MUMBAI:
The Sensex pared intraday gains and slipped in the negative terrain on Monday, following weak opening of the European peers. All the major sectoral indices, barring the auto space, were in the red with pharmaceuticals, power and oil & gas leading the decline.

At 02:40 pm, the 30-share index was at 19,746.73, down 34.46 points or 0.17 per cent. The index touched a high of 19,902.60 and a low of 19,743.04 in trade today.

The Nifty was at 5,990.35, down 8.55 points or 0.14 per cent. It touched a high of 6,038.50 and a low of 5,985.05 in trade today.

The BSE Midcap Index was down 0.66 per cent and the BSE Smallcap Index declined 0.51 per cent.

The BSE Healthcare Index was down 1.19 per cent, the BSE Power Index was 1.16 per cent lower, the BSE Oil & Gas Index declined 1.10 per cent and the BSE Metal Index was 0.94 per cent lower. The BSE Auto Index was up 0.32 per cent.

CiplaBSE -2.64 % (0.93 per cent), Dr Reddy's Laboratories (0.92 per cent), BHELBSE -2.73 % (0.64 per cent), Coal IndiaBSE -1.31 % (0.49 per cent) and Tata PowerBSE -2.29 % (0.49 per cent) were among the major Sensex losers.

ICICI BankBSE 0.94 % (2.05 per cent), Tata MotorsBSE 2.40 % (1.93 per cent), Hindalco IndustriesBSE -0.26 % (1.37 per cent), TCSBSE 0.46 % (1.09 per cent) and HDFCBSE 2.49 % (1.07 per cent) were the top Sensex gainers.

The market breadth was negative on the BSE with 1,135 gainers against 1,628 losers.

The foreign institutional investors bought shares worth Rs 763.28 crore on Friday as per the provisional data from the National Stock Exchange.

The European markets have opened on subdued note. The FTSE 100 was down 0.26 per cent, the CAC 40 was 0.04 per cent lower and the DAX slipped 0.14 per cent.

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
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.
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.

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.

NEW YORK: US stocks rose to five-year highs on Friday, with the Dow closing above 14,000 for the first time since October 2007, after jobs and manufacturing data showed the economy's recovery remains on track.

The S&P touched its highest since December 2007 after a 5 per cent gain in January, which was its best start to a year since 1997. The index is now just about 60 points away from its all-time intraday high of 1,576.09.

Employment grew modestly in January, with 157,000 jobs added. That was slightly below expectations, but Labor Department revisions showed 127,000 more jobs were created in November and December than previously reported.

Analysts attributed the market's robust showing so far this year partly to a deluge of cash flowing into equities.

Investors poured $12.7 billion into US-based stock mutual funds and exchange-traded funds in the latest week, concluding the strongest four-week flows into stock funds since 1996, data showed on Thursday.

"There is a lot of money looking for a home, and people are finally deciding the bond market is done and moving money into equities," said Edward Simmons, managing director and partner at HighTower in Portland, Maine.

"I see the rotation (of assets) pushing the market up in the face of not-massive amounts of good news," he said. "People are overlooking the higher risk in equities."

Other reports released Friday showed the pace of growth in the US manufacturing sector picked up in January to its highest level in nine months, US consumer sentiment rose more than expected last month, while December construction spending also beat forecasts.

"All the data seems to keep pointing to a slowly, steadily improving economy," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago.

The Dow Jones industrial average was up 149.21 points, or 1.08 per cent, at 14,009.79. The Standard & Poor's 500 Index was up 15.06 points, or 1.01 per cent, at 1,513.17. The Nasdaq Composite Index was up 36.97 points, or 1.18 per cent, at 3,179.10.

With the day's gains, major equity indexes rose five straight weeks.

More than 600 stocks on the NYSE and the Nasdaq combined hit 52-week highs on Friday, including Google which rose as high as $776.60, before closing at $775.60, up 2.6 per cent.

Investors were also attuned to corporate earnings, with a trio of Dow components reporting profits that beat expectations.

Exxon Mobil ended flat at $90.04 after reporting results while Chevron added 1.2 per cent to $116.50.

Drugmaker Merck BSE -2.65 % & Co fell 3.3 per cent to $41.83 after a cautious 2013 outlook.

Generic drugmaker Perrigo reported a better-than-expected second-quarter profit and its shares jumped 4.7 per cent to $105.28.

Of the 252 companies in the S&P 500 that have reported earnings so far, 69 per cent have exceeded expectations, according to Thomson Reuters data. That is a higher proportion than over the past four quarters and above average since 1994.

Overall, S&P 500 fourth-quarter earnings are estimated to have grown 4.4 per cent, according to the data, up from a 1.9 per cent forecast at the start of the earnings season but well below a 9.9 per cent profit growth forecast on Oct. 1.

Dell Inc gained 2.9 per cent to $13.63 after sources said the company was nearing an agreement to sell itself to a buyout consortium led by its founder, Michael Dell, and private equity firm Silver Lake Partners.

MUMBAI:
A sell order resulting from a software error at Religare Capital Markets caused shares of Tata MotorsBSE -4.36 % and UltraTech CementBSE -2.17 % to crash by 10% each for a few seconds during the last hour of trade on NSE on Friday.

The error, according to market sources, cost the brokerage a Rs 12-15-crore loss. A Religare official said there was no broker error and no loss to any clients.

"There is no impact on client business, and Religare Capital Markets will operate as normal on Monday," the official said. "The matter is being investigated by the software supplier. Religare Capital Markets has discussed the matter with exchange officials. Religare Capital Markets uses third-party software for execution of orders on stock exchanges. Due to some technical issue in the software, unintended transactions got executed," the official said.

An NSE official said the exchange would look into the matter. Tata Motors' shares crashed by 9.98% to Rs 268.25 apiece before recovering to close at Rs 281.65, down 5.4%. UltraTech shares fell as much as 10% to Rs 1,712.35 apiece. The share recovered to close at Rs 1,837.75, down 3.4%. Sources said Ankit Financial Services was one of the beneficiaries of the unintended trades. Incidentally, Ankit Financial was one of the beneficiaries of Emkay BSE 2.09 % Global's Rs 650-crore "freak trade" on NSE on October 5.

NEW YORK: U.S. stocks extended gains on Friday, with the Dow industrials trading above 14,000 for the first time since October 2007, as jobs and manufacturing data pointed to a stronger U.S. economy.

The Dow Jones industrial average rose 133.89 points or 0.97 percent, to 13,994.47, the S&P 500 gained 12.09 points or 0.81 percent, to 1,510.2 and the Nasdaq Composite added 24.44 points or 0.78 percent, to 3,166.58. The Dow hit a session high of 14,000.97, a level not seen since October 17, 2007, up more than 1 percent on the day.

MUMBAI: The BSE benchmark Sensex today closed 114 points lower on profit-booking amid weak earnings by Bharti AirtelBSE -2.62 % and BHEL.

The Sensex fell by 113.79 points, or 0.57 per cent, to 19,781.19. The gauge commenced the day higher on investors covering their pending positions. The index had lost 110 points in the previous session.

Similarly, the broad-based National Stock Exchange index Nifty lost 35.85 points, or 0.59 per cent, to 5,998.90, dipping below 6,000 level.

Brokers said the market remained under pressure on investors booking profits from previous month's hefty gains.

They said sentiment further dampened on reports of weak earnings by leading companies like Bharti Airtel and BHEL.

While Bharti posted a 72 per cent decline in its net profit to Rs 284 crore for the third quarter ending December, BHEL profits declined by 17.5 per cent to Rs 1,182 crore.

In 30-BSE index components, 18 stocks declined led by Infosys, Tata Motors, HDFC, ICICI Bank, State Bank of India, Hindustan Unilever, ONGC, Larsen and Toubro and Tata Steel.

Shares of Bharti Airtel closed at 330.50 apiece, 2.62 per cent lower, while BHEL declined 1.03 per cent to 225.35 apiece on the BSE.

The realty sector index suffered the most by losing 1.16 per cent to 2,212.59 followed by auto sector by 0.98 per cent to 10,885.84. Bank index fell by 0.79 per cent to 14,465.16 and metal index by 0.78 per cent to 10,523.82.