Portfolio Plan with PE at 20

 PE = 20, https://primeinvestor.in/nifty-pe-ratio/

market may have a trailing effect 

My threshold is 18-19 to touch equity, but I have to start somewhere, 

so I will begin my build-up game

Where to start? 

Index-linked direct plans, as I don't have time

Debt 

Indian Railway Finance Ltd                          7.61%

National Savings Certificate (VIII Issue) 6.80%

SBI Regular Income Corporate Bond            6.34%

5 Year Time Deposit on Indian Post          6.70%

Kisan Vikas Patra​​                  6.90%

Indian Oil                                                        6.14%

Source - Bondskart.com

Indications from Bond Yields in India for savers in Fixed income returns products

 Just couple of weeks ago, everyone was surprised by the absence of RBI in the market when the yields moved upto 5.97% and now all of a sudden 179/180 bn INR of 10-year benchmark bond was purchased by primary dealers. Still prices of bonds increased ?? Very strange

The hint lies in the yields of 6.02% which seems is not comfortable level with RBI. It seems RBI has put its foot down on yields and market has sniffed the discomfort of RBI.

Also, it also indicates that there are concerns around oversupply of Govt. debt in India and that 12 tn INR plan is still on the books. 

Anyway, it seems the real inflation will cross 7% sooner or later. What this means for savers and retail investors in fixed income products

Effectively fixed income products are giving negative returns of around 1.5% (5.5%-7.0%). There are losers and winners due to this negative real rate of interest. 

Coal India IPO - Is Indian Govt. giving too much away

I was not surprised by the 17 times over-subscription of Coal India Ltd. Given by the reserves (Biggest reserves in the world), the valuation was bit of a tough task. Even the company had a huge cash in hand.

Some 2 months ago before the deal, I calculated that the cash in hand per share would be around Rs.40 per share. Though I was not sure about the exact valuations, but analyst were quoting around Rs. 300 in contrast to highest band price of Rs. 245

This brings a critical issue in privitisation of the PSU's in India. Is the Indian Govt giving away a lot of assets too cheap??

EIL and others were not so exciting as markets were not so buoyant in 2009. Next in line - IOC, PGCIL. I would place my bets for PGCIL - Power sector is going to have a good boost in coming years.

IOC will still suffer from existing price restrictions on retail fuel prices in India.