my bet is that the market will be flat today. could even go down in the end.
but will rise frm tomorrow. ril result expected. will almost definately show a big rise in profits.will act as a booster dose to the market.
this is surely a nice time to pick. nick nice pic.bharti was a cool option. me too watching the stock.

mux

I am betting on a 50-70 point rise for the Sensex and 15-20 for the Nifty

Here's what i got today from Kotak MF...


"If the markets continue to slide without any substantive reason then this would be a good opportunity for investors to consider investing in equities with a 1 to 3 year horizon."

Rushabh Sheth

Head - Equity Funds



What caused equity markets to slide today?

Equity markets went down today (April 27, 2004) by 3.6% (213 points) on the back of concerns that the country is heading for a fractured verdict in the ongoing general elections.



Exit polls after the second round of polling (accounting for 276 seats, i.e., 50% of all seats in the Lok Sabha) on April 26 indicated that the ruling NDA coalition might not get a majority in the next Lok Sabha.

The concern is not so much about which party will form the new government but the fact that no pre-poll coalitions will be able to muster enough seats to provide a stable government.

This scenario will almost certainly give rise to horse trading, and will inject much uncertainty into the governance process. The incumbent government will be weak and incapable of taking any difficult decisions, causing delays in the economic reform process.

Are these concerns valid?

These are the concerns that were probably on the minds of market participants today. However, it is anybody's guess how much of this will actually come true:

* 50% of the country is yet to vote, and
* exit polls are not necessarily representative of the entire country, being based on a very small sample size.

How should we react to this volatility?

We firmly believe that it is too early to take a call on the final outcome of the elections. Also, regardless of which party comes to power, it is worth remembering that -

* most political parties have declared themselves committed to continuing economic reforms - the only questions are those of priorities and pace, and
* the underlying economic growth in the country remains strong, and this will continue to drive corporate profitability.

While today's markets seem to have epitomized the people's sentiments, as represented by exit polls, we believe that there is no cause for panic. We need to see the final shape of the new government before drawing any conclusions on its economic implications.

I dont think I would agree with the NDTV opinion...
Its a great company to invest in.

maybe, maybe not. but the money they are going to raise from the IPO is going into capex or repayment of debt... which is not really an ideal situation for an investor... plus the issue price is rather steep.. you might still make some money from the initial listing ... anyway NDTV is not a stock i'd like to keep for 10 years... and as that Buffet dude said... "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." i'd say keep the money liquid for a while and wait for the TCS (or the rumoured Hutch) IPO.

vishal

I dont think I would agree with the NDTV opinion...
Its a great company to invest in.
If you are going by the losses they reported last year then it should be noted that it was their first year as a broadcaster as compared to their history of being content providers. This means that they had to do some huge capital expenditure in equipment and necassary licenses. Now that this phase is over, this company is headed for good growth. I mean who are you kidding man, Prannoy Roy at the helm with amazing reporters like Rajdeep Sardesai, Barkha Dutt etc. and we have a great news company on our hands!!!
And lets be honest here, how many of us here watch NDTV and how many the more degraded channels like "Star News" and stuff. That for itself is a vindication of NDTV's viewership.

Disclaimer : I am not investing in the IPO myself but the reason is that I dont have the money!!! Will buy from the market after listing.

mailtabrez Says

markets in TIZZY today.n my money on they plunging to even lower levels...atleast till the nxt round of exit polls wher 1 party or the other(ideally BJP tho!!) gets a firmer GRIP

Infact this could well be a good entry point for few who still are interested in investing further. I too have been investing in stocks for over 3 yrs now but lately my exposure has been only 50K. For the past 1 month I was expecting a correction in the market.

I sold all my stocks at their peak and will enter again.

I will recommend including Petronet LNG at Rs. 21 in your portfolio since in short and medium term (2-4 months) it is expected to rise to anywhere between Rs. 30 - 35.

I would sound the alarm bells for anyone who wishes to go in for NDTV. Please don't follow the mollah and burn your fingers in NDTV stock.

Stay away from the banking sector (in long term) since a lot of skeletons are expected to come out of the closet.

As for Infy & Wipro, these stocks being traded at over 29 in terms of P/E are not good entry points till they move down to 26. In this case I would suggest not buying INFY till its price is below 4850 (pre-bonus) or 1350 (post-bonus)

The market will expect a barrier at 5810 (BSE) but once it moves up it will have the potential to max at 6340 (BSE) by the end of MAY 2004.

Open to comments!

markets in TIZZY today.n my money on they plunging to even lower levels...atleast till the nxt round of exit polls wher 1 party or the other(ideally BJP tho!!) gets a firmer GRIP.....the SCARE is not who wil come to POWER....evrybdys worried over the LOOMING HUNG parliament...the horse-trading,please-all-the-coalition partners scenario...wher REFORMS r shown
so till then take care.
psst:i still havent got my demat acc activated else today 27th APRIL (or is it yest!!!) wud hav been my first day of TRADING....wud hav been a bad debut ....

yup..today's been a bad day for me too...
but later in the day I turned buyer!!!

Bought Bharti Telecom(no idea why its falling after the awesome results) and Infosys(this is just for the bonus issue)...
will be hoping for a rebound tomorrow but have made these buys with a 6 month perspective so not really worried about the short term picture...

As far as NDA vs. Cong. is concerned, I am not sure if India Inc. would welcome a Cong. led govt. Take for example Cong's manifesto which says that they will try to bring in reservation in the private sector also. Thats a hugely retrogade step!!!

Then you have a chance where even the left parties would join such a coalition. That would be disastrous if any further reforms are to take place. Even people like Mulayam and others would try to stall the divestment process in the future. So I have to say that a BJP led govt is the best thing that can happen to this country right now. Although they may dislike heading a coalition but also have the experience to lead one!!!

my portfolio lost around 3%... roughly 10k... but most of my stocks are long term bets... buy and hold... so, i am not selling right now :), i guess with today's mayhem market has factored in the hung parliament scenario to a large extent... and the indices should resume the upward trend once things settle down post election... and if they don't, man.. i am in for a big beating

vishal

Today the exit polls have gathered pools of red on the stock market , markets not sustaining is falling effortlessly for now , i lost close to 8000 today, im scared of my money erosion as i 've bought my stocks on near high, but good thing is I've sold off my major pie on Friday so relatively relaxed, how it is going for other guys sensex down 200 + points ???
But i feel correction now is healthy given the way the bank stocks rallied more than 10 -30% in a week or so , bye....... :idea:

oh boy...it is a bloodbath out there at the markets!!!

finance minister can't do much if coalition arithmetic does not give him a free hand.. i guess as long as we have a stable government, nda or congress.. reforms have to go on... but if we do end up with a hung parliament, decision making will become a casuality and hence the impact on economy... btw.. i mulayam singh is not as business unfriendly as you might think...

LOL.
guys, do u really believe that only bjp can make india shine.or that india shining was due to efforts of nda only(ya,they did good but i think it was unavoidable). and mulayam and laloo don't understand a shit about economy and any finance minister worth his salt won't heed to them. my take is that fin minister will be either jaswant or manmohan and these two r no idiots. govt won't affect economy(only don't let those communists come in govt). our corporates r going international now and effect will be only in some sectors only.
and ya, the news guys r making a fool of themselves with the varied outcome of exit polls.sahara-70 and ndtv-50.lol. couldn't better that.toi coming with average takes the cake.

mux

guys, don't get too worried abt the exit polls. remember what happened in chattisgarh .. but seriously, if thr's a hung parliament... there are a lot of chances that sensex will fall below 5000.... ... khair if you are in it for the long haul... hang on thr...

vishal

Mulayam, Mayawati and Laloo...god save our country frem these people.
I have one option to take care of them :2gunfire:

Its never a good time to invest with so much uncertainity in the air..
After all the Indian Markets(or for that matter markets world over) are driven more by sentiment than reason. Even good corporate numbers will not be enough to spruce up the market if it sees a hung parliament in the future..

guys,
market is rocking today due to exit polls.
guess they r more dangerous to us than to politicians .
anyway, whats ur thought?

i think it is gr8 time to pick up good stuff.

muks

Most of the growth projecttion were based on NDA getting clear majority....with tht loking exceedingly difficult wait for a rerating before commiting fresh exposures...if some asses like Mulayam singh and other unbearable thingies from bihar and Up is gonna have a say in running India for the next 5 years i can smell a 3500 in the horizon...
wait and pray tht NDA comes back with atleast 270+

guys,
market is rocking today due to exit polls.
guess they r more dangerous to us than to politicians .
anyway, whats ur thought?

i think it is gr8 time to pick up good stuff.

muks

Wat is the difference between ADRs, GDRs and IDRs??

Ace has explained ADRs and GDRs in detail, IDRs work the same way as the other 2 but it stands for INTERNATIONAL DRs and can be traded all over Europe.

What is difference between ROC and ROCE (if any) ?

These acronyms do confuse me frm time to time..ROC would be Return On Capital and RoC would be Rate of Change.

lets say you have 10, 000 Rs with you.

You have decided to invest 4,000 in the risk free fixed deposit of SBI with annual return of say 8%
Rest 6,000 you have decided to invest in equity say TATA.
Using historical data you have found that the equity's average annual return is at a risk premum of 10% while standard deviation is at 20%.

Now what would be rate of return and standard deviation of your investment.

My take on this..not sure with the answers:

Risk Free Deposit of 4000 will yield 4320 at 8%.

Returns from 6000 invested in equity at 10% risk premium: 600
Standard deviation 20% hence, returns range frm 480-720.

Totalling up: 10,000 invest would give anything between 10,800 - 11,040

Wat say Ace???

-Kanti

Quote:

1. What is difference between ROC and ROCE (if any) ?



Difference between ROC and ROCE:

Kanti your ROCE is spot on
ROC is Return on Capital => PAT (or net profit)/ (Stock holder equity + total debts)

no denominator of both ROCE and ROC is almost same
from Balance sheet
Total Assets = current liabilities + long term liabilities + stock holders equity
=> Total Assets - current liabilities = long term liabilities + stock holders equity
now long term liabilities => total debts + others (Like minority interest)
these others are almost negligible compared to rest and in some firms totall absent

so in my guess difference between ROC and ROCE is only the numerator.

Net Worth: The amount by which an individual's assets exceed his liabilities.

Net Assets: Didn't understand wat u exactly mean by net Assets...is it Net Asset Value??

Net worth is something which is applicable to the share holders of the company
Net worth => total stock holders equity

Net assets => Total tangible assets - total liabilities
or in other words the book value of the firm
Total assets = fixed assets + current assets + intangible assets (including things like goodwill and other intangible assets like brand value patents etc etc )

so Net assets includes only the tangible part applicable to the share holders.

1. Wat is the difference between ADRs, GDRs and IDRs??

These recipts let the foreign players participate in the indian equity market.
Its some thing like that (A borkering agency buys a bulk of these shares and take them to the bourses of other countries and sell them to the interested foriegn investers)
Why all this is done is simmply because every company likes diverese people investing in it. (so its(ADR/GDR) is a very nice way of letting foreign investers investing in your equity from their market.

now say the price of a equity share in indian market is 100, which => 2$ in america which would be very less compared to price at which simmiler companies stock is traded in their market. So it may not be appealing to them so these are issued in a ratio 1: 10 (say) ie one ADR/GDR => 10 indian equity shares and price becomes 20$

so thats ADR and GDR (american and global) (american are traded on american stock exchange and global are traded on other foreign exchanges)

another question from my side.

lets say you have 10, 000 Rs with you.

You have decided to invest 4,000 in the risk free fixed deposit of SBI with annual return of say 8%
Rest 6,000 you have decided to invest in equity say TATA.
Using historical data you have found that the equity's average annual return is at a risk premum of 10% while standard deviation is at 20%.

Now what would be rate of return and standard deviation of your investment.
Think about it.

More later
cheers

hi,
wow so much to read and ponder over.
mailtabrez, i think we both r in same league (league of knowledgeless gentelmen).
all these fundas r gr8 fr us ignorant engineers.
btw, gr8 post guys.
i myself is a student and hence not capable of investing in market.however will try to start soon.am BULLish on market. pick : communications and textile. tries to focus on these.
bharti vindicated my stand on telecom and hoping that arvind will vindicate me in textile (finger crossed). looking fr another good pick in textile.

btw, don't think that IDR means indian d r. or is it .
mux

a=american g=global(i guess) i=indian DR= depository reciepts......dont ask me wat these are...... ...same old reason ENGG hoon na

2. What is difference between net assets and net worth (if any) ?

Net Worth: The amount by which an individual's assets exceed his liabilities.

Net Assets: Didn't understand wat u exactly mean by net Assets...is it Net Asset Value??

Another one from my side:

1. Wat is the difference between ADRs, GDRs and IDRs??

-Kanti

1. What is difference between ROC and ROCE (if any) ?

Difference between ROC and ROCE:

ROC: Rate Of Change ->

Rate of change is an indicator to gauge market momentum. It is given by the following formula:

ROC = Today's closing price / Closing price Y days ago

ROC divides the latest price by a closing price Y days hence, if both values are equal, RoC is 1. If today's price is higher, then RoC is greater than 1. And, if today's price is lower, then RoC is less than 1. The slope of the line that connects the daily RoC values graphically illustrates whether rate of change is rising or falling.

ROCE: Return On Capital Employed ->

ROCE = EBIT / (Total assets - Current liabilities)

EBIT: Earnings Before Interest and Tax.

ROCE should always be higher than the rate that the company borrows at, otherwise any increase in borrowings will reduce shareholders' earnings.

-Kanti

PS: Hey Snan, I should have easily realized the fact that sensex is dynamic..how stupid of me

1. suppose you are in a tax bracket of 28% .
which would be better investment 6% taxable or 4% tax free ??

assuming, the tax rate is uniform, won't 6% taxable be better?... 6*(1-0.2 > 4

vishal

PS: edited for a typo

yes thats right
simply put:
say u have 100 bucks.
in taxable ull make it 106 and net money ull left would be 106*.72 = 76.32
in tax free it would be 4 + 100*.72 = 76
so u gain is .32 %

correct me if i am wrong

Ok here are two concept check questions :)

1. What is difference between ROC and ROCE (if any) ?

2. What is difference between net assets and net worth (if any) ?

:)
PS: all these (previous post too) are my own framed questions, so are the answers .. so bhool chook maaf

1. suppose you are in a tax bracket of 28% .
which would be better investment 6% taxable or 4% tax free ??

assuming, the tax rate is uniform, won't 6% taxable be better?... 6*(1-0.2 > 4

vishal

PS: edited for a typo

GREAT POST that ACE...i always used to wonder wat that bloody 5000-6000 pts were....kinda understandin it NOW!!

n even i am lookin fwd to the answer to ur 1st ques.some1 pls come fwd

Dude...that was a good explanation!!
Thx...

Haylo.....Are the results out yet ??!!!

yaar u will get thru

.............i want to learn the mechanism..but thought i might wait till my Fin courses are over !!!

yes both u and mailtabrez are correct that its Market value wighted average unlike dow jones which is a price value weighted average.

Market value weighted average gives weight to each stock in its index portfolio on the basis of its market cap.
i.e if u invest in the each scrip of the portfolio based on the market cap the ur returns (excluding dividents) is equal to the % change in the index.

well ill explain thru a very simple example
lets say index has two stocks
name\no. of outstanding shares\price of each share\ market cap
A --- 1000 - 50 -- 50,000
B --- 800 - 75 -- 60,000
so u can see weight of B > A
Total market cap is 110 , 000 => base value say 100
now after some time share of A rise by 20% => 60 and share of B goes down by 20% => 60
so ur total market cap is 60 * 1000 + 60 * 800 = 108, 000

so now ur index value is (108,000/110,000) * 100 = 98.18

so now u see that even if both the share experinced same increase and decrease there was a net decrease in the index value of 1.82 points.
ie u have made -ve returns pf -1.82% because ur portfolio was more heavily invested in stoack of B (becuase it had more weight in the index).

Lets come to stock split lets say B has a stock split in ratio 1:1 ie now there are 1600 (800*2) shares of B. Lets say price of each share after split is 30 (60/2)
total market cap is : 60 * 1000 + 1600 * 30 = 108, 000 => index = 98.18
so u see a stock split had no effect on the returns provided after a stock split share of price does not rise.
-------------Error corrected --------------------------------------------------
in case of bonus issue and rights issue the index gets adjusted.
let us say B issues 100 shares worth 30 then the base market cap would be changed to ( 108, 000 + 100 * 30) / 98.18 (old base) = 113,060
This is done so that now ( 108, 000 + 100 * 30) = 111,000 should be equal to 98.18

now the figures are as folowed
A --- 1000 - 60 -- 60,000
B --- 1700 - 30 -- 51,000
Total = 111,000 base = 113,060 index still = 98.18

now lets say A increase by 20% and B decrease by 20% (same as before)
A => 72 B => 24
Total market cap = (1000 * 72 + 24 * 1700) = > 112,800
now ur index is (112,800/113,060) * 100 = 99.77

so same increase and decrease has given u returns of (99.77 - 98.1 /98.18 = 1.61% unlike last time of -1.8%
this is because now ur portfolio is more heavily invested in B
so one has to change his portfolio as stock of a share rise/fall, as stock splits occur and as rights or new issues come .

any way this is a smallish example.
hope it helps
Sensex is more complicated as it takes free float into consideration.
would talk bout that some times later

further complication comes once stock replacement takes place (I have to study that)

so now u see how 100 in 78 -79 is 6000 today .. (base has been changed so many times + stock price have risen)

btw
no one has answered my first question

cheers
:)

ps: this is my own example and there may be error in my application of the theory .. please correct me if i am wrong (

Hi all,

I need to clear out some doubts wrt to the sensex..please help me out:

1. Is the 30 script sensex dynamic???..i.e. can some script from these 30 move out and another come in.

2. I realize that the sensex is determined by market cap of these stocks but wat is the criteria for selecting these stocks. Having a good mix across industries, providing a comprehensive view of the markets could be one OR the sensex is formed by the companies which have the largest market cap.

3. Wat if some company in the sensex defaults or is stuck in some scam/scandal??? wat happens then..is the co taken out???

I have several more doubts but all of those depend on the answer to the first question..is the 30 stock sensex dynamic!!

-Kanti

Answer :- Yes..sensex is dynamic...its updated on a regular basis ..removing the ones which doesnt fall into the "Acceptance criterions" and adding new oens which would give a better "trailer" for the full lenght movie tht is the stock market !! :-p..
....actually u cud have thought it out for urself...sensex wudnt have had any new eco companies in the gud old days right ?? ..but today u have infy/wipro/drl/etc.....so obv. its very dynamic to reflect present day scenarios fo market !!

Q.2 :- http://bsewebx.bseindia.com/faqs/sect4.asp#4.3....Comprehensive listing conditions !!...no point in me copying + pasting it here rite ?? if u have any specific queries after going thro it i shall be happy to answer

Q3:- Yes..thy will be removed to pave way for others !!


Cheers

soooHASSS

It is all abt making fast money.
Read the rosy story in any of the Bmagazine.Get excited and invest money just by dialling
a local number.
Tomorrow is a day of repentance.
See if i m getting an extra bread sb at the other end will be
sleeping hungry.
Seein the listing of IPO of Patni people would have lost interest in the IPO which was expected to
bring abt profit ion most of the cases.
Now listin of Biocon has again brought abt same zeal in the people
to buy it from IPO
But beware the IPO of NDTV may go like PATNI
The tide is keep on changing.....
Right from the day1 of the year 2004 it is expected for the sensex to touch the psychological mark of
6000 but unfortunately it has started moving to touch 5000 leave aside the prediction of 8000

Its not a disappointing message neither it connotes any negative sense but it is just a paradigm.
I hope i will start makin profit once the market will come outof ripples and take a jump.

Hi all,

I need to clear out some doubts wrt to the sensex..please help me out:

1. Is the 30 script sensex dynamic???..i.e. can some script from these 30 move out and another come in.

2. I realize that the sensex is determined by market cap of these stocks but wat is the criteria for selecting these stocks. Having a good mix across industries, providing a comprehensive view of the markets could be one OR the sensex is formed by the companies which have the largest market cap.

3. Wat if some company in the sensex defaults or is stuck in some scam/scandal??? wat happens then..is the co taken out???

I have several more doubts but all of those depend on the answer to the first question..is the 30 stock sensex dynamic!!

-Kanti

Hi,
this thread has become somewhat famous 70+ posts and 1000+ visits god going folks
some i know would be off
snan - iima

2. is sensex price (market price of scrip) wighted average of 30 stocks or market value (market cap.) weighted average of 30 stocks.

cheers
:)

Haylo.....Are the results out yet ??!!!

On a more serious note..for ur second query..as tab told its indeed market cap based...(weighted average of mar cap to be precise....)......Total mar cap of the 30 selected companies is divided by a factor called Index Divisor..thts why u get values like 6000 or 5850 or whtever....the factor connects the index to the base period which is 1978-79...this is wht is often written as 78-79 = 100..tht is total mar cap of selected scrips at the start of BSE divided by this factor was 100...(or to be more correct the factor was selected thus!)......thts bout it !! As simple as tht !!!...but the thing gets absolutely mind boggling whn things like bonus shares/adjustments/stock splits/rights issue etc.............i want to learn the mechanism..but thought i might wait till my Fin courses are over !!!

chao

suhas...

Yeah I agree with the IPO thing...
first the heavy oversubscription means very less chance of getting the shares and then on top of that the risk of the registrar screwing up!!!

I am not a big time investor..honeslty not enough money...but i have a decent portfolio..stocks which i own:

1. MRPL bought 6 months back
2. ONGC through disinvestment
3. Chambal Fertilizers - for long term purposes
4. Petronet LNG - IPO
5. L G Balakrishnan n bros: stumbled upon this recently..it's into auto part..supplies chains n like stuff to 2/3/4 wheelers, has got a very good client list from hero honda, tvs, bajaj to mid-segment cars..also provides chains to factories, recently acquired a metal forging factory near Bangalore..was priced arnd 445, has split its face value from 10 to 1 and gave a 1:1 Bonus..currently trading at 18.5.

I had shares of Bank of Maharashtra but sold 2 days back at 45.65..i feel the bank is overvalued at current levels.

Stocks which i am watching:

1. Sail
2. HLL
3. Unitech
4. Indraprastha: this has got back to 90 levels after the ipo boom..am playing the waiting game, will buy it arnd 80.

Thought of investing in NDTV but ipo these days are more of lottery system..u don't know whether u will get them or not, plus ur money is blocked. Had a very bad experience with MCS over ongc..still haven't received 40 shares of ongc..so, am a bit skeptical now.

-Kanti

PS: me too make it a point to check this thread once a day

As far as I am concerned...have made huge investments in three stocks

1.Tata Motors
2.I-Flex(the next Infy in the making!!!)
3.IPCL(thru the govt. divestment)

Wanted to diversify my portfolio a bit.

The stocks I am eyeing right now are :

1)PTC(as I have said earlier)
2)BIOCON
3)Finolex Cables(this one is again close to a monopoly in the Indian cable market)
4)Global Trust Bank(good acquisition prospect for foreign banks)

Will post more if I can find some good stuff out there...

even i make it a point to hav a look at this post atleast 1 a day....btw ace i dont own ne stocks so far...but gonna start tradin in some days time....u bet this post is bcom a HOT PICK n i remain BULLISH on it!!!(pun intended)

the gyaan dat one gets here is good

me thinks the answer to ur 2nd ques is weighted avge of MARKET CAP..dont ask me the specifics...I MAY NOT BE ABLE TO ANSWER IT....wat else can u xpect frm an ENGINEER!!!
also I wanna kno ans to both the ques wit proper reasoning!!!some1 do the honours!!!

Hi,
this thread has become somewhat famous 70+ posts and 1000+ visits god going folks
I make it a point to visit this thread atleast once a day and look at what's latest on peoples mind.
Today I stole some time to check the previous posts and have found some regular vistitors (posters) on this thread ...
they are:
nickspeedster
archana
mucks
kanti
ace_bubble
xcesstorque
mailtabrez
post2ashish
snan
photon
i believe all of you must have some or the other stock in your kitty.
i dont know how many of us would be left for posting latest news, stock hints etc ..
after bschool results are anounced.
some i know would be off
snan - iima
archana - spjain
kanti - iitkgp
dont know bout the rest ...

I just hope that all of you would continue to post your picks latest buzz in the stock market and keep the others informed.

I started of with neyveli lingnite and planning a long term on it.. PTC is a good bet.

on a short term I can suggest you two sectors banks and sugar( the interest rate for borrowing from the national sugar funds would be reduced by 2% points, so spurrring the investements there).
I had identified some banks three months back and they are doing great now .. somehow that time i did not have a demat account.

textile and steel are next in line but that would be after elections cos lot on these depends on the quota policies in comming year.

challo from moneycentral.com I have found 20 broad sectors in which industries can be classified.
I ll be posting some picks from each sector somewhere in future if and big if i get time

I would leave you with two questions as for now:
1. suppose you are in a tax bracket of 28% .
which would be better investment 6% taxable or 4% tax free ??

2. is sensex price (market price of scrip) wighted average of 30 stocks or market value (market cap.) weighted average of 30 stocks.

cheers

hmmm...
good stock picks in this forum!!!

Now that the market is due for a correction, one can look at buying PTC or Biocon when the price dips.

PTC as per valuations is looking expensive but it really should not be compared to other power companies.
Its business model is totally different plus there is only one such company in India, making it a rare monopoly in today's economy.

What say ppl.?

hey ace-bubble..thanks so much for such lovely links...aap gr8 hain!....really gr8 yaa....thanks a tonnnnnnnn!

gby
archana

SO MANY LINKS.
wow ace_bubble, tumne to line laga di. tusi gr8 ho paaji.it requires a lot of patience to even post them .
keep it up.
muks

i finally see a ray of hope thru admit at Spjain Dubai for investment banking. I HAVE ot exel in order to stand out in a class of 8-10 CAs !...pray for me!

Kanti: congrats for making it to IIT khgpr. i am sure u will rock!...

Thanks Archana for the wishes. I am sure u will outperform ur class at SPJAIN Dubai.

Coming to stock picks..as i said before MRPL is my fav bet...i have 200@33.8 and am waiting for a correction to reenter this script.

Other scripts...depends on wat u r looking for...long term gains, dividends or short term money...moi a long term investor n generally go for stable, dividend paying cos...an example could be chambal fertilizers..the stock would remian in 18-24 price band but would always give a dividend of 22-25% on face value 10 every year...thus, the ROI is pretty good. Other stocks to watch out for are ONGC...with the recent findings of OVL, it's looking pretty good.

I want to enter the auto sector but most of the scripts are overpriced so, am waiting for a correction.

Is anyone interested or trades in derivatives..moi still learning the basics n i believe there is a lot of money to be made here if u r good.

Ace bubble: That was a gr8 piece of info cpmparing the stock exchanges! i have saved ti for future ref..that was really gr8! thanks a lot

Thanx archana
u seem to be analysing stock market for quiet some time ...
its nice to have u here (on this thread) ..
busy these days but sometimes later would trouble with my never ending doubts

here is some sets of links that i use in my analysis
URLPurpose
http://www.equitymaster.com/research-it/sector-info/Sector wise research of indian companies (year old data)
http://www.equitymaster.com/research-it/company-info/Company financial information
http://www.equitymaster.com/research-it/compare/compare_comp.aspComapring two (related business) companies (year old data)
http://www.indiainfoline.com/stok/Sector wise stock information at BSE and NSE
http://www.indiainfoline.com/comp/Indian companies news and information
http://www.indiainfoline.com/sect/Sector news and information
http://www.moneycontrol.com/stocks/index.phpMarket snapshot and news
http://www.moneycontrol.com/stocks/marketstats/marketstats.phpMarket statistics of BSE and NSE (includes all the information)
http://www.moneycontrol.com/stocks/cptmarket/cptmktmain.phpInformation about companies financials
http://finance.yahoo.com/q?s=Yahoo site for US stocks
http://in.finance.yahoo.com/q?s=Tracking an indian scrip
http://bseindia.com/price_finder/stockreach.asp?scripcd=Tracking a scrip on BSE
http://charting.bseindia.com/charting/index.asp?SYMBOL=Charting of a scrip on BSE
http://bseindia.com/qresann/result.asp?scripcd=Results at BSE
http://charting.bseindia.com/charting/help/Information about interpreting the market indicators
http://stock-anal.com/Free Chart for analysing stocks on various parameters
http://www.investopedia.com/university/Tutorials about various investings
http://www.investopedia.com/university/ratios/ratios1.aspRatios to analyise companies
http://beginnersinvest.about.com/cs/investinglessons/Lessons in investing
http://www.investorwords.com/Financial glossary

apart from that regular ET and a book on investments ..
and the power of google

hope its help ...

cheers

muks: Thanks for rating my analysis as good! Hey i was workng as an analyst with an ivestment banking co. in equity research, and i did a major of FMCG related stuff. Quitt he job to struggle fr an MBA admission. After all that depressing period, i finally see a ray of hope thru admit at Spjain Dubai for investment banking. I HAVE ot exel in order to stand out in a class of 8-10 CAs !...pray for me!

hey that attach from infy-good boy (sorry cant rem the name) was fundoo. Thansk a lot yaa!

Kanti: congrats for making it to IIT khgpr. i am sure u will rock!...

its really nice to see all our techies take so much interest in eqity markets...but i wonder why arent the CAs/ Bcom-ites with background in stock markets, not contributing to this?? :(

i am sure , this is def a produtive discussion and can add a lot of value to the readers!
what say junta?

well NE 1 read swainathan anklesia aiyar's swaminomics this sunday... abt how the developed countries have to invest in developing countries...well his thots got me thinking... well, mois planning to become a millionaire when i'm 30 odd.... gathering stocks in bits and pieces for a long term... theres no doubt that we are in for abig time boom sumwhere in the future...so "mil baat ke khayenge...mil baat ke khelenge ... aur mil baat kar paisa banayenge"...guys get ur thinking caps on...the trick here is getting low priced or undervalued stocks of blue chips and collecting them at liesure in small quantities...planning to do analysis for a few months or so b4 starting.

MRPL is my fave....(a bit baised too since i hail from thereabts)

xcess

gr8 collection jon. couldn't read the whole thing now but will read it. really a good collection.
hi there archana. r u really an investment advisor? anyway, ur analysis is always gr8.
Xcesstorque:yup buddy, me too bullish on Arvind Mills, doing a little searching on the stock.only bad thing which i know is that some of its top management left a little while ago blaming it of non professionalism.that's my only worry on it.
power stocks r hot (although a little expensive at this stage). they r a good pick if they come down a little. me thinks rel energy is definately better (track records of ambanis) and costlier .
pharma will be like IT. some good,some poor. basics and R&D; will matter most.
muks

Hey Jon,

Nice collection there..very good. But some of the docs would come under Infosys Intellectual property guidelines.... this can land u in trouble.

-Kanti

PS: Moi already downloaded the material:)

Kanti: i agree with ur perspective, i recommend a buy on HLL . With the improving volume growth in its sales, my call is that the scrip will see an uptick from its current levels. So HLL is def a buy at current levels!

Ace bubble: That was a gr8 piece of info cpmparing the stock exchanges! i have saved ti for future ref..that was really gr8! thanks a lot

Muks: Welcome dear buddy!

I think MRPL is a good take right now...but only if ur plannign to hold it over a longer term!

hey guys, new to this thread... was busy the last week and gave PG the slip..

abt the markets.. well ive been in it since a year and bcoz of the bull run made cash...nothing big...but good nonetheless for a first timer...

my style is a short term basis...i ususally dont keep stocks for more than 2 months...(exception last month ..no inflows ) riding a short wave..wot?

well on picks for the long term i agree on MRPL being a real good stock...bought it around 47 and waiting for the long term...
another good pick is hindustan zinc...have been reading abt this co after sterlite took over has inc the productivity and theres the demand from china to boot... dunno over the long term...
considering the textile market is going to open up in 2005, can someone check out arvind mills, or any other garment exporter...pls i wanna cash in on this now ...
i guess one of the best places to invest will be the power sector...rel. energy and esp. tata power power demand is gonna surge with the economy on the upswing...
another thing abt pharma, is it supposed to be the nxt bubble or boom?

keep on the disc.
xcess

ps: and abt the online trading part , i have an HDFC Securities account and have no problems whatsoever...only hitch is tht it is only regd on the NSE so i cant trade the BSE specific stocks.

hi guys ..
this is nothing related to Equity markets .. but finance..
just chek out the attachement .. tis something that i compiled when I was in INFY..
njoy n do tell me how u find it ... take ur own time ..
disclaimer:- (if copy rights are offended, do tell me .. ill remove the post).!
Njoy ..
Jon.Arbuckle
P.S - Check the Finance fundamentals document!

SHUKI

simulators??!!
at sharekhan.com...they hav a game called BULLSEYE..where u hav Rs.10,00,000 n u can invest in atmost 5 stocks....I earned a profit of 8000 on my investment of 10,00,000 i.e. 0.8% profit in the 1st week(not bad!!!!!!)...i played jus 2days in that week cud hav done bettr(or meybe worse!!!!)

MUKS

IPOs...i intend to giv TCS,NDTV a shot.....u said u searchin for telecom n textiles...telecos mein IDEA IS gonna come up wit an IPO....even DATA ACCESS..its got a bit delayed now.i am lookin at these too.
hope i hav enuff cash to invest in them....N EVENTUALLY LAND UP WIT some of em

I have a query here. I am planning to learn basics of equity market and people suggested to learn the basics through the simulator offered by sites like..

www.icicidirect.com
www.moneycontrol.com
www.sharekhan.com

I am not able to locate the simulators.....however i did find a simulator on

www.investopedia.com

Can anybody suggest where to start from and help me locate the simulators in case they have

Suggest me the "best" as i started losing track of the discussion on equity market after few posts

hey ace_bubble, nice data. where did u picked it up?
anyway, we r still minnows compared to the NYSE. and besides market cap, the top US companies r huge also in their size compared to ours.so, can't blame them fr their valuation. we r still small.
the reason fr the high stakes of promoters is their fear of takeover by somebody else (most r family business). so, they try to have majority stake. in US, a group of diverse ppl make the board. here most r family members and few have professionals at the top (except those owned by govt).
IMHO, our markets r always run by certain groups, which changes according to time.
prior to 90's, it was UTI,then big bull (HM), then FI's(mostly govt ones), then after US-64 and KP fiasco, it is turn of FII's to rule the market.n these days, they seem to purchase at lowest and they sell at highest. in short, they deside it.

hey mailtabrez, the auto stocks were hot 4-5 mnths ago. now most had appreciated.
so, u r late. pick IPO's. some gr8 ones r still left (read NDTV and TCS). besides my watchlist has telecom and textile sector.

mux

wat bout AUTO ANCILLARIES???the next big thing.....in the yrs to come.

in fact this sector almost bound to deliver in the near future...some companies like SONA KOYO,SUNDARAM FASTNERS,BHARAT FORGE etc r tipped to shine in this sectr in the near future as the INDUSTRY is growing at a fast pace compounded annual growth rate of 20-25%.a lot of PHOREN cos r sourcing components frm them to cut costs....n more r comin.

COMMENTS??!!

P.S:i havent done much research on the INDIVIDUAL COMPANIES

I did some supeficial study on these stocks ..
there books are very strong ..
the reasons u have mentioned is all correct .. but now we are late in investing in them ..
smart ppl had already identified these stocks a year back.
Now they are quoting very high compared to their book value/per share

cheers

wat bout AUTO ANCILLARIES???the next big thing.....in the yrs to come.

in fact this sector almost bound to deliver in the near future...some companies like SONA KOYO,SUNDARAM FASTNERS,BHARAT FORGE etc r tipped to shine in this sectr in the near future as the INDUSTRY is growing at a fast pace compounded annual growth rate of 20-25%.a lot of PHOREN cos r sourcing components frm them to cut costs....n more r comin.

COMMENTS??!!

P.S:i havent done much research on the INDIVIDUAL COMPANIES

BSE
Market Cap. = 250
Listed companies = 2000
% Market cap of top 3 companies (ONGC, Reliance, IOC) = 20% (50 bill $)
General trend of Holding Patterns:
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
40%
FI (Mutual Funds, Indian Banks, Insurance cos.)
40%
FII (Hedge Funds, Foreign Banks and Govt. and Private bodies)
12% (In China this is 40% )
Indian Public (Me and you)
8%

NYSE
Market Cap. = 17000 bill $
Listed companies = 2800
% Market cap of top 3 companies (GE, Exxon, Pfizer) = 5% (850 bill $)
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
5 %
FI (Mutual Funds, Indian Banks, Insurance cos.)
60%
Public (75% of American household own stocks)
35%

well this is my personal compiled data so there can be errors (please bring it to notice if u notice )
So this tells u y over stock markets is so volatile
Firstly our market value is patheic compared to NYSE
The market cap of top 10 American companies is more that whole of apna BSE
Top 3 companies contribute whooping 20% to total market cap, where as for NYSE its mere 5%. Thats y infy share rise would also boost the market value of completly unrelated steel stock.
Our market is not all that competitive reason mere 8% of stocks are owned by public like us as in US its 35%.
Our market is very volatile as it depends largely on FII's buying equity in india.
Promoters holding is very large 40% of BSE to 5% NYSE, which deters big shots like Warren Buffet (and me ) to invest in india.
Overall players in BSE is far less then that of NYSE

So u can have an idea y things like IPO's, stock split bloats the value of share like anything as compare to stock traded at NYSE. Also roumours and news have more impact on our share values rather than the fundametals governing the share price.

People and stock experts please comment .. these are my personal views

cheers

I agree that Sensex is a collection of 30 stocks.
But the purpose of forming an index like Sensex or Nifty or even a PSUIndex/ Bankex etc etc IS DEFINITELY to track the market by benchmarking against the sensex or any specific relevant index.
If u go thru the bseindia.com, and the history of Sensex, u will realise that the SENSEX stocks r constantly reviewed and 'the optimum mix' is striken...say few mid caps...few large caps...diff sectors, diff price ranges...etc etc....Its basically supposed to give u a snapshot of the market. And ofcrs years later, the Nifty was made , very successful...a composition of 50 stocks.....risk is more diluted compared to the thirty.
and ofcrs v have the S&P500; and other indexes to benchmark the market performances!

I have been following the markets for close to 10 months now..started investing last Oct..since then, made some money but more importantly learnt so many things about markets..the more i learn about them, the more i get fascinated by equities...

Coming to stock picks..my fav bet is MRPL, i have done extensive research on this one and by all means this is one stock which is bound to be a winner in the long run. From the moment ongc bought this co, the future's changed for mrpl. A sneak peek at wat's in store for mrpl: Its gonna record profits this year prolly will even pay dividend, has paid off its loans to the karnataka govt., ongc plans to go for vertical integration n obviously mrpl is gonna benefit hugely from this and most importantly if u look at the production capacity of mrpl it is almost equal to HPCL n greater than BPCL!!!! If mrpl leverages its capacity then, nothing can stop it. Moi bought is arnd 33 and am holding it for long term...in fact waiting for a correction in the market to buy more of this stock.

Archana: I booked a profit in HLL but i was thinking of re-entering it...with the top mgmt reshuffle..things are bound to improve at HLL...

HDFC, Sherkhan(they r still strugling with MCS), 5 paisa r more or less the same
..... go for kotaksecurities.com

Ya kotak is good but charges are steep and they offer only NSE , correct me if i m wrong.
I did detailed analysis of online brokers
5 paisa is best - service wise, uptime, rates etc + now they offer BSE also
ICICI service is very very bad , so is sharekhans (my personal experience)

BTW I have 5 paisa

Quote:
Would be buying my first scrips from next week.

regd invetsment.....
the market is at ~5900... may move up another 80 pts till elections...but thts it...... a big correction (i.e. reversal of trend) is expected in the days to come & SENSEX may slide by 500 pts in the coming 2-3 weeks... so my advice wud be don't invest any money right now... wait till correction happens...
regd textile my scrips are : Bhartiya international (a leather apparel company with pending walmart orders); Welspun India+Guj, mahavir spinning.....
there r a lot of sectors to invest (Banking & Oil) but again my advice is don't invest right now... though tempting it may b...

upward downwards trend keep happening
and SENSEX is just a benchmark or mere 30 stocks , cant generalize whole bse on sensex

ace_bubble wrote: Quote:
u r right but the EU and America are still oppsing quotas they say china would be a big threat to even developing countries like india

So just wait nothing is finalized and here all the mills in bombay are closing there factories and selling the land to real estate ppl


EU and US r lying and trying to pit us against china. buddy, we r a big producer of cotton which is a base ingredient whereas china imports. their only benifit is scale as they have large companies(we removed restrictions only in 2002).
well, if they come up with last minute hurdles, then there may be problems, otherwise there r none.
the mills u r mentioning r closed fr a long time.their owners r now unlocking the value in the property.it has nothing to do with WTO. they didn't closed in recent past.

Key is that there would always be over valued and under valued scrips among close to 2000 scrips being traded at BSE
one just has to locate undervalued scrips and put money in them and once they are over valued sell .. so dont worry much about the market its all due to speculator Vs investor and commodity nature of the stocks ....
to succeed one has to be invester

u r spot on
just wait a bit on textile as quota is to be removed by 2005 , look at the books of these companies and then invest
actually i have not yet analyised textile sector so cannot comment on that

cheers

FOR people who wanna start trading ONLINE

i jus signed up wit KOTAKSTREET.COM cos a fren advised me to go for it.....YES!!!!this is true that icici sux big time thats wat i've heard frm my fren...n U guys wud b surprised to kno ICICI site doesnt open when the MRKTS r goin NUTS eithr way UP or DOWN......even sharekhan doesnot hav a good name...

to trade on KOTAKSTREET u need a hdfc/citi/kotak bank/n some other bank i 4got whic 1

acc opening charges r

500 if u deposit 5000 initially
250 if u deposit 10000 initially
waived off if u deposit 20000+ initially

so u need to deposit atleast 5000 upfront wit kotak guys...this allows u to trade for 5000 X 4 =20,000 bucks on a T+2 basis(hope u guys kno wats dat!!!)

wat this means:if u giv 5000 upfront then u can buy shares worth 20000 but within 2 days u wud hav to pay 15000 diff.

so u can start tradin wit 5000 bux in ur KITTY n try to learn the ropes!!!

me doin a bit of research on moneycontrol.com these days.
n followin this thread too from now on........but not investin b4 i am convinced i shud!!!!!!
LAGE RAHO!!!!!!!