Best or worst for stock market in India is lying in the middle of the top and bottom of the current levels. Market has been going through a tizzy in last few weeks and it has become extremely difficult for average investors to keep hold of that. US debt issue has flared the global market worries. Europe was already going through a tough time and when US debt problem came in the picture, it blasted the stock markets world over.
Best or worst for stock market is something which is like predicting its top or bottom levels. Lot of people would say many thing but no one can actually predict that.
Best or worst for stock market depends upon lot socio-economic factors. World has been struggling with economic turmoil for last three years but this time it is different. USA is not showing any sign of permanent solution for its debt problem and china, which was in a better position in 2008, is currently showing sign of weakness. Therefore the risk of a bigger economic recession cannot be ruled out.
Stock markets do anticipate a lot of these things and as usual, they have been falling since news about US debt worries broke into the public domain. Indian stock market has gone through their own share of beating but more breaksdown seems to be inevitable.
Banking BeES-In the past we have gone through some of the hottest selling Exchange Traded funds life Nifty BeEs and Nifty Junior BeES. Both of them are kind of diversified funds which consist stocks from various sectors. Today we are going to walk through another Exchange Trade Funds which is extremely popular and gaining even more popularity.
Banking BeES have been doing well because banking stocks have been doing very well in last two years. And though Indian economy is still haunted by inflation and related issues, but these stocks are still extremely lucrative. But like I mentioned inflation, rate hikes and global economy does impact banking sector, it is very difficult for an average investor to pick correct banking stocks.
Banking BeES value is affected by the value of the banking shares. There are lot of factors which affect the health of a bank like current interest rates, asset quality etc, so they are more complex to study and understand for a average investor. One of the best way to invest in them is through mutual funds and Exchange traded funds.
Banking Index funds are one of the best funds available in the current Indian stock market. Banking index benchmark Exchange Traded scheme is one of the best index traded fund for banking and it has consistently yielded extremely good returns for the investors.
Muthoot finance is quite a familiar name in the gold loan industry. They have made some descent growth in the last few years. Now they are going public and coming with their IPO. It status is RBI registered NBFC non deposit taking which helps it in fund raising. They are offering it at a price band of Rs 160-175. Issue will open on April 18 and will remain open till April 21. Its CRISIL rating is 4/5 and CRA rating is also 4/5. This indicates good fundamentals.
Gold loan industry is growing rapidly in Indian. Muthoot finance is one of the prominent players in the industry. Though there are few uncertainties regarding regime, regulations and competition from banks but muthoot’s track record goes in its favor. It has consistently expanded in the new geographies, its management has shown consistency and the benefit of being early bird in the sector has also helped them a lot.
Muthoot finance provides personal and business loan against gold. Its it has a outstanding loan of Rs13,004 crore as of nov 2010. It has a market share of 19.4 per cent. It is aiming to garner around Rs824-901 crore to fund its business. Existing PE investor will stay invested in the firm, so it is also a good sign for the investors. It has a compounded annual growth rate (CAGR) of 75.7 per cent during FY2006-2010.
Their business model of providing loan at lower interest rates and quickly opening new branches to target new customers has helped them in maintaining high growth. There is one risk to them and that is they are getting some serious competition from banks like ICICI and HDFC. These banks are now aggressively targeting gold loan business and offering new attractive schemes.
Index Traded Funds – Nifty Junior BeES–In the last few post we have seen how Exchange Traded Funds are very good tool to invest in stock market with relatively lesser risk than picking individual stocks and ease of trading it like stocks on stock exchanges. ETF are extremely good for short term because if market rises than then they too will appreciate accordingly.In the past we have gone through Nifty BeES, today we will look into Nifty Junior Benchmark Exchange Traded Fund.
Index Traded Funds – Nifty Junior BeES is one of the best Exchange traded funds available in Indian market. It was launched on February 14, 2003. It is a open ended ETF with 0.00 per cent Entry and Exit load. Though your broker will charge some amount as brokerage and other related charges for their services. Please check with them for details on charges.It comes from Benchmark Mutual Fund house.
Index Traded Funds – Nifty Junior BeES has consistently given excellent returns since its inception.
Returns (as on Apr 15, 11)
Period Returns (%) Rank #
1 mth 7.9 3
3 mths 3.4 6
6 mths -10.7 40
01 year 6.9 35
2 year 50.5 5
3 year 11.0 5
5 year 11.9 5
# Moneycontrol Rank within 44 Equity Index Schemes* Returns over 1 year are Annualised
Real Estate industry in India-Bulls are back on the Dalal Street and Indian share markets have made a sharp recovery in today’s trading session. The Sensex started the day in red and touched a low of 19,101 in the morning. However, it rebounded into the green and headed northwards as the day progressed. Huge buying in auto, banking and capital goods stocks pushed the index up to a high of 19,731 towards the end of the day. The Sensex finally ended with a gain of 434 points at 19,696 and the Nifty added 125 points at 5,911.
Real Estate industry in India is dominated by likes of DLF, Unitech etc.There is some positive news about the Indian stock market. Reality stocks like DLF, Unitech, Oberoi Reality and most of the other reality stocks closed in green. But things are not so good for the Real Estate sector in India. As per recent reports on it, buyers are staying away from the real estate projects.
Real Estate industry in India is expecting prices to dip. This dip is going to vary based upon the regions. Rates will drop across all major locations in India. Demand is still there but there are other factors which are affecting the reality market. In last few years, reality prices have gone up significantly. There are lots of projects which are stuck and most of the real estate projects are delayed.
There is always a sense of doubt when it comes to real estate developers and brokers. Most of the developer deals with the customer through brokers which also makes the process non-transparent. Due to lack of transparency, buyers are avoiding slow moving and pre launched projects.
Industrial growth for the month of February 2011 has dipped to 3.6 per cent. It is the third consecutive month with low single digit IIP numbers. It is increasing the concerns among the economist for the economical growth of India in near term. India has seen slowness in its growth in last few months and with this February data coming at lower than expected level is triggering an alarm among economist and investors.
We live in a world of credit. Most of things in our life come with a credit. There are various means through which we can avail facility of credit and Credit Card is one of the most widely used methods of availing credit. Plastic money in form of credit card is so common that usage of cash in the real time has gone down drastically. From booking air, train tickets, shopping, paying utility bills and buying anything online.
Domestic institutional investor (DII) is a term which refers to Indian mutual fund companies, life insurance companies and banks. Traditionally, Indian stock market were dependent on the money flow from the outside the country for sustainable rallies. These players are foreign financial institutions which trade in Indian stock markets. FIIs have consistently dominated the Indian stock market and its rise and fall is directly related to their investments in India.
Indian stock markets have been roaring for last ten days. There is lot of optimism among traders. Highs are witnessed along with good volumes which indicate that the rally is strong and backed by the trading community. Everybody is being involved in this rally. From retail investors to foreign institutional investors, everybody is on a buying spree. But there are many who suggest not buying on rise.
There are multiple methods and modes of investment in stock markets. Traditionally, it was directly by purchasing and selling stocks at the stock exchanges. Then came mutual funds and they had been very popular among investing community. Investors loved the mutual fund because of the ease it offered in terms of the security, consistent returns and relief from tracking the stock markets and individual stocks.
Indian stock market has been doing well for last some days. It has bought back not only relief for the existing investors but also, optimism on the Dalal Street. Stock markets have gone through a lot of beating in the last few months. It has pushed away the short term traders away from the stock market.Recent up rise has bought them back, but they are not sure what stocks to pick because lot of stocks have already moved up.Picking up long term stock is comparatively easy than picking up for short term trading. Best stocks for long term are those which are fundamentally good and belongs to sector which is expected to perform well in the next 1-3 year time frame. But even a good fundamentally stock may fall in short term which is a good opportunity to accumulate them for long term, but for short term traders that is immaterial.Best stock term stocks for 2010 were a mixed bag of large cap, mid cap and small cap stocks but equation is completely different in 2011. Since its inception, year has been bad for stocks. Stock market has been gone through a lot of pain. Stock market has fallen consistently and there are lot of Geo-Political factors which are still unclear.
Market has gained for the sixth consecutive day. Dalal Street has been flying high with the recent streak of highs. In last few months, Indian stock market have struggled to maintain any rally which they have got, but this time things seems to be different. Indian stock market has closed above 19000 levels for the first time in last two months. Globally also, markets are doing well and most of the index were in green.
Commerce department in USA released their reports which are indicating the economical situation is improving with the time. This is the eighth month in the row when consumer spending has gone up. But due to increased food and energy cost, most part of that money went into covering them. Spending rose to 0.3 per cent after adjusting for the inflation. Another report suggested the sale in housing is picking up.