Equity Markets

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1830

hey hi

please let me know what this elss is actually about... well i know one can invest under these as tax saving and also it have 3 years of locking period apart from that please confirm how the interest get calculated and all major and minor things one should be aware...
boss i m planning to visit person through which i have invested in one of the scheme sooner in this week only as me at home.... boy i have no clue about that to what the hell should i ask him..... please help me!!!!

1831
hi puys,
sorry if this had been discussed earlier.
my ques is pertaining to mortgage crisis. i read that before hedge funds, pension funds and other money market funds poured their money into CDOs, these CDOs were insurred by various monolines like MBIA, AMBAC,etc. then how come when subprime borrowers defaulted on their loans, money was lost by money marketn funds. shud not the loses be incurred by monolines instead as they were the people who gave insurance that in the case of default they wud compensate the party concerned. my knowledge says that money market funds shud have never lost any money because their risk was shouldered by monolines. but the fact is in august Bear Stearn stopped its investors to redeem money from 2 of its hedge funds and even after that we saw a number of hedge funds crashing....???
puys please throw some floodlight on it :)
Sanwal


MBIA, AMBAC are among the biggest bond Insurers, and when these AAA guys showed huge loss, that is when the monolines came into light. It all started when MBIA was in threat to loose its AAA critical rating. It is true that CDOs, MBS, ABS etc were insured by Insurance names, there are number of names in this section of market which no more exists (are either bankrupt or under Modified Restructring), mortgage defaults are huge and still lot more to come, there are so many lenders which are still sitting on big ARM (Adjustable rate mortgage) Portfolios.
Bear Stearns was a special case, didnt know what was so special (sentiments?), that Fed came altogether to support JPM for liquid money.
1832
arey yaar
ye us crisis ne to dukhi kar diya hai:sad:..
kitne aur fal karegi market ab ?:sad:

when shd we start buying or shd we buy or not:oha?

totally confused :


Regarding how much more Sensex will fall in future is next to impossible to predict but for buying the shares in my opinion it is a great time to enter into stock market but only is you have long term vision.
1833
hey hi

please let me know what this elss is actually about... well i know one can invest under these as tax saving and also it have 3 years of locking period apart from that please confirm how the interest get calculated and all major and minor things one should be aware...
boss i m planning to visit person through which i have invested in one of the scheme sooner in this week only as me at home.... boy i have no clue about that to what the hell should i ask him..... please help me!!!!

Hi Vibha,
Equity linked savings schemes (ELSS) are one of the eligible investments under Sec 80C with following advantages:-
  1. Least of all lock-in period, i.e. you can withdraw money anytime after 3 years and moreover keep on receiving dividends as and when declared.(if dividend pay out option chosen...which is a must in current market scenario)
  2. The market is highly unpredictable so need of going to any broker for advice instead better ask seniors about good schemes as they perceive or you can keep the discussion here or in PM and then straight away invest under DIRECT option and save your 2.25% of advisory fees.
  3. Go to respective sites of fund houses or Welcome to AMFI
  4. to obtain address of respective centers in your city and go cut away brokers/advisers ;)
  5. The third advantage use to be higher returns of equity over other investment option which is currently something close to -20% since Nov. end now :(, but as no one can withdraw sooner than 3 years ELSS can still be relied upon particularly in the current under valued market).
Go Ahead...........Happy Investing!!

Andy 😃
1834

do u guys pay short term gain tax ?

1835

Hi,

I have one small query ......

Today I bought some shares (delievery) and tried selling them on the same day.
I was able to sell most of the scripts and was not able to sell one particular stock.

Then I called the customer care and he told me that the script which you are trying to sell doesnot comes under the list of the scripts which can be sold on the same day.

So I just wanted to know from where we can determine whether the script comes under the list or not.

1836
ideacrash Says
do u guys pay short term gain tax ?

Why shouldn't we? and even if we don't why will we confess this on public forum?
Hi,

I have one small query ......

Today I bought some shares (delievery) and tried selling them on the same day.
I was able to sell most of the scripts and was not able to sell one particular stock.

Then I called the customer care and he told me that the script which you are trying to sell doesnot comes under the list of the scripts which can be sold on the same day.

So I just wanted to know from where we can determine whether the script comes under the list or not.

These are Trade to trade segment securities and thus can't be sold before delivery (i.e. BTST segment, Buy today and sell tomorrow). Informations like these is easily available with your broker/site before transactions itself.
:)
1837
Hi,

I have one small query ......

Today I bought some shares (delievery) and tried selling them on the same day.
I was able to sell most of the scripts and was not able to sell one particular stock.

Then I called the customer care and he told me that the script which you are trying to sell doesnot comes under the list of the scripts which can be sold on the same day.

So I just wanted to know from where we can determine whether the script comes under the list or not.


dude...there are some securities in which intra day selling is not allowed...once u click on the scrip u r selling u will get the details whether intra day is allowed or not...its really weird..but thats how it is..and it will take some time for the Indian markets to evolve...
1838
HI frnds ....one tip from my side which i read somewhere .....hope it helps u guys too ....
Suppose a company has fewer than 20 million common shares outstanding .This characteristic eliminates it being a very large firm .Stocks with fewer shares outstanding are considered more likely to have stronger price performance once the market discovers them and starts to bid up their price. the reason ? There is less LIQUIDITY.
try to realise such shares at ground level ...
1839
HI frnds ....one tip from my side which i read somewhere .....hope it helps u guys too ....
Suppose a company has fewer than 20 million common shares outstanding .This characteristic eliminates it being a very large firm .Stocks with fewer shares outstanding are considered more likely to have stronger price performance once the market discovers them and starts to bid up their price. the reason ? There is less LIQUIDITY.
try to realise such shares at ground level ...


and this makes them more likely to be operator driven... and thats the reason we have circuits...
1840

we know that derivates prices are determined by the underlying entity, be it stock,bond,commodity.

Now does derivates decide spot price by anyway?.which price gives hint about the future of the stock.

lets say theer is no activity in the cash market and people are trading only with F&O;, can a person take a hint from this about the stock, or it is the other way around?. I just wonder if no invests money in stocks, how will the traders play with F&O.;

gurus, am a rookie..... pls dont laugh at me

1841
we know that derivates prices are determined by the underlying entity, be it stock,bond,commodity.

Now does derivates decide spot price by anyway?.which price gives hint about the future of the stock.

lets say theer is no activity in the cash market and people are trading only with F&O;, can a person take a hint from this about the stock, or it is the other way around?. I just wonder if no invests money in stocks, how will the traders play with F&O.;

gurus, am a rookie..... pls dont laugh at me


Nice article on The Economic Times -

What is open interest?- Analysis-News & Views-Markets-The Economic Times

shows you relation between cash segment and F&O; segment...
1842

I read this book, Rich dad Poor dad in which Kiyosaki says that job layoff means different for different stakeholders.For a shareholder its good news as the stock price will go up due reduced cost to the company, whereas for employees its obviously bad news.


Now from recent news, US jobless numbers affecting stock markets. When there are more layoffs the markets went down.Now am not able to understand this.some one throw light on the jobless data.

1843
I read this book, Rich dad Poor dad in which Kiyosaki says that job layoff means different for different stakeholders.For a shareholder its good news as the stock price will go up due reduced cost to the company, whereas for employees its obviously bad news.


Now from recent news, US jobless numbers affecting stock markets. When there are more layoffs the markets went down.Now am not able to understand this.some one throw light on the jobless data.



You need to take into account the whole economic situation in this case....


Jobs not getting created -> Purchasing power in consumer's hands decreases -> Future demand for Companies' goods goes down -> Companies anticipate losses (or stagnated profits) -> Analysts lower consensus estimates for earnings -> Companies' Share Price goes down -> Markets Fall!!!!

Also job layoffs are generally used as last resort for companies to drive down the costs... for investors which signals that the company is not doing so well... hence they discount the price and hence markets too fall...
1844
I read this book, Rich dad Poor dad in which Kiyosaki says that job layoff means different for different stakeholders.For a shareholder its good news as the stock price will go up due reduced cost to the company, whereas for employees its obviously bad news.


Now from recent news, US jobless numbers affecting stock markets. When there are more layoffs the markets went down.Now am not able to understand this.some one throw light on the jobless data.


Dude,

consider the following equation

X = ax+by+cz+dxy+eyz+fzx+.................so on

where first letter in every term is a coefficient and rest are variables.

Now given all other things remain the same, X is directly proportional to changes in x(small x)

But when so many things try to change at the same time, even if some of them go up, the actually X may come down.

Likewise any economy is an intricate web of so many things that it's difficult to say that they are related by so and so thumb rule. Nothing like this.

Suppose how are inflation and growth related?

1) High growth causes high inflation?
2) High inflation causes low growth?

it all depends on what cycle the economy is going through...like overheated or suppy-constrained or demand-pulled economy........etc..

hope I am making snese
1847
arrey bhai job cuts means economy is doing bad,
it means new freshers aint getting jobs
this means lesser consumption and slow growth.

job cuts shows depressing economy and bad times for share market


Jobs cut is significant in those sectors which are directly affected by the recession in the US, for example the service Industry in india (the major revenue chunk is decided on dollar movement), the banking & financial firms - which have direct correlation with interest rates.
Jobs cut dosent mean economy is depressed, India or even China's for example Agriculture sector is noway related to US economy, so even if US goes in recession / depression, the sector will continue to grow, and I dont see any jobs slashed in those sections.
1849
well
there r massive cuts of 2 lakh jobs expected just in banking indsutry in the US .
also there are lakhs of job cuts due to lower consumer spending in car,electronics industry........

this is again going to in trun make bad debts for banks coz all live on credit in the US.
this cycle will continue for 18 months atleast and only by then all the damage will be completed.

people in usa/uk r in dire straits man ..........

i dunno i have a sneaky feeling that the next 2 yr will be the most damaging for the world economy as a whole.

dunno why i have a feeling sensex may come to 7000-8000 levels.


i dunno why u have that feelin of sensex touching back 7k levels.
if it happens, then indian markets will go for a toss...
i think the worst case downfall could only be upto 12k.
if it goes below this, then many would start buying, which would again push up the index
1850
i dunno why u have that feelin of sensex touching back 7k levels.
if it happens, then indian markets will go for a toss...
i think the worst case downfall could only be upto 12k.
if it goes below this, then many would start buying, which would again push up the index


i agree wid karti tat worst possible is 12k...but i don think it will go to those levels...i guess sensex mite go to 14k levels and den it will bounce bak...it may take sum time though....7k..not possible..it will mean India's economy collapsing...cant c tat really...India's growth story looks gud...hence long term picture for sensex also looks bright...
1852
well usa economy is going back and even worse to 2002 days and eventually
indians economy will collapse also

1) IT sector in turmoil
2) Exports sector in huge losses( leather,jewellery etc etc)
3) peple in USA r now struggling to eat since banks have cut credit supply 2 them

4) since USA is 70% of world GDP u can imagine what can happen

i feel 7k level for sensex is a reasonable assumption looking at macro fundamentals.

i am sitting on 100% cash now


if u wanna really know how bad situaton is in usa

see this
US housing and sub-prime crisis Business guardian.co.uk

also on this site see comments posted by us residents that will tell u the story..

whats happening now is just cover up whr strong people r liquidating shares .

doomsday r ahead for india also

ps: major part of growth in india is just coz of BPO.

Seems like you just recentry read over a hundred articles on US subprime and suddenly realised it is bad. :)

Sensex at 7k? And DOW? at 5k? It can never be the case. Specially for India, I bet your 100% cash also! ;)

Time for some facts, Indian economy is still agrarian based, largely driven by domestic consumption and domestic market, unlike services sector which, though important for the economy, still forms a small part contributing to the economy as a whole. But we all need to look up to the fact that Indian economy is not only IT and BPO! We are much more than that. Right from textiles to steel, auto to aviation, we are growing at a good pace and mind it, greatly driven by domestic consumption. Also, our savings are at nearly 30%, an all-time high. Contrast this with US, what is the savings scene? You will be surprised when you fetch up the figure.

Now, if we relate this to stock markets, there are still many sectors which are growing and will continue growing. There are many stocks available at bargains which we all may not see again for some time to come. Also, for the bears, it will also be a wise decision to invest a part in equities and a part in commodities, to nearly hedge the losses to nil.

Happy Investing!
1854

Population wise a lot of people depend on the agrarian sector, but in terms of contribution to GDP, it is 15% I guess.