Right Time To Buy Auto Stocks

What's the right time to buy Auto Stocks generally?

1) Company launching New models (company with the big bucket): Any Auto company which is having a good number of New and Innovative launches in the coming months is a definite buy, New Models = More choice, More Choice =  More Attraction, More Attraction = More Sales, More Sales = More Profits.

2) Festive seasons like Dussehra, because this is the time when most Hindu Indians feel buying any vehicle is good (Religious sentiments) and many companies will be giving offers, gifts, cash backs etc, so the number of vehicles sold in the month will be more than the previous months, More sales = More profits, but if the festive season is dull...stay away from the Auto stocks.

3) External factors (The most important factor): Crude oil prices, as the crude oil prices fall, Petrol, Diesel fuel rates falls, so the operation cost of the person who will own a vehicle falls, so he'll show more interest to buy new vehicle, and the manufacturing cost of the vehicle also reduces as the crude oil falls, like vehicle paints cost less etc, so the crude oil plays a major factor in Auto Stocks.

4) Mergers and Acquisitions or Management increasing its Stake: If a Auto Major merges or Acquires any other Auto manufacturing company or Auto components manufacturing company the stock raises to great heights, also when the Management increases its stake in the company the share price rises as it indicates more trust on the company from the management.

And what's the right time to sell a stock you are holding or to stay away from a Auto stock? When anything reverse to the above mentioned points happen.

Auto related major stocks list:
Maruti Suzuki
M&M
Hind Motors
Bajaj Auto
Hero Motocorp
TVS Motor
Atul Auto
Tata Motors
Eicher Motors
Ashok Leyland
Force Motors
SML Isuzu
Exide Industries
Amara Raja
Amtek India

Why this blog?

In todays world there are 2 main primary things needed to live a beautiful world, they are:
1) Money
2) Money

Yes, true! Money is the source for every thing which you want to achieve, then comes the question..how to achieve money?

There are many ways to earn money, for example: Job, Business, Sports, Lottery, Gambling..etc, what are the chances to win money from Lottery or Gambling? very close to zero and how much money could you earn by working (Normal Job)? 10-15 Lakhs per annum for a good decent job after getting an experience of some 7-8 years at least, there may be many exception to this if we go the higher side like people passing out from IIT's, IIM's or people moving to USA, UK etc.

This blog is mainly for the people who are living in the middle class or upper middle class families who wish to make more money with basic financial and economic knowledge, I know the importance of money in these families.

After many years...I realised that the best source for earning money is from Stock Market, believe me it's risky, I completely agree with that, but with some strong fundamental knowledge you can do miracles in the stocks investment.

There are many websites, many blogs which tells us how to open DMAT account, how to trade online, which brokerage charges the least brokerage etc, but is there any website which tells us what stocks to buy? I'm not interested in Intra day tips, I believe trading intra day is the quickest way to lose money! Always go long term with your own Money (This is the first step to success)

This blogs tells you..which stocks to hold for long term and why, stocks which you should NOT touch and impact of global economic conditions, bills which will be passing in the parliament, Latest Market updates on Indian stocks. Knowledge earning and sharing is the key to success.

My only inspiration behind starting investments in equities is..The Big Bull, Warren Buffet of India..none other than Rakesh Jhunjhunwala, hence the name bethenextrj. Lets get started...