Sunday, December 30, 2012

Biggest Gainers and Losers in NSE Nifty - 2012

With NSE Nifty delivering around 26% return in 2012 in rupee terms the year has been spectacular for investors in general but at the same time it has been highly polarized year in terms of individual stock performances. 

If you have been in the right sector and stocks you might have delivered far more than the broader markets. Within the benchmark index itself there has been huge divergence in performance of individual stocks. For example IDFC is up 82% in 2012 while Infosys is down 16% in the same year.

Income Tax Calculator Excel (FY 2013 - 2014)

With financial year ending on 31st March 2013, if you have been thinking of how much is your income tax liability for the current financial year then here is a calculator in excel format to help you with that. It's an extremely easy to use calculator and helps you not only in assessing your income tax liability for the current financial year 2013-14 but also let's you tweak numbers under different head and plan investments accordingly. 

The income tax slabs were revised in budget 2012 and the limits were raised marginally. However there will be more savings for people earning more than 8 lakh per annum.The revised slab for the current assessment year i.e AY 2013 - 2014 is:

Tuesday, December 25, 2012

IIFCL Tax Free Bonds

India Infrastructure Finance Company Limited (IIFCL) will open its public issue of Tax Free Bonds of the face-value of 1,000 each in the nature of secured, redeemable, non-convertible bonds, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, aggregating up to a total of Rs. 1,500 Crores with an option to retain an over subscription upto the shelf limit (i.e. 9,251 Crores ) (CBDT notification authorises IIFCL to issue Bonds for an amount aggregating to  10,000 Crores during FY13. IIFCL has already raised  785 crores on private placement basis).

Tuesday, December 18, 2012

Income Tax Savings under Rajiv Gandhi Equity Saving Scheme - 80CCG

From the financial year ending March 31, 2013, there is an opportunity to save up to 50% of the amount invested in notified equity schemes under newly inserted Section 80CCG for Rajiv Gandhi Equity Saving Scheme. The income tax savings under this can be a maximum of INR 25,000.

Saturday, December 15, 2012

Sell Sesa Goa 170 Dec Put option at 0.50 Premium

This month's trading idea could generate around 1.9% in 10 days or 69% annualised return and has huge probability of success considering the buoyancy in the markets and the developments happening around iron ore mining in Goa. 

Even after Supreme Court's ruling the stock refuses to go below 180 which indicates stronger long term hands might be accumulating stocks as things can go only better from current situation as far as iron ore mining in India is concerned.

Sesa Goa was our investment pick as well in November when we recommended buy on the stock in the range of 165-175.

Tuesday, December 11, 2012

Free online courses on Stock Market Investing and Equity Valuation

If you have a desire to learn how to value stocks and shares then the course titled "Introduction to Valuation and Investing" from Alison would definitely solve the purpose. 

This free online course on Investing is an introduction to valuation and investing and aims to take the fear-factor out of stocks and shares by explaining the concepts behind valuing and investing in a clear and simple manner.

After this course the learner is expected to Understand Income Statements; - Understand Return On Assets (ROA); - Understand Return On Equity (ROE); - Understand Price-to-Earnings ratio; - Understand depreciation; - Understand amortization;

Tuesday, December 4, 2012

Rural Electrification Corporation (REC) Tax Free Bonds

Rural Electrification Corporation Limited or REC opens its public issue of Tax Free Bonds of the face-value of  1,000 each aggregating up to a total of  4,500 crores. The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income.

The issue has 2 investment options - 7.72% p.a. (10 Yrs) & 7.88% p.a. (15 Yrs) for investments upto  10 Lakhs and 7.22% p.a. (10 Yrs) & 7.38% p.a. (15 Yrs) above 10 Lakhs. 

The issue starts on December 3, 2012. Allotment will be on a first come first serve basis across all categories.The REC issue has been rated "CRISIL AAA/Stable" by CRISIL, "CARE AAA" by CARE, "IND AAA" by IRRPL and "[ICRA] AAA" by ICRA.

These bonds are tradable and are not subjected to any lock-in.

Friday, November 30, 2012

Bharti Infratel IPO : Price Band, Size, Valuation

Bharti Infratel Ltd, the tower arm Bharti Airtel Ltd, is set to raise up to INR 4,500 crores in the month of December through it IPO. The company set a price band of 210-240 rupees per share for its IPO, which will open on Dec.10 for cornerstone investors and a day later for the public, closing on Dec. 14, it said on Friday. At the upper end of the price band, Bharti Infratel would raise about 45.3 billion rupees ($825 million).

In the sale of 188.9 million shares, or 10 percent of the company, Bharti Infratel will sell about 146 million new shares, while four of its stockholders, including arms of Singapore state investor Temasek and Goldman Sachs, are selling 42.7 million shares, according to the regulatory filing.Bharti Airtel, which owns about 86 percent of Bharti Infratel, will not sell any shares.

Thursday, November 29, 2012

Goldman Sachs view on India - 2013

Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead pegging December 2013 Nifty target at 6,600. 

Recent reform initiatives have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," said Goldman Sachs in a report.

The investment bank added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.

Free Online Course on Finance with Certification

If you are willing to do an online course on finance which helps you get a foothold on the basic of finance and asset valuation and also provides a certificate on completion then there is a very good news for all of us willing that. 

University of Michigan is offering a free online course on Introduction to finance through Coursera which is expected to introduce you to frameworks and tools to measure value; both for corporate and personal assets. It will also help you in decision-making, again at both the corporate and personal levels. 

Wednesday, November 28, 2012

Free Course on Investing: MIT Sloan School of Management

If you ever wanted to attend or read lectures on investing from one of the top tier international Institution/University but couldn't do so for some reason then here is your chance to do an offline course on Investing from MIT Sloan School of Management. The full course can be downloaded directly from the link given below and it includes comprehensive set of lecture notes for all 23 lectures to explain core concepts along with the assignments and exams.

Gap Trading Strategies: How to trade gaps in stocks?

For novice traders gaps are not easy to digest due to sheer psychological reasons but seasoned traders know it's importance and how to trade it. An active trader should know the basic Gap trading strategies as they are simple to apply and produce positive outcomes most of the time. 

If you have been wondering what is meant by a gap then here is the simple definition. A gap is a change in price levels between the close and open of two consecutive days. In trading terminologies there are in general four types of gaps - Full Gap Up, Full Gap Down, Partial Gap Up, Partial Gap Down.

A Full Gap Up occurs when the opening price is greater than yesterday's high price while A Full Gap Down occurs when the opening price is less than yesterday's low. A Partial Gap Up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high while a Partial Gap Down occurs when the opening price is below yesterday's close, but not below yesterday's low.

Saturday, November 24, 2012

IPOs in December 2012

With the successful IPO issue of Mumbai based Tara Jewels, IPO market seems to have seen the light at the end of the tunnel. The issue, which closed on 23rd November, was oversubscribed 1.97 times. 

There are some five to six IPOs lined up for subscription in December which includes popular names like Bharti Infratel and CARE among others. Following are the details of issues up for grab in the following month:

Tuesday, November 13, 2012

Behavioural Economics - Mental Accounting for Profits and Losses

While reading Moneycontrol online I stumbled upon a very interesting article on Mental Accounting which in my view is a must read for everyone. The article explains about how people categories and treat money differently depending on where it comes from, where it is kept and how it is spent. 

I think if one can overcome this fallacy he will have altogether different perspective on Assets, Liabilities, Income and Expenditure.

Wednesday, November 7, 2012

Free Technical Analysis Software for Indian Stock Market

If you are an existing trader in Indian Stock Markets or just learning technical analysis to start trading, you require a software where you can plot basic as well as as advanced indicators such as Moving Averages, RSI, Bollinger Bands etc on different charts such as Line, Bar etc so that you can predict the direction and quantum of next move.

Well there are many paid as well as free software available for download but being a trader and investor for past 8 years I feel the free technical analysis software provided by some of the largest online stock brokers in India are more than sufficient for even seasoned traders as they are capable of doing both basic as well as advanced level of technical analysis.

Saturday, November 3, 2012

Buy Sesa Goa in the range of 165 - 175

The recent announcement of iron ore mining ban being lifted selectively in Karnataka has triggered this buy call by InvestorZclub. It seems that all the negatives are priced in the stock of Sesa Goa, India largest iron ore mining company which derives 80% of it's ores from Goa.

Now the selective removal of mining ban will augur well for the stocks like Sesa Goa, as the news flow for the sector as a whole can only get better from here and couple of months down the line the mining ban in Goa will also be removed.

Wednesday, October 31, 2012

Mahurat Trading on Diwali

On the auspicious occasion of deepawali, which marks the beginning of new Samwat for hindus, Indian stock exchanges conduct Muhurat trading where the markets are open for trade for a period of 45 minutes. As diwali is also considered as the day for Goddess Laxmi, it is believed to be extremely lucky for the entire year if you buy some stocks or at least do some trade. 

For this year National Stock Exchange (NSE) announced that special Muhurat trading session will be conducted on account of Diwali on November 13 between 1545 hours and 1630 hours on the day.

Stock that could benefit from Hurricane Sandy

Hurricane Sandy is believed to the worst storm ever that has affected millions of Americans. However if you are an investor or trader in american stocks then this storm does bring some ideas for investment.  

First company that would benefit the most is Home Depot (HD). People who lost their homes and mobiles need to repurchase these products. Companies within the home improvement industry should benefit from the hurricane. Home Depot being the largest company in that category gets benefited the most.

Tuesday, October 30, 2012

InvestorZclub launches Forum for its Readers

After having received number of suggestions from readers regarding providing a platform for discussions related to investing and trading, InvestorZclub is extremely happy to announce an integrated discussion board for it's readers named INDIBO - Investors Discussion Board

The forum is based on and is extremely easy to use and post. Unlike other stock market forums, no registration is required here and one can login instantly with their existing facebook, google or yahoo IDs. Amit Agarwal will be actively participating in this forum and will try his best to provide value to it's loyal readers. 

You can access the forum from here: Indian Stock Market Forum

Now let's talk stocks! 

Suggestions are highly appreciated. 

Thanks a ton.

Thursday, October 25, 2012

Vijay Mallya Net worth: 2012 - 2013

Vijay Mallya, also some times referred as King of good times due to his flamboyant life style, is having nothing but bad times lately. He is out of Forbes Indian billionaires list with net worth down to $ 800 million in 2012 from $ 1.1 billion as per 2011 Forbes Billionaire list. 

Vijay Mallya is the owner and chairman of the United Breweries Group. United Breweries is the second largest spirits group in the world. He has invested heavily in sports, which includes an IPL team and a Formula One team worth 88 million euros. Mallya has for himself a vintage car collection of over 250 cars. In 2009 he bought Gandhi’s wire rimmed spectacles, pocket watch and other personal possessions being sold in an auction in New York for $1.8 million USD.

Goldman Sachs View on Crompton Greaves

Goldman Sachs has upgraded Crompton Greaves to buy from neutral and has raised its target price to Rs 155 from Rs 120, citing better prospects of domestic orders and margins. 

The investment bank says the company would benefit from the balance sheet restructuring of state electricity boards and power sector reforms as over 25% of its revenues are driven by domestic power transmission and distribution capex. The investment bank also said that the company is trading at attractive valuations.

Sun TV enters IPL at huge premium: Acquires Deccan Chargers

Sun TV has bought the Deccan Charges franchise for Rs 85.05 crore a year, by out bidding PVP Ventures which placed it's bid at Rs 69.03 crore. Sun TV's price represents a 100 per cent premium over what was paid by Deccan Chronicle.

Being a shareholder I didn't liked this decision for couple of reasons. The number one being it's not an asset but a recurring cost which wipes out more than 10% of what the company could deliver in terms of profit for fiscal year 2013. Above that there is the recurring cost of acquiring players and coaches and maintenance of the team which could take away another 25 crores per annum. 

Saturday, October 20, 2012

ITC: It's time to sell

ITC reported very good set of numbers for the second quarter of Fy 2013 with profit rising 21% YoY and sales rising 18% YoY. The stock reacted positively and touched all time high of 299.20 a tad below the psychological 300 mark. Everything seems to be going perfect for the company but the bigger question is should we buy the stock now? I think ITC is priced to perfection and it's time to sell if you have the stock or avoid if you don't have the stock in your portfolio. 

It's not that I am bearish on the stock, but being a contra investor I think the company is very near to its major long term top and the risk reward ratio is not in favor of investment at this level. Consider the following points:

1. ITC has 80% market share in cigarettes business which is almost at the top and cannot be increased further. So volume growth in this segment will be difficult to attain.

Monday, October 15, 2012

Reliance Industries (RIL) Q2 FY 2012 - 2013 Result and Valuation Analysis

Mukesh Ambani's flagship company Relaince Industries reported a 6% fall in net profit at Rs 5,376 crores YoY but a rise of 20% QoQ inline with street expectations. The company reported a net profit of Rs 5,703 crore in the same period a year ago. 

However, total income in the second quarter of current financial year 2012 - 2013 increased 16% to Rs 92,447 crore as against Rs 79,671 crore a year ago. The GRM for the quarter stood at $9.5 per barrel also in line with expectations. 

For the full year RIL is expected to do a PAT of around 21,000 crores which values the company, at the current market price of Rs.825, at a PE multiple of around 12.7 times which seems reasonable and neither cheep nor expensive due the recent run up in stock price from 700 levels to 840 levels and issues related to KG D6.

Is academic degree required to succeed in stock markets?

If you have been thinking that you cannot start investing in stocks markets just because you have knowledge or specialization in other field and no formal degree or qualification in finance and investing, then you should change that thinking and start right away. People from engineering, dance and other backgrounds who have nothing to do even remotely with finance and investing have been far more successful than people who have direct qualification in finance. In the following candid interview (excerpt taken from Business Standard), Vijay Kedia of Kedia Securities talks about his journey from trader to investor and how to identify multibagger stock ideas.

There is saying that if you start investing early the chances of claiming success in the markets are high. Vijay Kedia, who started his investing lessons at the age of 14 has many things to share. He speaks with Jitendra Kumar Gupta about his journey from a trader to investors and how he identifies some of the multibagger stock ideas. Kedia is director at Kedia Securities and currently runs his proprietary portfolio and holds stake in some of the companies as Agis Logistics, Godrej Properties, Cera Sanitaryware and Atul Auto among others.   

Saturday, October 13, 2012

Corporate FDs Yield Comparison Table

An increasing number of investors are choosing to invest in corporate fixed deposits either to balance other riskier investments like equity or to park their funds for fixed returns acting as a safe guard of one's hard-earned money. Prudent customers are making the best of the current opportunities and freezing their investments in corporate FD's which provides higher rates than Bank FD's.

Following is the calculation of maturity value of 1 Lakh in DHFL, Mahindra Finance and Shriram Transport Finance Fixed Deposits in the below table for reference. 

Sunday, October 7, 2012

Krishna Karpal Blog: Online Money Making Fraud

Krishna Karpal Money Making Fraud
You might have come across an advertisement about making $6000 a month on a website which will take you to the following link:

The article is completely a misleading article and many people have already fell victim to this another Internet scam. The article featuring Krishna Karpal from Bombay claims that she is making more than $7,000 a month online. The article also claims that the company is getting around thousands of people joining them every day, mostly with very little computer experience. This is a huge scam and please do not fall victim to such easy money making method. Even the snapshot of the cheque is fake as you can compare the images of cheques on these two sister pages:

Thursday, October 4, 2012

Sell Maruti 1500 Oct Call Option at 10.00 Premium

This months trading idea is on a stock which is being loved by the street these days but the trade idea is on the contra side. The incremental set of good news, after the lockout at Manesar was lifted, has played it's role and the stock went up from the low of 1080 in mid July 2012 to 1390 as on 4th October 2012, an appreciation of almost 30% in 2.5 months time frame. 

Wednesday, October 3, 2012

CLSA downgrades Infosys - Target price 1566

CLSA in its global research report said Infosys stock could fall 40% from the current levels in 12 months. The report has fixed the price target at Rs 1,566. The report further added that sector multiples are likely to keep de-rating. The recent appreciation in the Indian currency might prove negative for the sector as well as for Infosys and its prices could fall. A 4% strengthening of the rupee will hurt Infosys earnings by about 5%. And a 13% move in the rupee would reduce earnings by 17%. In the first half of the year 2012, most of the Infosys earnings came from the nearly 8% rupee weakening. 

How to make money in stocks ebook pdf

One of best book for beginners, William O'Neil has combined both Technical & Fundamental Analysis in this best selling book which gives you a very good framework for building your own stock market investing approach. 

How to make money in stocks is a guide to understand how the Stock Market really works and it is full of clear examples and a very structured approach. O’Neil’s powerful CAN SLIM  Investing System—a proven 7-step process for minimizing risk and maximizing gains—has influenced generations of investors. William J. O'Neil is the founder and chairman of Investor's Business Daily

Saturday, September 29, 2012

Should we buy stocks now?

Being a consultant and investor I am facing a very genuine question these days by almost 90% of the investors I meet and that question is "I missed the rally, should I buy stocks now?" Well the feeling of being left out is very painful sometimes even more than loosing money on stocks. The straight forward answer I give them, without citing too much of reasons, is a big No. The reasons are many and cannot be explained verbally in couple of minutes. So I decided to pen them down in this post.

1. FIIs continue to put money while DIIs continue to pull. FIIs were net buyers to the tune of around 20,000 crore while DIIs were net sellers to the tune of 8500 crore in the month of September alone. FII money are short term money and driven by global factors which could start reversing in case of any bad global economic news and then there will be no buyers to support the selling pressure till it reaches an attractive level where DIIs start putting money backs into the markets.The Indian stock markets have become purely FII driven market since last few months which is not a very sound situation for our markets.

Friday, September 21, 2012

Rajiv Gandhi Equity Savings Scheme (RGESS)

The Union Government, has finally cleared the Rajiv Gandhi Equity Savings Scheme (RGESS) which is supposed to help bring back retail investors into the stock market, and more importantly make stock investment more attractive from gold purchases which results in higher forex outflow. The good part is that this time the RGESS benefit has been extended to mutual funds as well which was not the case before in it's previous form. 

Saturday, September 15, 2012

Q2 FY 2012 - 2013 Advance Tax Payment by India Inc.

Advance tax numbers provides good indications of what lies ahead for companies as far as quarterly results are concerned. 

Here is the list of top companies in India with their second quarter 2012 advance tax payment figures (all in crores)

Friday, September 14, 2012

FIIs bullish while DIIs continue to sell

FIIs continue to pump in money into Indian equities and have been aggressive buyers on 14th Sep rally while DII's continue to remain bearish and have been a net seller of the strong rally of around 450 points on sensex. 

Foreign institutional investors (FIIs) were net buyers of Rs 2,833.72 crore in cash market while Domestic institutional investors (DIIs) were net sellers of Rs 688 crore in the cash segment. 

FII have so far poured in huge amount of money into indian equities to the tune of around 65000 crores in 2012.

Thursday, September 13, 2012

Debts of some of India's biggest infrastructure Companies

It would be interesting to know how some of the companies grew by leaps and bounds in past few years and announced monster sized projects and expansion, be it in Steel or Power or other infrastructure sectors. The stocks used to go up on expansion plans without bothering about how those massive projects going to be funded. 

Companies lobbied PSU banks top bosses and secured loans for their over ambitious projects without putting substantial guarantees.  The money owed by the top 10 groups to banks is close to Rs 5,40,000 crore – up five-fold in five years. Wonder what the banks’ loan officers were thinking when they allowed this to happen. 

Wednesday, September 12, 2012

Gift Tax in India: Rules, Rates, Exclusion & Limit

Receiving gift in cash or kind can save you lot of taxes provided the gift is received from the permissible relative and within the annual limits. The main problems is faced by individuals when they look to receive or give gifts and is not being knowledgeable about when the gift would be taxable. 

By Definition "Any gift received in cash or kind exceeding Rs.50,000 is taxed in the hands of recipient under the head income from other sources. However gifts received from specified relatives are exempt from Income Tax, and there is no upper limit on the amount. 

Now the confusion is usually on the relative part. The term relative means following as far as gifts under income tax are concerned. A relative can be any of the following:

Tuesday, September 11, 2012

Sell RCom 42.5 put of Sep expiry at 0.15

There seems to be nothing going right as far as Reliance Communications is concerned. All sorts of bad news have engulfed the stock whether its very high amount of debt or inability to sell stakes in infratel and flag telecom or loosing 20 million subscribers in a month. But since everything has a price, it seems that enough battering is done in the stock and the stock could find good support at lower levels. 

After two days of loosing the stock bounced back sharply in today's trade (11th sep 2012) from 48 levels to 52 on the back of huge volumes. 

Considering these factors options traders can sell Rs.42.5 PUT at the current market price of Rs.0.15 or higher as the stock is not expected to break below 42.5 level in September expiry. 

Total return from the strategy

Saturday, September 8, 2012

Buy Cipla for trading and short term investing

Short term investors and traders can go long on Cipla Ltd. as the stock has hit new 52 week high supported by increased volumes on the back of news of the company winning a patent case against Roche in Delhi high court. The company has also reported very strong July quarter numbers which is creating positive sentiment for it's stock. Valuation wise the stock is expensive but one of the cheaper stocks among large cap pharma names listed on Indian bourses which is triggering the fresh buying interest in the stock.

IIFL NCD Issue: Double in 6 years

India Infoline (IIFL), one of the largest equity broking company in India, is proposing the following NCD issue to be listed on NSE and BSE for a tenure of 6 years. Under cumulative scheme Rs.1000 invested would accumulate to Rs.2054, more than double in 6 years. Investors who are looking for safe but higher than banks FDs return can consider applying for the issue.

Tuesday, September 4, 2012

FII Investment Inflows in India: Year wise data

Indian Stock Markets have been highly dependent on FII money and the market performance is usually directly proportional to the FII inflows and outflows. 

FIIs have invested over Rs 63,000 crore till august 2012, their highest ever investment in the first eight months and the benchmark BSE Sensex is up around 12%. In spite of highest ever inflows the markets couldn't perform that well, thanks to the Domestic Institutional Investors(DIIs) who have been net sellers during the year facing higher redemption. 

However with abundant liquidity situation worldwide, there is increased probability of India receiving more inflows in coming months. If you have been looking for the FII inflows in India till date, above is the snapshot of year wise inflow of FII money into Indian Capital Market and the corresponding effect on the benchmark index Sensex.

Saturday, September 1, 2012

Facebook IPO: A joke that made people cry

Facebook Dislike
When the Facebook IPO was announced few months back I was excited as I saw an opportunity to invest in a company which owns a website where I used to hangout for hours. But when I looked at the IPO details from investment perspective I was absolutely surprised by the kind of price it was demanding. Zukerberg and early FB investors wanted to cash the euphoria and hence priced the shares at $38. But any wise investor would have avoided the IPO simply because of following reasons:

Saturday, August 18, 2012

8 reasons why you should invest in Corporate Deposits

With equity markets sluggish in India and interest rates unusually high due to high inflation, companies, being unable to raise fresh equity capital , are trying to raise capital via corporate fixed deposits. These deposits are rated and investors can choose to invest in these deposits based on their risk appetite. Strong companies have almost negligible risk of defaulting while companies with very high debt has some risk of defaults on maturity. Hence the later pays higher interest rates on their deposits to compensate for the risk than the former.

If you aren't aware of all the benefits that corporate deposits provide then here are the eight reasons why you should seriously consider it.

Thursday, August 16, 2012

How to watch CNBC TV18 live on Internet

Like me there are many investors and traders in India and abroad who wants to stay tuned to their favourite stock market or business news channel,  on their phones, tablets or laptops via Internet, while travelling. 

In India CNBC TV18 has the largest markets share and many people like me start their morning by not listening to bhajans but CNBC TV18. 

Sometimes I have to travel for hours while the market is open and I felt a dire need to watch CNBC TV18 on the go as I used to miss important trades due to sudden news and updates about companies, sectors or economy. 

Sunday, August 12, 2012

Billionaire Investor, George Soros, getting married to Tamiko Bolton at 82

George Soros of Soros fund management is all set to get married for the third time at the age of 82 with his much younger girlfriend Tamiko Bolton. Soros proposed to Bolton, 40, a few weeks ago during a weekend visit to the Hamptons. Soros has five children from his previous marriages. 

Last year, Adriana Ferreyr ,a former girlfriend of Soros, filed a lawsuit in Manhattan state court, alleging he reneged on a promise to buy her an apartment. Soros has filed a pending motion to dismiss the lawsuit filed by the former Brazilian soap opera star.

Friday, August 10, 2012

HUL back in top 10 market cap list after 3 years

The FMCG major, Hindustan Unilever, has outperformed Sensex by huge margin to get back into the elite club of top 10 companies with highest market capitalization in India. 

HUL hit historic high of Rs 496 today, toppled ICICI Bank to become the country's 10th most valued firm in terms of market capitalization. HUL outperformed the Sensex during the past one year gaining 57% as compared to 2.4% rise in the benchmark Sensex. 

However investors should stay cautious as the valuation is quite stretched. The company's shares are valued at more than 33 times based on FY-13 earnings while the benchmark index sensex is valued at around 15 times for the same financial year.

Thursday, August 9, 2012

Provident Fund (EPF) ePassbook download – Know your balances

epf ePassbook
The launch of Member e-Sewa facility by the PF Department (EPFO) has enabled members to get detailed account statements with all credit and debit on request through the EPFO website.

InvestorZclub is glad to inform all the EPF account holders that the EPFO has now brought this dream alive by launching the member services portal at - though the portal is still in Beta mode (brought down regularly every day for making updates and expected to be a comprehensive live service soon) you can register on it right now, to take a look at your e-passbook which contains all your PF balances and transaction details.

Tuesday, August 7, 2012

Sell Titan Industries 250 Call of August Expiry

This month's trading idea germinates from the market favorite Titan Industries. The company reported disappointing result for the first quarter of the current fiscal due to slowdown in jwellery business. The company is trading at expensive valuation of around 30 times based on FY-13 EPS which limits any substantial upside for the stock in the short term. Hence option traders can sell 250 call option of august expiry at the current market premium of 0.95.

Total return from the strategy

Tuesday, July 24, 2012

NSE to suspend 51 stocks from derivative (F&O) segment

As per revised and more stringent eligibility criteria, National Stock Exchange will suspend following stocks from derivative segments from October 2012 onwards. However the NSE said, "The existing unexpired contracts of these securities for the month of July, August and September 2012 would continue to be available for trading till their respective expiry.

Friday, July 20, 2012

Google ad rates (Adsense CPC) falls significantly in 2012

Bloggers and Google adsense publishers have been experiencing sudden fall in cost per click (CPC) rates since past few months which might have affected their overall earnings. But at the same time the click through rate (CTR) should have increased marginally partly offsetting the fall in CPC rate. 

This is primarily happening due to the overall fall in the advertisement rates given by the advertisers. In the second quarterly report google mentioned that "Advertising rates, or costs per click, have headed south as users gravitate to smartphones and tablets, where Google can generally charge less than on desktop computers.The cost per click for online search ads continued to decline in the second quarter, falling 16% year-on-year but the overall number of clicks on ads, however, increased a robust 42%."

Monday, July 16, 2012

Dewan Housing Finance Ltd. (DHFL) Fixed Deposit Scheme - 2012

DHFL, India's one of the premiere housing finance company, has revised the rates on it's cumulative and non-cumulative fixed deposit schemes for retail investors. 

Sunday, July 15, 2012

ICICI Direct Research Report on Bharti Airtel: Recommend Strong Buy

ICICI Securities has become very bullish on India's largest telecom company Bharti Airtel and has recommended a strong buy on the stock with a target price of 420 which is good 37% appreciation from the current market price of 306 as on 13th July 2012. 

The brokerage report says "Using the DCF methodology for valuing Bharti and assuming a revenue CAGR of 7.9% in FY12-20E and a terminal  growth  of  3.0%  thereon,  we have arrived at a target price of  Rs 420. The risk reward seems to be favourable at this point. We rate the stock as STRONG BUY"

Friday, July 13, 2012

LIC holdings in Infosys crosses 6 percent

Life Insurance Corporation of India (LIC India) doesen't seem to be bothered much as far as Infosys under performance is concerned and is playing contra by investing an additional sum of Rs 2,000 crore in the first quarter of the current fiscal. 

LIC seems to be taking advantage of the blue chip stock being available at historically low valuation. At the current market price of Rs.2150 the stock is trading at a PE multiple of 12.5 times based on FY-13 expected EPS of 170 which is very cheap considering the size and the quality of the company. LIC is the largest non-promoter shareholder of the company.

Wednesday, July 11, 2012

World's Top 10 Young Teen Entrepreneur Millionaires

We all know that entrepreneurs carry different genes that distinguish them from the 99 percent of the population who just wish to work for somebody else throughout their life to lead a constant life. Entrepreneurs take risk and choose to ride a bumpy road to achieve a greater goal for themselves and the society at large. Age is never a bar for this rare breed and following are some of the examples which demonstrates how these young entrepreneurs became successful at such tender age. 

Andrew Hsu : Co-Founder of Airy Labs, a business that creates social learning games for children. Hsu has managed to snare $1.5 million in seed funding for Airy Labs. He was a graduate of the University of Washington by 16.

Friday, July 6, 2012

Morgan Stanley view on Tata Motors for 2012

Morgan Stanley has turned bearish on the India's largest CV maker, Tata Motors, and has lowered its year end target price for the stock to Rs 240 from Rs 291 and maintains its "equal-weight" rating on the stock. The market price of the stock at the close of the markets as on 6th July 2012 was 240.55. 

Sell JSW Steel July 780 Call option at Rs 5

Credit Suisse in a report dated 6th July 2012 stated that JSW Steel understated FY12 net debt by at least Rs 11,900 crore. The company stated debt stood at Rs 16,600 crore for FY 2012. Creidt Suisse arrived at the figure based on following three reasons:

1. Acceptances of Rs 75 bn (up from Rs68 bn in FY11) are effectively debt
2. Securitised receivables of Rs 31 bn (up from Rs26bn); and 
3. Rs12 bn from the fall in INR; un-hedged liabilities are now $3 bn.

Steel industry is mainly valued on EV/EBIDTA basis and such latent debt of almost 70 percent of the stated debt in annual report certainly makes the valuation expensive especially for JSW steel. The stock is expected to remain under pressure and hence a good short term trading opportunity is visible. Instead of shorting the stock directly in futures one can sell 780 call of JSW Steel at the current market premium of Rs 5.

Total return from the strategy

Thursday, July 5, 2012

Mutual Fund Schemes that outperformed SENSEX and NIFTY in H1 2012

Reliance Mutual Fund's Reliance Banking Fund (Growth) and Reliance Tax Saver (ELSS) Fund (Growth) have outperformed benchmark indices Sensex and Nifty by huge margins with year-to-date returns of 28.35% and 25.12% respectively. Sensex and Nifty have gained 12.78% and 14.16% respectively since the beginning of 2012. 

Apart from the above two ICICI Pru Discovery Fund (Growth), Reliance Equity Opportunities Fund (Growth) and IDFC Sterling Equity Fund (Growth) has delivered returns in excess of 25% so far this year.In total there are 38 mutual fund schemes which have given better returns than the benchmark indices Sensex and Nifty so far this year.

Wednesday, July 4, 2012

Money Bags by Chinese Feng Shui - July 2012 Calendar

This year we have very unique month of July which comes once in 823 years. July 2012 has 5 Fridays, 5 Saturdays and 5 Sundays which rarely happens. According to Feng Shui this is called a money bag and sharing this brings money imminently.

Jobs in USA, Greece and Italy - Humor

Please share if you like it

Sunday, July 1, 2012

Country wise Stock Market Performance in H1 2012

If you look at the stock market returns generated by the countries all over the world you will be surprised to know that Turkey and Pakistan has been the best performing countries in the world in first six  months of the current calander year. 

Turkey stock markets has delivered 22 percent while pakistan's stock markets has delivered little less at 21.62 percent returns in the first half of 2012 calander year.

India has also done well with 12.78 percent gain while Germany is up 8.78% during the same period. 

Spanish markets, one of the biggest European countries in soveriegn debt trouble, has been one of the worst performers with negative returns of 17.09 percent. 

One of the interesting thing to note is that while US markets were up 7.7 percent, Canadian markets are down 3.41 percent.

Among BRIC countries Brazil has been the worst performer with -5.06 percent returns followed by Russia with -2.3 percent. 

India has  clearly stolen the show in terms of equity returns as far as BRIC nations are concerned.

Greece, the centre of all the crisis in Europe, is not the worst performing market in the world and is down around 10 percent year to date.

Friday, June 22, 2012

List of World Richest Internet Entrepreneur Billionaires

Online business from Amazon to Google or Netflix to Facebook have produced billionaires from garages and dorm rooms. Each of the Internet venture that became successful had one thing in common, passion. 

If you are also an internet entrepreneur and have been looking for net worth of top Internet billionaires of the world then here is the list (all figures in billion):

Thursday, June 21, 2012

Real time crude oil prices: Short and long term charts

Crude oil, often termed as black gold, is the most tracked commodity in the world. Indian Economy is almost entirely dependent on crude for its energy need. Crude prices are almost inversely related to equity markets and hence affects both commodity and equity investors. Hence if you are a regular crude oil watcher and it movement affects you then don't forget to bookmark this page to keep a tap on the real time prices and it's short term and long terms trends. In the following chart just hover your mouse on the period and the chart for that period will load instantly.

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...