Equity Markets

great infomation
one doubt from my side.
where do u account the holdings by FIIs.
is it in free float or restricted?


Holdings by FIIs are free float.

There is some good news for Reliance Power investors as Anil Ambani has announced a better than expected ratio for giving out bonus shares.For every five shares that an investor holds Reliance will issue three new shares. The rate for this works out to Rs 269 for retail investors.

This is the first time anywhere that a promoter has issued bonus shares within days of listing.Ambani took this step because of the worse-than-expected listing of Reliance Power, India's biggest IPO ever.

The issue price for small investors was Rs 430 but it ended on the first day of trade at about Rs 372.

There is some good news for Reliance Power investors as Anil Ambani has announced a better than expected ratio for giving out bonus shares.For every five shares that an investor holds Reliance will issue three new shares. The rate for this works out to Rs 269 for retail investors.

This is the first time anywhere that a promoter has issued bonus shares within days of listing.Ambani took this step because of the worse-than-expected listing of Reliance Power, India's biggest IPO ever.

The issue price for small investors was Rs 430 but it ended on the first day of trade at about Rs 372.


hi yeh some good news for all those who bought the ipo and still hold it..
what do u exactly mean by that the price works out to be rs 269 for retail guys..can you explain?
hi yeh some good news for all those who bought the ipo and still hold it..
what do u exactly mean by that the price works out to be rs 269 for retail guys..can you explain?


it means u will get 3 shares for each 5 shares u have.
the price of these 5 original shares will be distributed on 8 shares now (5original+3bonus)
means if u have 15 shares of price 420 each = 15*420=6300 Rs
now it will be total 15+9=24 shares and the price of each share will be 6300/24 = 262.5 rs

so there will not be any change in ur worth but the number of shares are going to increase. so finally for each 1 rupee increase in share price, ur profit will increase by 24 Rs instead of 15 Rs (profit of 9 Rs).

i hope this clears the query
it means u will get 3 shares for each 5 shares u have.
the price of these 5 original shares will be distributed on 8 shares now (5original+3bonus)
means if u have 15 shares of price 420 each = 15*420=6300 Rs
now it will be total 15+9=24 shares and the price of each share will be 6300/24 = 262.5 rs

so there will not be any change in ur worth but the number of shares are going to increase. so finally for each 1 rupee increase in share price, ur profit will increase by 24 Rs instead of 15 Rs (profit of 9 Rs).

i hope this clears the query


hopefull this will revive the stock market.. atleast Rel power shares tomorrow...

2ndly, at this upside shld we sell existing shares and buy again when market falls? when is the record date for bonus? any idea???

Hey puys can someone comment on investing in Hexaware and HCL technologies??

swapnilpatil147 Says
Hey puys can someone comment on investing in Hexaware and HCL technologies??


IT will underperform, in near term, as far as Hexaware is concerned, it is trading below its 200DMA, and I guess the Company is also going through some legal lawsuits. Dont know much about HCL though.

In a broader view, Indian markets should see more downside in coming March series, the reason behind, Indian markets are still over-valued compared to other Asian emerging markets. A 10-11% fall from this level will see sensex at 15,200-15,000 levels. US is already on the verge of recession, so the sectors which will feel the heat 1st, will be
- IT
- Textile
- Auto
Given, that markets are extremly volatile, and there is hardly any liquidity, so better stay away from F&O; segment + Liquid stocks.
so there will not be any change in ur worth but the number of shares are going to increase. so finally for each 1 rupee increase in share price, ur profit will increase by 24 Rs instead of 15 Rs (profit of 9 Rs).

i hope this clears the query


Could u please elobarate on the profit

hi
can any1 throw some light in fdi?
i wanted to know if FDi is good or eveil for the economy?
can any1 discuss the positives and the negatives of FDI in any economy or rather indian economy?

regards!
Aman

hi
can any1 throw some light in fdi?
i wanted to know if FDi is good or eveil for the economy?
can any1 discuss the positives and the negatives of FDI in any economy or rather indian economy?

regards!
Aman


Foreign direct investment is the money that foreign investors and companies put in the country by actually setting up plants here in partnership with indian companies or independently. it is generally considered good as they also bring in capital and technological expertise with them, create employment, infrastructure, and generally increase the competitiveness of the domestic companies by creating more competition. but it also depends on the level of development of the host economy. For eg, in a developing economy, FDI would create monopoly and lead to exploitation as the domestic industry will not be able to compete with MNCs. FDI is good for the foreign reserves of the country and increases investor confidence.

As FDI is being very well explained by shrijalohade. Could someone please also explain Foreign institutional investors (FII).

hi guys,

everyone advised me to go for a growth option while buying a mutual fund ( mf) instead of a dividend fund. Well i and my friend bought SBI tax gain growth and dividend funds respectively. he got 5K dividend yesterday and i am 4% down .

so which fund is better ?

STT hiked to 15%.... will remove the speculation from markets...

see the market to go down as ppl will try and liquidate before March 31...

Long term investors will enjoy picking value picks at discounted prices...

hi
can some one explain what exactly is FII?
is it a boon or bane to indian economy?

regards!
aman

hi guys,

everyone advised me to go for a growth option while buying a mutual fund ( mf) instead of a dividend fund. Well i and my friend bought SBI tax gain growth and dividend funds respectively. he got 5K dividend yesterday and i am 4% down .

so which fund is better ?

Hi ideacrash,
its not about which fund is good, as both of them are the same funds, just that u have the growth option and ur friend has the dividend option. (i too have the dividend option, and so got the payout). the NAV of the dividend wud hav fallen by the amount of dividend payment and thats about 11% i think. the growth scheme has fallen as the underlying equities have fallen, and that wud affect the value of the dividend scheme too. so the NAV dividend scheme wud have fallen due to two reasons
- Dividend payout
- stocks going down
So u are not at a disadvantage regarding the NAV of growth plan goin down.
Now the question of which is better?
its a individual preference, if someone wants regular payouts, then one sud go for dividend plan (though didvidends are not really regular they are at the discretion of the MF house, they can give 3 dividends in a year or none). and if an investor wants to save for future lump sum then the growth scheme is better.
Hope i have answered ur query.
hi
can some one explain what exactly is FII?
is it a boon or bane to indian economy?

regards!
aman


FII are foreign institutional investors
they put money in the indian stock market
but they dont have any fixed period of investment and may exit the markets wenever the feel correct to unlike the FDI.
so u can say that they can be callled Speculators too

Cheers

MK
FII are foreign institutional investors
they put money in the indian stock market
but they dont have any fixed period of investment and may exit the markets wenever the feel correct to unlike the FDI.
so u can say that they can be callled Speculators too

Cheers

MK


FII are basically portfolios like mutual funds, endowments, insurance and other scehmes..hope this clears
Rohit Gupta Says
FII are basically portfolios like mutual funds, endowments, insurance and other scehmes..hope this clears

Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated.
FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in.
In countries like India, statutory agencies like SEBI have prescribed norms to register FIIs and also to regulate such investments flowing in through FIIs. FEMA norms includes maintenance of highly rated bonds(collateral) with security exchange.


Cheers

MK
hi
can some one explain what exactly is FII?
is it a boon or bane to indian economy?

regards!
aman

FII is money invested in indian capital markets by foreign individuals or companies. they have to be registered with the SEBI and have to follow strict regulations. However,in the case of participatory notes, PNs, they are issued by SEBI but they are not registered with them. hence they provide anonymity and are easiy transferable by endorsement. thus, they are preferred. so indian stock markets experienced a crash on 17th october 2007 when SEBI announced that it would not issue fresh PNs. Foreigners can also invest through multiple #rd party sub-accounts where 20 or more people pool money and invest but the registered FII is responsible and liable for them.

FIIs are a boon to the indian economy as they fuse in the much neded capital in the markets. they also increase investor confidence and business optimism. however they are a bane when FIIs react to the economic situations in their own country thus adversely
affecting our capital markets. this is how all economies in the world are said to be linked to each other.

hi
can someone tell me exactly wht happens in a stock market crash.....i know the basics and all but still nt clear......say it lost 300 points....wht are the exact implications of this
thnxx in advance
hope this is the right place too ask :>