The markets reciprocated on Monday 18.05.2009 morning by being locked at 2nd Upper Circuit @ Sensex 13479 (1305 points up) and nifty @ 4203 (531 points up)
the stock markets have welcomed the definite possibility of a stable government and hence the upper circuit...:) just for the record, to know more about the circuit breakers, here are some links which i found out of curiosity... Circuit Breaker What happens when a circuit breaker is put into effect?
I think the sensex would have surged that much even if congress was not there.. Spoke to some brokers, they said that the reason behind this is the absence of LEFT.. The markets would have surged even if NDA was going to win.. Not a single order got executed from my side.. The trading took only for 30 seconds.. and the jump was 2100 points.. First time ever.. good signs to come..
I think the sensex would have surged that much even if congress was not there.. Spoke to some brokers, they said that the reason behind this is the absence of LEFT.. The markets would have surged even if NDA was going to win.. Not a single order got executed from my side.. The trading took only for 30 seconds.. and the jump was 2100 points.. First time ever.. good signs to come..
Exactly ... The three main reasons for markets to surge today were 1. Congress getting more than 200 seats--> they can go ahead with reforms withotu the allies pulling their legs..2. They no longer need LEft for support 3. above all the coalition is not as fragile as last time!! Will cool off eventually though by the time of new budget
I do expect markets to continue showing strong gains this week..even though it can have soem fluctuations over the week!!
SCRIPS to watch out for are ICICI,AXIS,RELCAP,RELINFRA,IVRCL,RELCOM etc
How many of you think that the growth will sustain for a long time ?
Personally speaking, this might last for this week.. According to some technical analyst, nifty had a strong resistance at 4300.. which I think has been breached already.. If might cross 15000.. This rally is bec of huge orders from FII (my thinking).. An as FII don't believe in short term gains, they might last for atleast some time..
Exactly ... The three main reasons for markets to surge today were 1. Congress getting more than 200 seats--> they can go ahead with reforms withotu the allies pulling their legs..2. They no longer need LEft for support 3. above all the coalition is not as fragile as last time!! Will cool off eventually though by the time of new budget
I do expect markets to continue showing strong gains this week..even though it can have soem fluctuations over the week!!
SCRIPS to watch out for are ICICI,AXIS,RELCAP,RELINFRA,IVRCL,RELCOM etc
SCRIPTS to watch for include BANKS and Real-Estate stocks.. They lead the markets today and they will continue for some time.. Some engg stocks like LnT will benefit from any move gov takes w.r.t to infrastructure..
Also invest in stocks which has more rural focus.. Gov bound to improve facilities for rural people and encourage growth in that sector..
palnning to buy 200 shares in satyam tomorrow any suggestions
ma thinking: I will reach 250 in near future in 4 5 months.
Its really good to see that the markets surged 2100 points without letting the retail investors to buy any thing. But the thing is there is a complete void in between the two trading sessions and because of this market can see a sharp correction too, cant say whats actually is going to be, so please be careful while investing ur money. DOnt take risk
and mohsin i dont see any reason to buy satyam in such a huge quantity, and that too IT stock. If u really have to buy something then buy some other stock, choose that sector stock whose P/E is close to 10-11 and also that sector is going to benefited by the new reforms. Also as the risk-reward ration is high, so invest carefully.
@Aryan he was telling that he will increase his holding in satyam to 250 in next 4-5 months.
Its really good to see that the markets surged 2100 points without letting the retail investors to buy any thing. But the thing is there is a complete void in between the two trading sessions and because of this market can see a sharp correction too, cant say whats actually is going to be, so please be careful while investing ur money. DOnt take risk
and mohsin i dont see any reason to buy satyam in such a huge quantity, and that too IT stock. If u really have to buy something then buy some other stock, choose that sector stock whose P/E is close to 10-11 and also that sector is going to benefited by the new reforms. Also as the risk-reward ration is high, so invest carefully.
@Aryan he was telling that he will increase his holding in satyam to 250 in next 4-5 months.
my thinking was that tech mahindra is already stable at 350 smthing and satyam as now there is no more setbacks to it (hopefully) along with that fifa world cup contract in satyams hand will rise obviously even if i am not getting to much i am not going to loose.
one more question yar , how to check the P/E ratio, I mean from where can I check the P/E ratio on net
one suggestion dude.. please dont increase the number of posts.. you could have combined all the 3 posts in one..
As far as the suggestion goes for satyam, Recent appreciation rupee is expected to be negative for IT stocks hence earnings may taper for Infosys, Wipro and TCS... So please avoid IT stocks for now..
For checking P/E ratio, click here Search for that particular stock, u will get all the details
As far as the suggestion goes for satyam, Recent appreciation rupee is expected to be negative for IT stocks hence earnings may taper for Infosys, Wipro and TCS... So please avoid IT stocks for now..
Just to add, appreciating Indian currency does not necessarily mean negative for IT outsourcing giants in India. They always hedge currency with contracts they have in hand. And because of hedging the currency movement does not affect much in bottom line {NI} for these companies.
The loss for these IT companies will be substaintial when they loose contracts which depends on reputation, execution, turnaround and many other factors {example - Satyam}
Just to add, appreciating Indian currency does not necessarily mean negative for IT outsourcing giants in India. They always hedge currency with contracts they have in hand. And because of hedging the currency movement does not affect much in bottom line {NI} for these companies.
The loss for these IT companies will be substaintial when they loose contracts which depends on reputation, execution, turnaround and many other factors {example - Satyam}
Cheers,
But hedging is also not good for IT giants.. Take the case of TCS.. It hedged almost $1.5 billion at the rate of 39-40.. Now it shows losses of 130-150 crores per quarter as forex losses.. But look at Infy, it hedged very little amount, and i beating TCS in profits every quarter.. Over hedging is also -ve for IT companies.
I said the above example, because looking at the past losses, no IT company will now hedge their currency contracts.. And if you c most IT companies are signing contracts at discount to their billing rates.. In the near term outlook, investing in IT is going to be a pain..
But hedging is also not good for IT giants.. Take the case of TCS.. It hedged almost $1.5 billion at the rate of 39-40.. Now it shows losses of 130-150 crores per quarter as forex losses.. But look at Infy, it hedged very little amount, and i beating TCS in profits every quarter.. Over hedging is also -ve for IT companies.
I said the above example, because looking at the past losses, no IT company will now hedge their currency contracts.. And if you c most IT companies are signing contracts at discount to their billing rates.. In the near term outlook, investing in IT is going to be a pain..
Companies hedge capital to cover loss going forward to their business contracts. If outsourcing companies neglect hedging capital as you said, they will be in trouble. Most of the IT companies recognize revenues in USD or EUR and they expense in INR. TCS made a loss of 764 Cr INR because of this, whereas Infosys made a loss of 94 Million USD (478 Cr INR) for Fiscal 2008. Indian rupee apreciation will hurt them even more because of their business model.
Hedging various currencies against rupee with number of contract is essential for these companies. It is also equally important to hedge capital vis-a-vis contract and capital they expect to recieve. These companies incurred loss when they took up positions in currency / interest rate derivatives markets, expecting number of contracts to increase, however, given big clients {Lehman, Bear Stearns{acquired}, Merrill Lynch {acquired} } running out of capital and mortgage institutions filing bankruptcy, the hedge went the other way. The loss incurred should be termed as loss from sale of securities. Infosys made a loss of 2,357.1 Cr last year {465 M USD} last year for this reason.
