Hoping for a change in the markets sentiments from Monday..
Eagerly waiting for RelPower to get listed.....
True, "Valuation" does not hold here.
But if you go backwards and see
Unitech's daily upper circuit
MMTC's run
Essar Oil's run
where does valuation comes into picture.
Reliance Power has got the highest number of shareholders and I can bet lot of investors don't talk 'valuation'.
Retail investors have already got very less shares (15 or 16 or 17) and not all would be so much worry to sell it on listing for gains. As the amount of lock in would be around Rs 10,000. The FIIs can play the game and it matters the most there.
Yes,its true that the price of the share can go down looking into many things. Reliance Petro (yes:Reliance) shares came down from 100 odd mark to 70 odd mark within 15 days of listing. I mean down to issue price within a month or so. So the bad market can take a toll on anyone. But let's see what's in store for Reliance Power.
It would be an interesting year ahead as Reliance has lot of IPOs coming ahead. Reliance Fresh, Reliance Tower. And may be we can see Reliance Entertainment.
And these were the first ones to go down in turbulence... so valuation does hold true.. but in long term... you have to be patient... really patient... and you shall get the return...
But I agree wid you on FIIs and FIs dominating the market... So Retail investors will matter but not much
And I also agree for a fact that Reliance has never has let the investors down... and its coz of simple reason... The promoters hold a lot of stake and they are interested to see the wealth soar... so the price is partially driven by promoters and promoter backed brokers....
Tomorrow i.e. Feb 11th will be indeed a testing day... Emaar and Wockhardt have withdrawn their IPOs... Lets see if Reliance Power has the ability to pull the markets back in green....
Reliance Power listing failed to light up the stock today. The country's biggest IPO fell flat on its face. Millions investing in the stock have had their hopes and dreams shattered. Reliance Power listed at Rs 430 versus its issue price of Rs 450; it showed a disappointing and unexpected opening. Investors sold off the stock in desperation as it ran even lower to almost Rs 390 before coming back to Rs 420.
Guys I believe that one should keep this stock as long term investment. Does anybody want to comment on this??
Reliance Power listing failed to light up the stock today. The country's biggest IPO fell flat on its face. Millions investing in the stock have had their hopes and dreams shattered. Reliance Power listed at Rs 430 versus its issue price of Rs 450; it showed a disappointing and unexpected opening. Investors sold off the stock in desperation as it ran even lower to almost Rs 390 before coming back to Rs 420.
Guys I believe that one should keep this stock as long term investment. Does anybody want to comment on this??
My 2 cents..... I guess this all long term funda and vision inveting etc. is becoming too much a fad rather the game is to PLAN and as putten by MS Dhoni after yesterday's victory execute the plan with utter discipline
So even if it will rise in long term its still advisable to get out of the RPower for the time being and use wait and watch strategy, the IPO came at real high time and was somewhat responsible for holding the debacle for few days but now, in testing times, it is bound to show stress reaction and true colours on the name of valuation. Anyways as majority of retail investors got only 15 to 17 shares there may not be huge losses as claimed and for those still buying, I told na...............every body can have have his/her own PLAN
Discipline is still not that obselete a virtue in stock market.
Andy
hey dude i dnt agree wid u at all....
rel has got its name and its possible that because of the nt so good market now-a-days its grey premium rate also came down and was expected that it will list around 600 or so but no one expected that comp. like rel. will launch the biggest ipo ever in indian history and will fall subsequently like the pack of cards and to avoid it even anil ambani himself came there but it was of no use as his presence also there was nt able to prevent the market fall of rel pow.
but in the end i wud like to say that its nt like as it being predicted by many ppl it will surely rise sooner or later as it is also the part of the market which is going thru its bad phase. and will surely recover from such a hefty correction(although which can not be called correction).
so just keep ur fingers crossed and wait for market to rise to bulls.
HOPE FOR THE BEST.
hey dude i dnt agree wid u at all....
rel has got its name and its possible that because of the nt so good market now-a-days its grey premium rate also came down and was expected that it will list around 600 or so but no one expected that comp. like rel. will launch the biggest ipo ever in indian history and will fall subsequently like the pack of cards and to avoid it even anil ambani himself came there but it was of no use as his presence also there was nt able to prevent the market fall of rel pow.
but in the end i wud like to say that its nt like as it being predicted by many ppl it will surely rise sooner or later as it is also the part of the market which is going thru its bad phase. and will surely recover from such a hefty correction(although which can not be called correction).
so just keep ur fingers crossed and wait for market to rise to bulls.
HOPE FOR THE BEST.
Ya I know all this name, brand ,history and persona do affect market reactions but then wasn't Warren Buffet was among the first to come outta Petro-China (World's biggest IPO) ? And remember this time too its not retail investors only whi are withdrawing but there have been some massive actions taken by institutional players too ! Ofcourse it will bounce back but when and after how much time is the question coz in finance money has got no absolute value....its just a mean to get all other things on relative basis.
Andy
Ya I know all this name, brand ,history and persona do affect market reactions but then wasn't Warren Buffet was among the first to come outta Petro-China (World's biggest IPO) ? And remember this time too its not retail investors only whi are withdrawing but there have been some massive actions taken by institutional players too ! Ofcourse it will bounce back but when and after how much time is the question coz in finance money has got no absolute value....its just a mean to get all other things on relative basis.
Andy
hmm..i just want to ask 1 question.
i guess people wud be knowing that Rpower wasover overpriced and its real price was somewhere around 200-250 rs.
then why did and why do they overprice the IPO? obviously to make fool ofpeople because they know how much people canpay above the real price to getareliance share and this what they used to their advantage.
I think SEBI should have a rolehereand see that IPOs are not overpriced so that people arenot misleaded into buying anything of a good brand.
hmm..i just want to ask 1 question.
i guess people wud be knowing that Rpower wasover overpriced and its real price was somewhere around 200-250 rs.
then why did and why do they overprice the IPO? obviously to make fool ofpeople because they know how much people canpay above the real price to getareliance share and this what they used to their advantage.
I think SEBI should have a rolehereand see that IPOs are not overpriced so that people arenot misleaded into buying anything of a good brand.
Well well well.... if SEBI or other Regulators had to see pricing issues, it would be a big burden for them.. thats where IPO grading came in the picture but it just states how good (or bad) the Financial Satements of the compaines are.. Rel Power got 4 (out of Max 5) ... So nothing wrong financial statements
now the pricing.. it is the cartel of Investment Bankers and Companies who decide on the price band... the pricing mechanism is then left public and FIs... so the logic is clear... if you think it is is overvalued dont subscribe.. simple...
What we are misinterpreting is Valuation and Liquidity... As long there is liquidity in the market.. valuation talk is assumed to be bull shit... all those liquidity driven stocks make merry.. as soon as liquidity dries up, ppl tend to be defensive and again fall back on "valuation Story"...
So coming back to pricing, the price bands of current IPOs were decided long back when there was liquidity and bankers assumed that the companies will generate enough demand even if they are little overpriced.. no one thinks of valuation in liquidity driven bull run... now when that money has dried up, IPOs are falling flat on their face...
So right now, i wld suggest to wait and watch till budget... Till the markets will be volatile and choppy...
Advice to Rpower investors.. no use of booking losses, things might change in couple of months or more... till then hold on
Well well well.... if SEBI or other Regulators had to see pricing issues, it would be a big burden for them.. thats where IPO grading came in the picture but it just states how good (or bad) the Financial Satements of the compaines are.. Rel Power got 4 (out of Max 5) ... So nothing wrong financial statements
now the pricing.. it is the cartel of Investment Bankers and Companies who decide on the price band... the pricing mechanism is then left public and FIs... so the logic is clear... if you think it is is overvalued dont subscribe.. simple...
What we are misinterpreting is Valuation and Liquidity... As long there is liquidity in the market.. valuation talk is assumed to be bull shit... all those liquidity driven stocks make merry.. as soon as liquidity dries up, ppl tend to be defensive and again fall back on "valuation Story"...
So coming back to pricing, the price bands of current IPOs were decided long back when there was liquidity and bankers assumed that the companies will generate enough demand even if they are little overpriced.. no one thinks of valuation in liquidity driven bull run... now when that money has dried up, IPOs are falling flat on their face...
So right now, i wld suggest to wait and watch till budget... Till the markets will be volatile and choppy...
Advice to Rpower investors.. no use of booking losses, things might change in couple of months or more... till then hold on
Exactly! I was watching the Interview of Nilesh Shah, CEO J Kumar Infra IPO listed today and went in a discount straight, as much as 20% on the screen. There is no liqudity in primary market, and it will take sometime for markets to recover. It will be foolish to make any positions in F&O; market at this instance, yesterday's voltality was 96%, which means, any option traded at 4.00, has an actual value of around 1.50-1.75.
I dont know if anyone in markets could dare to short Reliance pack for obivious reasons. But if I had been a punter, I would had short every stock in ADAG group!.
Cheers,
akhil_agrawal SaysRel Power board meet on Feb 24 for bonus shrs
hmm..heard..every1 will get ...1 share for every 5 share the person owns...
It was an interesting news that Shopper's Stop is on sale and corporates like Reliance(Mukesh) and Aditya Birla group are in race to buy out. Shopper's Stop guys deny the same.(It happens always).
And Shopper's Stop was up more than 20 % yesterday (though it cooled off later). People are just waiting for the news to break in, they act so fast.
After Pyramid's dream run, nobody knows what's in store for Shopper's Stop. Piramyd Retail has been bought over by Indiabulls. They have renames Piramyd as Indiabulls MegaStore and Trumart as Indiabulls Mart.
Pyramid ran from Rs 50 odd to Rs 270 odd in just a month.(5% upper circuits for so many days) and then came down to Rs 200 levels.
The retail sector has really come into highlight again.
Also was in news the famous Future group. They starting a new company called Future Ventures.Future Ventures will house the company's JVs and new ventures. The company would incubate new ideas and invest in new ventures and real estate projects. Pantaloon stock was up about 6% up yesterday.
There is not much activity in Tata's TRENT (listed at BSE n NSE) which owns Westside, Star India Bazaar & Landmark(the book store it bought 2 years back).
They have started the new consumer retail chain stores - CROMA but then the business is under a separate company called Infiniti Retail, 100 % subsidary of Tata Sons.
Moneycontrol India :: News :: Blackstone acquires 10.38% in Allcargo Global :: Allcargo Global Logistics :: Business :: SK Shetty, CMD, Allcargo Global Logistics Ltd ,Blackstone
CMP for ALLCARGO 768.0 !! Blackstone's bid is 934 per share
CMP for ALLCARGO 768.0 !! Blackstone's bid is 934 per share
grover.amandeep Sayshmm..heard..every1 will get ...1 share for every 5 share the person owns...
this is not true,
they will decide what will be the ratio.
who told u that there is 1 bonus share behind every 5 shares
HI FRIENDS
Everyone must b aware abt d ups nds downs in d share market ....but does nyone know how d sensex is calculated ...most of u must b interested to know nd many of u must hve ven tried to find answer ...i got this information frm internet ...
The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.
To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the free-float market capitalization method. This is a world wide accepted method as one of the best methods for calculating a stock market index.
Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly.
To really understand how the Sensex is calculated, you simply need to understand what the term free-float market capitalization means. (As said earlier, the Sensex is calculated on basis of the free-float market capitalization method) But, before we understand what free-float market capitalization means, you first need to understand what market capitalization means.
Market cap or market capitalization is simply the worth of a company in terms of its shares! To put it in a simple way, if you were to buy all the shares of a particular company, what is the amount you would have to pay? That amount is called the market capitalization!
To calculate the market cap of a particular company, simply multiply the current share price by the number of shares issued by the company! Just to give you an idea, ONGC, has a market cap of Rs.170,705.21 Cr (when this article was written)
Depending on the value of the market cap, the company will either be a mid-cap or large-cap or small-cap company! Now the question is, how do YOU calculate the market cap of a particular company?
Many different types of investors hold the shares of a company! The Govt. may hold some of the shares. Some of the shares may be held by the founders or directors of the company. Some of the shares may be held by the FDIs etc. etc!
Now, only the open market shares that are free for trading by anyone, are called the free-float shares. When we are calculating the Sensex, we are interested in these free-float shares!
A particular company, may have certain shares in the open market and certain shares that are not available for trading in the open market.
According the BSE, any shares that DO NOT fall under the following criteria, can be considered to be open market shares:
A simple way to understand the free-float market cap would be, the total cost of buying all the shares in the open market!
So, having understood what the free float market cap is, now what? How do you find out the value of the Sensex at a particular point? Well, its pretty simple.
First: Find out the free-float market cap of all the 30 companies that make up the Sensex!
Second: Add all the free-float market caps of all the 30 companies!
Third: Make all this relative to the Sensex base. The value you get is the Sensex value!
The third step probably confused you. To understand it, you will need to understand ratios and proportions from 5th standard mathematics. Think of it this way:
Suppose, for a free-float market cap of Rs.100,000 Cr... the Sensex value is 4000
Then, for a free-float market cap of Rs.150,000 Cr... the Sensex value will be..
So, the Sensex value will be 6000 if the free-float market cap comes to Rs.150,000 Cr!
Please Note: Every time one of the 30 companies has a stock split or a "bonus" etc. appropriate changes are made in the market cap calculations.
Now, there is only one question left to be answered, which 30 companies, why those 30 companies, why no other companies?
The 30 companies that make up the Sensex are selected and reviewed from time to time by an index committee. This index committee is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
The main criteria for selecting the 30 stocks is as follows:
Market capitalization: The company should have a market capitalization in the Top 100 market capitalizations of the BSE. Also the market capitalization of each company should be more than 0.5% of the total market capitalization of the Index.
Trading frequency: The company to be included should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like share suspension etc.
Number of trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year.
Industry representation: The companies should be leaders in their industry group.
Listed history: The companies should have a listing history of at least one year on BSE.
Track record: In the opinion of the index committee, the company should have an acceptable track record.
hope u find this information really helpful
Everyone must b aware abt d ups nds downs in d share market ....but does nyone know how d sensex is calculated ...most of u must b interested to know nd many of u must hve ven tried to find answer ...i got this information frm internet ...
The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down.
To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the free-float market capitalization method. This is a world wide accepted method as one of the best methods for calculating a stock market index.
Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly.
To really understand how the Sensex is calculated, you simply need to understand what the term free-float market capitalization means. (As said earlier, the Sensex is calculated on basis of the free-float market capitalization method) But, before we understand what free-float market capitalization means, you first need to understand what market capitalization means.
Market cap or market capitalization is simply the worth of a company in terms of its shares! To put it in a simple way, if you were to buy all the shares of a particular company, what is the amount you would have to pay? That amount is called the market capitalization!
To calculate the market cap of a particular company, simply multiply the current share price by the number of shares issued by the company! Just to give you an idea, ONGC, has a market cap of Rs.170,705.21 Cr (when this article was written)
Depending on the value of the market cap, the company will either be a mid-cap or large-cap or small-cap company! Now the question is, how do YOU calculate the market cap of a particular company?
Many different types of investors hold the shares of a company! The Govt. may hold some of the shares. Some of the shares may be held by the founders or directors of the company. Some of the shares may be held by the FDIs etc. etc!
Now, only the open market shares that are free for trading by anyone, are called the free-float shares. When we are calculating the Sensex, we are interested in these free-float shares!
A particular company, may have certain shares in the open market and certain shares that are not available for trading in the open market.
According the BSE, any shares that DO NOT fall under the following criteria, can be considered to be open market shares:
- Holdings by founders/directors/ acquirers which has control element
- Holdings by persons/ bodies with "controlling interest"
- Government holding as promoter/acquirer
- Holdings through the FDI Route
- Strategic stakes by private corporate bodies/ individuals
- Equity held by associate/group companies (cross-holdings)
- Equity held by employee welfare trusts
- Locked-in shares and shares which would not be sold in the open market in normal course.
A simple way to understand the free-float market cap would be, the total cost of buying all the shares in the open market!
So, having understood what the free float market cap is, now what? How do you find out the value of the Sensex at a particular point? Well, its pretty simple.
First: Find out the free-float market cap of all the 30 companies that make up the Sensex!
Second: Add all the free-float market caps of all the 30 companies!
Third: Make all this relative to the Sensex base. The value you get is the Sensex value!
The third step probably confused you. To understand it, you will need to understand ratios and proportions from 5th standard mathematics. Think of it this way:
Suppose, for a free-float market cap of Rs.100,000 Cr... the Sensex value is 4000
Then, for a free-float market cap of Rs.150,000 Cr... the Sensex value will be..
So, the Sensex value will be 6000 if the free-float market cap comes to Rs.150,000 Cr!
Please Note: Every time one of the 30 companies has a stock split or a "bonus" etc. appropriate changes are made in the market cap calculations.
Now, there is only one question left to be answered, which 30 companies, why those 30 companies, why no other companies?
The 30 companies that make up the Sensex are selected and reviewed from time to time by an index committee. This index committee is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
The main criteria for selecting the 30 stocks is as follows:
Market capitalization: The company should have a market capitalization in the Top 100 market capitalizations of the BSE. Also the market capitalization of each company should be more than 0.5% of the total market capitalization of the Index.
Trading frequency: The company to be included should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like share suspension etc.
Number of trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year.
Industry representation: The companies should be leaders in their industry group.
Listed history: The companies should have a listing history of at least one year on BSE.
Track record: In the opinion of the index committee, the company should have an acceptable track record.
hope u find this information really helpful
HI FRIENDS
Everyone must b aware abt d ups nds downs in d share market ....but does nyone know how d sensex is calculated ...most of u must b interested to know nd many of u must hve ven tried to find answer ...i got this information frm internet ...
hope u find this information really helpful
indeed useful article!!!
btw, does anyone know how do they factor company changes in index??? Coz the "free float market cap" of replacing company will be different from the existing company... how do they account for "disturbance" if it changes overnight...
this is not true,
they will decide what will be the ratio.
who told u that there is 1 bonus share behind every 5 shares
cnbc stock editor..udayan mukherjee was saying this...he said it will be in this range..around 1 share for every 4 or 5 shares held.
i never said its final if u can read properly i wrote..i heard....rather i saw on tv...rest is speculation...i am no ambani to decide on this...
enjoy..
indeed useful article!!!
btw, does anyone know how do they factor company changes in index??? Coz the "free float market cap" of replacing company will be different from the existing company... how do they account for "disturbance" if it changes overnight...
great infomation
one doubt from my side.
where do u account the holdings by FIIs.
is it in free float or restricted?
cnbc stock editor..udayan mukherjee was saying this...he said it will be in this range..around 1 share for every 4 or 5 shares held.
i never said its final if u can read properly i wrote..i heard....rather i saw on tv...rest is speculation...i am no ambani to decide on this...
enjoy..
hey man,
dont take it personally.
my intention is just not to post the heard things thats all,
baaki ambani will decide it on 24th.
and alll the speculations about rel power are known to everybody, ie what happened to the IPO.
so......,
i hope u understand
hey friends !!!!
m new to this field and found this interesting.....
so i want to gain some insights on this topic...
and probably start investing an a month or two.....
can anyone suggest how do i proceed to get some knowledge related to this ????
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