Inflation drags down Indians’ Savings rate at 15 year low

According to a recent publication by RBI (Reserve Bank of India), the central bank of India; the rate of net financial savings of Indians’ have come down below 10% of GDP (Gross Domestic Product).

It was at 12% of GDP in 2010 while for 2011, the RBI figure is 9.7%. Stunningly this is the lowest level in last 15 years.

Economists and RBI official say sustained inflation in basic necessity products is the main culprit for this situation which is eating up extra into pockets of Indian consumers. They also believe once the inflation moderates, the savings rate should also improve again.

The financial savings of Indians’ includes cash, currencies, bank deposits, corporate of other type of deposits, shares debentures, mutual funds, life insurance, pension funds and other types of small savings schemes.

The RBI also said that there also has been an increase in household liabilities, mainly due to debt taken from commercial banks at higher rates.

Holidays on NSE India for 2011

Market Timings:

Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment are:

Normal Market Open : 09:15 A.M.
Normal Market Close : 15:30 P.M.

The Closing Session is held between 15.50 P.M. and 16.00 P.M.

Limited Physical Market Open : 09:15 A.M.
Limited Physical Market Close : 15:30 P.M.

Holidays for the calendar year 2011:

·         Trading holidays

·         Clearing Holidays

S No	Date	Day	Description
1	26-Jan-2011	Wednesday	Republic Day
2	02-Mar-2011	Wednesday	Mahashivratri
3	12-Apr-2011	Tuesday	Ram Navmi
4	14-Apr-2011	Thursday	Dr. Ambedkar Jayanti
5	22-Apr-2011	Friday	Good Friday
6	15-Aug-2011	Monday	Independence Day
7	31-Aug-2011	Wednesday	Ramzan ID
8	01-Sep-2011	Thursday	Ganesh Chaturthi
9	06-Oct-2011	Thursday	Dasara
10	26-Oct-2011	Wednesday	Laxmi Puja*
11	27-Oct-2011	Thursday	Diwali - Balipratipada
12	07-Nov-2011	Monday	Bakri Id
13	10-Nov-2011	Thursday	Gurunanak Jayanti
14	06-Dec-2011	Tuesday	Moharum

The holidays falling on Saturday / Sunday are as follows:

S No	Date	Day	Description
1	01-Jan-2011	Saturday	New Year
2	20-Mar-2011	Sunday	Holi
3	16-Apr-2011	Saturday	Mahavir Jayanti
4	01-May-2011	Sunday	May Day
5	02-Oct-2011	Sunday	Gandhi Jayanti
6	25-Dec-2011	Sunday	Christmas

*Muhurat Trading will be conducted. Timings of Muhurat Trading shall be notified subsequently.

Note: The Exchange may however close the market on days other than the above schedule holidays or may open the market on days originally declared as holidays. The Exchange may also extend, advance or reduce trading hours when its deems fit and necessary.

Source: http://nseindia.com/global/content/market_timings_holidays/market_timings_holidays.htm

NOTE: ON THE ABOVE LINK, YOU WILL FIND THE LATEST LIST OF HOLIDAYS FOR DIFFERENT MARKET TYPES ON NATIONAL STOCK EXCHANGE.

List of Derivatives/futures and options on NSE National Stock Exchange of India Ltd./List of NSE Stock Futures

So many people ask us about the list of Stock Futures on NSE/securities and indices in derivatives/futures and options list on NSE.

We request all investors/traders and students of markets to thoroughly visit websites of nseindia and bseindia. You will find so many useful information on these sites itself, including latest data and tools of analysis as well.

Below is the link from where you can get currently updated LIST OF DERIVATIVES/FUTURES AND OPTIONS ON NSE/NATIONAL STOCK EXCHANGE:

http://nseindia.com/products/content/derivatives/equities/fo_underlying_home.htm

The list is updated regularly by the exchange. Also all the information about contract specification is also given for each security. Detail of indices futures and options is also given. You will also find NSE Symbols for each security so that you can easily find them on your trading terminal or on nse site. You will also find past trading data, and current open interest and activity in respective contracts.

You will find the date of last update of this list at the bottom of the page of which the link is given.

We are also writing an article in which a full guide for navigating and using NSEINDIA and BSEINDIA will be given. Thanks to suggestions from readers.

(This post is published at repeated request from Anil Dar, Rajesh Kakad, VK Parthsarthi, and other 25 odd persons who emailed us in this respect at different times)

Warren Buffett against downgrading USA Rating and Positive on USA Economy

After landing into controversy on going agains Kraft for buying Cadbury, and his response and comment on one of his top executive David Sokol doing insider trading on his buy-out target Lubrizol; the Oracle of Omaha and 'investment saint' as we also many times refer him in our talk, Warren Buffett has only spurred criticism from intellectuals of many parts of world. 

Warren Buffett commenting on the last week's downgrade of USA from AAA rating to AA+ by S&P, said that the rating agancy has erred and the USA deserves the AAA rating still and he would give quadruple A rating if there existed. He also commented that the USA economy is not going down and there is no double dip recession.

Mr.Buffett's comment has spurred many attacks from media-blogging community mainly and anti-USA intellectuals. People wrote Mr.Buffett has vested interest of piles of US treasuries, and USDollar cash pile apart from most of the holding of USA corporations. The critics also doubted Mr.Buffett's comments had to do with his stake in rival rating company Moody's.

Whatever it may be, but Mr.Buffett, beginning with his Phillip Conoco bet to late last David Sokol fiasco, had dimmed the halo from over the head of the Omaha Oracle, if not completely removed. The damage to his holy-grail personality can result in damage in more precious ethics of value investing that he has pioneered.  
Below is a news report by Fox on same,

Parag Parikh speaks on NDTV Profit: Feb 2011

Parag Parikh is a person who is the real Warren Buffett of India. (Rakesh Junjhunwala is not. Yes, he himself said he is a trader. Warren Buffett does not trade. Not just that Rakesh Junjhunwala is said to be Warren Buffett of India mainly because he has amassed largest wealth by investing in stocks in India than any other individual. In our view, apart from that, he does not qualify to be said to be Warren Buffett of India. Because the Warren Buffet legacy is not only figures but principles that he follows. In our opinion Parag Parikh, whenever he talks, reflects the principles, style and attitude of a real Warren Buffet approach follower. In other words, if you disagree with Mr.Parikh, you are likely disagree with Mr.Buffett.
We request all to repeatedly watch/hear Mr.Parag Parikh and search his videos on youtube.com and hear him and digest him.

Read earlier article on Mr.Parag Parikh's book-
http://www.meghainvestments.com/2010/04/gems-for-value-investors-parag-parikhs.html

New Take Over Code and other Announcements by SEBI

Following is the excerpts of the new regulatory announcements by SEBI on Today 28^th July 2011:

• Open Offer: The open offer trigger of 15% has been increased to 25% while the mandatory requirement of open offer for remaining 26% has been set out instead of earlier 20%. It is notable that the take over committee formed under C Achuthan has proposed 100% open offer size. While the trigger level is in line with that of panel's proposal.
• The provision of non-compete fee has been completely scrapped. And all shareholders will be given exit opportunity at same price.
• The mutual fund companies can charge Rs.100 to existing investor on every new investment, while it can charge Rs.150 to a completely new mutual fund investor. This charge will be applicable for investment over Rs.10,000 only.
• According to changes in mutual fund advertising code, from now on mutual funds will not write CAGR return in advertisements, rather will write that how much a particular sum of rupees invested in so and so scheme turned out to be so and so rupees in so and so years.

Declined participation of Retail Investors in Indian stock markets

           The share of retail investors in the market cap of 2486 actively traded stocks on BSE has declined to a 5-year low. This figure was around 19% in March-2006, which is now 15.86% in March 2011.

Not surprisingly, this share started falling after the Indian Stock market crash of 2008. Which even surprisingly not increased during and after the two year rise of Indian Stocks Markets, when Sensex risen to 21000 levels from 8000 level lows. This is surprising as generally retail investors un-missing fully ride the when it is rising.

            Vetting this fact, according to a report the cash segment turn over on BSE and NSE has also declined to more than 2 year low.

           On the mutual fund side, the number of folios (investor accounts) has gone down to 3 crore 80 lacs in March 2011, from above 4 crore in March 2009. However, the sorry situation with mutual fund investment scenario has been blamed (rightly) by the industry to SEBI’s rules which cut hard on entry and exit loads, invariably reducing the distributors/agents interest in recommending and selling mf product/schemes. In our view, this is good for small investors. But isn’t it at the risk of retail investors only? In our view, if the Sebi and government seriously want to increase the participation of retail investors and that too through mutual fund route, then it must reinstate the entry and exit load which will in turn give mutual fund companies to offer their agents more incentive to sell mutual fund schemes. Perhaps the govt

Indian Sugar Sector de-control developments

After almost 1 year Since July 2010, yesterday, Agriculture Minister Sharad Pawar Said that the Central Governmet is expected to hold a meeting in next 10 days to discuss a meeting regarding decontrolling Sugar Sector from the country.

If partial or full decontrol happens it will be interesting to see what impact it could make on the efficiency and profitability of the Sugar mills, as the govt has criticized that some mill owners has so long tried to keep the prices ‘controlled’ by the govt, while most big industrial in this houses have had expressed that govt is doing ill to sector by not decontrolling the sector.

It is notable that as Sugar is one of the basic and most essential commodities so far that the central govt has to keep the prices administered rather that determined by market forces. However the 2^nd phase of liberalization as we like to call it, started with getting rid of ‘administered’ prices in

COMMODITY CALLS

Dear Visitors and Readers,

             Earlier there had been a lot of suggestion and requests for starting COMMODITIES TRADING CALLS service.

       Our Commodities Fundamental and Technical Research Analyst team is now all set to serve professionally to traders of in MCX, NCDEX

              Inspite of Operating for more than past 3 years; we delayed launching ADVISORY IN COMMODITIES only because of our strong belief that “Fundamental Analysis is as much important as Technical Analysis”. We were hiring skilled analysts and also building our own basic knowledge in this space.

        As always, the beginning fee structure has been kept very attractive and affordable. Given the MEGHA INVESTMENTS AND RESEARCH TEAM’S strong background and Proven and Time-Tested Track-Record; we expect a huge and overwhelming response to this COMMODITIES CALLS service.

          Now When a Separate Research Team of 3 is working full time, you can also expects More and More updates on Commodities on www.MeghaInvestments.com.

Thanks and Regards,

Manager,

Megha Investments and Research team,

09377008708/09376858284

info@MeghaInvestments.com

     "Profit with Confidence" 

Fearutes:

All Articles

             Find all the useful articles and posts of our sites on this page itself. All you would need to do is to read the title and click on the link given below that title to read the full article/post. If you want to read another article, you can always come back to this page and choose another article of your choice to read.

Finance Ministry for 100% FDI in Proprietary Trading in India

Despite conflicting views with RBI, the Finance Ministry has decided to go with his wits and allow 100% FDI in proprietary trading industry of capital market.

Proprietary trading is trading in stocks, derivatives, commodities and such other financial instruments on a company’s own account with own funds. Such firm doesn’t use his clients’ or other money. This trading activity is obviously aimed at making profit out of such trading on own money of the firm.

Presently banks do proprietary trading through saperate subsidiary company, and they have a cap on such exposure as well. While a big number of foreign banks' profits contain huge share of contribution from such proprietary trading; as sources from big two accounting firms tell us.

The main reasons for RBI’s  dislike towards foreign firms’ proprietary trading are,

• The 2007-2008 USA financial crisis had many firms doing heavy proprietary trading, which were then went under and all over.
•  The overly rise in

Strategy based Advisory

Friends,

What really does an investor or a trader want?

A tip, a recommendation, a whisper from street?

Well, all of it is available, many times in plenty!

We see an ocean of anonymous stock advisory sites that shamelessly put PCP (pay per click) advertisements of other similar nature stock advisory sites, which, in normal understanding are their competitors.

Have you ever seen an ad for Kodak Cameras on Sony website or posters in showrooms? No. Never.

Thus, the sole motive of such 95%+ of (mostly anonymous) market advisory companies is to earn, earn and earn money only. The point is that they are not genuine. We even go ahead and say this is a fraud and unfair practice against the interest of investors and traders relying on internet for satisfying their needs of advise for trading and investing.

You may click here, to read more on this.

http://www.meghainvestments.com/2009/11/beware-investors-and-traders-thodi-si.html

 

The main topic that we intended to start with is 'STRATEGY BASED ADVISE'.

Friends, we did a study on our own customer base for our different groups 'sure shot calls' service. And found interesting results;