Signs of economic recovery are strong. The rally witnessed recently can be attributed to encouraging economic data that worked in the market's
favour. But many investors have fresh memories of the last bubble burst. If the markets come tumbling again, investors will have to bear the brunt of heavy losses. What are the options before the small investor? Is it time to sell or hold on in anticipation of greater gains?
Some experts caution investors that the markets are over-bought . An overheated market has high chances of correction. So investors who do not want to take risks can sell their stocks and book profits. The more risk-tolerant investors can wait for their picks to touch the best price while avoiding stocks had a steep upward jump.
Investors should sell the stocks that are soaring without any specific reasons. Such stocks add to the volatility of the markets. Since the fundamentals of these stocks do not trace the increase in the stock price, the probability of an imminent crash is real.
Foreign institutional investor (FII) behaviour pattern has a tremendous impact on the markets. Increased FII interest in the equity markets will see sustained buying by them. Consequently, the index will move up. FII selling can cascade into a big fall or a bear market condition. Hence, global factors that influence FII sentiments must be continuously tracked by investors.
Stocks that are lagging behind and are unable to keep pace with a market rally are not usually worth holding on to. To deal with extremely volatile conditions , it is usually advised to rebalance your portfolio once in a quarter.
Shift in a company's fundamentals in the first indicator of an alarm bell. Are you holding stocks of companies whose earnings have stopped growing or of those that haven't come up with innovations? Sell the stocks of companies whose performance is dipping.
Do not sell all your stocks just because their prices have dropped. Evaluate if the entire sector is hit or it is only the individual company that is faring poorly. If the entire sector is hit and there are fair chances of a quick recovery, holding on to it may not be a bad idea.
If the company management's ethics are dubious or if it has got itself into legal battles, it is best advised to sell
the stocks. A new competition or government policy can reduce the profit of a company. Adding to the woes may be its growing debt. Research the fundamentals to find out the exact reason why the stocks can fall.
Buy low and sell high is an old adage that seldom fails. So, to sell when stocks are over-valued and buy them again during a market correction is a good strategy. And for this, the investor must spend a lot of time assimilating the underlying forces that impact and drive the markets.
~ET
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Wednesday, September 30, 2009
Sensex above 17000; near-term correction on cards
Bombay Stock Exchange’s barometer Sensex made its way past the mystical 17,000-mark for the first time in the last 16 months buoyed by Al-round buying momentum. However, market watchers are wary whether the current upmove can be sustained and forecast a correction in the near term.
“The overall trend looks bullish given that the Sensex has crossed the 17000 level. On the Nifty, after a decisive breakout above 5000, the next target is close to 5150 levels. From thereon, +/- 50 points move is likely where profit booking may set in. Today’s move was not backed by heavy volumes, which suggests caution and short term players should take this under consideration. Continuous FII inflow was witnessed in the month of September to the tune of around Rs 17500 crore which set the market momentum going. Going ahead, FII inflows need to be watched since the market mood will remain upbeat despite aggressive valuations if the inflows continue,” said DD Sharma, VP Research – Retail, Anand Rathi Financial Services.
“The market is due for a correction as the euphoria has sustained too long. The market may scale higher peaks but only after a period of consolidation or correction. We advise investors to adopt a buy-on-declines strategy,” said Manish Sonthalia, Portfolio Manager Motilal Oswal Financial Services.
~ET
“The overall trend looks bullish given that the Sensex has crossed the 17000 level. On the Nifty, after a decisive breakout above 5000, the next target is close to 5150 levels. From thereon, +/- 50 points move is likely where profit booking may set in. Today’s move was not backed by heavy volumes, which suggests caution and short term players should take this under consideration. Continuous FII inflow was witnessed in the month of September to the tune of around Rs 17500 crore which set the market momentum going. Going ahead, FII inflows need to be watched since the market mood will remain upbeat despite aggressive valuations if the inflows continue,” said DD Sharma, VP Research – Retail, Anand Rathi Financial Services.
“The market is due for a correction as the euphoria has sustained too long. The market may scale higher peaks but only after a period of consolidation or correction. We advise investors to adopt a buy-on-declines strategy,” said Manish Sonthalia, Portfolio Manager Motilal Oswal Financial Services.
~ET
Corporate News
~
GAIL Ltd is constructing pipelines worth Rs 18,000 crore,
which will add 6,000 kilometres to its gas transportation
network over the next three years.
Tata Consultancy Services (TCS) stated that it has been
chosen by Carnation Auto to provide end-to-end system
integration services.
Sahara Prime City, part of Subrata Roy-led Sahara Group
filed the draft prospectus with the market regulator Sebi for
its initial public offer to raise up to Rs 3,450 crore.
Oil India Ltd, the state explorer that lists on stock exchanges
tomorrow, plans to set up a mini -liquefied natural gas (LNG)
plant to monetise stranded natural gas in out-step fields in Assam.
MindTree announced it has entered into an agreement with
San Diego-based mobile handset maker Kyocera Wireless
Corporation (KWC) for acquiring its Indian subsidiary based in Bangalore.
Unity Infraprojects announced it has received a contract
worth Rs 54.56 crore from Amanora Park Town for
construction related works.
Sadbhav Engineering announced it has bagged orders
worth Rs 477 crore from Jharkhand Road Projects
Implementation Company for road construction related works.
~~
GAIL Ltd is constructing pipelines worth Rs 18,000 crore,
which will add 6,000 kilometres to its gas transportation
network over the next three years.
Tata Consultancy Services (TCS) stated that it has been
chosen by Carnation Auto to provide end-to-end system
integration services.
Sahara Prime City, part of Subrata Roy-led Sahara Group
filed the draft prospectus with the market regulator Sebi for
its initial public offer to raise up to Rs 3,450 crore.
Oil India Ltd, the state explorer that lists on stock exchanges
tomorrow, plans to set up a mini -liquefied natural gas (LNG)
plant to monetise stranded natural gas in out-step fields in Assam.
MindTree announced it has entered into an agreement with
San Diego-based mobile handset maker Kyocera Wireless
Corporation (KWC) for acquiring its Indian subsidiary based in Bangalore.
Unity Infraprojects announced it has received a contract
worth Rs 54.56 crore from Amanora Park Town for
construction related works.
Sadbhav Engineering announced it has bagged orders
worth Rs 477 crore from Jharkhand Road Projects
Implementation Company for road construction related works.
~~
Tuesday, September 29, 2009
Sensex to touch 19000-mark in 2010 : PL research
~
The BSE Sensex is poised to touch the 19000-mark in 2010 fueled by global equities' rising growth premium, favourable demographics, diminished policy risks and inexpensive valuations of Indian stocks.
Prabhudas Lilladher(PL), a leading equity research and brokerage firm for FIIs, said in its 'India Equity Strategy' report that Indian equities were on a long-term bull phase.
It said the Indian equity market was amongst the few markets around the world, which was poised to advance on a long-term bull phase over the next several years.
Besides the Sensex, the PL research report said the NSE Nifty would touch 5600 next year.
~~ET
The BSE Sensex is poised to touch the 19000-mark in 2010 fueled by global equities' rising growth premium, favourable demographics, diminished policy risks and inexpensive valuations of Indian stocks.
Prabhudas Lilladher(PL), a leading equity research and brokerage firm for FIIs, said in its 'India Equity Strategy' report that Indian equities were on a long-term bull phase.
It said the Indian equity market was amongst the few markets around the world, which was poised to advance on a long-term bull phase over the next several years.
Besides the Sensex, the PL research report said the NSE Nifty would touch 5600 next year.
~~ET
Dow at 10,000! Will it stall the rally?
~
IT is only a number, the stock market equivalent of an appliance chain’s millionth customer, or the gazillionth hamburger served at McDonald’s. Still, the Dow, which closed up 124.17 points, at 9,789.36, on Monday, is within reach of 10,000. Who would have thought?
At the depths of Wall Street’s crisis, when traders were despairing and shares of Citigroup were trading for just over a dollar, Dow 5,000 seemed a likelier prospect than this. But now, one of the most-watched measures of the financial world is on the cusp of jumping back to five-digit territory.
That does not mean the economy’s problems are over, or that 401(k)s are going to be made whole anytime soon. In fact, this milestone could even stall the rally if enough investors use it as an opportunity to cash in their gains, analysts say. But a big round number is often seen as a way of assessing the market’s health, and whether it has enough juice to climb much higher. ~~ET
~~
"Will 10,000 make a difference to some people?" said Stuart Freeman, senior equity strategist at Wells Fargo Advisors. "It’s psychological, but if enough people act on it, it’s meaningful. The higher a market goes, the more that those on the sideline sit there and are concerned they’re missing something. It takes a while for their fear to wear off."
IT is only a number, the stock market equivalent of an appliance chain’s millionth customer, or the gazillionth hamburger served at McDonald’s. Still, the Dow, which closed up 124.17 points, at 9,789.36, on Monday, is within reach of 10,000. Who would have thought?
At the depths of Wall Street’s crisis, when traders were despairing and shares of Citigroup were trading for just over a dollar, Dow 5,000 seemed a likelier prospect than this. But now, one of the most-watched measures of the financial world is on the cusp of jumping back to five-digit territory.
That does not mean the economy’s problems are over, or that 401(k)s are going to be made whole anytime soon. In fact, this milestone could even stall the rally if enough investors use it as an opportunity to cash in their gains, analysts say. But a big round number is often seen as a way of assessing the market’s health, and whether it has enough juice to climb much higher. ~~ET
~~
"Will 10,000 make a difference to some people?" said Stuart Freeman, senior equity strategist at Wells Fargo Advisors. "It’s psychological, but if enough people act on it, it’s meaningful. The higher a market goes, the more that those on the sideline sit there and are concerned they’re missing something. It takes a while for their fear to wear off."
CORPORATE NEWS
~
Fortis Healthcare stated that Wockhardt's 10 healthcare
facilities it has acquired would be rebranded as Fortis Hospitals. - BS
Dabur India, plans to open three manufacturing facilities in
India and overseas, which will be operational by June-July next year. - BS
After hiking prices for the last two consecutive months, staterun
Steel Authority of India (SAIL) has stated that it may not
increase prices further in view of a downward trend in the
international market, especially China. - BS
The government is planning to shift the proposed Rs 18,000-
crore Lalitpur power project to Chitrakoot, in the parched Bundelkhand area. - BS
Lupin said its three of its 100 per cent subsidiaries, including
Lupin Pharmacare, would merge with the parent company. - BS
~~
Fortis Healthcare stated that Wockhardt's 10 healthcare
facilities it has acquired would be rebranded as Fortis Hospitals. - BS
Dabur India, plans to open three manufacturing facilities in
India and overseas, which will be operational by June-July next year. - BS
After hiking prices for the last two consecutive months, staterun
Steel Authority of India (SAIL) has stated that it may not
increase prices further in view of a downward trend in the
international market, especially China. - BS
The government is planning to shift the proposed Rs 18,000-
crore Lalitpur power project to Chitrakoot, in the parched Bundelkhand area. - BS
Lupin said its three of its 100 per cent subsidiaries, including
Lupin Pharmacare, would merge with the parent company. - BS
~~
Friday, September 25, 2009
Corporate News
The initial public offer (IPO)of the compact disc maker Euro
Multivision got fully subscribed on the final day of its issue.BS
Reliance Industries (RIL) announced that it has signed
natural gas sales pact with state-run NTPC. - BS
Mphasis remote infrastructure services and business
process outsourcing service provider, today announced that
it will change its branding identity to become Mphasis an
HP Company. - BS
Larsen & Toubro (L&T) today said it has received an order
worth over Rs 2,000 crore from GMR Energy for setting up a
gas-based power plant in Andhra Pradesh. - BS
Great Offshore stated that it has not received any offer from
Bharati Shipyard and ABG Shipyard for acquiring it and that
Sebi has yet to give its approval for the acquisition. - BS
Tata Communications announced that it has entered the
cloud computing space by launching virtualisation
solutions.BL
Multivision got fully subscribed on the final day of its issue.BS
Reliance Industries (RIL) announced that it has signed
natural gas sales pact with state-run NTPC. - BS
Mphasis remote infrastructure services and business
process outsourcing service provider, today announced that
it will change its branding identity to become Mphasis an
HP Company. - BS
Larsen & Toubro (L&T) today said it has received an order
worth over Rs 2,000 crore from GMR Energy for setting up a
gas-based power plant in Andhra Pradesh. - BS
Great Offshore stated that it has not received any offer from
Bharati Shipyard and ABG Shipyard for acquiring it and that
Sebi has yet to give its approval for the acquisition. - BS
Tata Communications announced that it has entered the
cloud computing space by launching virtualisation
solutions.BL
Thursday, September 24, 2009
TODAY's MARKET
24/09/09
Sensex : 16781(+61)
Nifty : 4986(+16)
$ : 48.08
Gold : 15716
Silver : 26600
CRUDE : $ 68.33
Sensex : 16781(+61)
Nifty : 4986(+16)
$ : 48.08
Gold : 15716
Silver : 26600
CRUDE : $ 68.33
Corporate News
Tata Consultancy Services (TCS) has won the country's
largest State Wide Area Network (SWAN) project from the
government of Andhra Pradesh on a five year Build, Own,
Operate, and Transfer (BOOT) model. - BS
Tata Power stated that it would commission 1,600 MW
capacity of its 4,000 MW Mundra project in Gujarat during
the current XIth Five Year Plan (2007-12). - BS
Venus Remedies announced that it has signed an outlicensing
deal with a Korean firm for selling Sulbactomax
drug, used in the treatment of pre or post-surgical infection
and also for respiratory infections, in South Korea. - BS
Tata Motors has entered into an understanding with the
Union Bank of India (UBI) to provide an added facility to Tata
Motors' dealers for funding of their purchases of the
company's cars and utility vehicles. - BS
Opto Circuits (India) Ltd (OCI) has announced that its whollyowned
US-based subsidiary, Criticare Systems Inc (CSI),
has signed a long term supply agreement with a European
manufacturer and distributor of medical equipment. - BS
Oil and Natural Gas Corp (ONGC) stated that crude oil
production at Imperial Energy, the Russia-focused firm it
acquired last year, has nearly doubled to 11,500 barrels per day.-BS
largest State Wide Area Network (SWAN) project from the
government of Andhra Pradesh on a five year Build, Own,
Operate, and Transfer (BOOT) model. - BS
Tata Power stated that it would commission 1,600 MW
capacity of its 4,000 MW Mundra project in Gujarat during
the current XIth Five Year Plan (2007-12). - BS
Venus Remedies announced that it has signed an outlicensing
deal with a Korean firm for selling Sulbactomax
drug, used in the treatment of pre or post-surgical infection
and also for respiratory infections, in South Korea. - BS
Tata Motors has entered into an understanding with the
Union Bank of India (UBI) to provide an added facility to Tata
Motors' dealers for funding of their purchases of the
company's cars and utility vehicles. - BS
Opto Circuits (India) Ltd (OCI) has announced that its whollyowned
US-based subsidiary, Criticare Systems Inc (CSI),
has signed a long term supply agreement with a European
manufacturer and distributor of medical equipment. - BS
Oil and Natural Gas Corp (ONGC) stated that crude oil
production at Imperial Energy, the Russia-focused firm it
acquired last year, has nearly doubled to 11,500 barrels per day.-BS
Wednesday, September 23, 2009
INVESTORs KI BALLE BALLE.!!!!
What was initiated by SEBI on August 1, 2009
with the abolition of entry loads on mutual funds is proposed to be expanded to cover distribution of all financial products. The D Swarup Committee on Investor Awareness and Protection, in its consultation paper has made far reaching and comprehensive recommendations on this subject including a proactive approach to creating investor awareness. The paper is currently being discussed and reviewed amongst interest groups. The recommendations have twin objectives - setting up a regulatory system with common standards for financial advisors and integrated approach to financial education. Recommendations:
No-load structure - all retail financial products should go "no-load" by April 2011. This will remove the bias of selling products with the highest commission
Financial education for advisors and investors - The proposal to set up the Financial Well-Being Board of India (FINWEB) is an approach to convert awareness into knowledge
Entry barrier - a common minimum entry barrier for all financial advisors which will include a knowledge-linked training programme and a common examination pattern. In addition, there would be different licenses based on the skill sets of the advisor and the type of products and services he can sell
Code of Conduct - to establish a standard code of ethics across all products and organisations, to ensure that all advisors are registered with FINWEB and to set up a body with the power to admit, discipline and demit members
Disclosure norms - investors should be informed about the total cost borne by them, the income earned by advisors from the sale and maintenance of a product, the risk carried by the product and the role of the product and its outcome
Reporting norms - to include documentation of sale proceeds and a declaration counter-signed by the investor acknowledging the disclosures made by the advisor. This will avoid the practise of hit-and-run financial products wherein an advisor hits an investor with a product and runs
Punitive actions for advisors - penalties, loss of license to do business or criminal proceedings in case of mis-conduct / mis-selling
Dispute Redressing - investors will have a common interface to complain about financial products, services and outcomesWe believe these recommendations have a two-fold effect
Increase investors knowledge of financial products and the way they are structured
Ensure that the products are sold keeping only investors' interest in mind, without being influenced by commissions earned by distributors
~~~~~
WE ARE AMFI CERTIFIED ARN HOLDER MUTUAL FUNDS ADVISORS
SO CONTACT US AT samparkonline2yahoo.co.in
with the abolition of entry loads on mutual funds is proposed to be expanded to cover distribution of all financial products. The D Swarup Committee on Investor Awareness and Protection, in its consultation paper has made far reaching and comprehensive recommendations on this subject including a proactive approach to creating investor awareness. The paper is currently being discussed and reviewed amongst interest groups. The recommendations have twin objectives - setting up a regulatory system with common standards for financial advisors and integrated approach to financial education. Recommendations:
No-load structure - all retail financial products should go "no-load" by April 2011. This will remove the bias of selling products with the highest commission
Financial education for advisors and investors - The proposal to set up the Financial Well-Being Board of India (FINWEB) is an approach to convert awareness into knowledge
Entry barrier - a common minimum entry barrier for all financial advisors which will include a knowledge-linked training programme and a common examination pattern. In addition, there would be different licenses based on the skill sets of the advisor and the type of products and services he can sell
Code of Conduct - to establish a standard code of ethics across all products and organisations, to ensure that all advisors are registered with FINWEB and to set up a body with the power to admit, discipline and demit members
Disclosure norms - investors should be informed about the total cost borne by them, the income earned by advisors from the sale and maintenance of a product, the risk carried by the product and the role of the product and its outcome
Reporting norms - to include documentation of sale proceeds and a declaration counter-signed by the investor acknowledging the disclosures made by the advisor. This will avoid the practise of hit-and-run financial products wherein an advisor hits an investor with a product and runs
Punitive actions for advisors - penalties, loss of license to do business or criminal proceedings in case of mis-conduct / mis-selling
Dispute Redressing - investors will have a common interface to complain about financial products, services and outcomesWe believe these recommendations have a two-fold effect
Increase investors knowledge of financial products and the way they are structured
Ensure that the products are sold keeping only investors' interest in mind, without being influenced by commissions earned by distributors
~~~~~
WE ARE AMFI CERTIFIED ARN HOLDER MUTUAL FUNDS ADVISORS
SO CONTACT US AT samparkonline2yahoo.co.in
TODAY'S HEADLINES
Weak Asian cues, profit taking pull down Sensex
India launches Oceansat-2, six European satellites
New SEBI rules cloud MTN deal
DLF sells 1,250 flats within two hours
India launches Oceansat-2, six European satellites
New SEBI rules cloud MTN deal
DLF sells 1,250 flats within two hours
Tuesday, September 22, 2009
TODAY's HEADLINES
India's economy to grow by 6 per cent in 2009: ADB
Sensex, Nifty end at 16-month high
SEBI prescribes changes in takeover norms
RCOM board approves Rel Infratel IPO; to approach SEBI soon
Sensex, Nifty end at 16-month high
SEBI prescribes changes in takeover norms
RCOM board approves Rel Infratel IPO; to approach SEBI soon
IPO SECTION
THINKSOFT GLOBAL SERVICES LTD
Frm 22-24Spt
Price band : 120-130
Bid lot : 50shares
~~~~~~
EURO MULTIVISION LTD
Frm 22-24Spt
Price band : 70-75
Bid lot : 90 shares
~~~
APPLY NOW
For details
contact 9333100221
Frm 22-24Spt
Price band : 120-130
Bid lot : 50shares
~~~~~~
EURO MULTIVISION LTD
Frm 22-24Spt
Price band : 70-75
Bid lot : 90 shares
~~~
APPLY NOW
For details
contact 9333100221
Monday, September 21, 2009
TODAY's HEADLINES
Major earthquake rocks Assam, other northeast states
Obama wants G20 to rethink global economy
India sees $3 bn in highway tolls, tax revenue
Stimulus package to continue till global recovery: Pranab Mukherjee
Future Group may hive off Big Bazaar
Hindalco plans to raise $500 mn for expansion
World markets fall on US recovery concerns
Obama wants G20 to rethink global economy
India sees $3 bn in highway tolls, tax revenue
Stimulus package to continue till global recovery: Pranab Mukherjee
Future Group may hive off Big Bazaar
Hindalco plans to raise $500 mn for expansion
World markets fall on US recovery concerns
MONEY YATRA CAMP AT SAMPARK
Acamp was organised on sat,12.o9.2009, at SAMPARK, by the RELIANCE MONEY
a brief discussion was given by the officers of RELIANCE MONEY, on cash & derivatives investments.
a brief discussion was given by the officers of RELIANCE MONEY, on cash & derivatives investments.
80C के अलावा कैसे बचाएं टैक्स?
अक्सर टैक्स सेविंग की कोशिश में हम केवल सेक्शन 80C पर ही फोकस करते हैं और 1 लाख की सेविंग के आगे सोच नहीं पाते। लेकिन, ऐसी और भी बहुत चीजें हैं जो आपको दूसरे सेक्शंस में छूट दिला सकती हैं।
80C के आगे क्या-क्या हैं ये ऑप्शंस...
80CCC
इस सेक्शन के तहत पेंशन प्लान में निवेश किया जा सकता है। ये निवेश 80C के कुल 1 लाख रु के तहत ही होता है। यानी 80C और 80CCC मिलाकर आप कुल 1 लाख रुपए पर ही टैक्स छूट पा सकते हैं। बुजुर्गों के लिए ये निवेश एक बेहतर विकल्प रहेगा।
80CCD
ये सेक्शन केंद्रीय कर्मचारियों के लिए पेंशन स्कीम में निवेश का जरिया होता है। इसमें आप नेट सैलरी का अधिकतम 10% निवेश कर सकते हैं। इस सेक्शन में भी 80C के कुल 1 लाख रुपए के तहत ही निवेश किया जा सकता है।
80D
इस सेक्श के तहत मेडिकल इंश्योरेंस के प्रीमियम पर छूट मिलती है। आप खुद के, पति या पत्नी और आशि्रत बच्चों के प्रीमियम पर छूट क्लेम कर सकते हैं। इस छूट की अधिकतम सीमा 15,000 रुपए तक ही होगी। अगर आप अपने माता-पिता की पॉलिसी का प्रीमियम भी चुकाते हैं तो आपको अलग से 15,000 रु की छूट मिलेगी। अगर आपके माता-पिता सीनियर सिटिजन हैं तो ये एक्स्ट्रा छूट 20,000 रुपए तक हो सकती है। इस सेक्शन के तहत छूट 80C की 1 लाख रुपए की सीमा से अलग होती है
80E
इस सेक्शन के तहत एजुकेशन लोन के ब्याज पर छूट मिलती है। अगर आपने उच्च शिक्षा के लिए खुद, पति या पत्नी या बच्चे की पढ़ाई के लिए एजुकेशन लोन लिया है तो उसके ब्याज पर छूट क्लेम की जा सकती है। ये छूट कुछ फुल टाइम कोर्स के लिए होती है। इस छूट की कोई सीमा नहीं है और ये 80C की 1 लाख रुपए की सीमा से अलग होती है।
80G
इस सेक्शन के तहत आप दान देकर टैक्स बचा सकते हैं। डोनेशन पर 50% की छूट क्लेम की जा सकती है। ये ध्यान रखें कि ग्रॉस टोटल इनकम के अधिकतम 10% पर ही ये छूट ली जा सकती है। हालांकि, कुछ खास डोनेशंस पर 100% की छूट मिलती है।
80GG
अगर आप किराए के घर में रहते हैं, लेकिन आपको कंपनी से HRA नहीं मिलता है तो आप इस सेक्शन का फायदा उठा सकते हैं। लेकिन,अगर आपको HRA मिलता है तो आप ये छूट क्लेम नहीं कर सकते। छूट इनकम के 25% तक ही मिलती है और इसकी अधिकतम सीमा 2,000 रु/महीना होती है।
80C के आगे क्या-क्या हैं ये ऑप्शंस...
80CCC
इस सेक्शन के तहत पेंशन प्लान में निवेश किया जा सकता है। ये निवेश 80C के कुल 1 लाख रु के तहत ही होता है। यानी 80C और 80CCC मिलाकर आप कुल 1 लाख रुपए पर ही टैक्स छूट पा सकते हैं। बुजुर्गों के लिए ये निवेश एक बेहतर विकल्प रहेगा।
80CCD
ये सेक्शन केंद्रीय कर्मचारियों के लिए पेंशन स्कीम में निवेश का जरिया होता है। इसमें आप नेट सैलरी का अधिकतम 10% निवेश कर सकते हैं। इस सेक्शन में भी 80C के कुल 1 लाख रुपए के तहत ही निवेश किया जा सकता है।
80D
इस सेक्श के तहत मेडिकल इंश्योरेंस के प्रीमियम पर छूट मिलती है। आप खुद के, पति या पत्नी और आशि्रत बच्चों के प्रीमियम पर छूट क्लेम कर सकते हैं। इस छूट की अधिकतम सीमा 15,000 रुपए तक ही होगी। अगर आप अपने माता-पिता की पॉलिसी का प्रीमियम भी चुकाते हैं तो आपको अलग से 15,000 रु की छूट मिलेगी। अगर आपके माता-पिता सीनियर सिटिजन हैं तो ये एक्स्ट्रा छूट 20,000 रुपए तक हो सकती है। इस सेक्शन के तहत छूट 80C की 1 लाख रुपए की सीमा से अलग होती है
80E
इस सेक्शन के तहत एजुकेशन लोन के ब्याज पर छूट मिलती है। अगर आपने उच्च शिक्षा के लिए खुद, पति या पत्नी या बच्चे की पढ़ाई के लिए एजुकेशन लोन लिया है तो उसके ब्याज पर छूट क्लेम की जा सकती है। ये छूट कुछ फुल टाइम कोर्स के लिए होती है। इस छूट की कोई सीमा नहीं है और ये 80C की 1 लाख रुपए की सीमा से अलग होती है।
80G
इस सेक्शन के तहत आप दान देकर टैक्स बचा सकते हैं। डोनेशन पर 50% की छूट क्लेम की जा सकती है। ये ध्यान रखें कि ग्रॉस टोटल इनकम के अधिकतम 10% पर ही ये छूट ली जा सकती है। हालांकि, कुछ खास डोनेशंस पर 100% की छूट मिलती है।
80GG
अगर आप किराए के घर में रहते हैं, लेकिन आपको कंपनी से HRA नहीं मिलता है तो आप इस सेक्शन का फायदा उठा सकते हैं। लेकिन,अगर आपको HRA मिलता है तो आप ये छूट क्लेम नहीं कर सकते। छूट इनकम के 25% तक ही मिलती है और इसकी अधिकतम सीमा 2,000 रु/महीना होती है।
TODAY's MOTTO
People wilL
alwys throw Stones in ur Path..
Now
it Depends on U
whAt u MAke FrOm it..
A WALL or A BRIDGE..
Remember u r d Architect of ur Life..@
alwys throw Stones in ur Path..
Now
it Depends on U
whAt u MAke FrOm it..
A WALL or A BRIDGE..
Remember u r d Architect of ur Life..@
Sunday, September 20, 2009
Invest in IPO based on fundamentals
The stock markets are on a roll amid positives such as revival of the monsoon, strong global cues and improved industrial production numbers. The advance tax numbers and excise duty collections also indicate that the quarterly performance of most companies would be better than expected.
The upbeat secondary market has had a rub-off effect on the primary market. Promoters who had postponed their initial public offer (IPO) plans last year are now looking at taking advantage of the renewed positive sentiments.
A good part of the year 2008 saw lack of interest in equity due to poor investor sentiments and declining markets. The IPO market thrives in a rising secondary market, hence the better part of 2008 hardly saw any major IPO issues.
The trend is changing now and there have been some big IPOs hitting the market in the past few months, and there are more in the pipeline. Although the subscription numbers have been good for the recent IPOs, the individual investor interest is still low in comparison to the institutional and high net worth segment.
So, is it a good time to invest in IPOs?
Investor or trader?
An investor in an IPO is someone genuinely interested in the company and intends to hold the shares for a medium to long term. A trader would subscribe to an IPO with the intention of making gains on listing.
While subscribing to an IPO, it's important for you to be clear about whether you are considering the company's future prospects or if you are betting on the entire buzz around the IPO to make a quick buck on listing.
As an investor, you have to study the track record of the company and pricing of the issue. As a trader, you have to be ready to get out of the stock whether at profit or loss since your intention was not to hold the stock. Getting out may become more difficult later if the stock keeps losing after listing
AVOID BORROWING :
Many subscribers to an IPO, usually the traders, borrow money to invest in the IPO in order to maximise gains. In such a case, an IPO would have to list at a price higher than the issue price plus the interest cost in order to make a profit. With margin funding you make higher profits if the IPO lists well.
On the flip side, if the IPO falls below its issue price on listing, you would lose a good part of your investment due to the loss on listing as well as the interest cost.
Study prospects :
As an investor in an IPO, it is extremely important to understand the business of the company and how it compares with its peers in the industry. The track record of the management, past performance of the company, risks that the company faces and the purpose of raising finance along with expected returns on investment are other crucial factors to be considered. The grade given by the credit rating agency may also be a good indicator about the company's prospects. However, grading does not indicate if the issue is priced at a fair level.
Evaluate pricing :
A company may have good prospects but if all the positive factors are priced in completely, there may be little scope for the price to appreciate after listing. Also, an over-priced issue, however good the company may be, may correct to its fair price eventually.
By comparing the pricing with respect to peers in the industry, you may judge if the issue is underpriced or over-priced.
Finally, avoid falling prey to all the buzz and market stories. Also, over-subscriptions do not indicate that the listing price will be high, so steer clear of all such myths. Investing in an IPO is no different from investing in a listed company.
All aspects of analysis and basics of investing should be applied to an IPO and you should subscribe to it only if the rational investor in you gives a go-ahead.
Courtsy: economictimes
The upbeat secondary market has had a rub-off effect on the primary market. Promoters who had postponed their initial public offer (IPO) plans last year are now looking at taking advantage of the renewed positive sentiments.
A good part of the year 2008 saw lack of interest in equity due to poor investor sentiments and declining markets. The IPO market thrives in a rising secondary market, hence the better part of 2008 hardly saw any major IPO issues.
The trend is changing now and there have been some big IPOs hitting the market in the past few months, and there are more in the pipeline. Although the subscription numbers have been good for the recent IPOs, the individual investor interest is still low in comparison to the institutional and high net worth segment.
So, is it a good time to invest in IPOs?
Investor or trader?
An investor in an IPO is someone genuinely interested in the company and intends to hold the shares for a medium to long term. A trader would subscribe to an IPO with the intention of making gains on listing.
While subscribing to an IPO, it's important for you to be clear about whether you are considering the company's future prospects or if you are betting on the entire buzz around the IPO to make a quick buck on listing.
As an investor, you have to study the track record of the company and pricing of the issue. As a trader, you have to be ready to get out of the stock whether at profit or loss since your intention was not to hold the stock. Getting out may become more difficult later if the stock keeps losing after listing
AVOID BORROWING :
Many subscribers to an IPO, usually the traders, borrow money to invest in the IPO in order to maximise gains. In such a case, an IPO would have to list at a price higher than the issue price plus the interest cost in order to make a profit. With margin funding you make higher profits if the IPO lists well.
On the flip side, if the IPO falls below its issue price on listing, you would lose a good part of your investment due to the loss on listing as well as the interest cost.
Study prospects :
As an investor in an IPO, it is extremely important to understand the business of the company and how it compares with its peers in the industry. The track record of the management, past performance of the company, risks that the company faces and the purpose of raising finance along with expected returns on investment are other crucial factors to be considered. The grade given by the credit rating agency may also be a good indicator about the company's prospects. However, grading does not indicate if the issue is priced at a fair level.
Evaluate pricing :
A company may have good prospects but if all the positive factors are priced in completely, there may be little scope for the price to appreciate after listing. Also, an over-priced issue, however good the company may be, may correct to its fair price eventually.
By comparing the pricing with respect to peers in the industry, you may judge if the issue is underpriced or over-priced.
Finally, avoid falling prey to all the buzz and market stories. Also, over-subscriptions do not indicate that the listing price will be high, so steer clear of all such myths. Investing in an IPO is no different from investing in a listed company.
All aspects of analysis and basics of investing should be applied to an IPO and you should subscribe to it only if the rational investor in you gives a go-ahead.
Courtsy: economictimes
Top 10 stocks attracting MF money
Money managers handling mutual funds are playing it safe and betting on the top 10 stocks in the bourses, ensuring that their funds perform in line with the overall market. In fact, these blue-chip companies are attracting 28% of mutual fund investment in the equity market.
According to a SundayET analysis, out of the Rs 143,860 cr being invested in stocks by mutual funds, as much as Rs 40,246 cr has been invested in just 10 scrips — Reliance Industries, Oil & Natural Gas Corporation (ONGC), Bharti Airtel, State Bank of India (SBI), ICICI Bank, Infosys Technologies, Larsen & Toubro (L&T), Bharat Heavy Electricals (BHEL), Tata Consultancy Services (TCS) and HDFC Bank
courtsy : economictimes
According to a SundayET analysis, out of the Rs 143,860 cr being invested in stocks by mutual funds, as much as Rs 40,246 cr has been invested in just 10 scrips — Reliance Industries, Oil & Natural Gas Corporation (ONGC), Bharti Airtel, State Bank of India (SBI), ICICI Bank, Infosys Technologies, Larsen & Toubro (L&T), Bharat Heavy Electricals (BHEL), Tata Consultancy Services (TCS) and HDFC Bank
courtsy : economictimes
TODAY's MOTTO
Be
careful of
ur thoughts
when U are alone..
&
Be
careful of
your words
when U are in
a crowd..@
careful of
ur thoughts
when U are alone..
&
Be
careful of
your words
when U are in
a crowd..@
Saturday, September 19, 2009
Friday, September 18, 2009
TODAY's MOTTO
18.09.2009
The maximum time
u will hv to spend in ur LIFE
is with URSELF..
So make ursel
as interesting as possible..@
The maximum time
u will hv to spend in ur LIFE
is with URSELF..
So make ursel
as interesting as possible..@
Thursday, September 17, 2009
TODAY's MOTTO
LIFE Hs
No Pause Button
DREAMS Hv
No Expiry Date
Time Tkes
No Holiday
Liv Life
Based On
3Principles
Think WelL
Live Simple
& B Happy..@
No Pause Button
DREAMS Hv
No Expiry Date
Time Tkes
No Holiday
Liv Life
Based On
3Principles
Think WelL
Live Simple
& B Happy..@
Wednesday, September 16, 2009
TODAY's MOTTO
The
maximum
time u will hv
to spend in ur LIFE
is with URSELF..
So
make
urself as interesting
as possible..@
maximum
time u will hv
to spend in ur LIFE
is with URSELF..
So
make
urself as interesting
as possible..@
Tuesday, September 15, 2009
TODAY's MOTTO
Efforts
may fail
but don't fail
to make Efforts..
Great
things will
always come late..
There is
no Shortcut
to Success..@
may fail
but don't fail
to make Efforts..
Great
things will
always come late..
There is
no Shortcut
to Success..@
Monday, September 14, 2009
The ideal P/E multiple for a stock is...
Warren Buffett’s fortune is enough to stupefy anyone. Starting from scratch, he has amassed a fortune of billions and billions of dollars. And the most amazing part of that feat is not even that – it is the fact that he has achieved so much wealth in his lifetime purely by investing in the stocks and bonds of companies.
As he has mentioned a number of times, he credits much of the framework with which he invests to Benjamin Graham, his mentor and teacher from whom he learned how to invest. Thus, it should be of immense interest to anyone who wants to invest wisely, to hear what Graham has to say on the subject of the maximum price one should pay for buying a stock. After all, this is a perennial question that comes to the mind of investors – What is the right price to pay?
For the purchase of a stock to be successful, every investor relies on future earnings of the company and not its past earnings. But at the same time, Graham was of the firm opinion that when evaluating a stock and its future earnings, one can be conservative only by basing this opinion on company’s actual performance over a period of time in the past. Thus, in most cases, the investment (and not speculative) value of stock can be arrived at by taking into consideration the company’s average earnings over a period of five to ten years.
The company’s profit in the most recent year may be taken as the base for arriving at the value in some cases, but only if it meets the following criteria –
(1) general business conditions in that year were not exceptionally good
(2) the company has shown an upward trend of earnings for some years past
(3) the investor’s study of the industry gives him confidence in its continued growth
And only in the extremely rare and exceptional case should one rely on the assumption of a company achieving higher earnings in the future while calculating the price one pays. Higher future earnings should be taken into consideration only if it is a 100% sure thing, which is very rarely the case.
The above was a discussion of Graham’s suggestion of which earnings should one take as the base when valuing a company by using a P/E ratio. Now for the second part – what would be the right multiple one should give those earnings to arrive at the price one should pay for the stock?
A conservative investor may rightfully give a very attractive company a higher multiple. This may be a company whose latest earnings are above its past average, which has extremely promising future prospects, or has an inherently stable earnings power. However, at the very heart of Graham’s argument was his opinion that there must always, in every case, be some upper limit of this multiple that is assigned to the stock in order to stay conservative in one’s valuation. He suggested that about 20 times average earnings is the highest price that can be paid buying a stock from an investment perspective. While this is the maximum one should pay for a company considered to have very good prospects, about 12 or 12.5 times average earnings would be suitable for the typical company with average prospects. This is because investment, as opposed to speculation, necessarily requires demonstrated value, which can be verified only by way of average earning power in the past. A P/E multiple of 20 in effect means an earnings yield of 5% (1 divided by 20).
It would indeed be very hard to conservatively justify average earnings of less than 5% of the market price of a stock without betting your money on an increase in earnings of the company in the future. Thus, according to Graham, a price to earnings ratio of higher than 20 times average earnings cannot by any means provide the margin of safety that an investor should have. It might be accepted by an investor in expectation that future earnings will be larger than in the past. But such a basis of valuation would then have to be termed “speculative”. That is because speculation derives its basis and justification from potential developments that differ from past performance.
By the above thumb rule of not paying more than 20 times average earnings, Graham did not imply that it would be mistake to do so. He suggested instead that such a price would be speculative. Further, it should also be noted that such a purchase can easily turn out to be highly profitable, but in that case it will have proved to be a merely fortunate speculation. And very few people are consistently fortunate in their speculation.
Hence people who habitually purchase stocks at more than about 20 times their average earnings “are likely to lose considerable money in the long run” according to Graham. This is all the more likely because if such a mechanical check were not enforced, investors have the tendency to time and again give in to the temptation and lure of bull markets, which always find some or the other deceptively pleasing argument to justify paying extravagant prices for stocks.
As he has mentioned a number of times, he credits much of the framework with which he invests to Benjamin Graham, his mentor and teacher from whom he learned how to invest. Thus, it should be of immense interest to anyone who wants to invest wisely, to hear what Graham has to say on the subject of the maximum price one should pay for buying a stock. After all, this is a perennial question that comes to the mind of investors – What is the right price to pay?
For the purchase of a stock to be successful, every investor relies on future earnings of the company and not its past earnings. But at the same time, Graham was of the firm opinion that when evaluating a stock and its future earnings, one can be conservative only by basing this opinion on company’s actual performance over a period of time in the past. Thus, in most cases, the investment (and not speculative) value of stock can be arrived at by taking into consideration the company’s average earnings over a period of five to ten years.
The company’s profit in the most recent year may be taken as the base for arriving at the value in some cases, but only if it meets the following criteria –
(1) general business conditions in that year were not exceptionally good
(2) the company has shown an upward trend of earnings for some years past
(3) the investor’s study of the industry gives him confidence in its continued growth
And only in the extremely rare and exceptional case should one rely on the assumption of a company achieving higher earnings in the future while calculating the price one pays. Higher future earnings should be taken into consideration only if it is a 100% sure thing, which is very rarely the case.
The above was a discussion of Graham’s suggestion of which earnings should one take as the base when valuing a company by using a P/E ratio. Now for the second part – what would be the right multiple one should give those earnings to arrive at the price one should pay for the stock?
A conservative investor may rightfully give a very attractive company a higher multiple. This may be a company whose latest earnings are above its past average, which has extremely promising future prospects, or has an inherently stable earnings power. However, at the very heart of Graham’s argument was his opinion that there must always, in every case, be some upper limit of this multiple that is assigned to the stock in order to stay conservative in one’s valuation. He suggested that about 20 times average earnings is the highest price that can be paid buying a stock from an investment perspective. While this is the maximum one should pay for a company considered to have very good prospects, about 12 or 12.5 times average earnings would be suitable for the typical company with average prospects. This is because investment, as opposed to speculation, necessarily requires demonstrated value, which can be verified only by way of average earning power in the past. A P/E multiple of 20 in effect means an earnings yield of 5% (1 divided by 20).
It would indeed be very hard to conservatively justify average earnings of less than 5% of the market price of a stock without betting your money on an increase in earnings of the company in the future. Thus, according to Graham, a price to earnings ratio of higher than 20 times average earnings cannot by any means provide the margin of safety that an investor should have. It might be accepted by an investor in expectation that future earnings will be larger than in the past. But such a basis of valuation would then have to be termed “speculative”. That is because speculation derives its basis and justification from potential developments that differ from past performance.
By the above thumb rule of not paying more than 20 times average earnings, Graham did not imply that it would be mistake to do so. He suggested instead that such a price would be speculative. Further, it should also be noted that such a purchase can easily turn out to be highly profitable, but in that case it will have proved to be a merely fortunate speculation. And very few people are consistently fortunate in their speculation.
Hence people who habitually purchase stocks at more than about 20 times their average earnings “are likely to lose considerable money in the long run” according to Graham. This is all the more likely because if such a mechanical check were not enforced, investors have the tendency to time and again give in to the temptation and lure of bull markets, which always find some or the other deceptively pleasing argument to justify paying extravagant prices for stocks.
Equities pause after 6-day rally
Indian equity benchmarks snapped a six-day upmove on Monday, as traders were cautious at higher levels even as the undertone remains strong. Analysts are of the opinion that valuations look stretched at current levels and the market is currently in a consolidation phase.
“Technically, a bearish ‘Hammer’ pattern is in the making on the Nifty. Key indices are now slowly inching away from the overbought region. But the advance-decline ratio is not showing much strength and the market seems cautious at higher levels,” said a technical analyst from a local brokerage.
Bombay Stock Exchange’s Sensex settled at 16,214.19, lower by 0.31 per cent or 50.11 points from the previous close. The index swung in a range of 16,119.95 and 16,252.18 during the day. National Stock Exchange’s Nifty managed to maintain the 4800 mark with the index finishing at 4808.60, down 0.43 per cent or 20.95 points. It touched a high of 4832.25 and low of 4786.25 in trade so far.
The broader market clearly outperformed the benchmarks. The BSE Smallcap Index climbed 0.15 per cent higher and BSE Midcap Index ended up 0.46 per cent.
Public sector banks were in the limelight on reports of separate meetings with finance ministry officials for additional capital to maintain capital adequacy above 12 percent till fiscal 2012.
Meanwhile, shares of Jet Airways India climbed 5 per cent intra-day on the bourses after the five-day-old stir by its pilots ended and the airline management reached a settlement with the agitators.
Sectorwise, BSE PSU Index edged up 0.93 per cent and BSE Bankex rose 0.49 per cent. BSE Consumer Durables lost 1.06 per cent, followed by BSE Realty Index down 0.79 per cent.
In the realty space, industry major Housing Development and Infrastructure Ltd took a severe beating after Income-Tax department officials conducted raids on the company’s office premises and promoters' residences on Sep 11-12. However, the company denied having evaded taxes but said it would pay tax on additional income of Rs.350 crore following the raids.
"During the course of the raid, HDIL has agreed to offer approximately Rs 350 crore as income to be booked in remaining quarters of financial year 2009-10," the company said in a statement. Income of Rs.350 crore as calculated by ITdepartment is based on initial entries in books of accounts mostly relating to the current financial year, the statement said.
Biggest index gainers were Tata Steel (2.12%), Tata Motors (1.97%), State Bank of India (1.95%), Hindustan Unilever (1.62%) and Mahindra & Mahindra (1.44%).
Losses in Sterlite Industries (-3.55%), Hindalco Industries (-2.46%), Grasim Industries (-2.01%), Reliance Communications (-1.83%) and DLF (-1.67%) kept the 30-share index under pressure.
Market breadth on BSE turned positive towards close with 1,472 advances against 1,310 declines.
“Technically, a bearish ‘Hammer’ pattern is in the making on the Nifty. Key indices are now slowly inching away from the overbought region. But the advance-decline ratio is not showing much strength and the market seems cautious at higher levels,” said a technical analyst from a local brokerage.
Bombay Stock Exchange’s Sensex settled at 16,214.19, lower by 0.31 per cent or 50.11 points from the previous close. The index swung in a range of 16,119.95 and 16,252.18 during the day. National Stock Exchange’s Nifty managed to maintain the 4800 mark with the index finishing at 4808.60, down 0.43 per cent or 20.95 points. It touched a high of 4832.25 and low of 4786.25 in trade so far.
The broader market clearly outperformed the benchmarks. The BSE Smallcap Index climbed 0.15 per cent higher and BSE Midcap Index ended up 0.46 per cent.
Public sector banks were in the limelight on reports of separate meetings with finance ministry officials for additional capital to maintain capital adequacy above 12 percent till fiscal 2012.
Meanwhile, shares of Jet Airways India climbed 5 per cent intra-day on the bourses after the five-day-old stir by its pilots ended and the airline management reached a settlement with the agitators.
Sectorwise, BSE PSU Index edged up 0.93 per cent and BSE Bankex rose 0.49 per cent. BSE Consumer Durables lost 1.06 per cent, followed by BSE Realty Index down 0.79 per cent.
In the realty space, industry major Housing Development and Infrastructure Ltd took a severe beating after Income-Tax department officials conducted raids on the company’s office premises and promoters' residences on Sep 11-12. However, the company denied having evaded taxes but said it would pay tax on additional income of Rs.350 crore following the raids.
"During the course of the raid, HDIL has agreed to offer approximately Rs 350 crore as income to be booked in remaining quarters of financial year 2009-10," the company said in a statement. Income of Rs.350 crore as calculated by ITdepartment is based on initial entries in books of accounts mostly relating to the current financial year, the statement said.
Biggest index gainers were Tata Steel (2.12%), Tata Motors (1.97%), State Bank of India (1.95%), Hindustan Unilever (1.62%) and Mahindra & Mahindra (1.44%).
Losses in Sterlite Industries (-3.55%), Hindalco Industries (-2.46%), Grasim Industries (-2.01%), Reliance Communications (-1.83%) and DLF (-1.67%) kept the 30-share index under pressure.
Market breadth on BSE turned positive towards close with 1,472 advances against 1,310 declines.
Saturday, September 12, 2009
TODAY's MOTTO
Believe"
wher others
doubt
"Work"
wher other
refuse
"Save"
wher others
waste
"Stay"
wher others
quit
DARE TO B DIFFERENT..@
wher others
doubt
"Work"
wher other
refuse
"Save"
wher others
waste
"Stay"
wher others
quit
DARE TO B DIFFERENT..@
Friday, September 11, 2009
MARKET
11/09/09
Sensex
16274(+57)
Nifty
4837(+18)
$
48.41
Gold
15758
Silver
26952
CRUDE
$72.05
~
SAMPARK
What u NEED
When u NEED..@
Sensex
16274(+57)
Nifty
4837(+18)
$
48.41
Gold
15758
Silver
26952
CRUDE
$72.05
~
SAMPARK
What u NEED
When u NEED..@
Thursday, September 10, 2009
The important thing about stock valuation
Investors often get perplexed when trying to determine the 'proper value' of a stock. And understandably so, as it can get confusing at times. As always, it can be very insightful to hear what value investing guru Benjamin Graham has to say on the subject of calculating the proper value of a stock.
According to him, in the field of analysis of stocks, one cannot presume to lay down any specific rules that will help one arrive at the exact value of any given stock. This is because when looked at practically, there is no such thing as the 'exact value' of a stock in the first place. This is true as the bases of value itself are so constantly prone to changing that there cannot be any fixed formula as such that could claim to accurately determine the exact value of a stock at any point of time.
To Graham, the whole idea of basing the value of a stock upon the company's current earnings seemed inherently absurd, since it is a well known fact that the current earnings are constantly changing. And whether one should assign a P/E multiple of 10 or 15 or even 30 times to the earnings of the stock to arrive at its 'proper value' seems at its bottom, a matter of purely random choice.
To the investors who have been tracking the markets for quite some time now, the above argument might just look right. Most of the times, it appears as if there is no scientific basis to justify the valuations of a stock. It was Graham's observation that the stock market itself has no time for such scientific evaluation. Its nature is such that it must assign values to stocks first, and find its reasons afterwards. He compared the market's position to that of jury in a court case where a man has promised a woman that he will marry her and then changes his mind later for some or the other reason. In such a tricky case, there is no sound way for the jury to measure the values involved and yet, they must be measured somehow for the purpose of arriving at a verdict that just has to be reached.
This is the dilemma that leads to a situation where the prices of stocks are not carefully thought out values but are infact the result of a lot of different emotions. And hence Graham's classic quote: "The stock market is a voting machine rather than a weighing machine." The market, in effect, responds to actual data, not directly but first it impacts the thinking of the buyers and sellers and through this thinking, the prices. In other words, how much the price of a stock changes in reaction to a new information is not based on some exact calculation. The changes in price are infact arrived at through a filter of human emotions and compulsions.
According to him, in the field of analysis of stocks, one cannot presume to lay down any specific rules that will help one arrive at the exact value of any given stock. This is because when looked at practically, there is no such thing as the 'exact value' of a stock in the first place. This is true as the bases of value itself are so constantly prone to changing that there cannot be any fixed formula as such that could claim to accurately determine the exact value of a stock at any point of time.
To Graham, the whole idea of basing the value of a stock upon the company's current earnings seemed inherently absurd, since it is a well known fact that the current earnings are constantly changing. And whether one should assign a P/E multiple of 10 or 15 or even 30 times to the earnings of the stock to arrive at its 'proper value' seems at its bottom, a matter of purely random choice.
To the investors who have been tracking the markets for quite some time now, the above argument might just look right. Most of the times, it appears as if there is no scientific basis to justify the valuations of a stock. It was Graham's observation that the stock market itself has no time for such scientific evaluation. Its nature is such that it must assign values to stocks first, and find its reasons afterwards. He compared the market's position to that of jury in a court case where a man has promised a woman that he will marry her and then changes his mind later for some or the other reason. In such a tricky case, there is no sound way for the jury to measure the values involved and yet, they must be measured somehow for the purpose of arriving at a verdict that just has to be reached.
This is the dilemma that leads to a situation where the prices of stocks are not carefully thought out values but are infact the result of a lot of different emotions. And hence Graham's classic quote: "The stock market is a voting machine rather than a weighing machine." The market, in effect, responds to actual data, not directly but first it impacts the thinking of the buyers and sellers and through this thinking, the prices. In other words, how much the price of a stock changes in reaction to a new information is not based on some exact calculation. The changes in price are infact arrived at through a filter of human emotions and compulsions.
US Fed: The recession is over
The US Federal Reserve has come out with a survey that confirms that the US economy has turned around a corner based on reports from regional banks. This survey precedes the monetary policy meeting, to be held in two weeks. If indeed the US Fed accepts at the meeting that the recession is over; then it is likely to increase interest rates, currently pegged at zero
MARKET
10/09/09
Sensex
16216(+33)
Nifty
4819(+5)
$
48.47
Gold
15533
Silver
26079
CRUDE
$71.33
~
SAMPARK
What u NEED
When u NEED..@
Sensex
16216(+33)
Nifty
4819(+5)
$
48.47
Gold
15533
Silver
26079
CRUDE
$71.33
~
SAMPARK
What u NEED
When u NEED..@
Wednesday, September 9, 2009
Gold touches US$ 1,000. Time to buy?
Interest in gold continued to rise as for the first time in six months, gold futures breached the US$ 1,000 per ounce mark yesterday. This takes the year's gain to nearly 14% and sets up the yellow metal nicely to close in the positive for the ninth year in succession. It should be noted that the turmoil in the global financial system has led to the central banks around the world flooding the market place with trillions of printed money, giving rise to concerns of hyperinflation. While inflation not raised its head just yet, it is only a matter of time and hence, we believe that gold may be one of the best bets around to nullify the effects of the same on your portfolio.
Sensex doubled. So did 'hot money'
It is not unnatural for investors to be ecstatic when they see their stocks doubling within a period of six months. Particularly, if this happens across a range of not only midcap and smallcap but also large bluechip stocks. The BSE Sensex had a dream run in the past six months when it doubled from near 8,000 levels in March 2009 to 16,000 levels in September 2009. And investors had enough reasons to smile. While the super-attractive valuations definitely attracted hoards of retail and long term investors, there was also another class of investors that is notorious for having caused havoc in the Indian stock markets. These are the unregistered FIIs who invest via Participatory Notes (P-Notes) only to artificially influence the stock prices in the short term.
MARKET
09/09/09
Sensex
16183(+59)
Nifty
4816(+11)
$
48.47
Gold
15690
Silver
26365
CRUDE
$71.33
~
SAMPARK
What u NEED
When u NEED..@
Sensex
16183(+59)
Nifty
4816(+11)
$
48.47
Gold
15690
Silver
26365
CRUDE
$71.33
~
SAMPARK
What u NEED
When u NEED..@
Monday, September 7, 2009
Saturday, September 5, 2009
Do's & Don'ts
Do's & Don'ts
The BSE has mentioned certain Do's and Don'ts in general for investors to follow while dealing in the stock market as there are attendant risks associated with it.
Given below are the Dos and Don'ts in general for investors who are dealing in stock markets.
DO's
# Always deal with the market intermediaries registered with Sebi/Exchanges.
# Give clear and unambiguous instructions to your broker/agent/depository participant.
# Always insist on contract notes from your Broker. In case of doubt of the transactions, verify the genuineness of the same on the Exchange website.
# Always settle the dues through the normal banking channels with the market intermediaries.
# Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals and recent announcements made by them and various other disclosures made under various Regulations. The sources of information are the websites of Exchanges and companies, databases of data vendor, business magazines etc.
# Adopt trading/ investment strategies commensurate with your risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted.
# Carry out due-diligence before registering as client with any intermediary. Further, the investors are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of investor registration requirement for dealing through brokers in Stock Market.
# Be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks.
# Be informed that there are no guaranteed returns on investment in stock markets.
DONT's
# Don't deal with unregistered brokers/sub-brokers, intermediaries.
# Don't deal based on rumours generally called 'tips'.
# Don't fall prey to promises of guaranteed returns.
# Don't get misled by companies showing approvals/registrations from government agencies as the approvals could be for certain other purposes and not for the securities you are buying.
# Don't leave the custody of your Demat Transaction slip book in the hands of any intermediary.
# Don't get carried away with onslaught of advertisements about the financial performance of companies in print and electronic media.
# Don't blindly follow media reports on corporate developments, as they could be misleading.
# Don't blindly imitate investment decisions of others who may have profited from their investment decisions.
The BSE has mentioned certain Do's and Don'ts in general for investors to follow while dealing in the stock market as there are attendant risks associated with it.
Given below are the Dos and Don'ts in general for investors who are dealing in stock markets.
DO's
# Always deal with the market intermediaries registered with Sebi/Exchanges.
# Give clear and unambiguous instructions to your broker/agent/depository participant.
# Always insist on contract notes from your Broker. In case of doubt of the transactions, verify the genuineness of the same on the Exchange website.
# Always settle the dues through the normal banking channels with the market intermediaries.
# Before placing an order with the market intermediaries please check about the credentials of the companies, its management, its fundamentals and recent announcements made by them and various other disclosures made under various Regulations. The sources of information are the websites of Exchanges and companies, databases of data vendor, business magazines etc.
# Adopt trading/ investment strategies commensurate with your risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted.
# Carry out due-diligence before registering as client with any intermediary. Further, the investors are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of investor registration requirement for dealing through brokers in Stock Market.
# Be cautious about stocks, which show a sudden spurt in price or trading activity, especially low price stocks.
# Be informed that there are no guaranteed returns on investment in stock markets.
DONT's
# Don't deal with unregistered brokers/sub-brokers, intermediaries.
# Don't deal based on rumours generally called 'tips'.
# Don't fall prey to promises of guaranteed returns.
# Don't get misled by companies showing approvals/registrations from government agencies as the approvals could be for certain other purposes and not for the securities you are buying.
# Don't leave the custody of your Demat Transaction slip book in the hands of any intermediary.
# Don't get carried away with onslaught of advertisements about the financial performance of companies in print and electronic media.
# Don't blindly follow media reports on corporate developments, as they could be misleading.
# Don't blindly imitate investment decisions of others who may have profited from their investment decisions.
IPO
IPO
Oil India Ltd
FRM:Sep07-Sep10
ISSUE SIZE:2512CR
PRICE BND:950-1050
BID LOT:6 SHARES
APPLY NOW
FOR
DETAILS
CONTACT
9333100221
Oil India Ltd
FRM:Sep07-Sep10
ISSUE SIZE:2512CR
PRICE BND:950-1050
BID LOT:6 SHARES
APPLY NOW
FOR
DETAILS
CONTACT
9333100221
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