Hey people.....what do you think.what do investors trust when investing........their instinct or a third party...where do they get information for it.........what are the drivers and its sources??????
annie.07 SaysHey people.....what do you think.what do investors trust when investing........their instinct or a third party...where do they get information for it.........what are the drivers and its sources??????
Hey ..i dont know bout the general public at large..but for me its more my instinct , future prospects, prices prevailing etc and a lot more factors before i buy into something...The informaton sources are immense ..annual reports , internet , sector reports , brokerage research reports..newsletters and various bulleteins..etc..
The wise men are saying ''bet ur money on midcaps,they will be the stars this year!''
What do u guys feel?
Hope all the punters have a rewarding year
.
(1) the BSE and NSE are giving out IPOs ...........how exactly are these shares going to appreciate or depriciate(the factors governing their rise and fall)
(2)how is NAV of mutual funds calculated??
some more::
* how does RBI decide how many notes to print??
* how do the US fed rates affect the world economy??
jainm Says(1) the BSE and NSE are giving out IPOs ...........how exactly are these shares going to appreciate or depriciate(the factors governing their rise and fall)
BSE and NSE do'nt give the IPO's. Its the companies that offer them under guidelines stated by SEBI. The shares are then listed and traded at the BSE and NSE.
Factors governing rise and fall and basically EPS and P/E ratio.
EPS- Earning per share i.e. net profit after tax, interest pay outs, et al divided by the no. of shares outstanding in the market.
P/E- The no. of times the share price is to its EPS.
Ex: Reliance of an EPS of rs 70. The share price is rs 1200. Then one pays 17 times Reliance's EPS to acquire on share. So 17 is nothing but P/E ratio. Obviously higher PE would indicate a more expensive co.
In a nutshell, heavily influence by company performance.
Other factors are one that govern interest rates and momentum.
(2)how is NAV of mutual funds calculated??
Market value of all the shares or investments that the MF has less its liabilities divided by the no. of units it has/issued.
some more::
* how does RBI decide how many notes to print??
From what I know, is that RBI would usually print those notes that would then act as a replacement of old notes. That's why generally in ATM machines we tend to get newer notes.
Else its very tricky as priniting new notes would lead to inflation cause of the increase in supply.
* how do the US fed rates affect the world economy??
It affects global liquidity flows. The former Fed chairman Alan Greenspan was at times more impt that Chidabaram when it came to the stcok markets.
FED rate changes bring about changes in bond prices as well cause of the liquidity flows.
If the FED increase desposit rates in the U.S. its may affect(subject to the %age) the amount of money that would flow into emerging markets like India.
Lots of govt. including India have certain investments in US govt bonds and securities cause of the volatility and stability show by instruments present in the US and tinkering with rates there, one could reason out how the liquidity flows again can affect the stock market or invesment in general.
And again cause of the liquidity flows there would be an impact on exchange rates. So Alan Greenspan at times ends up being more impt that apna very own Yaga Venugopal Reddy.
hey thax 4 ur info dude.........but vinit my first ques was indeed what i had asked...........
I AM REFERING TO THE FACT THAT THE BSE AND NSE ARE GIVING OUT THEIR IPOs(infact NYSE bought a stake in NSE recently)........so how will these IPOs have their values appreciating/depreciating..............
also the ques of factors on which new notes to be printed depend.........
anybody who can throw light.............
Factors governing rise and fall and basically EPS and P/E ratio.
somewhat correct , still there are many factors brother.
EPS can be cooked up pretty easily.
P/E ratio is different at times of inflation.
there are 2 main types of analysis , fundamental and technical. got to use these for the correct valuation. scope is pretty big,though beginning with EPS and P/E (worked out) is not bad.
From what I know, is that RBI would usually print those notes that would then act as a replacement of old notes.
not really... they print notes as well..
Else its very tricky as priniting new notes would lead to inflation cause of the increase in supply.
correct.. but we have many countries printing notes , you would be amazed to know that US is continuously printing Greenbacks as thw whole world central bankers are going bonkers over it (they have been for a quite a few decades now).
bad case in light , Zimbabwe dollar.. the inflation is 1000%(almost)
The wise men are saying ''bet ur money on midcaps,they will be the stars this year!''
What do u guys feel?
Hope all the punters have a rewarding year.
these wise men have been saying this since start of last year brother.
yes , action is stock specific , you got to look which stocks have upside left..
right now its a guess..
i dont think i will call myself a "punter" ; no way ... i shall have a rewarding year , yes i will...
cheers !!
somewhat correct , still there are many factors brother.
EPS can be cooked up pretty easily.
P/E ratio is different at times of inflation.
there are 2 main types of analysis , fundamental and technical. got to use these for the correct valuation. scope is pretty big,though beginning with EPS and P/E (worked out) is not bad.
Like I didn't know that LME doesn't influence prices of Hindalco and other commodity stocks. Funds flows, momentum, interest rates, policy meaures et al would as well influence the way stock prices.
And yeah how liquid the stock is, the size of the co(Mrkt Capt) and news flows, hedge fund activity, liquidity in the market would also be factors that would influence stock prices.
But yes in order to ans the question posed and also in general its EPS and P/E ratios are a good starting point in understanding which stocks should appreciate and fall.
And like I said "In a nutshell, heavily influence by company performance." Sugar prices haven fallen, cyclicals et al so its impact would be seen in the b/s which means the EPS and P/E valuations would be revised for stocks like BajHind and Balrampur.....
Oh yes there ar techinical factors that govern the price movement. Various charts that one could access.....
not really... they print notes as well..
I am aware that they do print notes abnd provided only what I know among many other reasons that would exist, for RBI or any other Central bank to print more currency notes.
correct.. but we have many countries printing notes , you would be amazed to know that US is continuously printing Greenbacks as thw whole world central bankers are going bonkers over it (they have been for a quite a few decades now).
bad case in light , Zimbabwe dollar.. the inflation is 1000%(almost)
Partly replied to it above. Aware as well that U.S. prints notes and find no reason to be amazed.
Please see this link. Where its also mentioned
"About 95 percent of the currency notes printed each year are used to replace notes that are already in circulation."
Oman for ex. is a country that I know prints notes to avoid its currncy appreciating a lot against the dollar cause of the demand for Rials to pay for its Oil.
But what I mentioned was one among many other reasons.....
hey thax 4 ur info dude.........but vinit my first ques was indeed what i had asked...........
I AM REFERING TO THE FACT THAT THE BSE AND NSE ARE GIVING OUT THEIR IPOs(infact NYSE bought a stake in NSE recently)........so how will these IPOs have their values appreciating/depreciating..............
Hey Jainm,
NYSE did buy a 5% stake of NSE. But thats not an IPO. NSE right now hasn't had an IPO rather has no plans in the immediate future.
NSE sold a part of its equity for $115 m to NYSE for a certain valuation. NSE would have its equity share capital held by various other Private Equity funds, IBs, Financial Insititutions etc. So what NYSE has done is just bought a stake in the co.
NYSE would look at NSE where if it seems if would sell its stake in NSE at a suitable valuaion in the future to another entity or else hold on it. Like ICICI and IFCI have offloaded their the stake which has nothing to do with an IPO per se.
Oh yes if they do come out with an IPO then the factors govering the movement of their share would include what have been mentioned here. And if ur asking at what price they would come out with an IPO. That again depends on whether they would wanna price it high and how much of capital and at what valuation they believe they can achieve their desired targets.
Like I didn't know that LME doesn't influence prices of Hindalco and other commodity stocks. Funds flows, momentum, interest rates, policy meaures et al would as well influence the way stock prices.
And yeah how liquid the stock is, the size of the co(Mrkt Capt) and news flows, hedge fund activity, liquidity in the market would also be factors that would influence stock prices.
But yes in order to ans the question posed and also in general its EPS and P/E ratios are a good starting point in understanding which stocks should appreciate and fall.
And like I said "In a nutshell, heavily influence by company performance." Sugar prices haven fallen, cyclicals et al so its impact would be seen in the b/s which means the EPS and P/E valuations would be revised for stocks like BajHind and Balrampur.....
cool down brother , you seem to get irritated ... and thats not right.
nice that you mentioned almost all of the factors.. i am not doubting your knowledge.. its just that you did not present a truer picture. if you said , "among other factors" ; these are important and nice to begin with , i would have really appreciated your point.
now you have used soo many terms that a guy who does not know a lot will feel even worse. its not good teaching these things to someone, let him explore it.. he will have better "fundamentals" .. what do you say ??
"About 95 percent of the currency notes printed each year are used to replace notes that are already in circulation."
well the reports that i have seem to doubt this 95% figure, but still even if i take this figure, the 5% is HUGE.. though no complaints from my side..
Oman for ex. is a country that I know prints notes to avoid its currncy appreciating a lot against the dollar cause of the demand for Rials to pay for its Oil.
good point, but there are many ways in which you cant let a currency appreciate .. remember... this is one of them and probably the worst of them (my view point)
love to hear a comment on this one from you.
cheers bro.
Hey,
Can anyone please tell more about "open interest" as in Derivatives market.
What exactly is "open interest"?
And how it affects the price of a particular share?
Hey,
Can anyone please tell more about "open interest" as in Derivatives market.
What exactly is "open interest"?
And how it affects the price of a particular share?
Open interest is nothing but the no. of open contracts that exist at any point or at the end of the trading day. For ex. a futures contract (where the buyer only enters into a ontract) whether it has been exercised or not or is still open. Which again means X amount of shares of a co. is due for delivery till expiration of the contract.
How it affects the share price?
Opne interest positions in any share indicates or is used as a referene about the strenght in the share price or if whther there are any signs of the stock entering a bearish pattern(charts kick in) or otherwise.
A higher than usual open interest at market highs is seen as a conern in case of a trend.
reversal.
If the prices of the share is rising and open interest is falling then it displays some selling pressure. As it could be i.e. the rise in the price of the share is driven by speculation(on of the factors) or could be said that some speculative interest is seen in the stock.
hey,
what you all think will be the effect of the high inflation rate in the equity markets?
Analysts are saying infaltion rates may make RBI to increase the interest rates again..may be through the Cash-Reserve Ratio again..
But some also suggesting that the interest rate will not affect so much in the inflation rates.
Crude oil prices have started to rise again,reached 52$ from the 50$..
But,some analysts says the robust corporate results can make market move more 700-800 points from here before taking in a correction..
If interest rates go up,banks stock will take a huge hit,the way it was down last time..and if interest rates go up,real estate stocks would be hit majorly..
thnx vinit bhai
do you think this motilal oswal is good in the long run ? what interest are they chargin ?
i heard reliance is coming into this sector and they are gonna have low interest rates n all...but the question is will it be like reliance mobile ... too much hyped yet didnt deliver well ...
whats ur suggestion ?
rgds
You can try ICICIDIRECT.Their beauty lies in the fact that you can invest in equities ,mutual funds, RBI bonds,Post office schemes all online without filling forms every time.However Brokerage rate is bit high 0.75%
but product is good and in the long term paying 0.75% for a good product and convenience is nothing compared to the returns.
Hows India Bulls for online trading????
Is this the right thread to discuss about the current market tread n investment tricks???
I am new to market so can anyone guide me what all should i keep in mind while trading?
Any suggestions for Short term and long term investment???
hey guys..its great to see so many of us here are interested in these volatile markets..before i divulge into my thoughts on this game a brief background of myslef..have worked in the equity markets as a trader for nearly a year specifically in derivative instruments as an arbitrageur...this was my life til a while back:)
i think in markets like these wher the investors are divided into a 14k and 9k sensex..its unwise to put ure little eggs in the cash market..id rather invest in options and futures and as a matter of fact did tht and posted a return of 20% in 15 days..this was thru nifty options..so if any of u have a view or more so DON have a view can certainnly invest in derivative instruments to make money or to hedge ure positions...also the investment required is very very miniscule as compared to the cash market..
these markets are primarily run up by institutional investors who can take their money out as fast as they put em in and so try to follow the change in the FII investment on a daily basis to get a sense of their movements for the coming week..at 14k, the PE of India uwd be at bout 18-19 which is ultra high compared to its peers and so sellin at these peaks is but natural..unless th peers move up this fast whichj is unlikely..so invest wisely, diversify ure investments and try understandin the derivative instruments cuz they wil help u a lot more..
another really good way of investin in such markets is thru the SIP route...the systematic investment plan..wher u invest a certain amt every month (min. 500) which is used to buy stocks by the fund with whom u enroll for this scheme..the advantage of this scheme is tht since ure purchasin every month, ure cost of buyin gets averaged out so that u make a profit either ways..since ure purchasin mroe as the prices fall and lowerin ure average costs..
these stock markets are the most deceptive things and look good from the outside and ARE good but only if u are quick and understand ALL the factors that affect em..invest here but not all that u have so that a loss if any is not that damaging..:):)..all the best
My strategy for investment says
1) Invest for long term
2) Invest for long term &
3) Invest for long term
All economic factors n FII r true, but for emerging country like India,definately you will not loose money if you invest for long term.
Reliance Industries has doubled in a year
All major bluechips grow slow but then their fall is also low, look at the recent market crash;the fall in blue chip shares r very low in comparision to midcaps.
So until and unless you get an experience in the market, dont go for midcaps straightaway.Start with blue chip and then you automatically will follow the news floating around about the company and in the process, you will start knowing more about other companies.
You will automatically learn the factors which contribute to the rise and fall in the particular share.
Example-An increase in CRR will affect the banking industry share, so you will smell the rise in CRR and will avoid bank shares.
Many researchers tell their recommendations,dont follow those blindly. Do some research on own.
Will keep contributing!!