A COME-BACK ?

AFTER TWO DAYS OF DELUGE (LAST THURSDAY AND FRIDAY) THE MARKET WAS FINALLY IN THE GREEN YESTERDAY ,THOUGH BY JUST A FEW. MANY FEEL THAT THE CORRECTION WAS DUE AND WE MIGHT HAVE JUST SEEN OFF THE WORST.

THE MARKET WAS PULLED BACK BY MOSTLY TWO BIG EVENTS YESTERDAY
(30TH OF JUNE)

1.RELIANCE ENERGY BAGGED THE SASAN POWER PROJECT .
THE SASAN PROJECT WAS IN THE CENTRE OF CONTROVERSY THIS WEEK DUE TO THE DISQUALIFICATION OF LANCO WHO WAS THE LOWEST BIDDER FOR PER KILO WATT OF POWER.THE COMPANY WAS LEFT RED IN THE FACE AND SO SPLASHED THEIR BID FOR THE SAME ALL OVER THE NATIONAL NEWS-PAPERS.
RELIANCE ENERGY BEING FROM THE RELIANCE PACK IS PERFORMING QUITE WELL AND MAY BE THE STOCK TO LOOK OUT FOR.

2.THE SECOND MAJOR EVENT WAS HINDUSTAN UNILEVER LTD i:e HUL (FORMERLY HINDUSTAN LEVER LTD) DECLARING A BUY BACK OF ABOUT ONE CRORE SHARES.
THE BUY BACK PRICE WAS FIXED AT Rs 230/- PER SHARE,WHILE THE SHARE WAS AT AROUND Rs 198/- ON THE WEEKEND.
THE PROCEEDINGS GENERATED A HECTIC BUYING SCHEDULE FROM INVESTORS WHICH MADE THE STOCK GO UP BY ALMOST 6%

EVEN THOUGH YOUR SHARES MAY NOT GO FOR Rs 230/- THERES A FAIR CHANCE OF THEM TOUCHING RS 220/- THUS GENERATING YOU PROFITS.
SHORT SELLING HULs SHARES CAN PROVIDE YOU SOME QUICK BUCKS IN THE COMING WEEK OR SO.

HEAVY DISCOUNTS !!!!!!!!!!!!

WELL , WELL, WELL AFTER DAYS AND DAYS OF THE BULL RUN WILL ARE FINALLY SEEING THE BEAR BACK IN ACTION.AND FOLKS IF YOUR HEART BEAT IS SKIPPING DUE TO THE DWINDLING PRICE OF YOUR SHARES THEN JUST LEAVE CAUTION TO THE WIND.

THE MARKET HAD SOARED QUITE HIGH AND WAS CERTAINLY EXPECTING A CORRECTION.THE WESTERN MARKETS TOO INFLUENCED HEAVILY AND SO WE ARE SEEING THE DECLINE.

BUT IF YOU HAVE THE INSTINCTS THEN YOU MAY REALIZE THAT THIS IS A GREAT OPPORTUNITY TO BUY MANY SHARES AND THAT TOO AT A DISCOUNTED PRICE .THE MARKET CERTAINLY WILL BOUNCE BACK VERY SOON. AS I HAVE MENTIONED PREVIOUSLY ALWAYS BUY AT LOWER PRICES , IT EARNS YOU GOOD MARGINS.

THE SENSEX IS EXPECTED TO TOUCH ATLEAST16500 BY THE FIRST QUARTER OF 2008 AND YOU CAN EASILY CASH ON . THE POINT LIES IN BUYING SHARES EVERY TIME THE MARKET DECLINES AND THEN SELL THEM WHENEVER IT SOARS.

*** A WORD OF CAUTION THOUGH, BUY THE SHARES WHEN THEY START SHOWING SIGNS OF BOUNCING BACK AGAIN,THIS REDUCES THE RISK INVOLVED ***

BLUE CHIP

TODAYS QUESTION IS "DO YOU HAVE A BLUE CHIP IN YOUR PROFILE ?"
BY BLUE CHIP I DON'T MEAN THE SHARE OF BLUE CHIP COMPANY , BUT A TRUMP CARD IN YOUR SLEEVE.DO YOU HAVE A SHARE WHICH IS AN ACE AND DELIVERS MOST OF THE TIMES GIVING YOU GREAT RETURNS.
IF THE ANSWER IS 'NO' THEN ITS TIME YOU TRACK DOWN ONE SUCH SHARE AND BUY IT AT THE EARLIEST.

WHAT QUALITIES SHOULD YOU LOOK IN TO GRAB YOUR OWN BLUE CHIP ?
1.THE SAFEST WAY WOULD BE TO SHORT-LIST THE BEST PERFORMERS IN VARIOUS SECTORS.
2.JOT DOWN THERE CURRENT PRICE RANGE , SEE HOW WELL THEY FIT YOUR BUDGET.
3.TRACK DOWN THEIR PERFORMANCE FOR AT LEAST THE PAST ONE YEAR.
4.RESEARCH ITS AREA OF OPERATIONS AND READ EVERY POSSIBLE DEVELOPMENT NEWS RELATED TO THEM.
5.JUST IN CASE ANY OF YOUR FRIEND/RELATIVE HAS INVESTED IN THESE SHARES,ASK THEM FOR THEIR FRANK OPINION.
6.CONSULT YOUR BROKER FOR THE SAME.

IN FACT I WOULD SUGGEST THAT ONE SHOULD TRY TO HAVE MORE THAN ONE BLUE CHIP SO THAT YOUR MAJOR INVESTMENT KEEPS ON GETTING YOU GREAT PROFITS.

FOR STARTERS I HAVE A LIST OF VARIOUS SECTORS AND THE RESPECTIVE BEST PERFORMERS.
1.INFORMATION TECHNOLOGY: INFOSYS , MINDTREE
2.INFRASTRUCTURE : DLF ,UNITECH, PARSHVANATH DEVELOPERS
3.ENGINEERING : L&T, PUNJJ LLYOD
4.AUTOMOBILE : MAHINDRA & MAHINDRA, BAJAJ, TELCO
5.ENTERTAINMENT : ADLABS, BALAJI TELEFILMS
6.BANKING : ICICI , SBI
7.TELECOMMUNICATION : BHARTI AIRTEL, RELIANCE TELECOM
8.FMGC : BRITANNIA , KOTHARI PRODUCTS
9.METALS : TATA STEEL, JINDAL GROUP
10. PHARMA : RANBAXY , ELDER

THE ABOVE LIST IS JUST THE TIP OF THE MOUNTAIN,AND ACCORDING TO YOUR RESEARCH THERE MAY BE MANY MORE SECTORS AND MANY DIFFERENT LEADERS FOR THE SAME.

THE BASIC IDEA IS TO HAVE A BEST PERFORMING SHARE IN OUR PROFILE.

SOME QUERIES

SOME ONE HAS POSTED A QUERY ON MY BLOG AND I AM NOT ABLE TO REACH HIM BY ANY MEANS SO I AM TRYING TO ANSWER HIM IN THIS POST,OBVIOUSLY IT WILL PROVE HELPFUL FOR OTHERS TOO.

THE QUESTION HE/SHE ASKED WAS " WHAT IS A CMP ? ".
HE HASN'T GIVEN THE EXACT REFERENCE BUT IN GENERAL CMP MEANS CURRENT MARKET PRICE, IN OTHER WORDS IT THE PRICE OF THE SHARE AT THAT PARTICULAR INSTANT. NORMALLY THE TERM LTP (LAST TRADING PRICE) IS USED IN THE SAME CONTEXT.

I AM USING THIS OPPORTUNITY TO ANSWER SOME QUERIES MY FRIENDS HAVE RAISED DURING OUR CONVERSATIONS.

1. ONE OF MY FRIEND ASKED WHETHER MONEY PAID WHILE APPLYING FOR AN IPO IS DULY RETURNED IN CASE OF NON-ALLOTMENT OF SHARES

THE ANSWER IS A DEFINITE 'YES'.
YOUR MONEY IS RETURNED CENT PERCENT,THE TRANSACTION BEING CARRIED OUT BY CHEQUE OR ECS IS A REGISTERED TRANSACTION AND SO NO ONE CAN DUPE YOU IN THE SAME.

2.IF I HAVE AN ONLINE ACCOUNT WILL I GET PHYSICAL COPIES OF THE CONTRACT NOTES ?
NO,YOU ARE MAILED THE CONTRACT NOTE NAD THERE ARE AVAILABLE LIFE LONG ON YOUR PORTAL FOR YOU TO COPY AND PRINT THEM ANYTIME.
THE BSE ANS NSE DOES POST YOU THE MONTHLY STATEMENT OF YOUR ACCOUNT.

3.DO I NEED TO PAY TAX ?
YOU SURELY COME UNDER TAX AND YOU CAN'T INVADE IT AS ALL TRANSACTIONS ARE THROUGH CHEQUE OR CASH ONLY.
INTRA-DAY ATTRACTS 30% TAX ON PROFIT , SHORT TERM DELIVERY 10% WHILE LONG TERM DELIVERY IS TAX FREE.
EVEN THE DIVIDENDS ARE TAX FREE.

BUT I WOULD LIKE TO SUGGEST YOU ALL TO KEEP THE THOUGHT OF INVADING TAX OUT OF MIND,BECAUSE IT IS CRIME.

4.WHICH ARE THE HOTTEST SECTORS CURRENTLY ?
CURRENTLY INFRASTRUCTURE,METAL,CEMENT,ENTERTAINMENT AND MEDIA SECTORS AS GOING VERY WELL.



FEEL FREE TO SEND YOUR QUERIES ON belose_sanket@yahoo.co.in

CHECK THIS OUT !!!!!!!!!

THE FOLLOWING MAKES A GREAT CASE STUDY TO PROVE MY POINT OF HOW GOOD AN INVESTMENT SHARES CAN BE

1.DLF IPO OPENED ON 11TH OF JUNE 2007 AND CLOSED ON 14TH JUNE.

2.THE PRICE BAND WAS Rs 500/- TO Rs 550/- PER SHARE.

3.THE SHARES WERE ALLOTED FINALLY AT Rs 525/- EACH.

4.SO 20 SHARES WOULD HAVE COST YOU Rs 10,500/-

5.THE ISSUE GOT LISTED ON THE BSE AND NSE ON 5TH OF JULY

6.AFTER SOME INITIAL VOLATILITY IT IS RISING BY THE DAY.

7.ITS PRICE ON 18TH OF JULY WAS Rs 645/- PER SHARE.

8.SO AVERAGE PROFIT PER SHARE HAS BEEN Rs 645 - 525 = Rs 120/-

9. THEREFORE YOUR TOTAL PROFIT WOULD BE 120 * 20 = Rs. 2400/-

10.SO JUST AN INVESTMENT FOR 40-45 DAYS HAS EARNED YOU ALMOST
20 -22% PROFIT.

NOTHING DRIVES THE POINT BETTER THAN THIS.

LAGE RAHO MUTUAL FUNDS

QUITE A FUNNY HEADING TO TODAYS POST,BUT I COULDN'T THINK OF ANYTHING ELSE FOR THIS SECOND POST ON MUTUAL FUNDS.

LAST TIME WE SAW WHAT THE GENERAL CONCEPT OF MUTUAL FUNDS IS ALL ABOUT.TO SUMMARIZE IT IN A SINGLE SENTENCE "MUTUAL FUND IS AN INDIRECT WAY OF INVESTING IN THE EQUITY MARKET,THROUGH THE MEDIUM OF A FINANCIAL INSTITUTION" .


MUTUAL FUNDS CAN EARN YOU MONEY IN TWO WAYS - DIVIDEND AND GROWTH.

1.DIVIDEND :
THIS IS THE AMOUNT YOUR INVESTMENT GENERATES YOU AS AN INTEREST OR IN OTHER WORDS ITS YOUR LOYALTY BONUS FOR STICKING WITH THE FINANCIAL INVESTOR.

SAY YOU INVEST Rs 50,000/- IN A MUTUAL FUND AND IT PAYS 20% DIVIDEND THE YOU ARE BOUND TO EARN Rs 10,000/- WITH YOUR INITIAL INVESTMENT REMAINING INTACT. DIVIDENDS ARE NORMALLY GIVEN ANNUALLY WHILE SOME SCHEMES OCCASIONALLY GIVE MORE THAN ONE DIVIDEND PER YEAR.
SO ITS AS GOOD AS HAVING A FIXED DEPOSIT WHICH GIVES 20% INTEREST PER ANNUM ( A RATE YOU CAN'T EVEN DREAM OF).

2.GROWTH :
IF YOU SELECT THE GROWTH OPTION THEN INSTEAD OF GETTING THE DIVIDEND YOU GET EXTRA NUMBER OF SHARE UNITS,WHICH YOU CAN EN CASH LATER.


VARIETY OF SCHEMES ARE OFFERED BY VARIOUS FINANCIAL INSTITUTIONS.MANY SCHEMES TARGET A PARTICULAR SECTOR LIKE SBI INFRASTRUCTURE FUND WAS TARGETED AT INFRASTRUCTURAL COMPANIES,SO SBI ON YOUR BEHALF WILL BE INVESTING IN INFRASTRUCTURAL COMPANY'S SHARES AND SO ON.
THERE ARE GENERALLY TWO SCHEMES OFFERED :

1.OPEN -ENDED :
AN OPEN ENDED MUTUAL FUND SCHEME ALLOWS YOU TO INVEST OR DISINVEST AS AND WHEN YOU WANT TOO.SO THERE IS 100% LIQUIDITY FOR YOUR FUNDS.

2.CLOSE-ENDED :
CLOSE ENDED MUTUAL FUNDS ON THE OTHER HAND LOCK YOUR FUNDS FOR A CERTAIN PERIOD OF TIME (CAN VARY FROM 1 YEAR TO AS LONG AS 15 YEARS) .THUS THESE SCHEMES OFFER LESS LIQUIDITY.

A SCHEME IS TO BE SELECTED KEEPING IN MIND YOUR FINANCIAL NECESSITIES IN NEAR FUTURE.THUS MUTUAL FUND OFFER YOU A SAFER OPTION TO INVEST IN STOCKS.
BUT AGAIN "MORE THE RISK MORE THE GAINS" .

MUTUAL FUNDS ANYONE?

AS PROMISED IN THE LAST POST WE ARE GOING TO TAKE UP THE MUTUAL FUND ISSUE TODAY.

SO WHAT EXACTLY ARE MUTUAL FUNDS ?

LETS FIRST UNDERSTAND WHAT THE TERM ITSELF STANDS FOR.
MUTUAL FUND IS AN AGREEMENT OR PACT BETWEEN YOU AND A FINANCIAL INSTITUTION.YOU MUTUALLY AGREE TO DEVELOP A FUND IN ORDER TO INVEST IN SHARES AND REAP BENEFITS.

IF ALL THIS IS GOING WAY ABOVE YOUR HEAD THEN LETS MAKE IT EASIER WITH A PERFECT ANALOGY .

SUPPOSE YOU HAVE A CAR OF YOUR OWN.

1.YOU CAN EITHER DRIVE IT YOURSELF OR APPOINT A DRIVER FOR THE SAME.

2.WHEN YOU DRIVE YOURSELF YOU HAVE THE LIBERTY OF DRIVING AT YOUR PACE BUT YOU EVEN NEED TO BE OVER-CAUTIOUS BECAUSE YOU ARE AT MAXIMUM RISK.

3.ON THE OTHER HAND IF A DRIVER IS AT THE WHEEL YOU ARE AT A LESSER RISK,AND YOU EVEN ENJOY THE BENEFIT OF HIS EXPERTISE AT DRIVING.

4.HIS EXPERTISE i:e HIS DRIVING SKILLS COME AT SOME COST AND YOU HAVE TO BARE THE EXPENSE.

IN OUR CASE

1.CAR STANDS FOR YOUR INVESTMENT,YOU CAN EITHER INVEST IT AS YOU LIKE OR APPOINT A FINANCIAL ADVISER FOR THE SAME.

2.YOU DRIVING THE CAR IS SYNONYMOUS TO YOU INVESTING IN STOCKS DIRECTLY.

3.APPOINTING A DRIVING IS AS GOOD AS APPOINTING A FINANCIAL ADVISER TO HANDLE YOU INVESTMENT.

4.THE DRIVER'S SALARY IS SAME AS THE EXPERTISE FEE YOU NEED TO PAY YOUR FINANCIAL ADVISER.

SO IN CASE OF MUTUAL FUNDS YOU INVEST WITH A FINANCIAL INSTITUTION,WHICH IN TURN INVESTS IN STOCKS AND AT THE END YOU BOTH TRY AND EARN PROFITS.

VARIOUS INSTITUTIONS LIKE UTI, DSP, SUNDARAM , FRANLIN TEMPLETON, SBI , RELIANCE , etc HAVE VARIOUS SCHEMES OF MUTUAL FUNDS LINED UP FOR VARIOUS TYPES OF INVESTOR.WE WILL TRY GOING DEEPER IN THIS MUTUAL FUND IN COMING POSTS.

HAPPY 15,000

THE SENSEX SCALED THE 15000 MARK THUS ACHIEVING A MAJOR LANDMARK . THESE ARE JUST THE SIGNS OF WHATS IN STORE,AND IF EXPERTS ARE TO BE BELIEVED THE SENSEX MAY SOAR TO 18000 MARK WITHIN THE FIRST QUARTER OF 2008.

WHAT DO THESE NUMBERS SIGNIFY FOR THE COMMON INVESTORS?

WELL MANY INTERESTING STATISTICS HAVE CROPPED UP IN ALL THE
NEWSPAPERS ,THE ONE IN TIMES OF INDIA GIVES FOLLOWING DETAILS:

ANYONE WHO MIGHT HAVE INVESTED Rs ONE LACS FIVE YEARS AGO IS WORTH Rs FIVE LACS SEVEN THOUSAND AS OF TODAY. WITH A WHOPPING PROFIT OF Rs FOUR LACS IN JUST FIVE YEARS, THE INVESTOR MIGHT BE SMILING ALL HIS WAY TO THE BANK.

LET BYGONES BE BYGONES ,WHAT SHOULD BE THE ACTION PLAN FOR THE PRESENT SCENARIO ?
IT WOULD BE HIGHLY ADVISABLE TO BUY A GOOD AMOUNT OF STOCKS AS A LONG TERM INVESTMENT,BECAUSE THEY WILL BE APPRECIATED SOONER OR LATER.
ACCUMULATING THE SHARES OF COMPANIES YOU HAVE SHORT-LISTED AS AND WHEN THEY SHOWN SLIGHTEST OF DECLINE WOULD BE HIGHLY PROFITABLE.
REMEMBER TO DIVERSIFY YOUR FUND THOUGH.

THIS CAN VERY WELL BE A GOOD TIME TO INVEST IN MUTUAL FUNDS TOO.
NOW IF YOU WISH TO KNOWN WHAT MUTUAL FUNDS MEAN,THEN DO NOT MISS THE NEXT POST.

CRACKER OF A SEASON FOR IPO INVESTORS

I STILL CAN'T REALLY BELIEVE IT,VISHAL RETAIL'S SHARE GOT LISTED AT A WHOPPING PRICE OF Rs 700/- ODD AS AGAINST ITS PRICE BAND OF Rs 250 TO 270/- GIVING A SPLENDID RETURN.
IMAGINE THE MOOLAH RAKED IN BY INVESTOR WHO PAID AT AROUND Rs270/- PER SHARE AND WITHIN A FORTNIGHT ITS VALUE HAS TOUCHED THERs 700/- MARK.EVEN IF EACH SHARE GIVES AROUND Rs 400/- THENTOO THE INVESTOR IN BOUND TO HAVE THUMPING PROFITS.JUST RECENTLY I HAD MENTIONED THE OPPORTUNITY IPOs PROVIDE AND VISHAL RETAIL'S IPO PROVES THE POINT PERFECTLY.

THE OTHER IPO WHICH GOT LISTED WAS THAT OF DLF WHICH REACHED AHIGH OF Rs 714/- ON BSE AS AGAINST THE SELLING PRICE OF Rs 525/-. THOUGH THE PRICE RAPIDLY DECLINED AFTER THE LISTING,IT STILL REMAINS IN THE CORRIDOR OF Rs 570/- TO Rs 580/-, STILL GIVING CLEAR 10% PROFIT.
WHICH FIXED DEPOSIT OR INSURANCE OR PPF ACCOUNT IS GOING TO GIVE YOU AN INTEREST RATE OF 10% FOR JUST 15 DAYS ? NONE !!!!!!!!

PEOPLE WHO INVESTED IN THESE IPOs HAVE PROFITED MASSIVELY,AND JUST RE-CONFIRMED THAT STOCKS ARE THE BEST INVESTMENT AROUND.

SWINGING HIGH

ITS LITERALLY SWINGING HIGHER AND HIGHER ,THE SENSEX TOUCHED AN ALL TIME HIGH ON MONDAY ITSELF AND THE END OF THE WEEK MIGHT EVEN SEE IT NEARING THE ELUSIVE 15,000 MARK .

WHAT DOES A COMMON INVESTOR DO IN SUCH CIRCUMSTANCES?

BASICALLY IT IS A GOOD SIGN FOR LONG TIME INVESTOR.BUT I WOULD PREFER NOT BUYING ANYTHING DURING THIS PERIOD,WHILE SELLING CAN BE QUITE PROFITABLE.YOU OBVIOUSLY DON'T WISH TO PAY MORE FOR SOMETHING AND THEN SEE ITS VALUE DWINDLING IN A FEW DAYS.SO I THINK ITS THE PERFECT TIME TO SELL SOME SHARES YOU HAVE PREVIOUSLY BOUGHT OR SIMPLY WAIT FOR A CORRECTION.A CORRECTION WILL HELP YOU BUY THE SAME SHARES AT A FAR CHEAPER RATE.

AS FAR AS INTRA DAY IS CONCERNED,THIS VOLATILITY PROVIDES GREAT PROFIT,BUT EVEN BRINGS ALONG GREATER RISKS.WITH THE SENSEX BEING SO BULLISH,THERE IS ALWAYS A FEELING THAT I MAY EARN MORE TOMORROW THAT ENTICES YOU .BUT PREDICTING THE TREND OF THE MARKET IS FAR FROM EASY, AND EVEN MANY EXPERTS GO WRONG IN THE SAME.SO ITS BETTER TO SQUARE-OFF AS SOON AS YOU GET A GOOD DEAL .USING THE LIMIT OPTION IS THE BEST THING TO DO.

IF YOU CONSIDER THE GREATER PICTURE,THE VALUE OF YOUR SHARES IS INCREASING WHICH IS QUITE A HEARTENING THING.FOR PEOPLE WHO HAVE PERSISTED WITH THEIR SHARES FOR A LONG TIME,ITS TIME TO EN CASH PROFIT.
ITS A SIGN OF COMING TIMES,AND THE SENSEX TOUCHING 15,000 WILL BE A GREAT BOOST.HOPE YOU INVEST WISELY TO REAP MAXIMUM BENEFIT OUT OF THIS BULLISH TREND.

**** PEOPLE ASK ME TO SUGGEST A PARTICULAR SHARE WHICH I THINK IS QUITE STUPID THING TO DO.SOMETHING THAT SEEMS PROFITABLE TO ME , MAY BE A LOSS FOR YOU AND VICE-VERSA.ITS UP TO YOU TO DO SUFFICIENT RESEARCH BEFORE
INVESTING EVEN A PENNY.

WHAT I SUGGEST IS DO NOT CONCENTRATE ON A SINGLE SECTOR, DIVERSIFY YOUR INVESTMENT IN VARIOUS SECTORS LIKE IT, INFRASTRUCTURE, AUTOMOBILES, PHARMA , PETROLEUM,RETAIL, etc SO THAT YOU ARE NOT OVER DEPENDENT ON A PARTICULAR SECTOR. *****