.

At 10:20 a.m.; the 30-share index was at 18,457.08, up 20.30 points or 0.1 per cent. It touched a high of 18,521.73 and a low of 18,456.65 in trade today.

The Nifty was at 5,564.40, up 21.45 points or 0.4 per cent. It touched a high of 5,580.60 and a low of 5,563.40 in trade today.

"The Nifty is expected to head lower till 5500. In this period the key support will be at around 5500 and resistance will be at 5612," says Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.

"The Nifty has again faced resistance around the 20-daily moving average (DMA) and also broken the previous swing low on the weekly chart which indicates weakness in the short term," he added.

Mehta is of the view that for the Nifty the short-term bias would remain negative for a target of 5450 with reversal around 5756. The medium-term outlook would remain negative.

Here is a list of sixteen stocks that are in action in morning trade today:

Telecom stocks will be in focus, after the Supreme Court allowed the telecom companies to continue 3G pacts until next hearing on April 11.

At 10:20 am, Bharti AirtelBSE -1.87 % was trading 2.1 per cent lower at Rs 275.20. Idea Cellular BSE -0.98 % was trading 1.3 per cent lower at Rs 105.60.

Wipro LtdBSE -10.75 % plunged over 11 per cent in early trade on Tuesday, after the IT major hived off its non-IT business into an unlisted entity to comply with Sebi's minimum public shareholding norm.

At 10:20 am, Wipro was trading 9.7 per cent lower at Rs 405.25.

TVS Motor Company LtdBSE -9.91 %, after the Chennai-based two-wheeler major entered into a long term co-operation with BMW Motorrad to develop and produce new series of sub-500cc motorcycles.

At 10:20 am, TVS Motor was trading 8.2 per cent lower at Rs 36.60.

IL&FS Transportation Ltd, after the infrastructure company said it had won a Rs 1,665 crore project from NHAI for widening of highways stretches in Jharkhand and West Bengal under the flagship road building programme NHDP.

At 10:20 am, the stock was trading flat at Rs 185.25.

Adani Power, Tata Power, Essar Power and JSW Energy will be in focus after the Directorate of Revenue Intelligence (DRI) accused a number of prominent companies in the power and cement sectors of using a loophole in the law to dodge import duty amounting to about Rs 2,500 crore on coal imports.

The agency has questioned officials of Adani Power, Tata Power, Essar Power and JSW EnergyBSE 1.96 % and other companies on coal imports worth about Rs 28,000 crore, ET reported.

At 10:20 am, Adani PowerBSE 4.19 % was trading 4.2 per cent higher at Rs 48.50, Tata PowerBSE 0.21 % was trading flat and JSW Energy rose 1.6 per cent higher at Rs 56.90.

Reliance Industries Ltd, after the oil & gas major stopped gas supplies to power plants after its KG-D6 output hit an all-time low, prompting Power Minister Jyotiraditya ScindiaBSE -4.96 % to press for convening an urgent meeting of a ministerial panel to rework allocations

Major headlines

• India's HSBC Services PMI at 51.4 in March
• Welspun Corp zooms on stake buy
• Ajanta Pharma at record high, stk up 13%
  Indian indices
  The Indian markets closed in the red zone as the equities traded on a subdued note led by selling pressure across the board, weak global sentiments, fall in rupee and poor HSBC Service PMI numbers for the month of March. Benchmark share indices witnessed weak trading session amid volatility in auto shares and index heavyweights like RIL and L&T which dragged markets lower. The broader markets too ended in red. At the closing bell, the BSE Midcap index slipped 0.94%, while the BSE Smallcap index was down by 0.54% leading to weak market breadth. 
  Movement of the Indian indices for the day
•  
  D Street witnessed a disappointed trading session as markets reversed gains accumulated in a four day rally and posted the biggest fall in last two weeks. Key benchmark indices opened in red owing to unsupportive global cues. Equities did try to erase early losses during early noon trades but remained in red terrain owing to profit booking in majority of the sectors.
  
  Following are the stocks/sectors which were in news today:
  
• Adani Power jumped 8.79% after a newspaper reported that regulators would allow the power utility company to raise tariffs for electricity provided from its plant in Mundra in the state of Gujarat.
  
• Welspun Corp gained 3.13% after Nippon Investment and Finance Co raises stake in the company to nearly 2.1% from 1.55% earlier through open market transactions.
  
• SRF rose 1.45% after the company said it has commissioned and capitalised a multipurpose chemical plant at Dahej in Gujarat on February 28, 2013.
  
• MOIL jumped 2.72% after the company said it had hiked prices by 9% across its product basket for the April-June 2013 quarter.
  
• Ajanta Pharma jumped 19%, to record new high on NSE; on back of heavy volumes after the company said its promoter along with foreign institutional investors (FIIs) have raised their stake in the company during March quarter. The stock closes 13.61% higher in trade today
  Sectoral & stock screening
  Among the 13 sectoral indices, eleven sectors closed in the red zone while remaining two sectors closed in the green zone. Top Gainers- BSE HC up by 0.17% and BSE Power rose by 0.06%. Top Losers: BSE Realty was down by 2.68%, BSE CG fell by 2.29% and BSE Auto declined by 2.23
  
  lobal signals
  Asian shares ended mixed on Wednesday (April 03, 2013), cautiously marking time before key US jobs data and news from central bank policy meetings in Japan and Europe later in the week.
  
  European shares and the euro eased while German bonds were flat on Wednesday as investors awaited this week's policy decisions by the Bank of Japan and European Central Bank followed by U.S. employment data.