Equity Markets

Hey Maite DLF hasn't crossed 1225 levels till date, I suppose u meant that only (no offenses)

Anyways 700 was certainly a very good price to stock the same!

Regards,
Aniruddha


I read somewhere that Citibank lost billion of dollars in the last quater. I think this stockmarket crash of above 2000 points on 22nd Jan provides good oppurtunity to bigwigs to cash in as some of the share prices are rock bottom.

e.g. DLF 1340 comes down to 700
Deccan or SpiceJet ( dont remember ) comes down from 95 to 46.

and they pepped up after FM statement. People might have earned double the money if they would have bought the shares when the stock market crashed ( although they are not available easily, but to bigwigs they are )...

Ciao..
Kris

Woosh! Indian markets closed more than 6.5% intraday, I believe the markets will reach previous levels far quicker than anyone imagined, a couple of factors could make it very easy,
A - Reliance power money will be released ~ 10bn (assuming 5-6 Bn will be back in market)
B - Fed's next rate cut on 30th, even if Ben cuts 25 bps, we will be heading to previous highs

To summarize, in a hard way what happened in last 5 sessions, most of the retail investors are finished, money got distributed to MFs, HNIs, FIIs etc. Thanks to Exchange regulators, and Broking houses, who didnt let small investors to invest at 15k levels.

hi,
i hv a few ques.
1)What wud be the effect of the recent rate cut by the Fed on ..(a) adjustable rate mortgages (b) on the fixed rate mortgages being paid by the home loan borrowers(in US)??
i know the answer is that they will drop, but it wud be great if somebody cud explain how this whole thing happens (the reason why payment drops because of rate cut?).
2) how the bond prices and the bond yields are effected by rate cuts?
guys , i wud really appreciate if someone cud explain it in detail .
Sanwal

hi,
i hv a few ques.
1)What wud be the effect of the recent rate cut by the Fed on ..(a) adjustable rate mortgages (b) on the fixed rate mortgages being paid by the home loan borrowers(in US)??
i know the answer is that they will drop, but it wud be great if somebody cud explain how this whole thing happens (the reason why payment drops because of rate cut?).
2) how the bond prices and the bond yields are effected by rate cuts?
guys , i wud really appreciate if someone cud explain it in detail .
Sanwal


1- The interbank rate cut by Fed, will bring more liquid money in the system, and it will be little easier for banks to draw money. The adjustbale lending rate, will decrease, as banks will have more liquidity with them, usually the adjustable interest rate is calculated as (Fixed % - PLR (prime lending rate of that bank). I dont think fixed mortgage loans will have any impact.

2- Fed rate cut will increase bond prices, and will reduce bond yield, which will drive investors in bond markets to book profits (US market plays on technicals) and liquidity from bond market flows to equity markets. So usually when there is a central bank rate cut, it is a positive cue for equity market. Examples are A) Recent rate cut by Fed and BOE B) CRR Hike by RBI in August last year.

3- Other important aspect of interbank rate cut, displays in FX market, when there is a rate cut in US, people starts selling dollar (when compared to rupee), which creates dollar in demand, which makes dollar depreciation against rupee. To keep the balance going (and to save country's export, RBI has to cut CRR in India. We might see some action before 30th.

EDIT: - Wrote that wrongly(appreciation instead of depreciation), I meant dollar value to decrease, means exports going costly, and hence exporters will get a hit.

So we have atleast 3 triggers for the market in next 7 days !! 1. Fed rate cut (good possibilty) 2. Reliance power's money coming back (~$5-6 Bn) 3. CRR cut by RBI.

Cheers,

How's this ?

hi Guys,

I am using reliance money.

Well i wanted to Sell DLF and everonn as i need money for Emmar MGF IPO and to a buy a ELSS mutual fund.

I saw the closing price of friday which were DLF :942 and Everron 920.

So i placed a order at 935 and 910 respectively. I reliance money u got to wait till 9:55 and then place the order . I did that . but the oprder did not get executed .
the reason was todays high were 930 and 885 respectively.

My doubt , why is the closing price is not same as the opening price. Is there any transaction happening after the market hours which are varying these prices.

hi Guys,

My doubt , why is the closing price is not same as the opening price. Is there any transaction happening after the market hours which are varying these prices.


Yes, there could be a gap opening (positive or negative), the reason behind being, when people place Buy or Sell order without putting a price, the index is bound to open at a gap.
There are several constraints for different broking houses, in simple words, life is difficult for a retail investor when there is a bear phase, and to the worse, when the borker is loosing money!
1- The interbank rate cut by Fed, will bring more liquid money in the system, and it will be little easier for banks to draw money. The adjustbale lending rate, will decrease, as banks will have more liquidity with them, usually the adjustable interest rate is calculated as (Fixed % - PLR (prime lending rate of that bank). I dont think fixed mortgage loans will have any impact.

2- Fed rate cut will increase bond prices, and will reduce bond yield, which will drive investors in bond markets to book profits (US market plays on technicals) and liquidity from bond market flows to equity markets. So usually when there is a central bank rate cut, it is a positive cue for equity market. Examples are A) Recent rate cut by Fed and BOE B) CRR Hike by RBI in August last year.

3- Other important aspect of interbank rate cut, displays in FX market, when there is a rate cut in US, people starts selling dollar (when compared to rupee), which creates dollar in demand, which makes dollar appreciation against rupee. To keep the balance going (and to save country's export, RBI has to cut CRR in India. We might see some action before 30th.

So we have atleast 3 triggers for the market in next 7 days !! 1. Fed rate cut (good possibilty) 2. Reliance power's money coming back (~$5-6 Bn) 3. CRR cut by RBI.

Cheers,

i m again comin up vid a question.....pls help me out vivek n others too....

i think if deres a rate cut in US of A, two things will happen :dere will be increased liquidity in d us mkts...more of dollars fused in...a kind of an increase in supply of dollars in the US market....
secondly, cos of a rate cut, us investors wud want to invest sumwhere else..preferably in d emerging mkts(vid all other risk factors tkin into a/c)..so dere wud be a kind of decrease in dollar demand....
n cos of dese two reasons, american dollar should depriciate vis-a-vis rupee..

pls correct me if i get d link wrongly...

regards,
vidhi.

Post snipped due to technical error.. Regrets expressed!!

Guys , Between DLF and everron which is fundamentally strong and how do analyse the stocks .

Like which is better , how its better .

Guys , Between DLF and everron which is fundamentally strong and how do analyse the stocks .

Like which is better , how its better .


One good way is, looking at PE ratio (Price/Earning) and compare that with the market PE, presently market is trading at 21.0x, so for example if a company is trading at PE less than 20.0x then its price ~should~ rise in near future.
But there are examples where you will see companies which have NO business, and are trading at ~90.0x PE. (RNRL, RPL).
i m again comin up vid a question.....pls help me out vivek n others too....

i think if deres a rate cut in US of A, two things will happen :dere will be increased liquidity in d us mkts...more of dollars fused in...a kind of an increase in supply of dollars in the US market....
secondly, cos of a rate cut, us investors wud want to invest sumwhere else..preferably in d emerging mkts(vid all other risk factors tkin into a/c)..so dere wud be a kind of decrease in dollar demand....
n cos of dese two reasons, american dollar should depriciate vis-a-vis rupee..

pls correct me if i get d link wrongly...

regards,
vidhi.

A cent 's addition from my side :-
Please also focus on exports, as this will increase exports from US and give the industries there options to produce more products at better prices and thus the demand of these good will somewhat balance(curb) dollar depreciation.

Regards,
Andy :)
One good way is, looking at PE ratio (Price/Earning) and compare that with the market PE, presently market is trading at 21.0x, so for example if a company is trading at PE less than 20.0x then its price ~should~ rise in near future.
But there are examples where you will see companies which have NO business, and are trading at ~90.0x PE. (RNRL, RPL).



thanks a lot , from where we would get the PE ratios of stocks and the market?

Is the future capital allotment detials out, if yes i need the link please
thanks a lot , from where we would get the PE ratios of stocks and the market?

Is the future capital allotment detials out, if yes i need the link please


Try Google! you will find a lot of information, apart from PE, a few public resources which I usually look at
1. Capital Market - India Corporate Company Database
2. Welcome to greyMarket Grey Market IPO Information | IPO Premium | IPO Allotment | IPO Listing IPO Ratings IPO News & lots more

P.S. I am no more a investor in markets.
A cent 's addition from my side :-
Please also focus on exports, as this will increase exports from US and give the industries there options to produce more products at better prices and thus the demand of these good will somewhat balance(curb) dollar depreciation.

Regards,
Andy :)


India has a huge export buisness to US, compared to imports. An estimate for 2007, exports to US (only) ~17.0%, imports from US (only) ~6.0%. Indian Inc's are dependent on US far more than any other country. Moreover, FIIs have 23% stake (2007), in Indian equity markets, so indirectly WILL affect those companies, who dont export products to the US.

I believe some real bad news is on its way, if US goes in recession, how badly we will have the hit. The TCS news TCS cuts staff salaries in tune with tough times- ITeS-Infotech-The Economic Times
One of my friend works in TCS, according to his view, the condition is even worse, TCS staff might get 5-10% hit, means other IT giants will follow the same path.
If Fed cuts another 50 bps (25 bps) tonight, and RBI keeps everything unchanged, depreciating dollar will bring more negative cues for IT, Textile, KPO industry in near future.

hi , i know this is not the proper place for this query, but i guess i may get the answers here .

1) regarding HRA. whats the maximum amount we can declare ( tax declarations ) and still dont have to submitt bills other than the self declared bills.

2) are u guys filing ur stocks details .

hi , i know this is not the proper place for this query, but i guess i may get the answers here .

1) regarding HRA. whats the maximum amount we can declare ( tax declarations ) and still dont have to submitt bills other than the self declared bills.

2) are u guys filing ur stocks details .


1- HRA is a portion, which is variable, depends on your cost-to-company / package. Other things, medical bills, LTA, is different from HRA, for which you need to submit bills. LTA can be claimed twice in 4 years.
2- Capital gains is taxable income, wikipedia has good information on capital gains, but there are several loop-holes which ~help~ people in saving tax.

can smbdy please explain the meaning of PE ratio....is it gud if its low/high... gues low....ny inputs are welcome

sandhyaj Says
can smbdy please explain the meaning of PE ratio....is it gud if its low/high... gues low....ny inputs are welcome

PE ratio is Price / Earning ratio for the Company, it essentially shows, the share price w.r.t to earning per share. PE ratio is always compared with the Company peers in the exchange where it is listed, if the PE ratio for the Company is lower compared to its peers, in the same sector, then in near future, one could speculate the share price of the Company should move upside, and vice versa.
For definiton you might want to look at this page P/E ratio - Wikipedia, the free encyclopedia