tag:blogger.com,1999:blog-4775874308236073992011-11-28T06:33:10.184+05:30It is not wealth one asks for but just enough to preserve one's dignity, to work unhampered, to be generous, frank and independent. --- W. Somerset Maugham (Of Human Bondage, 1915)Deepikanoreply@blogger.comBlogger2171100tag:blogger.com,1999:blog-477587430823607399.post-70733957120956753512010-08-19T19:06:00.000+05:302010-08-19T19:06:44.244+05:30

In the last Budget, provisions had been made for extra tax benefits in the form of infrastructure bonds over and above the regular Rs 1 lakh annual investments.  The interest, however, is taxable and is put at around 7.85% which, in current inflationary times together with the tax, would not amount to much.  However, an article in Livemint analyses the situations where some benefit can be

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-88653926006070932262010-07-30T19:06:00.001+05:302010-07-30T19:07:40.538+05:30

So the mutual fund industry has been at the receiving end of many regulatory changes.  The SEBI has essentially cut the industry down to size, eliminating entry loads, effectively making it unattractive to agents who were previously earning upfront commissions on schemes.  In addition, of late, the regulator has also been questioning the need for innumerable NFO schemes that seemed to be popping

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-63770274228761189662010-07-26T21:21:00.000+05:302010-07-26T21:21:13.031+05:30

Finance is an integral part of the modern world.  No longer is one able to spend a leisurely weekend morning sharing a cup of with one's bank manager, discussing many topics.  Banks have become efficient, impersonal and deal with lots of customers at a time.  The number of products churned out by financial institutions, to suit the various needs of the general population, is stupendous.  In such

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-2190190642183725322010-07-19T17:13:00.000+05:302010-07-19T17:13:29.864+05:30

I read an insightful article on credit rating agencies and the ire raised against them by citizens -- Thinking Beyond Triple-A.  As an instance, the recent downgrade of Greece created a panic in Europe.  In the US, citizens blame the CRA for the housing bubble that subsequently developed.  In India, the credit rating system is more or less new, though it certainly had been operating behind the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-30519206747083600302010-07-16T19:42:00.004+05:302010-07-16T19:47:12.924+05:30

It appears the Indian Rupee is set to get a makeover.  Of course, the more pragmatic side of us would say it isn't really necessary to do this; it probably wouldn't make too much of a difference.  But the patriotic side of us can't resist this move; it seems like a new beginning, showcasing our uniqueness to the rest of the world. If the media is to be believed, we will soon be symbolizing our

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-21448671626515395582010-07-16T18:17:00.002+05:302010-07-16T18:40:11.258+05:30

Everyone, who is anyone in the investment world, has been hankering after China for the past decade or so.  Jim Rogers (him of the Adventure Capitalist fame) is said to be actually getting his young daughter tutored in Mandarin because he feels that China is the world's new axis of power.  Chinese markets have been the focus of funds through equity capital for quite some time now, causing

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-41564523897802691282010-07-14T13:20:00.000+05:302010-07-14T13:20:18.993+05:30

I rather liked the simplistic view put forth by Monika Halan in her article Three Avatars and 10% growth.  In the end, that is what an economy is all about - working, consuming and investing.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-32678564355371278132010-07-13T10:59:00.001+05:302010-07-13T10:59:37.805+05:30

The downside of having cashless insurance has always been that big private hospitals had a tendency to charge more for a procedure than they would have had the patient not had insurance.  This is because the patients were more likely to afford a premium to the treatment since they had the backing of insurance companies.  The insurance companies, particularly the state-owned ones, are not pleased

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-46594545205591536982010-07-13T00:00:00.010+05:302010-07-13T00:00:00.812+05:30

It's been noticeable lately to those following the economic news closely that the Indian equity market has been doing exceptionally well over the past several weeks, compared to the weakness shown by the developed market.  Well, actually, it is more that the Indian stock market has not fallen to the same extent as the global market, rather than an extremely positive gain per se. Once again,

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-40817443716519001472010-07-12T17:36:00.007+05:302010-07-12T18:36:08.978+05:30

I had written last year about the importance of choosing a health cover early in life, in my article Supplementing Company Health Cover.  Disease and mishaps can strike at any age, irrespective of economic class, education level or the presence of money; it is, after all, the price of being alive. Often, paying for treatment of critical illness can drain financial resources of the ill and their

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-65602722173070096472010-07-12T17:05:00.002+05:302010-07-14T10:13:10.464+05:30

Retirement can mean freedom from the grind of everyday work routine.  It can mean wonderful trips to places you never had time to visit before, it can mean great quality time spent with grandchildren, it can mean the pursuit of hobbies ignored when there were other priorities.  But it certainly does not mean, at least in these current times, leaving your finances to take care of itself. There

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-57596346396074250832010-07-12T16:09:00.002+05:302010-07-12T16:13:27.673+05:30

It is so natural in this fast-paced world to always look ahead at the sleep slope up which we need to climb to reach any goal, individual or collective.  And yet, it is equally imperative that we pause a moment in our climb and turn back to revel at how far we've come at that point.  It is equally important not to forget the hardships borne to get this far; it's necessary that we never forget

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-83929660148854626232010-07-10T14:09:00.000+05:302010-07-10T14:09:00.677+05:30

I came across an interesting article at The Independent Investor on equity movement over the years, taking into account both bear and bull market movements.  Click here to access it.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-79883418612665481232010-07-09T12:13:00.000+05:302010-07-09T12:13:51.122+05:30

The International Monetary Fund (IMF) has upgraded India's GDP to 9.4%.  This has apparently come as a surprise to India's own economists, who feel this optimism is rather overdone.  The Indian government has been more cautious, pegging the country's GDP at 8.8% for March 2011.  On the other hand, the IMF has expressed concerns that there could be a sharp decline in the current scenario due to

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-89217361600176787032010-07-05T16:37:00.004+05:302010-07-05T16:57:18.796+05:30

America has just celebrated its 234th Independence Day.  An assertive country that has fought many battles for right or for wrong, and having wielded considerable power over most of this period, influencing countless countries, led innumerable discoveries and inventions, encouraged people who came upon her shores for better prospects, it would be a sad day indeed when we can no longer look upon

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-59428664801292867062010-07-02T19:53:00.001+05:302010-07-02T19:54:34.309+05:30

The week has ended on a more subdued note today.  Globally, news of economic weakening and poor US data have allowed a sense of caution to creep into global indices.  The initial joblessness data in the US has seen a rise in the rate of unemployment, showing that the recent recovery is not quite what it seems.  The choppiness in trading sessions is more pronounced. Locally too, in India, some

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-4844088363059443972010-07-01T20:52:00.001+05:302010-07-01T21:36:36.455+05:30

Global jitters are apparent once again. The US data is showing a lot of weakness and traders no longer show any interest in taking any risk in the stock market.  US manufacturing sector is showing lowering growth numbers. 1040 had been a key technical support level for S&P 500, which was breached on Wednesday, portending a more bearish outlook. The Chinese manufacturing sector too has shown a

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-49325592114170027302010-06-30T17:44:00.002+05:302010-06-30T17:49:10.019+05:30

If one has been following the economic news for some months now, it would be remembered that the RBI had, in April, issued guidelines to the banks for implementing the base rate for lending. Earlier the banks followed the prime lending rate (PLR) whereby they would benchmark their interest rates for lending funds to customers, especially highly-rated corporates.  With increasing competition in

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-61784196161245624022010-06-30T17:16:00.001+05:302010-06-30T17:25:47.374+05:30

The markets opened in a flattish to negative manner this morning, in response to a rough session in the US markets yesterday.  But it was on its way to some recovery by the afternoon, with the indices closing upto 1% higher.  This is in contrast to the general Asian market scenario today, with the exception of Indonesia.  Volatility is in evidence on the Indian bourses. Sectoral performances can

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-29171439510732111722010-06-29T17:26:00.007+05:302010-06-29T17:35:44.760+05:30

Click to enlarge. Source:  www.bseindia.com

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-16868159290916463172010-06-29T12:54:00.004+05:302010-06-29T13:02:47.494+05:30

Now that it has been made very clear that ULIPs fall into the IRDA's turf, the latter has raised the whip hand in order to make this form of investment toe the regulatory lines.  The recent norms put forth by the regulator is now seen as investor friendly. The old habit of distributors, earning hefty commissions from insurance companies, had been to churn the undiscerning investor's money every

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-64504470751240045882010-04-16T16:08:00.001+05:302010-04-16T16:09:36.804+05:30

Here is an interesting and thought-provoking article on domestic savings versus investment.  The author has analyzed all aspects of the current economic system in India such as taxation rules and lack of financial transparency and favoring export-oriented markets, and the setbacks they have been causing to domestic investment.  He argues that some of the old tax regulations are causing bubbles

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-84221634476982980732010-04-13T18:23:00.000+05:302010-04-13T18:23:53.766+05:30

This post at Subramoney was an eye-opener.  You learn alot from another's experience!

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-7360604478879531742010-04-10T17:59:00.000+05:302010-04-13T18:00:08.690+05:30

I came across two interesting links through another website and was amused by them.  Have a look yourself: The dream never dies. Ten big commercial real estate busts.  So, the game is still afoot, after all!

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-7074816314144590682010-04-07T17:40:00.000+05:302010-04-13T17:45:47.653+05:30

Here is an interesting article on RupeeTalk regarding converting a credit card on which you pay annual fees into a lifetime free credit card.  The gist of the article is that you can convert your card to a free lifetime card through a one-time payment that may be one to two times the annual fee.  I wasn't aware of this and would like to check its veracity.  Of course, I'm sure it would vary from

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-89438361343532597892010-04-05T16:24:00.033+05:302010-04-13T16:43:53.002+05:30

Most of us have heard of Murphy's law.  And I'm sure, quite a few have actually experienced it at some point in his/her life.  Modern life has become particularly fast-paced, each of us doing a million tasks a day, chasing deadlines, doing more and more in less and less time because of technological advances.  While many negative experiences and obstacles do create setbacks in one's personal

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-11010202339195064582010-03-30T09:42:00.001+05:302010-03-30T19:24:34.297+05:30

I was thoroughly amused by VS Naipul's comic novel 'A House for Mr. Biswas', which I had read recently.  He captured so perfectly the common man's desperate need to have his own space to call home, where he is free to be and do anything he likes.  Having had to live on and off at his wife's family house where fourteen other families made their presence very much felt, and unable to bear the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-38051374570418703842010-03-29T09:18:00.000+05:302010-03-30T09:45:57.575+05:30

I've heard of the term sunken cost - cost already incurred on a project or investment that can never be recovered regardless of future events - but it has not really figured deeply in my own life, perhaps in part because I've not really encountered the kind of life experiences that entail decisions of this kind.  Of course, it might apply to my professional life because I've been unable to follow

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-12408180458757780362010-03-22T17:21:00.001+05:302010-03-22T17:35:11.800+05:30

The RBI had mentioned that there would be no major hike in the immediate future, however it appears that the inflationary pressures over the past several months have induced it to reconsider.  On Friday, the repo (the rate at which the RBI lends to other banks) and reverse repo (the rate at which RBI borrows money from other banks) rates had been raised by 25 basis points each. The immediate

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-72797225641651795322010-03-18T17:15:00.006+05:302010-03-18T17:29:08.633+05:30

The equity markets have become more attractive lately, after two years of lull.  Once again, bad news is just shrugged off as investors expect a bull rally to start up again over the next couple of years.  In this scenario it should not be surprising that the mutual fund and ULIP industries have woken up again and started on their old trick of churning up new fund offerings to gullible investors.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-14632732811326216062009-08-27T13:44:00.007+05:302009-08-27T15:12:55.975+05:30

I believe that a little responsible living at the individual level can go a long way in making a difference to society at large. Even young children are aware of all that is being said about global warming, climate change, melting glaciers. Some of these changes may have always been inevitable since our planet was and still continues to be highly dynamic. Having lived a few centuries of

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-59269636769538231982009-08-26T06:19:00.003+05:302009-08-26T06:23:35.228+05:30

The BSE has started a new index specially for tracking IPOs over the last two years. This can be accessed from their site. Just follow this link.The recent IPOs (Raj Oils, Adani Power) haven't faired all that well following their listing, it appears, with the exception of Mahendra Holidays.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-72475006695012453062009-08-26T06:14:00.003+05:302009-08-26T06:17:55.405+05:30

India and China, always in some eternal dance around each other, according to the media, be it political, economic, or just plain rivalry and competition. Here's some new fuel to the fire:Sensex and the Shanghai Index

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-28001664640899414332009-08-25T18:01:00.004+05:302009-08-25T19:05:32.890+05:30

Times are improving. Two years ago, the meltdown had just started to rear its ugly head in the financial world, with indications of worse things to come. Of course the warnings were subtle, with the market touching new highs in record time frothing every week. The stock markets finally responded to the subprime issues around January of 2008 through waves of selloff that created panic. All

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-35559435350128246512009-08-17T14:11:00.003+05:302009-08-21T17:44:40.694+05:30

Generally, turnover means the number of times something (such as a stock of goods ) is sold and replenished over a certain period of time (normally calculated annually). A long list of turnover ratios can be made from a financial statement, but the more relevant ones from an investor's viewpoint, such as mine, are the working capital turnover and inventory turnover. I've learnt that the other

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-13508302782858705632009-08-10T17:44:00.008+05:302009-08-10T20:12:55.112+05:30

GLOBAL OUTLOOK: The Asian markets were mixed today, with Nikkei hitting its 10-month high and Korean markets ending flat. It was improving US employment numbers, indicating some stability in the job market, that provided a buoyant mood.LOCAL ACTION: India showed some selloff following a strong opening. The sectorwise percentage change can be seen below:It can be seen that the auto sector has

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-31739884603073944022009-08-05T16:00:00.001+05:302010-03-24T21:13:04.206+05:30

A lot has been said recently about India's fiscal deficit. Google in the words India-fiscal-deficit and alarming headlines leap up in front of you, screaming that India's fiscal deficit is the highest in the world, etc. Equity and bond markets plunged on Budget Day when the FM announced that fiscal deficit would be 6.8% of GDP. So what is fiscal deficit? It is a situation wherein the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-73138963823578143402009-08-05T11:42:00.013+05:302009-08-05T15:40:50.626+05:30

Also referred to as the cash cycle or operating cycle, the CCC is used to determine the current financial stability of a company. It takes a look at the time periods associated with the basic elements of a business. By using this ratio, we can get a picture of how long certain assets are tied up in production, payables and receivables, thus being unavailable for use in investments to the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-4846736821472754702009-08-04T17:28:00.013+05:302009-08-20T12:10:15.914+05:30

Liquidity ratios are used to measure a company's ability to pay off short-term debts. The difference in each of these ratios is the kind of asset used in the calculations. This is what I learnt. I. CURRENT RATIOThis is a popular ratio and used extensively. It indicates a company's working capital position. It is used to determine whether the company's short-term assets are easily available

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-70298083407121949772009-07-31T15:10:00.017+05:302009-08-04T18:08:46.562+05:30

At the end of every financial year, companies send out colorful glossy books containing details on all relevant events through that year as pertaining to their financial history.If you've held your shares long enough or just purchased them during the final quarter of the company's financial year, it will arrive in your mailbox. This book contains all information necessary for an investor to make

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-85194747573607074062009-07-31T12:00:00.006+05:302009-07-31T13:33:59.434+05:30

In India, a corporate entity is required to present its financial statements in accordance with the provisions of Schedule VI of the Companies' Act, 1956. These statements are of importance as they reveal to outsiders and shareholders what exactly is going on within the company.Financial statements are formal records of a business' financial activities. All relevant material are presented in an

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-86321410007928859052009-07-26T11:22:00.000+05:302009-07-31T13:02:46.696+05:30

It does now appear as if the sun has begun shining after several months of turbulence and negativity in the financial markets. Some stability is now apparent in the Indian markets. A good election outcome and some down-to-earth economic planning have partially contributed to this. Of course, the western markets were deeply embroiled in the worst of the financial meltdown, but the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-60878247779167566302009-07-09T11:47:00.003+05:302009-07-10T11:31:25.582+05:30

The Indian Met Department has indicated a large gap between normal rainfall and the actual rainfall so far this year. A drought-like situation seems to be developing especially in Northern India, with a shortfall in rain ranging between 57 to 76%. This is not good news since India is largely an agrarian economy and in light of the rising commodity prices over the past year we can now look

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-5713398609300947252009-06-10T16:47:00.002+05:302009-06-10T16:54:35.165+05:30

Some amount of turbulence is evident in the Indian equity markets after a great rise over several weeks. Yesterday saw hefty selling. Today, the indices showed some strength in the morning but has been giving out now and then, closing mostly in the range of 2%. Advance-decline ratio is clearly in favor of the declines at the moment.Sectorwise, the rise is as follows:BSE Power up 3.62%BSE

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-35859935695379305852009-05-15T12:17:00.004+05:302009-05-15T12:24:57.073+05:30

On May 1st, the New Pension Scheme, previously open to only government employees, was released to the public too. So regular retail investors can shore up their retirement savings using this new option along with provident funds. Some analysts, however, are a bit cautious as it is still a new concept, India's very own social security plan, and many smaller details are still not clear such as

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-15076349734516016862009-04-22T11:10:00.002+05:302009-04-22T11:12:41.470+05:30

It appears that SEBI has been putting forth more stringent terms on the F&O segment, which could alter some aspects of F&O trading in future. For more details, click here.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-91226413055067019742009-03-26T19:19:00.002+05:302009-03-26T19:28:10.198+05:30

Standard and Poor has downgraded the credit rating of Tata Motors this Wednesday, from B+ to B--, following the global excitement at the launch of their Nano car. It is their skepticism that the Nano release will be of little positive impact in the near term with regards to shoring up the company's finances. According to S&P credit analyst Manuel Guerena the company has been unable to refinance

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-22891891090410675152009-03-25T00:00:00.005+05:302009-03-25T00:00:00.887+05:30

Money is an important aspect of our lives. We need money to enjoy life, to turn dreams into reality, to sponsor our daily needs and health issues. In all the innumerable inspiring and heart-wrenching stories that we come across often around the world, money features pretty strongly in them. It can change people in many ways, bring to the fore good and evil thoughts, allowing feelings of fear,

Deepikanoreply@blogger.com1tag:blogger.com,1999:blog-477587430823607399.post-22976512633131814132009-03-24T12:01:00.002+05:302009-03-24T12:13:11.574+05:30

A couple of weeks ago, SEBI came up with proposals to relax existing disclosure norms for rights issues in order to hasten completion of the issue process. This comes on the back of other amended guidelines of reducing the time process to less than two months and consideration of electronic trading of rights entitlement. The need to disclose change in accounting policies is also proposed to

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-78509641273608680762009-03-23T11:58:00.001+05:302009-03-24T16:52:03.057+05:30

A lot has changed with regards to gender-wise distribution of labor amongst us. The twenty-first century is leaning more and more towards women-friendly jobs than ever before. Presently, women have a great opportunity to prove their mettle in the hitherto male-dominated world. This gender bias in favor of the males is very much real and can be blamed on evolution. Women were the physically

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-6041047343740915452009-03-22T11:04:00.003+05:302009-03-24T11:57:52.786+05:30

Have any of you watched the documentary film “Sicko” by Michael Moore? Do so, it is an eye-opener. The movie is about Mr. Moore’s exploration of the questions he has regarding rising healthcare costs in America, investigating both health insurance and pharmacological industries. He also goes ahead and compares America’s for-profit insurance industry to the non-profit universal healthcare

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-2135626599596768192009-02-16T19:01:00.003+05:302009-02-16T19:23:12.816+05:30

I came across a good article that exhorted the reader to consider buying a health cover even if he is already covered by a company health insurance. In trying times like this, it surely makes sense to do so. At one point in time, jobs in a particular company were held for years, often with employees retiring with a comfortable pension. This is no longer so as people switch jobs very quickly as

Deepikanoreply@blogger.com1tag:blogger.com,1999:blog-477587430823607399.post-15719941896025048722009-02-16T18:23:00.004+05:302009-02-16T18:56:02.337+05:30

GLOBAL OUTLOOK: Global markets were a mixed bag today with the Chinese markets showing strength. The other Asian and Pacific markets closed in a lackluster fashion. Indian markets nosedived following a rather bland fiscal budget session today. European markets are negative too at the moment, led by financial stocks. The inactivity seems to be because the US markets are closed today on

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-17487799804554118772009-02-10T18:42:00.002+05:302009-02-10T19:00:22.453+05:30

There was a rather insightful article in the Economic Times (6th February, 2009), titled "Can you spare a dividend cheque?". The author argues that Indian companies are being unreasonably tight-fisted on distributing profits to shareholders at a time when price appreciation of stocks is highly unlikely. He mentions that of the 122 Indian companies on a CLSA (a brokerage house covering the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-19286439736726781952009-02-04T19:10:00.001+05:302009-02-05T19:21:34.934+05:30

There was a rather sobering interview by CNBC TV 18 with R. Ravimohan, MD of S&P South-east Asia. He mentioned his bewilderment at analysts' expectations of near-term recovery of the market. He strongly felt that the graph of the equity markets seemed more of an L-shape -- a sharp fall followed by maintenance of the current levels -- for some time to come. His belief arises from the fact that

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-17244630082471794142009-02-04T18:41:00.000+05:302009-02-05T19:06:26.268+05:30

Consumer groups have been lobbying to get credit card companies to lower credit card interest rates to a maximum of 30%. However, the Supreme Court has stayed this judgment put up by the National Consumer Commission (NCC) and has allowed credit card issuers to increase annual interest rates to 49%, after Citibank, HSBC, StanChart and American Express appealed against the NCC judgment.The

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-33479439606967057302009-02-02T18:41:00.006+05:302009-02-02T19:38:26.976+05:30

GLOBAL OUTLOOK: The equity markets have begun to show cracks in their armor once again. There has been a phase of volatility but it was more or less contained. There was a certain delicate balance earlier, before the subprime crisi, whereby cheap manufactured products from developing countries were lapped up by the Western countries. Higher savings in the developing countries and a spending

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-35689490377193894622009-01-23T15:06:00.005+05:302009-01-23T15:38:36.315+05:30

It's time I got back to my market watch. A lot has happened since I last wrote a post in this journal -- Obama got elected as the first Afro-American President and has now been sworn in, the Satyam scam tumbled out of the Indian corporate cupboard, terrorists laid siege to Mumbai using an unprecedented method of boldly landing via the seashore, gloom has deepened across the global economic world

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-44389543314537626702008-10-10T15:26:00.004+05:302008-10-10T16:23:22.698+05:30

GLOBAL OUTLOOK: Panic has set in for sure in the global markets. There are nothing but screaming red colors across financial screens everywhere. Today's bloodletting was triggered by US market's freefall of 7% yesterday despite coordinated interest rate cuts done globally. Nikkei closed down very near the 10% mark; for the week it fell close to 24%. Kospi closed 4% lower after recovering

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-3363070710233401272008-10-09T11:37:00.000+05:302008-10-10T15:25:35.243+05:30

It's hitting closer to home, even for the patient investor. As recession panic grips the US, Asia too is feeling the pinch. There's been panic selling at this side of the globe for a few days now. Perhaps it's been a long time coming, considering the greed and high-flying prices that had been the norm a year ago.It is hard to sit and watch all the efforts of careful analysis and stock picking

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-37511424566806652422008-09-16T19:04:00.010+05:302008-09-16T19:41:10.152+05:30

Things have not been faring well in the world of economics and finance since I last blogged ten days ago. Major US bank Lehman Bros has filed for bankruptcy. Merrill Lynch has been bought out by Bank of America. Things are spiraling downwards very fast. Today, Goldman, the largest US investment bank, has reported a 70% drop in earnings; the good news is that it still is posting a profit,

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-56928192244476872072008-09-05T17:01:00.004+05:302008-09-05T18:21:33.726+05:30

GLOBAL OUTLOOK: I wasn't able to watch equity markets closely today ... power problems to blame once more, but global markets appear as a sea of red with worries over weak global economy. The US markets had shed 3% yesterday because of weak job data statistics and Asian markets followed suit today, with no exceptions whatsoever. Currently European markets are also trading red, with the worst

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-63958748329928765922008-09-04T16:51:00.005+05:302008-09-05T17:17:01.358+05:30

GLOBAL OUTLOOK: On the crude front, oil had dropped a precipitous 8% on Wednesday to reach $108 per barrel, following reports of no damage to the US Gulf refineries. Today, crude is trading around $110 a barrel. Equity markets in the Asia Pacific region has been generally mildly negative for today, generally on fears of recession, excepting China, which closed flatly positive. European stocks

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-39546109156899667022008-09-01T18:30:00.004+05:302008-09-01T19:03:26.932+05:30

Power cuts have reduced considerably out here, though it is still unpredictable and frequent interruptions do occur daily. I will, however, tentatively restart my daily Equity Action posts since I've been feeling rather out of the loop. I don't see too much change since I put up my last equity posting. The market, though with volatility still present, is not as turbulent as it was earlier in

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-31489002678249614772008-08-21T14:54:00.002+05:302008-08-25T16:42:45.630+05:30

IVRCL reportedly bagged the Pranahitha-Chevella irrigation project worth Rs 715 crores.Unichem reportedly received USFDA approval for hydrochlorothiazide tablet.McNally Bharat apparently received two orders worth Rs 532.5 million from two companies.Lupin has apparently entered into a marketing alliance with Forest Lab for a multi-year promotion and marketing management of AeroChamber Plus

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-84794180865242044612008-08-18T18:49:00.002+05:302008-08-18T19:11:48.262+05:30

Bartronics has apparently bagged an order worth Rs 400 crores from the Employee State Insurance Corporation (ESIC) for supplying smart cards for the Rashtriya Swasthya Bima Yojna scheme. A memorandum of understanding (MoU) has been signed between NMDC and Rio Tinto, a UK-based international mining group, with the purpose of exploring mining resources in India and abroad. Public sector heavy

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-13589501229253145342008-08-13T14:11:00.006+05:302008-08-13T15:06:32.150+05:30

Mumbai-based Lupin is in the pharmaceutical space, which has been considered a defensive sector for some time now, following the steep fall in the equity markets and high volatility in the midst of economic slowdown.BACKGROUND: The company promoted by Lupin Laboratories, was incorporated in 1983 as a private limited company and turned public in 1991. In 2000, Lupin Laboratories and Lupin

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-60111316607705701812008-08-13T12:27:00.004+05:302008-08-13T17:58:47.352+05:30

BACKGROUND: Genus Power Infrastructures, formerly known as Genus Overseas, was incorporated in 1992 with the purpose of setting up a project for the manufacture of thick film hybrid microcircuits and surface mounted assemblies with the latest technology from Germany. In the beginning, the company was into the computer trade, but with the need to focus on the above project, trading activities

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-90267855954090157192008-08-12T18:13:00.004+05:302008-08-12T18:51:57.664+05:30

GLOBAL OUTLOOK: Since my last entry under Equity Action Snapshot, oil prices have slid to lows of around $113. I guess we could attribute falling oil prices and commodity prices to the spate of rallies we've been seeing over the past few trading sessions. Caution has once again crept in with Japan recording 27-year highs in inflation. Economic weakness is the current concern. Asian and

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-71480344885599760082008-08-06T16:47:00.005+05:302008-08-06T17:50:58.295+05:30

Tulip Telecom has a strong presence in the domestic market for data connectivity and network integration services, and this company is the preferred choice for seamless connectivity across India and the world. Opportunities in the Internet Protocol (IP) and Virtual Private Network (VPN) is immense and Tulip Telecom (which has changed its name from Tulip IT to better reflect its business) plans

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-73533736283531858972008-08-05T17:36:00.004+05:302008-08-05T20:56:12.377+05:30

Tamilnadu Newsprint and Papers Limited (TNPL) was formed by the Government of Tamil Nadu in April 1979 with the primary objective of producing newsprint and paper using bagasse, a sugarcane residue, as the primary raw material. It is one of the leading manufacturers of printing and writing paper and newsprint in India. Price of wood pulp is rising sharply and environmental laws prevent

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-59617505613981643522008-08-05T16:49:00.002+05:302008-08-05T17:19:01.653+05:30

Rupert Murdoch, chairman and chief executive of News Corporation, launched the Dow Jones India Titans 30 Index comprising of 30 leading and liquid Indian company stocks, the selection being based on float-adjusted market capitalization and 12-month average trading volume. Economic Times has reported that NTPC, the country's biggest power utility company, has entered into negotiations to buy at

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-38913283619354588862008-08-05T11:45:00.007+05:302008-08-05T17:37:39.112+05:30

Indraprastha Gas Ltd is a joint venture between GAIL, BPCL and the Delhi state government, incorporated to implement a CNG expansion program and project for piped natural gas (PNG) for domestic and commercial applications. It is the lone player in the retail CNG and PNG distribution business in Delhi. BACKGROUND: It started operations in February of 1999 by taking over the Delhi City Gas

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-4531938577948921642008-08-04T18:35:00.003+05:302008-08-04T18:50:38.244+05:30

BHEL has reportedly bagged an order worth Rs 200 crores for a hydel project in Vietnam, awarded by state-owned Nam Chien Hydropower. The BSNL-Aksh Optifibre combine has launched i-control, the interactive TV initiative that gives viewers the freedom to watch programs at their convenience.ITC is reportedly setting up a major hotel in the heart of Chennai, to be completed by 2010, with an

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-4573271447027418082008-08-04T17:05:00.011+05:302008-08-05T17:22:19.498+05:30

Jubilant Organosys is one of the largest CRAMS and drug discovery services companies in India. CRAMS is Contract Research and Manufacturing services. For some time now, in order to maintain profitablity, MNC have been outsourcing intermediates, API (active pharmaceutical ingredients) and formulations, under various international regulatory norms such as the USFDA, UKMCA etc. This industry has

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-56556902537072844132008-07-30T16:54:00.004+05:302008-07-30T17:01:44.902+05:30

I shall be back soon; I miss blogging. The frequent power cuts are keeping me from updating my blog at the moment. So I've decided to focus on some things I've been needing to do for a while now. For today, the markets have bounded back, following yesterday's late selloff caused by the unexpectedly stringent RBI policy. The large cap indices have risen 3 to 4% higher, followed by the mid and

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-20545761958084663042008-07-24T11:23:00.002+05:302008-07-24T11:43:03.127+05:30

The Strides Arcolab JV with South Africa's Aspen Pharmacare, called Onco Therapies Ltd, has reportedly obtained a global licensing and supply agreement with GlaxoSmithKline.Economic Times reports that Dalmia Cements has plans to ramp up capacity.Blue Dart reportedly plans to establish connectivity with neighboring SAARC countries like Pakistan and Sri Lanka. It is also thinking of raising prices

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-4567540467187347952008-07-23T13:45:00.007+05:302008-07-24T11:43:47.687+05:30

Well, power cuts have been increased to four hours and more every evening. I think I will have to drop the daily Equity Action Snapshot for some time till the power situation is better and focus on other things in the meanwhile. Nuclear deal, anyone? :-DThe markets have responded in a tremendously positive way to yesterday's trust vote. Yesterday too the markets had ended in the green, perhaps

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-12027061420061111092008-07-21T19:30:00.002+05:302008-07-21T19:36:36.914+05:30

I feel I must apologize. Three-and-a-half hours of power cuts every evening is beginning to disrupt my blogging updates. Don't know how long this will last, but must work around the inconvenient hours of load shedding to note down my observations. Briefly, today the markets did end on a positive note, but participation appears to be low, with turnover barely touching Rs 60,000 crores, as

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-75311266338048201902008-07-21T18:46:00.003+05:302008-07-21T19:10:48.820+05:30

Tata Power has reportedly acquired a stake of 26% in the Bhutan hydroelectric power project, a partnership with the Royal Government of Bhutan. Bilcare and US-based Meadwestvaco have reportedly acquired a pharmaceutical packaging company International Labs in Florida.3i Infotech has apparently signed an agreement with Bank of India to implement its anti-money laundering (AML) software, Amlock.It

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-38754055360365436062008-07-18T15:36:00.003+05:302008-07-18T16:26:00.768+05:30

GLOBAL OUTLOOK: Oil prices in Asia rebounded a bit today after three days of sharp fall to below $130 levels. Earnings news from the US, particularly Google, have not been encouraging and the Dow Jones Futures had reportedly been trading deep in the red earlier in the day. Asian markets turned lower on closing, with the exception of the Chinese market (though trading on thin volumes) and the

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-22479581198317754922008-07-18T14:26:00.000+05:302008-07-18T20:42:54.260+05:30

CNBC TV18 reported that Cipla and IPCA have signed a long term agreement with the Clinton Foundation for supply of antimalarial drugs to various countries.Punj Lloyd has apparently bagged an order worth $108 million from a Spanish firm.ICI India reportedly has plans to build a greenfield plant for decorative paints by 2010.M&M has launched its CNG variant of Bolero pick-up.

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-8535159361067305472008-07-17T15:13:00.003+05:302008-07-17T15:40:52.227+05:30

HCL Tech has reportedly acquired UK BPO firm Liberata Financial Services for $2 million.Parsvnath Developers has apparently acquired 38% stake in Hotmail founder Sabeer Bhatia's Nanocity in Haryana.It has been reported that there has been a major gas find in the KG basin by Gujarat State Petroleum Corporation.Tata Metaliks, a major pig iron manufacturer, is reportedly foraying into casting.The

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-74795917567977520252008-07-15T16:28:00.003+05:302008-07-15T16:49:36.436+05:30

I'm back after two weeks of respite from watching market movements. At a glance, price levels have seemingly remained unchanged since my absence; so I assume that any movements that might have occurred were range-bound. There was also the political uneasiness to contend with. Volatility still continues, as evidenced by today's downfall. Markets have closed at 15-month lows. Having continued

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-83777702872497536522008-07-14T15:41:00.000+05:302008-07-17T16:16:14.021+05:30

Regal Entertainment, Bain Capital, Goldman Sachs and Texas Pacific Group are reportedly in talks with Pyramid Saimira to pick up around 14% stake.Economic Times reports that IDFC is on a lookout for partners for its foray into urban transport projects such as monorail and light rail transit system.Essar Oil is reportedly in the race to acquire 50% of Kenya Petroleum Refineries.Tata Motors has

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-7702431470168033162008-07-02T17:34:00.002+05:302008-07-02T17:41:44.269+05:30

Just a quick note; no time for detailed description. I feel that short-covering is responsible for this sudden afternoon spurt in the markets today. The fact that the realty index has been pulled up by a stupendous 12% on closing, when fundamentals have not changed overnight, gives support to this thought. The percentage rise, index-wise and sector-wise, are given below:Sensex closed 5.42%

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-91985895384004192442008-07-01T16:11:00.003+05:302008-07-01T17:15:50.849+05:30

Just a quick note-taking on the index levels and sectoral selloff, for my future reference:Major indices have fallen heavily, succumbing to heavy selling pressures:Sensex down 4.14%Nifty down 3.56%BSE Midcaps down 4.54%CNX Midcaps down 4.69%BSE Smallcaps down 4.73%Sectorwise,BSE Realty down 7.21%BSE Bankex down 5.62%BSE Metal down 5.4%BSE Auto down 4.91%BSE Consumer Durables down 4.28%BSE Power

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-52129689670002814912008-06-30T08:37:00.000+05:302008-07-02T17:42:59.011+05:30

Dear readers,I shall be blogging sporadically now as I have some travel plans drawn up and will not be available till the middle of July. Close daily equity action observations might be difficult but I shall keep blogging whenever possible. Do visit after the second week of July. The markets are jittery anyway and very likely we shall see some seesawing: some rally followed by selloff at

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-38327301374463015452008-06-27T16:19:00.004+05:302008-06-30T15:58:10.356+05:30

GLOBAL OUTLOOK: Crude prices have surged to newer highs of $142 today, sending many global equity markets spiralling downwards with worries and concerns on this front. Most major indices have closed deeply in the red. Fears of inflation are affecting European markets too, as are worries on slowing corporate outlook. All major European indices too are trading in the red, most down between 1

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-12091275557750068262008-06-25T17:09:00.003+05:302008-06-27T13:24:56.880+05:30

It has been reported that Saint Gobain has plans to invest Rs 1,000 crores for setting up "a new world glass complex" at Bhiwadi in Rajasthan.ONGC Tripura Power Company, a unit of ONGC, has reportedly awarded an order worth Rs 2,207 crores to a consortium of BHEL and GE for its 720 MW plant in Tripura.Actis India has reportedly invested around Rs 80 crores in Bangalore-based Vaishnavi

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-14777920383609432272008-06-25T16:13:00.003+05:302008-06-25T16:37:03.101+05:30

There's been a savage fall on Monday with the indices breaching many major supports. Overnight the RBI had increased CRR and the repo rates by 50 bps each but the market appears to have taken this in its stride. Perhaps the move was expected. Today, the markets have moved upwards after a further slide during the morning hours of trade, likely due to short-covering. Sensex closed 0.8% higher,

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-68719665926796052612008-06-20T17:34:00.004+05:302008-06-20T18:31:53.078+05:30

Though inflation has been expected to cross into double digits, today's released figures seem to have been higher than expectations. The recent oil products price hike has finally been factored in, but in addition there has been rise in prices of edible oils such as mustard and sunflower. Food products have gone down though. India has heavily underperformed in today's session, compared to all

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-20201494642865616852008-06-18T18:21:00.003+05:302008-06-18T18:57:21.719+05:30

Bharti has plans to ramp up its retail expansion along with US partner Walmart.Mid-sized unlisted pharmaceutical company Maneesh Pharma has reportedly acquired 51% stake in US firm Synovics. It is now the fourth Indian pharma company to acquire control of an American drug firm.Idea Cellular is reportedly close to launching operations in Mumbai.Religare is reportedly foraying into the banking

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-26087464056143358152008-06-18T18:01:00.005+05:302008-09-17T15:17:31.315+05:30

I've learnt the difference between bulk deals and block deals done on stock exchanges. I previously thought they were one and the same thing.Block deals:Require a minimum volume of 5 lakh shares or a minimum value of Rs 5 crore shares traded through a single transaction on the stock exchange.The transaction must take place in a price band of +/- 1% of existing market price.Additional conditions

Deepikanoreply@blogger.com1tag:blogger.com,1999:blog-477587430823607399.post-72813879391688536812008-06-18T12:44:00.009+05:302008-06-20T10:29:54.617+05:30

There was this really interesting and thought-provoking article in the Economic Times today, borrowed from Business Week, titled "There Will Be Water," written by Susan Berfield. In short, she talks about how legendary Texas oil & gas executive Thomas Boone Pickens believes that the era of fossil fuels is going down and that water will become the new oil. Pickens had created Mesa Petroleum, but

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-16401722159925457832008-06-17T18:14:00.005+05:302008-06-18T14:05:08.879+05:30

GLOBAL OUTLOOK: Asia has generally been quiet today, with China alone falling nearly 3% on inflation concerns. India seems to have been the best performer for the day, up close to 2%. European markets too are trading good, on average gaining 1.5% or so, pushed on by firm commodity prices and banking stocks. Oil prices had touched a high of almost $140 on Monday but have fallen below $134

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-60478252855860682422008-06-17T10:28:00.003+05:302008-06-17T11:30:18.053+05:30

Tata Steel is forming a JV with Jasper Industries to set up a coal-based power plant in Orissa.State-run Balmer Lawrie & Co has reportedly earmarked Rs 100 crores as expenditure during the current financial year.It is reported that JSW Steel has formed a 49:51 JV with a UK-based company to set up a greenfield facility in the Republic of Georgia, with an investment of USD 42 million to produce

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-71602007474478584482008-06-12T16:53:00.007+05:302008-06-12T18:23:11.859+05:30

GLOBAL OUTLOOK: Inflation fear is rearing its ugly head once again, causing most Asian markets to plummet to lower levels despite yesterday's rise. Japanese, Taiwanese, Australian and South Korean indices showed sharp falls of 2% and above. Crude oil prices had jumped by around $5 per barrel but has now eased below $134. Indian, Indonesian and Bangladeshi markets alone showed some positivity,

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-74621242208791914092008-06-12T15:59:00.004+05:302008-06-12T16:37:51.124+05:30

Mumbai-based Lupin has received US FDA approval to launch the generic version of anti-hypertensive Altace.Gammon India has reportedly acquired stakes in two Italian firms, 50% of Sadelmi Spa and 75% of Franco Tosi Meccanica Spa, through its offshore subsidiaries for a total of 47.5 million Euros, both companies dealing with the power sector.The Essar group has apparenlty stated willingness to

Deepikanoreply@blogger.com0tag:blogger.com,1999:blog-477587430823607399.post-25473722743789413872008-06-11T17:01:00.009+05:302008-06-11T19:20:44.177+05:30

GLOBAL OUTLOOK: Asian markets have closed in a mixed manner with most of them still weak. China, Hong Kong, Taiwan, Thailand, Vietnam, Philippines, Bangladesh and NZ all closed varyingly in the red. Markets like Japan, India, Korea, Singapore and Australia closed in the green, either recovering from initial weakness or remaining firmly positive throughout. Chinese markets are still plagued

Deepikanoreply@blogger.com0