Archive for July, 2008

Identify your time frame towards dealing in Stock Market issues

A short term investors should invest in debt products as they give assured returns. On the other hand, if investors are prepared to wait for least three years, they can look at equity. But they need to invest in a staggered manner. For instance, look at daily and weekly STP’S (Systematic Transfer Plans).

July 29th, 2008 | Shabbir Bhimani | 0 comments | Continued

RBI is doing a critical balancing act

The retail credit growth of the bank in 2008- 2009 is expected to be in a range of 5% only. Also, if RBI increases the repo rate, at which it lends short term funds to bank against governments securities, the interest rate will further increase. Bank will have no option but to pass on the rate to borrowers. This will further slow down the growth.

July 29th, 2008 | Shabbir Bhimani | 0 comments | Continued

Stock Valuation

One factor strongly affecting a stock’s price is earnings growth. Book Value and Earnings per share to find the correct value of share.

July 27th, 2008 | Shabbir Bhimani | 4 comments | Continued

Moving towards contra investing

Contra investing is an approach of investing where one takes investment calls contrary to the current trend. For example, when the rupee was appreciating stocks of information technology (IT) companies were not favoured by investors. A contra investor would buy IT stocks at such point in time.

July 26th, 2008 | Shabbir Bhimani | 1 comment | Continued

Understanding the new trend of investing money in debt fund

Debt funds have become attractive since interest rates have gone up. Institutions too want more stable funds now and are going to the retail market with debt schemes.

July 25th, 2008 | Shabbir Bhimani | 2 comments | Continued

ICICIDirect’s View on IT Stocks

I just got an email from ICICIDirect about there views on IT Sector and there recommendations of IT stocks. I liked it very much and so thought would share the same. I liked there recommendations of which stocks we should come out and which one we should enter.

July 24th, 2008 | Shabbir Bhimani | 0 comments | Continued

Be firm on your investment strategy plan

The person may even go ahead to even stop the SIP in the scheme. He or she may decide not to come back at least until the market improves. Well, according to me, this is a bad strategy. In my opinion, one shouldn’t change his or her investment strategy depending on the mood swings of the market.

July 24th, 2008 | Shabbir Bhimani | 3 comments | Continued

Understanding the flow of private capital reservoirs

A recent report of the Institute of International Finance (IIF), a consortium of 370 banks and financial sector giants, says that the bulk of foreign capital inflows are concentrated in about 35 countries called emerging economies.

July 24th, 2008 | Shabbir Bhimani | 0 comments | Continued

Mumbai continues to spend most despite inflation

Most of the finance and entertainment industries are based in Mumbai which attracts the big spenders, through the city’s inhabitants who are not habitual high spenders. Also, Delhi has more of “Me” culture and Mumbai has more of a “We” culture. It is more common to find families eating out at restaurants in Mumbai than in Delhi.

July 20th, 2008 | Shabbir Bhimani | 0 comments | Continued

FII’s mobile finance, shakes the market

The market is going through a roller –coaster like situation. Since past six and a half months, the Sensex has gone up by over 200 points on 31 days and fallen by such margins on 33 days. There were eight days when it jumped over 500 points, but there 11 other days when it fell by this huge margin. This also includes events with nasty dips like the one in January when it fell by over a thousand points and then few days later it soared by over 800 points.

July 20th, 2008 | Shabbir Bhimani | 2 comments | Continued

Measures taken by Indian Carriers towards the operating cost

The stock market is increasingly getting jittery about the bad news swamping the economy. A host of factors such as inflation, slump in industrial output, higher oil price and so on, is keeping the market on tender hooks. Also, Indian carriers expect to lose up to Rs.10,000 crore, this fiscal year as oil is showing no signs of cooling off and hovering around $146-147.

July 19th, 2008 | Shabbir Bhimani | 0 comments | Continued

Yet another airline, that takes cost cutting strategy more seriously

Jet’s low cost subsidiary, “JetLite” will stop serving free water, toffees and snacks on its flights. This action will start with effect from August 8, 2008 onwards. Hence, the statement in which the company once strongly believed is no more a concern to them now. The slogan says: “A passenger is like a guest at home who can’t be charged for the food served on board.”

July 16th, 2008 | Shabbir Bhimani | 0 comments | Continued

Understanding inflation and edible oil consumption effect

As per many Guru’s on TV inflation is likely to surge to 17% by September 2008. The government is likely to hike prices between 10 and 20% again, as early as September to limit fiscal risks. The rise in the price for the Indian crude oil basket could be the trigger for another round of increase in fuel prices to $145 to 150 per barrel from the current $132 per barrel.

July 15th, 2008 | Shabbir Bhimani | 1 comment | Continued

Looking into the airline industry which is in doldrums

The Indian aviation industry is passing through a bad phase, where all airlines are reporting mounting losses due to Jet fuel rising prices and due to steep fall in load factors. The main culprit is the ATF rise spike. However, the airline itself is also responsible for the present condition.

July 12th, 2008 | Shabbir Bhimani | 1 comment | Continued

Taking steps towards breaking the vicious cycle of inflation

The government should also ban needless use of cars in a planned manner. Buses, trucks, housing and railways should be subsidized, with massive cuts on service taxes and direct subsidies for carrying passengers and cargo at cheaper rates.