Scenario Sum up: Q1FY2012

Back after a period of hectic training of mine, we get into the most relevant matters concerning the economy.

Here with this post i would like to sum up with all the factors that engulf the current scenario.

Some positive cues are as follows.
Most investors are surprised at the way the Indian market bounced back in the last few days of June this year; actually India participated in a global bounce that was triggered by the Greece vote of austerity measure being passed on June 22, 2011. Global investors’ fears of European crises have receded and the risk-averse investors have reallocated funds in risky assets. This phenomenon is coinciding with certain factors in our domestic environment that leads one to believe that the bounce may continue for a while. Not to mention, foreign investors have bought Indian equities since June 23rd for every single day till July 5, totaling investments of close to $1.5 billion.In the second half of the year, global investors may re-start deploying funds in India due to its under-performance and correction. India no longer looks expensive to them.

To top it up the government has started taking tough but desirable measures like fuel price hikes and sending the right signals to the investor fraternity like clearing the Cairn-Vedanta deal. Right kind of noises are also coming on opening up of foreign direct investment in retail, especially after the finance minister along with some of his policy chieftains returned from his annual convention with policy makers in the USA. The ministerial panel may meet this month to consider clearing this proposal.

Some negative cues mainly driven by the regulatory measures of the government posing much of a menace are as follows.
The case in point is Coal India.First it was the talk about removing the free auction quota (10% of production sold at lucrative spot rates) due to pressure from the power ministry.Many investors sold out at much lower values to avoid damage from such a move. But alas, the government changed its stance and the stock appreciated by over 20% in a short period of time.
The media reports indicate that the group of ministers has approved new Mines and Minerals Bill that is likely to get introduced in the monsoon session of the parliament. As per the broad contours of the bill, the coal mining companies would have to share 26% of their profits with local population. In non-coal mining companies, it would have to share 100% of royalty paid with local population. Many stocks have been hit by this news with Coal India losing close to Rs20,000 crore of market cap in a single day.
Both Oil and Natural Gas Corporation (ONGC) and GAIL lost close to 15-20% of market cap after the ad hoc increase in share of the subsidy burden on upstream companies to 38% for Q4FY2011.

In the past, telecommunications (telecom) services companies have also faced the brunt of constant regulatory tangles. The regulatory and policy issues are also leading to a slowdown in retail investments in domestic institution, mutual funds and insurance companies. This leaves the market at the mercy of foreign investors with little ability of the domestic funds to absorb the selling pressure.

Risk factors being driven by Crude oil, all the other indicators are pointing to the direction that the market momentum that has turned buoyant may remain so for some time in the medium term after which all eyes will be on the April-June quarter results.
Also with the global slowdown persistent enough the risk factors for IT and BPO firms hold up to a danger level.

My take-> The real winning investment will be in those companies which want to scale up by catering to the Indian market.

Gold vs Silver : Current prospects

They are various contexts for comparing gold with silver, I put it here pointwise-

1. People generally prefer silver because they say it has a greater multiplier than gold or a better investment potential. In general if it is considered that somewhat nearly silver has a multiplier of 11 to l, whereas gold will only multiply at a rate of 5 to 1, it means that using arbitrary numbers of RS50 per 10grams for silver and Rs.5000 per 10grams for gold, silver could reach Rs550 per 10grams (Rs50 per 10grams times 11 = Rs550) and in the same time gold could reach Rs25,000 (Rs5000 per ounce times 5 = Rs25,000). So thats how the multiplier gives in a fair advantage to silver. We may have a greater profit percentage with silver.

2. Also silver has much greater industrial demand than gold. Silver which is an industrial precious metal is used in cell phone cameras computers and most of the IT gadgets. Also due to price of gold being too high it is convenient for most of the industries to go with silver as a substitute.

3. Also silver tends to be consumed rather than accumulating as a store of wealth like gold. So there is much greater availability of gold to silver (above ground) at any given point – as much as 80 times more. Some market observers point to the smaller volume in silver investment compared with that of gold. So thats kind of a disadvantage with silver with respect to volume.

As per analysis the price of silver has increased by 30% as compared to that of 17% for gold since Feb’2010.

U may also try the following link for more information-
http://www.getmoneyrich.com/which-is-better-gold-or-silver-investment/

CPI, WPI and their comparison

CPI (Consumer Price Index)

CPI is a statistical measure of a weighted average of prices of a specified set of goods and services purchased by consumers. It is a price index that tracks the prices of a specified basket of consumer goods and services, providing a measure of inflation. Under CPI, an index is scaled so that it is equal to 100 at a chosen point in time, so that all other values of the index are a percentage relative to this one. Most of the major economies like US, UK, Japan, France, Singapore, and China have selected CPI as its official barometer to weigh its inflation. There are 8 groups in which CPI is used. They are: education, apparel, foods and beverages, communication, transportation, recreation, housing, and medical care. Other services like school and government registration fees and electricity and water bills are sometimes counted as well.

WPI (Whole-sale Price Index)

In this method, a set of some commodities and their price changes are used for the calculation. WPI is calculated on a base year and WPI for the base year is assumed to be 100. The data of wholesale prices of all these commodities in the base year and the time for which WPI is to be calculated is gathered. Then the WPI of a certain commodity is calculated. The overall Wholesale Price Index is the weighted average of individual WPI figures. Commodities are given weight-age depending upon its influence in the economy. India is amongst the few countries of the world, which selected WPI as its official scale to measure the inflation in the economy. The WPI can be established using the status of the five groups in basic human commodity namely: manufacturing, agriculture, quarrying, mining, and in the export/import industry.

Now the comparison

WPI-
1. Measure of temporal price change of wholesale transactions of all commodities in the country.
2. The weights of items have been assigned in proportion to their share in total value of transaction (output) in the economy.
3. Measures Inflation at each stage of production.

CPI-
1. Measures the average price of consumer goods and services purchased by households.
2. Weights are assigned in proportion to their share in the consumption expenditure of family of industrial workers in the selected centers.
3. Measures Inflation only at the final stage of production.

To put it in a very simpler way in which the majority could understand, Wholesale Price Index is the middle point of all the prices that the merchants pay for certain goods or services from the manufacturers or traders. While the Consumer Price Index, on the other hand, is also the middle point of all the prices that the consumers, homeowners and private sectors have paid for particular products and services.

Markets today : 11.05.11

Indian markets ended rangebound session on a positive note as buying activity emerged across the board with realty, metals and auto in the lead. Capital goods space ended marginally in the red.

Bombay Stock Exchange's Sensex ended at 18584.96, up 72.19 points or 0.39 per cent. The 30-share index hit a high of 18622.44 and low of 18454.93 in trade today.

National Stock Exchange's Nifty closed at 5562, up 20.75 points or 0.37 per cent. The broader index touched a high of 5574.70 and low of 5525 intraday.

BSE Midcap Index was up 0.56 per cent and BSE Smallcap Index moved 0.73 per cent higher.

Amongst the sectoral indices, BSE Realty Index was up 1.40 per cent. BSE Metal Index moved 1.01 per cent higher and BSE Auto Index advanced 0.95 per cent. BSE Capital Goods Index was down 0.03 per cent.

Hero Honda (3.31%), DLF (2.46%), Tata Motors (1.85%) SBI (1.78%) and Reliance Infrastructure (1.48%) were the major Sensex gainers.

NTPC (-1.86%), Tata Power (-1.39%), ONGC (-1.30%), Maruti (-1.14%) and L&T (-0.98%) were the top losers.

Market breadth was positive on the BSE with 1612 gainers against 1192 losers.

Economy Hapless : RBI Helpless : Govt Complacent

What we have here is a short cover up of views and perceptions of an expert panel including Lord Meghnad Desai, Professor of Economics at the LSE, UK, TN Ninan, chairman of the Business Standard, well known economist Bibek Debroy and from R Seshasayee, executive vice chairman of Ashok Leyland.

As we know Recently the RBI increased the interest rates by 50 basis points which is double of what the market had anticipated. This action was gravely condemned by the panel and was considered excessive and uncalled for. According to Mr. Debroy it is not going to help because the kind of inflation we have has nothing to do with monetary policy instruments. There are other reasons for that. And it will only achieve nothing but a lower rate of growth. Overall it is considered to be a fundamental mistake.

Mr.Ninan ahd two points to make on this matter-
One, No one has focused attention on the fiscal deficit. You have had very low inflation up to 2006 and very moderate inflation up to 2008. You had high inflation over the last 3 years and those were the 3 years, in which fiscal deficit on average has been close to 6% of GDP. In the previous 3 years, the fiscal deficit was only 3.5%. So, you have upped the government’s deficit. You have pumped in more money into the system and you are expecting the RBI to control it. I think the problem lies with the government. Second, we have inflation coming from high global oil prices and high international commodity prices. Domestic commodity prices are no higher than international prices. So, there is nothing that monetary policy can do to correct this.

So, that means the government, rather than the RBI has failed to understand the real causes of inflation. It’s also come up with the wrong remedies for tackling it and if international food and oil prices stay high, the pressure on inflation will continue regardless of what the RBI has done.

According to Mr.Desai, what is important is that inflation is a government failure. It is a failure of supply side policies and it has been persistent for all the two years that UPA II has been in power. The budget completely failed to address a question of inflation. The deficit is very large and 36% of revenue is paid in interest on government debt. It's really a very serious problem and the complacency on part of the Ministry of Finance is shocking.

Oil Prices tend to revamp : US economy prospective

The crude is indicating a return to a lower level on cost basis. As speculated by many analysts, the oil price may further go down.

According to Jonathan Barratt, MD of Commodity Broking Services, it all started with some fundamental news and people questioning the resolve of the recovery that US has had. On Wall Street, the Dow and the S&P 500 fell about 1% as energy shares slumped with the price of oil. This seems to be a result of lowering of demand powered by worries about the job market ahead of Friday's key employment report. On the other hand, he pointed that if we get a resolution on Libya then all of sudden we are going to see 1.4 million barrels coming on to the market. When you look at that type of fundamental news, just on the horizon, you could probably suggest that crude could actually trade all the way down to USD 80 a barrel.

The decline of $9.44 per barrel, or 8.6 per cent, brings the week's loss for oil to $14.13, or 12.4 per cent. Other commodities like silver and cotton have plunged as well. Oil was continuously being considered to be at much a higher level than it should be. Oil rose 35 per cent from mid-February through the end of April. As it climbed above $100, economists warned that high fuel prices were taking a toll on the US economy. Gasoline demand starting falling in March as motorists paid more at the pump; that trend was reinforced by industry and government studies released this week. This led most of the oil investors to go for the exit leading to a drop in its stock value.

The bear prowls on : Update 05.05.11

The day added to the the continuous losing streak for a ninth straight session as concerns of high interest rate continue to put pressure on economic growth. Negative cues on the global front added to the woes.

Indices opened on a subdued note and remained rangebound for most part of the day. However, sharp selling activity emerged in the afternoon and took the indices below 200 DMA levels, which is a bearish sign.

** DMA[[Moving average data is used to create charts that show whether a stock's price is trending up or down. They can be used to track daily, weekly, or monthly patterns. Each new day's (or week's or month's) numbers are added to the average and the oldest numbers are dropped; thus, the average "moves" over time. In general, the shorter the time frame used, the more volatile the prices will appear, so, for example, 20 day moving average lines tend to move up and down more than 200 day moving average lines.]]

National Stock Exchange's Nifty ended at 5459.85, down 77.30 points or 1.40 per cent. The broader index touched a high of 5560.30 and low of 5443.65 in trade today.

Bombay Stock Exchange's Sensex was at 18210.58, down 258.78 points or 1.40 per cent. The 30-share index hit a high of 18569.21 and low of 18160.65 intraday.
BSE Midcap Index was down 0.95 per cent and BSE Smallcap Index moved 1.23 per cent lower.

Amongst the sectoral indices, BSE Realty Index was down 2.89 per cent, BSE Power Index declined 2.40 per cent and BSE FMCG Index slipped 1.82 per cent. BSE Oil&gas Index ended 0.01 per cent up.

Ranbaxy Laboratories (-6.33%), Reliance Communications (-5.67%), Punjab National Bank (-5.53%), Tata Power (-5.08%) and Reliance Power (-4.91%) were the top Nifty losers.

Ranbaxy Laboratories was witnessing selling pressure after reports that that the federal prosecutors in the U.S have been negotiating a criminal and civil settlement with Ranbaxy and this could lead to Ranbaxy having to pay the penalt of about $ 1 billion.

Hero Honda (5.96%), Kotak Bank (2.30%), Maruti (0.76%), GAIL (0.55%) and Reliance Industries (0.18%) were the only gainers.

Market breadth was negative on the BSE with 1861 losers against 901 gainers.

European markets were down on profit booking and the Wall Street is also likely to follow suit. At 5:10 pm IST; Dow Jones futures was down 0.35 per cent, S&P 500 declined 0.43 per cent and Nasdaq moved 0.39 per cent lower.

Fear the bear : Markets Injured

Here comes a lot of disappointment and stress amidst what seems to be a depressing phase for the Indian economy and its investors as a whole. All the sectors continue to be beaten down inevitably restricting growth prospects of the economy. What rides this fall-down is the clear adamant attitude exhibited by the policy makers who have decided to rein in prices, sacrificing economic growth.

As I quote - "There is a possibility of another 10% correction in the Indian market near-term, as the impact of the RBI's rate hike sets in," said Saurabh Mukherjea, Head of Equities, Ambit Capital.

India's Sensex is the worst performer in Asia this year with a 10% loss after returning 17% last year. Investors worry that steep valuations, possible slowdown of the economy, could squeeze corporate earnings . A 20% fall in key indices is broadly accepted as a bear market. The BSE's 30-share Sensex fell 65.33 or 0.35%, to 18469, extending losses for the eight straight day. The NSE's 50-share Nifty dropped 28.10 points or 0.50%, to 5537.15.

The RBI on Tuesday raised the rates for the ninth time in 13 months to fight inflation that is well above the comfort level. Governor Duvvuri Subbarao said, "Inflation is inimical to sustained growth as it harms investment by creating uncertainty. Bringing them down, therefore, even at the cost of some growth in the short-run, should take precedence."

Economic growth forecast for this year is at 8%, down from 8.6% last year. Foreign funds have pulled out close to 2,000 crore in the last few days, including Wednesday's provisional figures.

But, a sustained economic growth requires some tough measures to cool prices. An economic slowdown now is needed to control inflation and investors may need to brace for some pain in the short-term. Thank You!

Logic : the current market Euphoria

I am back on with a cover up of the current market scenario which seems to be much at a volatile position as for now. As we know that stock market was hammered to a low of 17463 on February 10, 2011 from a high of 21008 on November 5, 2010, a drop of 17% on worries that rising crude prices, higher inflation and rising interest rates will slow down the economic growth in the coming year. The analysts indicated that this correction was somewhat inevitable and the profitabilty was supposed to be quite constrained.

However, after a brief calm the Sensex has recovered and touched a high of 19770 last week, a gain of 13% from the low seen on February 10, 2011. Mid-cap and small-cap indices have moved even faster, the BSE Small Cap index was up 19%, the BSE Mid Cap index gained 18% between February 10, 2011 and April 7, 2011. Several individual small- and mid-cap stocks have also moved up almost 30-40% from the lowest levels that they witnessed in early February. Surprisingly, the Bull has been up and on even when the problems still persist. Inflation remains high and so do the crude prices and above that there are talks of another interest rate hikes in May. This has left many of us confounded as to what is leading to this upsurge.

Some reasons for the market to rally are :

1.The external environment has improved. With growth holding up well in the EU and the US economic outlook looking promising, exports from India could provide the much needed support.

2.The rally was also aided by the fact that, in the short term, the Indian market had underperformed as compared to global peers, hence it is playing catch up now.

3. Last but not the least, liquidity is one of the prime drivers of the recent rally.

Much importantly the FII's which were pumping money out of the Indian Market since the beginning of this year are on a re-buying spree as they are finding the Indian market valuations considerably cheaper than before. Definitely no one doubts the ability of this huge market thanks to a constant growth of at least 8% despite of a series of setbacks witnessed in the last quarter.

But clearly the market has not yet recovered completely. The factors like the persistent crisis in Middle East and the problems in Eurozone and many others are holding the economy from being on a promising rally. The investors are advised to be very cautious with their investments and not be too optimistic to take much of the chances. They are still advised to have a long term gain perspective owing to the volatilty attached to a short term outlook.

Going forward, the market is likely to take cues from corporate results, which are likely to be declared this month. Investors will closely watch corporate earnings and guidance from corporates on what they expect in FY12. In addition, the markets are expecting some reform announcements, which are held up due to the current assembly elections. Thank you!

Warren Buffett Interview : Visit Analysis (Part -2)

In continuation with my last post, here I would like to give a brief account of an exclusive interview. Speaking to CNBC-TV18's Shereen Bhan, Buffet the chairman and chief executive officer of Berkshire Hathaway said India is a 'dream market for investors'. "The market is growing, getting more prosperous by the day, businesses are flourishing," he said. Sounding very optimistic and gratified with the current developments in the global market he didn't seem much disturbed with the problems of Liquidity denying any need for open-ended monetary expansion. Here are some of the critical questions answered by "the oracle of Ohama".

Q: What is your own assessment of the strength of the recovery that we are currently seeing in the US because there is mix economic data that we contend with week after week, the markets are doing very well?
A: It is getting stronger month-by-month. Sure everybody would love to see it go at a faster rate but we have over 70 businesses, of which perhaps four or five in a residential construction area, and they are not getting better. But the other 60 plus are getting better at different rates. Some of them are setting new records but the 60, which is close to 90% of our businesses are getting better by the month and that was true a year ago, that is true today.

Q: So what is it that attracts you to India at this point in time? Is it the size of the market? I know you don't have an India master plan as of now, but what is it that attracts you to India at this point?
A: The market is growing, getting more prosperous by the day, where businesses are flourishing. This is a dream market in a sense. The number of people, the buying power that they are gaining, the ability to produce things, everything is getting better everyday.

Q: The former RBI governor in India YV Reddy he said we should not blindly believe in the efficiency of global financial market because it does not exist. You agree with him?
A: Yes I agree with that but that does not mean that I don’t believe in the market and follow market signals. Market can get very inefficient and capitalism and markets lead to access particularly borrowed money is available and all that. When people have favourable experience in markets they tend to do things that eventually becomes stupid. Somebody said that there are the innovators, the imitators and then idiots; sometimes they follow in that progression.

Q: Can you give us some sense of how soon we could see Berkshire Hathway making a significant investment into India? Will you be looking at majority control on whichever company that you do decide to invest in?
A: Just within the last ten days or so, we began an insurance operation here in India. I do not know where the next opportunity is going to come from. It was almost five and a half years ago that I received a letter from Eitan Wertheimer of Iscar Metalworking. I didn’t know I was going to get that letter, it just came in and we are ready to go.
The same thing will happen in India, I will hear from somebody – I will be meeting a lot of people in the next few days and maybe from the next week or a year from now, one of those people may contact me and that is the way.

Q: Are you certain that you will make an investment in India in this financial year?
A: Our cheques were clear, I can promise you that.

Q: The average group of people present here is about 40. So, what was Warren Buffett’s dream when he was 40?
A: I have always been doing what I loved and so it’s never been that if I want to get there to some next plateau then I will be happy. I have been happy as I go along and it’s been a work in progress. It will never end. Berkshire is an organization will grow beyond my lifetime. It is not like I have any specific goals for next year or the year after. I just know if I keep showing up, good things will happen.

Q: Do you see new challenges for the cross border businesses?
A: There will always be people in all countries that resist change. There will be an element in United States or in other countries that resist the idea of more trade between countries. I am in exactly the opposite camp and believe that it will prosper as we do more and more business with each other.

Q: How real is the threat of protectionism at this point in time? How worried are you?
A: There will always be people pushing for protectionism. We are living better now in the United States because we are importing 16% of our GDP than we were when we were importing 5%. So, I believe that logic will prevail over time though there will be plenty of resistance and Congress will see from time-to-time bowing to protectionist type sentiment. In the end, the right thing works out.

Q: When there are so many other fields that are more challenging and more interesting why metal?
A: It is a very important business. Everything we do in life would not be done as efficiently or as effectively, if companies like TaeguTec were not turning out extraordinary products and thinking about products of tomorrow working with the end user. Hence, I regard it as a very exciting industry and I couldn’t be happier to be in it.

Q: Parliament session is going on and it is marred by corruption and scams. How this will adversely affect your investment plans in India?
A: Corruption is in every country, including United States. We are going to look at every activity we do to make sure that none of that creeps into any of the Berkshire Hathway companies. As I point out to lot of the managers, which is in the back of the annual report this year, if you have a city and we have 260,000 people working for Berkshire Hathway companies, there are going to be some who are wrong. It is our job to find out soon about those incorrect. We cannot eliminate all wrong doing. However, our whole approach is to set a tone at the top that we will move down from the various operations, so the people will know what is expected of them is good behaviour. It’s not a big issue but you have to simply draw the line. There is plenty of good and honest business to be done in this world and we are going to try and get every bit that we can.

He defended his lack of business interest in India before with a patience strategy followed him to find a big opportunity to start things off here.

Finally when asked about any succession plan in his company as Mr. Buffett is himself 80 yrs old now, he remarked that they already have a plan for that concern and will be revealed only when the time comes.

My take->
Overall the interview was filled with wit, charm and optimism of the great old man. He surely seemed to gain faith in the Indian economy in concord with the global market. He preferred partnerships and mutual development of all the countries for a promising future. Thank you!

Warren Buffett : Visit Analysis (Part -1)

He is widely regarded as one of the most successful investors in the world. Often called the "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people. Buffett is called the "Oracle of Omaha" or the "Sage of Omaha" and is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. Buffett is also a notable philanthropist, having pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. He also serves as a member of the board of trustees at Grinnell College. Its nothing like an ordinary introduction to an Extra-Ordinary man finally on his maiden visit to India. Here on we try to analyse up-to a deep level, the prospects and opportunities he comes along with and also his critical remarks on the Indian Economy.

"US economy is improving"

"The more India and China prosper, the better for US"

"Do not consider India as emerging Market. India is much bigger."

"Ajit Jain (currently heads several reinsurance businesses for Berkshire Hathaway) has made more money for Berkshire than I have"

As for his company's Acquisitions in India, Warren Buffett said his conglomerate Berkshire Hathaway would look at possible acquisitions as and when there were opportunities. "This is a country (India) on the move", the legendary investor said at an interactive session organised by the Confederation of Indian Industry (CII).

Berkshire Hathaway has most of its investments in the US. The conglomerate had recently forayed into the Indian non-life insurance sector as a corporate agent of Bajaj Allianz General. On Tuesday, Buffett said his company continued to look at large countries like India because it needs to make "large commitments". "India is the logical place to look. So, I hope I spend some money here (India)," he had said. Praising India and China, he said both the countries were "exploding" in terms of opening up human potential. It's not as if the two countries are working harder than before; it's just that they are working smarter, and responding to the needs of their societies, he added.

My take->
Definitely a significant change in the attitude of Indians for the better has finally attracted Mr. Buffett to one of the biggest markets in the world, the one with sole 3.35% share in the world's Market-Cap. More to come on this visit. Thank you!

Infra sector : Rise of the fallen

There has been a mixed response to the BUDGET-11 with respect to various sectors but there is one which is certainly on a rise after a considerable boost from the Indian Govt. Stocks in this space have reacted positively adding to their value day by day after a lackadaisical performance last year.

The boost from the Indian Govt included following points->

->Budget 2011 allocated Rs2.14 lakh crore towards the infrastructure sector—a sum as high as that was last seen in 2006.

->Social infrastructure schemes like Bharat Nirman also saw allocations higher by 20%.

->The foreign institutional investor limit for investment in infrastructure corporate bonds was hiked to $40 billion

->Tax-free infrastructure bonds of Rs30,000 crore were also announced.

The biggest worries in this sector were related to slowing of orders and delay in execution of project. But the government has hinted at special schemes for developers bidding for projects in economically unviable regions. It has also been indicated that developers may get guaranteed return projects in areas where the build-operate-transfer model is not viable.

The National Highways Authority of India (NHAI) is expected to start awarding some large road projects in the coming weeks; it is expected to award road contracts for 7000km in FY2012. The government also seems to be expediting awarding of projects because its own finances are in better shape after healthy tax collections and higher than estimated disinvestment receipts. Minister of State, Road transport and Highways, Jitin Prasad, in a recent TV interview stated that the government is looking at speeding up awarding of projects via NHAI.

My Take-> Institutions reduced their holding considerably last year in infrastructure stocks after getting bruised. But a case is building now that these stocks may have bottomed out and are still under owned. Several fund managers have indicated at bottom fishing in this sector and in February this year IDFC Mutual Fund raised fresh money particularly to be deployed in the infrastructure space. The long-term investors could look at select stocks this year for outperformance. Stocks like IRB Infrastructure Developers, IL & FS Transportation Networks, IVRCL Infrastructure and Projects, and Larsen and Toubro are some of the stocks investors could pick on dips. Thank You!

Optimism symbolized : Economic Survey-11

Here is something I gladly wish to share with everyone. After the pessimistic environment in the Indian market for most part of this new year, we have a mighty report infusing considerable optimism. Hereby i brief up a few pick points from the Economic Survey 2011.

What calls up for most of our attention is the prediction of 9% GDP growth rate over next year and staying there in the midterm. Services (which now have a 57.3% share in the GDP) will be the main locomotive of the economy. This, plus the coming demographic dividend, will offset many policy flaws and sustain fast growth. The Survey cites a new Index of Government Economic Power showing that India is now the fifth greatest global economic power after the US, China , Japan and Germany, and is well ahead of Britain or France.

The fiscal deficit in the first three quarters of this year was just 44.8% of the level in the previous year. The reason reveals a dirty economic secret: inflation can, in the short-run, be good for the government’s books. Inflation erodes the real value of debt, and the government is the biggest debtor of all. However, inflation with a lag also increases government spending.

The survey does not hint at any painful fiscal squeeze to come, either on the tax or spending side. It describes the spike in vegetable prices as temporary behavior which will soon be checked by a reversion to more normal behavior. Going forward, it expects monetary tightening and other steps to bring down inflation.

Rising oil prices pose a challenge, and the Survey says India must adjust to the reality of expensive energy.

Higher infrastructure spending is another reason cited by the Survey for optimism about future growth. However it also reported that losses of State Electricity Boards are 1% of GDP (which means Rs 76,000 crore). Unaccounted leakages of electricity (theft and transmission losses) are a whopping 35% of the electricity generated. No wonder power continues to be a constraint on growth. Cost overruns in public sector projects had come down to a reasonable 12% in March 2008, but rose to 20.7% by October 2010, thanks partly to higher steel and cement prices. Land acquisition and environmental clearance need to be streamlined to expedite infrastructure, along with standardised contracts and better designed projects.

Economic Survey enumerates a number of suggestions to resolve problems pertaining to key sectors.

On the agri front, measures suggested include reforms pertaining to the Agricultural Produce Market Committees Act that restricts free trade, introduction of FDI in multi-product retail which would help curtail the margin between farm gate and retail prices and raising food processing capabilities via investments in cold chains, logistics and packaging. Lastly on the fiscal front measures proposed include direct subsidy payments/usage of smart cards to curb corruption.

The underlying policy theme is that of ‘inclusive growth’. The Survey states that even as significant headway has been made on the ‘growth’ front, more needs to be done on the ‘inclusive’ front. Acknowledging that the food security bill is imperative towards reducing poverty and mal-nutrition it has emphasised that the efficacy would depend on the delivery mechanism. To this end, it has suggested the direct transfer of subsidy and the usage of smart cards to minimise leakages and corruption. Another key area of economic inclusion is financial inclusion. This would help mobilise savings through innovative products and an expansion of the banking system.

On a more medium-term basis, the Survey has cited that while savings and investment rates could peak out as the economy operates at full capacity, the key differentiating factor that would result in sustained growth would be innovation and skill development. To this end, focusing on education and research and development is an investment that the Survey believes would ‘make up for the eventually waning power of the savings rate.’

To sum up the optimism indicated by the report is supported by sustained trends in savings and investments, due to favourable demographics and a thrust on infrastructure development; continued momentum in services, with financing, insurance, real estate, transport and communication being high-growth categories; and efforts toward fiscal consolidation which would facilitate more credit to support growth. I reckon there are lots to cheer about up ahead. Thank You!

Hope for change, countdown begins : Budget-11

Its too late i have been writing since last time. It has been a situation of incessant mess in the Indian Economy with Inflation, Scams, etc. A situation of dismay for every Indian and particularly investors who have been at the losing end in the past couple of months. I intend to brief up the current scenario and see for the positivities as well.

As we know an economic depression is definitely not the only trouble around in our country. As compared to the previous similar headwind kind of situations the reason was predominantly the global slump. But this time as the value of Indian Rupee deteriorates its the Indian Economy having a relative deterioration with respect to the world.

More or less the issue today is of credible governance or the lack of it. The corruption issues and scams that came out in the open over the past few months have dented the investor sentiment to a certain extent. They tend to get nervous when they feel that the government set-up itself is shaky. With the Upcoming Budget, this credibility is set to undergo its ultimate test. There are a whole lot of issues to be resolved before the government.So undoubtedly all eyes and expectations are set high on this one. The issues in common and critical concern are->
1.Future growth and the lack of required infrastructure spending and the removal of bottlenecks that threaten to derail the India growth story.
2.Need to come out with policies that would lay down the foundation for India to achieve the aspirational double-digit (10% plus) growth in the gross domestic product (GDP) in future.
3.Biggest issue facing India today is the compulsion to increase spending on rural development and social schemes to achieve an all-inclusive economic growth. But at the same time, the growing gap in the government finances does not give the government the required leeway to do so and leaves little room for infrastructure spending and urban development, which are also necessary to support the high growth in economy.

As from the Prime Minister, he himself had his few expectations expressed in a number of interviews recently. He admitted that government has moved quite slow in terms of implementation of some key reforms and they would like to see some signals or any roadmap for the next two years in terms of reforms on the tax code, on managing the deficit, spending etc. He expects the finance minister to take some action on the marketing of agriculture produce so that wastage and hoarding and the demand-supply mismatch it creates in agriculture produce can be tackled. He also emphasised the need for a developed debt market in India so that the financing needs of the large infrastructure projects can be fulfilled.

Well lets see for the positives. What we expect and hopefully should be the course of things with the upcoming budget-2011. There is money available domestically and globally. Now it is up to the government and the policy makers to attract the overseas money in the form of long-term foreign direct investment commitment rather than short-term and unpredictable portfolio investments. The solution is to keep it simple and transparent for the investors. As the macro indicators such as the Index of Industrial Production and inflation among others start to fall in place, long-term funds will start looking at India again. The next two to three quarters would also see the impact of higher interest cost and higher raw material cost fully panning out on the Indian companies. Then these investors would be able to take a clearer call on which companies are managing their costs better, which ones have the pricing power etc. Till then India can remain a range-bound trading market.

As I say there is definitely something very bright and promising waiting for the Indian Economy with the Budget-11. Thank you!

In-depth Analysis of Infrastructure Sector: Today and Tomorrow

As we know its a real hard time for Indian Market and one of the most disastrous times for Infrastructure sector particularly. As per the figures The CNX Infrastructure index has slipped more than 13% in the past four weeks compared to the 10% fall in the broad-based Nifty. The difference widens when we look at long-term returns. In the past three years, the infrastructure index has dipped 40% while the Nifty has risen marginally by 1.5%. This is more than shaking for any investor. An in-depth analysis shows that delay in projects is accountable for such a dismal situation for this sector. Most analysts had expected a large number of road project tenders floated by the National Highways Authority of India in the January-March period. But they are worried now because there is no news yet on that front. Several irrigation projects have also got delayed because of the political turmoil in Andhra Pradesh. Furthermore, Land acquisition for power and road projects has not been as swift as expected, leading to a logjam at the execution stage, which pushes up the costs for the companies. A third problem is the delay in payments (both for government and private contracts).
Anyhow this sector cant be considered that dim to keep your hands off. Experts believe the valuations of some infrastructure stocks have been beaten down to very attractive levels. Abhay Aima, director of HDFC Securities, believes that sectors such as infrastructure that have lagged behind in last year’s rally will outperform the broader market this year. Such view may be profitable for the long term investor who can withstand short term pains to a considerable level. Reasons to believe on this sector points towards the corrective measures requisite for maintaining 8% GDP growth by the government. This means that an investor with a 3-4 year investment horizon can reap rich rewards by picking up infrastructure stocks at reasonable valuations.
Here are a few stocks worth considering.
1. Larsen & Toubro ->
1- yr return->12.36%
Analysts' recommendation-> Buy-29 Sell-2
Reason-Since financing remains the major concern,L&T with financial muscle will be able to tide over the problems. Also its Market Capitalization in many other sectors reduces the impact of slowdown in any particular sector. Its valuation has severely come down.

2.NTPC ->
1- yr return-> -9.95%
Analysts' recommendation-> Buy-24 Sell-5
Reason-India has a power deficit of over 11%. So domestic power producers will continue to grow faster than the GDP growth rate. Analysts believe that the earnings of NTPC, the largest power producer in India, will zoom because of the addition of 5500 MW in 2011-12 and another 5300 MW in 2012-13.

3.TATA POWER ->
1- yr return-> -1.65%
Analysts' recommendation-> Buy-17 Sell-1
Reason-Power sector expected to bloom up as mentioned above. Also, Tata Power is the most efficient power producer in India and so is another potential candidate for investment.

4.PTC India ->
1- yr return-> -7.6%
Analysts' recommendation-> Buy-16 Sell-0
Reason- PFS (PTC Financial Services)is an infrastructure financing company with 26% equity exposure in several power projects. Due to 26% equity exposure, quite a part of the profit expected in future to be rewarded to the investors.

My take-> Well there is a lot of theory and analysis involved. I reckon more caution as this sector is prone to more downfalls considering short term performance. For the strong hearted ones this can be a hefty opportunity. I give this report and analysis a thumbs up. But suggesting further analysis from investors also on this sector and stocks recommended above.

Indian Market Prospectives: PE (Private Equity)

We have heard enough of tough news regarding Indian Markets. Here is some news I got indicating some positivity among PE (Private Equity) players. The survey reported that India has got a better investment scenario than in 2007. Global consultancy Protiviti's survey also found that sectors such as energy and infrastructure are likely to see higher allocation from PE funds in short to medium term. "Strong self consumption driven by the great Indian middle class and consistent economic growth ranked higher in respondent's minds as reason for a more favourable investment environment now as compared to 2007," the report said. The findings are based on a survey of senior executives at more than 25 PE firms. According to the report, basic sectors, energy, infrastructure/real estate, education and pharma/healthcare are expected to be top performers, attracting higher PE funds. Further, the report noted that almost "a third of the respondents believed India shall perform better than both China and Brazil ".

Protiviti, one of the largest independent business and risk consulting firm, operates in India through its arm Protiviti Consulting Pvt Ltd.

My take-> Its really hard to believe that such optimism exists even in the current adversity. Well thats not just a view of a firm but a survey of many PE firms and should be considerably accountable. Well I personally feel in spite of many hiccups, the Indian market is gonna go bullish. The attitude to attain new highs has been fed into the Indian blood. :)

M&A (Mergers and Acquisitions) prospectives in 2011

Here was an article predicting a hotter M&A in the year 2011.

Brief writeup-> The past year has seen many M&A accounting upto 187 total outbound transactions valued at $21.31 billion and total transactions valued at $50 billion across 623 transactions including inbound transactions of India. The biggest one being Airtel's $10.7 billion acquisition of Zain Africa to explore new markets.“The outbound action will be hotter in 2011 though deal valuations might still not be as high as in 2007,” says Nikhil Nath, managing director and head, M&A, Asia at Nomura. The race for acquiring companies outside is being fuelled by India’s hunger for resources as the country tries to regain its 8-9 percent growth rate. In March 2010, Essar acquired US-based Trinity Coal for $600 million to feed its steel units in America. In December, Lanco acquired Griffin Coal Mining in Australia and RIL acquired equity interest in three shale gas assets in US. This very hunger accompanied by easier availability of finance, compared to 2008-09, is going to be the driver for outbound deals in 2011, say experts.Oil and gas, industrial products, power, mining and minerals sectors seem to be most promising ones in this context. And the most attractive shop among all is expected to be that of the pharmacist. Piramal-Abott and Reckitt Benckiser-Paras deals have raised the hopes of the players in this highly fragmented field. The domestic formulations sector is growing at an impressive rate of 15%. Telecom, on the other, is expected to see hectic activity because of the contention that India is not in a position to handle 10-12 players effectively.

My take-> The hunger for resources and markets promises a good year ahead for acquisitions especially in certain sectors like Oil and gas, industrial products, power, mining and minerals sectors. But the most attractive one seems to be the pharma sector. Telecom seems to be stagnated somewhat due to crowding of players in this sector. Thank you!

Inflation's affect on SENSEX

Well here i came up with something actually describing the affect of inflation on SENSEX in concord with the recent market headwinds.

Brief summary->As already known the current poor performance of SENSEX is credited to high inflation persistent in the Indian Economy.The food price index rose 18.32 per cent in the 12 months to December 25, the highest in more than a year. The fuel price index climbed 11.63 per cent. In the prior week, annual food and fuel inflation stood at 14.44 per cent and 11.63 per cent respectively. The primary articles price index was up 20.20 per cent in the latest week, compared with an annual rise of 17.24 per cent a week earlier. The Wholesale Price Index, the most widely watched gauge of prices in India, rose 7.48 per cent in November from a year earlier, compared with 8.58 per cent in October. According to the prime minister's economic advisory council chairman C Rangarajan, the inflation rate could be considered comfortable only when it comes down to four per cent. While raising rates can do little to cap cost-driven inflation, it can help cool overall demand and contain inflationary expectations fuelled by a broad rally in the commodity markets.

Rising inflation leads to increase in interest costs, which affects the companies depending on debt finance as the cost of funds increases. This negatively affects the bottom lines of the companies.

Moreover, increase in prices leads to decrease in demand, which again affects the corporate bottom lines. The purchasing power of people gets reduced. All these cumulatively have an adverse affect on the corporates, and thereby on the Sensex.

My inference- The above summary hopefully meets all the questions about the reasons for current disturbances in Indian Market. Thank you!

Market Watch

Here is a brief summary of the markets' performance today. Realty, technology, oilspace led the decline while banks, capital goods showed resistance. After showing a relatively strong performance throughout the day, markets showed volatility during the closing hours.

National Stock Exchange’s Nifty ended at 5754.10, down 8.75 points or 0.15 per cent. The broader index touched a high of 5842.60 and low of 5698.20 intraday.

Bombay Stock Exchange’s Sensex closed at 19196.34, down 27.78 points or 0.14 per cent. The 30-share index touched a high of 19431.56 and low of 19003.60 in today’s trade.

“After having corrected around 400 points on the Nifty, the market looks oversold. Technical indicators suggest a bounce back in next 4-5 trading sessions and Nifty may touch 5920-5930 levels. We expect a correction to set in after that and the Nifty may slip to strong support of 5690-5700. Traders should adopt ‘sell on bounce’ strategy in this market,” said Ashish Shroff, technical analyst, Ambit Capital.

Interview with Sunil Singhania, Reliance MF

Well here today am not gonna be on with all the stock tutorials and on.. Its about some articles that i read and i would like to share some good ones with all.. As for the current headlines its all bout crashing SENSEX and Indian market. Here I came up with an interview with Sunil Singhania, Reliance MF with some views on what the the past week crumble indicated to.

As for my conclusion regarding this interview->
Surprisingly he was still very optimistic about the Indian markets but in the long term prospective. Inflation and hike of interest rates seem to be just a short termed headwind which is expected to recede soon. The current scenario is considered to be good one for the long term investors who can actually buy the stocks at relatively low value now and expect high returns in the long run. Reliance MF seems to be concentrating on second tier banks with higher dips expecting the best return from this sector as the "headwind" exits.

My inference->
Sorry people i am a newbee, but i think its gonna be a while when we are actually gonna see a real bullish market giving higher returns keeping in mind the peeving inflation and lack of optimism to see some short term corrections being made. Times seem bad for the short term investors as for now. Thank you.

Link->http://economictimes.indiatimes.com/opinion/interviews/markets-fairly-valued-sunil-singhania-reliance-mf/articleshow/7259423.cms

Tutorial -- Stocks

Let us start with an illustration. Suppose you want to start a business, say sell computers. But you don't have adequate finances to rent a shop and build infrastructure. But you feel that once given a start, in course of time your business would do well and you would be able to earn money over your investments. You go to your room mate and the friend next door to lend you some money, on the condition that you would pay their money back along with some extra gifts (in form of money) for lending you their money in the first place. What you have effectively done is floated stocks of your company which your friends bought, using that money you made profits on your business and paid your friends dividends proportional to the amount they lent you ( i.e. number of stocks they purchased).

Similarly every company needs to raise money to run its business. It floats its stocks in the market. When the company floats stocks for the first time, it is called Initial Public Offering (You must have heard of a certain company floating IPO's. Well this is what it meant! ). People read company's plans and if feel optimistic about the future of the company, they buy certain number of stocks based on their financial potency. Now they also carry the risk of their money going down the drain if the company fails to perform and has to shutdown its business. This is where the vital difference in Loans and Share comes into picture. You could say that instead of going and selling shares to thousands of people (and this incurring lot of management and transaction cost), company would have resorted to a Bank for a loan. It could have, but then if company went bankrupt, the bank officials would sell the assets (house, cars and even wardrobe) of the company officials to get their money back. But when they raise money through shares, they also throw their risk on the people. In other words, if they went bankrupt, they would not have to sell their house and wives' jewelry to pay its shareholders their money back. In other words, they will not be legally indebted to you.

So a company has floated IPO and its shares have been bought by people. Henceforth the company has no say over the shares. It is with you and me and others who bought, and we may do anything with our shares. That means that we can also sell our shares to other at a price higher than what we bought. Suppose that when IPO was made, you bought 10 shares of ABC Co. at Rs 60 per share. Your room mate smells that the company is doing well and would continue to do so in near future. He offers you to buy your share at Rs100 per share. BINGO ! You have

eared 10*(100-60) =Rs400 from the share market. And similarly your room mate would sell them when he feels that now that company is underperforming and would soon sink. Simple eh! Not exactly !

So now a very obvious question that crops up is that if you own a partnership in the company, you should have a say in the decisions of the company. Of course you do have. Every year, the company holds an annual meeting with the shareholders where they can question or suggest the decision making of the company. However if you are holding shares worth Rs10,000 in ABC Co, would you spend Rs5,000 in your travel expenses to the place of meeting plus accommodation and other costs that you would incur. And above all would you miss your prestigious MTH101 lectures for the meeting where there will be hundred of other share holders voicing their opinions. Certainly Not! You feel that management is capable enough to manage your money. By buying shares, you have delegated the responsibility of running your business (yes, YOUR business because you have a partnership proportional to your shares) about which you know nothing on the management.

Now suppose Mr. X holds shares worh Rs 10, 000, 000 ABC Co. The company's policies and decision would dramatically affect Mr. X's finances and thus possesses far more influence and voting rights. Shareholders vote some members as boards of Directors who make decisions on major company policies. Board of directors may or may not hold shares of the company. They are only appointed by the share holders ( like Mr X, and not you and me) to look in to the working of the management. Generally companies raise money partly through shares and partly through debt (loans). An extremely important feature of stock is its limited liability, which means that, as an owner of a stock, you are not personally liable if the company is not able to pay its debts. Owning stock means that, no matter what, the maximum value you can lose is the value of your investment. Even if a company of which you are a shareholder goes bankrupt, creditors will not chase the share holders for their money. That's all for the basics. Time to get to enter the world of Jargons.

There are two types of Stocks : Common Stocks and Preferred Stocks. Common Stocks: Most of the stocks are common stocks. Limited Voting rights (generally 1 vote per stock to elect board of directors). Dividend are paid to stock holders if company performs well, but may not be paid if it underperforms. Preferred Stocks : Fixed dividends are paid the share holders owning preferred stocks. If company goes bankrupt, it will be these share holders who will be paid after the creditors and whatever left will paid to Common Stock Holders. However here the company has the option to buy these stocks back from the share holders anytime it wishes to. Sometimes stocks are also classified as Class A and Class B stocks depending upon the voting right contained in unit stock. For example Class A stock of certain company may contain 10 votes per stock ( to elect board of directors) while class B may contain only 1 vote per stock.

Now suppose you want to trade your stocks. One option is go around the city asking people to buy your stocks. A better option would be to go to stock market where the buyers are and sellers of the stocks meet. Examples of stock markets are BSE ( Bombay Stock Exchange), NSE ( National Stock Exchange). NYSE (New York

Stock Exchange) and Nasdaq are two most important stock market of America . Two other important financial hubs are London , Home of London Stock Exchange and Honkong, Home of Hongkong Stock Exchange.

Some Definitions :

Direct Market: Where IPO's are made.

Indirect Market: Where the other stocks (not IPO's) are bought and sold. Thus the companies whose stocks are being traded has no say in the indirect market. Generally we refer to this kind of market when we talk about stock markets. Most of the people like you and me do not have the know how of trading stocks and what price to bid for. Neither we want to get involved in the yelling nor pushing and bumping that goes on stock markets. So we appoint an agent called “Broker” who does the job for us. For if you want to buy a stock of particular companies, call a broker and he will intimate you with current prices and future prospects of various stocks. Then based on your decision, he on your behalf would go and purchase the stocks you request for. Obviously you pay the broker for sharing his experience and services. Broker, What a friend to have ! Wrong, not most of the times. Remember Harshad Mehta Scam.

Earlier the brokers use to be quite expenses and generally not in the reach of a common man. With the advent of internet, most of these services became available cheap and online. Today you can buy the stocks at the press of the key while sitting in your rooms.

Another way to buy shares is Dividend Reinvestment plan ( DRP). Sometimes Companies offer the share holders more share in place of dividends. Generally DRP is a good option because of two reasons. Since company is offering dividends means it is performing well in the market. So it makes sense to invest more in that company. Secondly when shares are offered at a lower price when done through DRP

By now you might have realized that astronomical amount of money involved share markets. And also the potential for cheating, fraud or scam. Company officials may sell stocks worth millions to innocent people like you and me and abscond away to Switzerland for a long & expensive vacation. And no way will you and me be able to get our hard earned cash back. Enters SEBI – Security and Exchange Board of India . Government organization that frames a set of rules and regulation for the stock markets for companies, brokers and even share holders. For example every company has to list itself with SEBI and get its approval before making an IPO or floating new stocks in the market. Similarly all the brokers have to register themselves to SEBI. You may like to take a look at SEBI website (http://www.sebi.gov.in). We will cover the details of SEBI later when we learn about IPO's.

We have dealt with the question of how to buy stocks. But the more important is still unanswered? When to buy and sell stocks. Because this would determine the fate of your fiscal gains. Prices of the stocks rise when people realize that company's future is bright. Note that it is not sufficient for only you to have this realization, but market as a hole. Hence there will be people chasing you for your shares bidding high prices. Thus value of a stock depends on its future valuation by the public.

A value of the company is its Market Capitalization. It is the product of the total number of stocks in the market and the cost per share. Thus a company with 100 stocks at Rs1000/share is more worth than company with 200 stocks at Rs250/share. Number of mathematical expressions are used as indicators for valuating company's future prospects. Market Capitalization is just on of them. Some others are P/E ratio (Price Earning Ratio), EPS (Earning per share) , PEG (Price Earning to Growth) etc. They are briefly explained below.

* P/E Ratio : It is the ratio of price per share and the earning per share. A high value is suggestive of future growth.

* EPS : It is the profit allocated to the each out standing common share.

EPS = (Net Income - Dividends on preferred stocks)/Total no. of outstanding stocks It is the most commonly used indicator variable. EPS indicates the profitability of the company. So just compare EPS or P/E ratio or other indices of various companies, and the one that gives the best value is the most prizes stock present. Simple eh! WRONG ! These variables are only suggestive and lot of decisions on stock markets depend on political , international and social scenario, companys future plans and strategies, its reputation in public and very much on the mystery word called “intuition". A lot of experience and market knowledge underlies the successful investment in stock markets. We will consider this aspect after we are through our basics on stock markets.

That was all as far as basics are concerned. Hopefully after going through these pages, all those nitty gritty headlines in newspapers would make sense. Before concluding, we will take a look at few more jargons we frequently come across when talking about stock markets.

BULLS : When the economy is prospering, GDP is shooting up, Stock prices are rising and future prospects look good, the environment is termed is market for bulls. People buy without putting much thought in bulls market. This attitude is termed as bullish attitude. BEWARE : You can fall to rumbles if you don't discern the approach of the maxima of bulls market, because after certain point, prices begin to fall .

BEARS : Bears are just opposite to the bulls. When economy is in recession, stock prices are falling and national income is going down, it is said to be the market for bears. People are reluctant to buy stocks in a bear market. However if you can spot the the end of a bear market using logic or sixth sense or any other means, you can be a millionaire in days as after the end of bear market, the prices of the stocks are bound to go up.

Chickens and Pigs : Chicken are the people who are extremely pessimistic about stock prices and very reluctant to invest. They are afraid to loose anything and have a very low appetite for risk. They generally invest only in securities with low but fixed return with certainity.Pigs are the ones who are very emotional impatient to grow rich in stock markets as such such sell and buy stock in a matter of hours without putting much thought and wisdom over them.

It is often said , “ Bulls make money, bears make money, but pigs just get slaughtered!”.

Phew !! You just now had a very heavy dose on ABC of the ‘stock markets'. Go and chill out In canteen, for stock markets can make life very hot. But make sure you follow up the following the useful links to have a more detailed picture of Stocks