27 November 2009
Actually you have to do a bit of Fundamental Analysis. First of all if the economy is doing well, then think of investing, otherwise put your plans of investing on hold. Secondly look for the sectors which are performing well like infrastructure, power and automobile. Then get hold of financial statements of better known companies from these sectors and do their financial analysis. Financial analysis means look into their profitability ratios, debt equity ratio, p/e ratio. This you have to see at least for past 3 years. After comparing companies on these criterion, you can invest.