Wednesday, May 30, 2012

EUR vs. USD - 5 Year Chart

EUR has seen precipitous fall against USD in the past 1 year, from the levels of 1.47 in early 2011 to 1.24 in May 2012,due to weakening Euro Zone situation.

In the past 5 years EUR has seen the lowest closing level of  1.19 as on 8th June 2010. A fall below this level would see further downside for the EUR currency. 

However it seems that most of the negatives in the Euro Zone is already priced into the currency. In case Greece exits from the Euro Zone, a fall below the levels of 1.19 cannot be ruled out.

Sunday, May 27, 2012

Sell In May And Go Away - How true is the proverb?

As far as Dalal Street is concerned the adage "Sell in May and go away" seems to be holding true for the three years in succession. 

During the month of May 2012 the benchmark index, Sensex has fallen by over 1,100 points. This would be the third consecutive year of a large-scale plunge during the month of May for the Indian stock market, as also for many global markets, the historic data suggest.

Wednesday, May 23, 2012

Mark Zuckerberg Biography PDF - ebook: Download

Facebook founder, Mark Zuckerberg, who is being compared with the legendary Apple founder Steve Jobs, is a 26 year old billionaire as on May 2012. After the successful IPO of Facebook on 18th May 2012 at $38, Zuckerberg became one of the richest person in the world with networth exceeding $19 billion. 

Zuckerberg is the largest individual shareholder with 28.4 percent of the common stock and controls 56.9 percent of the voting power in Facebook. 

Tuesday, May 22, 2012

White Paper on Black Money in India - Highlights

The long-awaited White Paper on black money, which got tabled in Parliament on Monday, prescribed moderate tax rates and measures to rein in the parallel economy in real estate, the financial sector and stock markets. The paper neither gave any estimate of unaccounted money nor revealed any names that could be held responsible for its accumulation.

Citing the examples of the US, UK, France and Germany, the paper said, "In the past, India has also opted for voluntary disclosure schemes. A similar scheme, targeted at black money stashed abroad, can be a one-time option in view of the increasing capacity of tax administration to access information from foreign jurisdiction."  

Wednesday, May 16, 2012

Cairn India, BOB and Godrej Consumer enters MSCI, Suzlon Out

Cairn India, Bank of Baroda and Godrej Consumer Products has been included in MSCI global indices effective 1st jun 2012. These stocks have rallied in an otherwise weak market.

Godrej Consumer Products has rallied over 9% to Rs 567 on the National Stock Exchange.  Cairn India and Bank of Baroda are up 3% each on back of huge volumes.

However, Suzlon Energy has slipped 5% at Rs 18.85 on removal from the MSCI index. All changes in MSCI indices will be implemented on close of May 31, 2012.

Rakesh Jhunjhunwala buys RBS stake in Prime Focus

Rakesh Jhunjhunwala has increased his stake in visual entertainment services firm Prime Focus by acquiring additional shares worth Rs 11 crore through open market transactions.

According to bulk data available with the stock exchanges, Jhunjhunwala purchased 25.50 lakh shares (amounting to 1.71% stake) of Prime Focus held by Royal Bank of Scotland (RBS) for Rs 42.05 a share, valuing the deal to Rs 10.72 crore.

As of last month, Jhunjhunwala and his wife Rekha Jhunjhunwala held 5.93 per cent stake in the company.

Monday, May 14, 2012

Undervalued beaten down stocks in Sensex and Nifty

There can be no better alternative to stocks which are sector leaders and are available at very attractive valuations. Not very often we get opportunities where the market leaders are trading at discount to their intrinsic values. InvestorZclub has compiled a list of stocks which are leader in the sector they operate in but are available at the bottom range of the historical valuation due significant fall in stock prices. 

Sunday, May 13, 2012

Sell Reliance Industries 640 Put Option at Rs.3

Option traders can consider selling 640 Put option of Reliance Industries (May Expiry) at the current market premium of Rs. 3.00. This trade would generate more than 3 percent return in less than 20 days. However it must be noted that if RIL falls below 637 then there would be loss of Rs. 250 on every rupee fall in the stock for each lot (RIL lot size 250).

Following are the details of the trade:

NIFTY to face resistance at 5125 - 5160 levels

Nifty after breaching of the last two months trading range has struggled to move past the 200 DMA (5103) during last week trade. The Nifty drifted lower after testing the 200 days SMA on Tuesday's trade. The corrective price action may continue until we see a faster retracement of the recent falls and a breach of the lower peaks and troughs formations.

Nifty has closed below the 61.8% retracement level (4950) of the December-February rally. In the process, it has also filled the previous rising gap area of 4980 formed on January 19, 2012. Sustenance below 4950 levels in the coming sessions will see the index eventually heading for a deeper retracement of the January-February rally to the extent of 70-75%, which projects major support near 4850-4800 area.

Wednesday, May 9, 2012

Countries with highest income tax rate of 50 percent

Are you based out of US, India or Canada and blame government for very high tax rates where the highest income tax rates are somewhere 30-33%. Checkout the income tax rates of the following countries and you will not feel that bad.

Austria: Average income in Austria, one of the world's best place to live, is about USD 50,700 while the highest income tax rate is 50%.

Belgium: Belgians in 2011, with average income of USD 52,700 pay, took home less than 45% of what they cost their employer, according to a survey by OECD. Here also the highest income tax rate is 50 percent.

Japan: It's the only asian country to have top tax rate of 50% which is more than double Asia's average rate of 23%

United Kingdom: UK increased its highest tax rate by 10 percentage points in 2010 to 50%.

Friday, May 4, 2012

Implied Volatility of NSE Nifty Options - India VIX Index - PDF

India VIX (Volatility Index) in a index to measure the implied volatility of Nifty 50 Index Option prices over the next 30 day period. The index reflects the investor's sentiment and is a helpful indicator of the amount of fluctuation that markets might witness in near term. Higher the implied volatility, higher the India VIX value and vice-versa.

Volatility is often described as the "rate and magnitude of changes in prices" and in finance often referred to as risk. 

Wednesday, May 2, 2012

Pipavav Shipyard's promoter stake pledge at 97 percent

In a disclosure made by the company to stock exchanges it was found that more than 97% of the promoter's stake have been pledged. Such high level of stake pledge is alarming for the investors as it's not clear whether the promoter is still interested in the company or not.

Following are the details of the equity capital structure of the company and the number of shares pledged by the promoter.

Capital (No. of Shares in Million): 691.20
Promoter Stake (No of Shares in Million): 299.58
Promoter Stake (in %) : 43.34
Pledged Shares (No of Shares in Million) : 291.47
% of Paid up Equity Pledged: 42.17
% of Promoter Stake Pledged : 97.29

Bharti Airtel Q4 2012 - 2013 Result Analysis

Bharti Airtel Ltd today reported a consolidated net profit of 10.06 bln rupees for the quarter ended March 2012, missing the Street's expectation of 12.46 bln rupees. The company's consolidated revenue for the quarter was 187.29 bln rupees.

Following are the highlights of the reporting quarter's earnings and comments of the company's management team: 

Barclays overweight on Bharti Airtel

Barclays has retained its "overweight" recommendation on Bharti Airtel, after the company announced its fourth quarter result, with a target price of 440 rupees.

The brokerage believes that improving subscriber additions could turn revenue growth dynamics in the company's favour. Also, the cancellation of some operators' second-generation licences will help competitive dynamics and allow Bharti Airtel the flexibility to balance pricing and volume. 

Tuesday, May 1, 2012

Home Loan Calculator with EMI Comparison Feature

Several Home Loan Calculators are available on internet for calculating your EMI (Equated Monthly Installments) obligation for taking a Home loan. 

InvestorZclub brings to you an advanced mortgage calculator which will not only calculate your EMI obligation but will also help you in comparing the EMI's for different rates, tenure and principals in the same window so that you can decide better based on your pocket.

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...