NSE to suspend 51 stocks from derivative (F&O) segment

As per revised and more stringent eligibility criteria, National Stock Exchange will suspend following stocks from derivative segments from October 2012 onwards. However the NSE said, "The existing unexpired contracts of these securities for the month of July, August and September 2012 would continue to be available for trading till their respective expiry.

Google ad rates (Adsense CPC) falls significantly in 2012

Bloggers and Google adsense publishers have been experiencing sudden fall in cost per click (CPC) rates since past few months which might have affected their overall earnings. But at the same time the click through rate (CTR) should have increased marginally partly offsetting the fall in CPC rate. 

This is primarily happening due to the overall fall in the advertisement rates given by the advertisers. In the second quarterly report google mentioned that "Advertising rates, or costs per click, have headed south as users gravitate to smartphones and tablets, where Google can generally charge less than on desktop computers.The cost per click for online search ads continued to decline in the second quarter, falling 16% year-on-year but the overall number of clicks on ads, however, increased a robust 42%."

Dewan Housing Finance Ltd. (DHFL) Fixed Deposit Scheme - 2012

DHFL, India's one of the premiere housing finance company, has revised the rates on it's cumulative and non-cumulative fixed deposit schemes for retail investors. 

ICICI Direct Research Report on Bharti Airtel: Recommend Strong Buy

ICICI Securities has become very bullish on India's largest telecom company Bharti Airtel and has recommended a strong buy on the stock with a target price of 420 which is good 37% appreciation from the current market price of 306 as on 13th July 2012. 

The brokerage report says "Using the DCF methodology for valuing Bharti and assuming a revenue CAGR of 7.9% in FY12-20E and a terminal  growth  of  3.0%  thereon,  we have arrived at a target price of  Rs 420. The risk reward seems to be favourable at this point. We rate the stock as STRONG BUY"

LIC holdings in Infosys crosses 6 percent

Life Insurance Corporation of India (LIC India) doesen't seem to be bothered much as far as Infosys under performance is concerned and is playing contra by investing an additional sum of Rs 2,000 crore in the first quarter of the current fiscal. 

LIC seems to be taking advantage of the blue chip stock being available at historically low valuation. At the current market price of Rs.2150 the stock is trading at a PE multiple of 12.5 times based on FY-13 expected EPS of 170 which is very cheap considering the size and the quality of the company. LIC is the largest non-promoter shareholder of the company.

World's Top 10 Young Teen Entrepreneur Millionaires

We all know that entrepreneurs carry different genes that distinguish them from the 99 percent of the population who just wish to work for somebody else throughout their life to lead a constant life. Entrepreneurs take risk and choose to ride a bumpy road to achieve a greater goal for themselves and the society at large. Age is never a bar for this rare breed and following are some of the examples which demonstrates how these young entrepreneurs became successful at such tender age. 

Andrew Hsu : Co-Founder of Airy Labs, a business that creates social learning games for children. Hsu has managed to snare $1.5 million in seed funding for Airy Labs. He was a graduate of the University of Washington by 16.

Morgan Stanley view on Tata Motors for 2012

Morgan Stanley has turned bearish on the India's largest CV maker, Tata Motors, and has lowered its year end target price for the stock to Rs 240 from Rs 291 and maintains its "equal-weight" rating on the stock. The market price of the stock at the close of the markets as on 6th July 2012 was 240.55. 

Sell JSW Steel July 780 Call option at Rs 5

Credit Suisse in a report dated 6th July 2012 stated that JSW Steel understated FY12 net debt by at least Rs 11,900 crore. The company stated debt stood at Rs 16,600 crore for FY 2012. Creidt Suisse arrived at the figure based on following three reasons:

1. Acceptances of Rs 75 bn (up from Rs68 bn in FY11) are effectively debt

2. Securitised receivables of Rs 31 bn (up from Rs26bn); and 

3. Rs12 bn from the fall in INR; un-hedged liabilities are now $3 bn.

Steel industry is mainly valued on EV/EBIDTA basis and such latent debt of almost 70 percent of the stated debt in annual report certainly makes the valuation expensive especially for JSW steel. The stock is expected to remain under pressure and hence a good short term trading opportunity is visible. Instead of shorting the stock directly in futures one can sell 780 call of JSW Steel at the current market premium of Rs 5.

Total return from the strategy

Mutual Fund Schemes that outperformed SENSEX and NIFTY in H1 2012

Reliance Mutual Fund's Reliance Banking Fund (Growth) and Reliance Tax Saver (ELSS) Fund (Growth) have outperformed benchmark indices Sensex and Nifty by huge margins with year-to-date returns of 28.35% and 25.12% respectively. Sensex and Nifty have gained 12.78% and 14.16% respectively since the beginning of 2012. 

Apart from the above two ICICI Pru Discovery Fund (Growth), Reliance Equity Opportunities Fund (Growth) and IDFC Sterling Equity Fund (Growth) has delivered returns in excess of 25% so far this year.In total there are 38 mutual fund schemes which have given better returns than the benchmark indices Sensex and Nifty so far this year.

Money Bags by Chinese Feng Shui - July 2012 Calendar

This year we have very unique month of July which comes once in 823 years. July 2012 has 5 Fridays, 5 Saturdays and 5 Sundays which rarely happens. According to Feng Shui this is called a money bag and sharing this brings money imminently.

Jobs in USA, Greece and Italy - Humor

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Country wise Stock Market Performance in H1 2012

If you look at the stock market returns generated by the countries all over the world you will be surprised to know that Turkey and Pakistan has been the best performing countries in the world in first six  months of the current calander year. 

Turkey stock markets has delivered 22 percent while pakistan's stock markets has delivered little less at 21.62 percent returns in the first half of 2012 calander year.

India has also done well with 12.78 percent gain while Germany is up 8.78% during the same period. 

Spanish markets, one of the biggest European countries in soveriegn debt trouble, has been one of the worst performers with negative returns of 17.09 percent. 

One of the interesting thing to note is that while US markets were up 7.7 percent, Canadian markets are down 3.41 percent.

Among BRIC countries Brazil has been the worst performer with -5.06 percent returns followed by Russia with -2.3 percent. 

India has  clearly stolen the show in terms of equity returns as far as BRIC nations are concerned.

Greece, the centre of all the crisis in Europe, is not the worst performing market in the world and is down around 10 percent year to date.

List of World Richest Internet Entrepreneur Billionaires

Online business from Amazon to Google or Netflix to Facebook have produced billionaires from garages and dorm rooms. Each of the Internet venture that became successful had one thing in common, passion. 

If you are also an internet entrepreneur and have been looking for net worth of top Internet billionaires of the world then here is the list (all figures in billion):

Real time crude oil prices: Short and long term charts

Crude oil, often termed as black gold, is the most tracked commodity in the world. Indian Economy is almost entirely dependent on crude for its energy need. Crude prices are almost inversely related to equity markets and hence affects both commodity and equity investors. Hence if you are a regular crude oil watcher and it movement affects you then don't forget to bookmark this page to keep a tap on the real time prices and it's short term and long terms trends. In the following chart just hover your mouse on the period and the chart for that period will load instantly.

Veritas Research Report on RCOM, DLF: PDF

Veritas Investment Research, a Canada based equity research firm has pegged the actual worth of India's largest real estate company DLF and Anil Ambani owned second largest telecom company  Reliance Communications (RCOM) at Rs. 100 and Rs. 15 respectively.  

Veritas dubbed India’s largest realtor ‘a crumbling edifice’ in its March 2012 report and on 19th June 2012 the equity research firm, which torn apart Kingfisher Airlines’ financials last year — well before the world woke up to the reality of the doddering airline, has snubbed RCOM numbers and has recommended sell  on the stock with a target price of Rs. 15.

EPF Transfer vs. Withdrawal - Rules and Benefits

Employee Provident Fund or EPF is the only investment instrument in India which enjoys EEE advantage. 

EEE is acronym for exempt from tax during deposit, exempt during interest accumulation and exempt from tax during withdrawal on the corpus after retirement or specified period.

EPF is commonly seen as retirement fund which is accumulated and compounded at a very high interest rate for the tenure of your employment. The benefits of EPF is only visible when it is left for accumulation for 30 - 35 years. 

Rakesh Jhunjhunwala Interview

Rakesh Jhunjhunwala, the billionaire investor and trader who is often compared to the legendary investor Warren Buffett, doesn't want to be recognized as India's Warren Buffett. "It's not a fitting comparison. In terms of wealth, success and maturity, he's far, far ahead," says Jhunjhunwala in an interview at his office in a prime location in Mumbai overlooking the Arabian Sea."I'm not a clone of anybody. I'm Rakesh Jhunjhunwala," he booms. "I have lived the world on my own terms. I do what I enjoy. I enjoy what I do."

Buy Hindustan Unilever for short term trading

Hindustan Unilever made a new life time high today and remained strong throughout the trading session today as on 13th June 2012. The stock touched a lifetime high of 448.50 before closing for the day at 447.50. 

For the past few trading sessions the stock is witnessing strong delivery based buying which suggest that there is more upside left in the stock. Traders can go long at the current levels of 446, 447 keeping a tight stop loss at 439 for a possible target of 460 in next few trading sessions. However if stock moves past 460 continue to hold the stock with insurance of trailing stop loss placed 2% below the then existing price.

Sensex 2013 PE valuation near historical bottom

Historically India's benchmark Index, SENSEX, has bottomed out at a PE valuation of 10 to 12 times. At the current index level of around 16,500 and an estimated EPS of 1250 for the financial year 2013, the index is trading at a PE multiple of around 13 times FY 13 earnings. Above that considering the appreciation of dollar against rupee, the valuation in dollar terms is already around 11 times if we assume an average dollar rate of 48 against INR.

The Confusing Stock Analysts

Warren Buffett once said that serious investors should not believe on all those talking heads coming on CNBC or other business news channels frequently giving out recommendation on stocks you should buy. I spotted a very interesting instance which will make you understand why Mr. Buffett said so.

In the following snapshot, if you look at the encircled area you would notice that there are two recommendations on Hindalco both given on 7th June 2012 at a difference of just 1.5 hours. The target prices given are poles apart. Now the question is whom to believe and whom to leave. The chances of success and failure are equal. So even if you succeed once there is no guarantee that you will succeed next time again. That is why for a layman who just buy/sell stocks based on analysts recommendation it is impossible to make money consistently in the long run.

Buy Saregama India for trading

Kolkata based RPG group company, Saregama India, has zoomed over 10% to Rs 86 on back of over ten-fold surge in trading volumes. Over 9 lakh share, representing around 5% of the total equity of the company were traded on NSE and BSE put together, against an average sub 40,000 shares that were traded daily in past ten trading days on both the exchanges.

The entertainment company has reported a net loss of Rs 7.42 crore, due to Rs 11 crore provision for doubtful debts and advances for the quarter ended March 2012. The company had a net profit of Rs 5.32 crore in the same quarter of previous fiscal. Total operational income too, declined 7% at Rs 41.81 crore on year-on-year basis.

Global Economic Events Calender - June 2012

05/06/2012:

Australia RBA Interest Rate Decision

Germany Purchasing Manager Index Services (PMI) data for May 2012

Bank of Canada Interest Rate Decision

07/06/2012

Japan Gross Domestic Product Annualized (Q1)

United Kingdom BoE Interest Rate Decision

United States Consumer Credit Change

Switzerland Unemployment Rate

08/06/2012

Germany Exports and Imports (April)

Best example to understand Inflation

If it has been difficult for you to understand inflation just by reading the definition from your text book or financial dictionary then the following video is for you. 


The illustration shown in the video below will certainly make you understand inflation from the bottom of your brain.

Goodbye Inflation Confusion.

Reliance Industries (RIL) buyback Update

As expected, the recent fall in stock markets is not affecting RIL stock price as much due to the fact that on any massive fall RIL does aggressive buying of it's own shares under the ongoing buyback programme. As on May 24, RIL had purchased a total of 19.22 million shares. 

Rough calculations show the company has so far bought shares worth Rs 1,364 crore, about 13 per cent of the maximum buyback amount. RIL’s Rs 10,440-crore buyback offer is the largest ever in India Inc’s history. The programme started on February 7 and is scheduled to continue till January 19, 2013.

Though the buyback program began in February, it gained momentum only in May. The company picked up 12 million shares in May 2012 as against three million in April. Interestingly, 25 percent of the share trading volume in the RIL counter this month has come from the buyback.

InvestorZclub believes that the stock is looking attractive in terms of valuations and Rs 680 to 700 range should act as strong support zone. 

Global Investment Banks downgrades India 2013 GDP forecast

India's fourth quarter 2012 GDP growth of 5.3 percent sent shockers to the global investors which led to series of downgrades in expected 2013 GDP growth by leading global investments banks. 

Morgan Stanley has cut its 2012 economic growth estimates to 5.7 per cent from 6.3 per cent, after already downgrading its forecasts about two weeks ago from an initial estimate of 6.9 per cent growth. 

Standard Chartered Bank cut its financial year 2013 gross domestic product (GDP) forecast to 6.2 per cent from 7.1 per cent while CLSA said it “will probably” lower its consensus GDP forecast of 6.3 per cent to around six per cent. 

InvestorZclub believes that there is increased chance of another rate cut of 25 bps to 50 bps in next RBI meet in spite of inflation being in un-comfort zone. The inflation in India is mainly due to supply side bottlenecks which can hardly be controlled by keeping rates high. A 50 bps points cut in interest rate will not feed into inflation too much but could be a big confidence booster for investors which would lead to increased inflows and could fix our current account deficit.

EUR vs. USD - 5 Year Chart

EUR has seen precipitous fall against USD in the past 1 year, from the levels of 1.47 in early 2011 to 1.24 in May 2012,due to weakening Euro Zone situation.

In the past 5 years EUR has seen the lowest closing level of  1.19 as on 8th June 2010. A fall below this level would see further downside for the EUR currency. 

However it seems that most of the negatives in the Euro Zone is already priced into the currency. In case Greece exits from the Euro Zone, a fall below the levels of 1.19 cannot be ruled out.

Sell In May And Go Away - How true is the proverb?

As far as Dalal Street is concerned the adage "Sell in May and go away" seems to be holding true for the three years in succession. 

During the month of May 2012 the benchmark index, Sensex has fallen by over 1,100 points. This would be the third consecutive year of a large-scale plunge during the month of May for the Indian stock market, as also for many global markets, the historic data suggest.

Mark Zuckerberg Biography PDF - ebook: Download

Facebook founder, Mark Zuckerberg, who is being compared with the legendary Apple founder Steve Jobs, is a 26 year old billionaire as on May 2012. After the successful IPO of Facebook on 18th May 2012 at $38, Zuckerberg became one of the richest person in the world with networth exceeding $19 billion. 

Zuckerberg is the largest individual shareholder with 28.4 percent of the common stock and controls 56.9 percent of the voting power in Facebook. 

White Paper on Black Money in India - Highlights

The long-awaited White Paper on black money, which got tabled in Parliament on Monday, prescribed moderate tax rates and measures to rein in the parallel economy in real estate, the financial sector and stock markets. The paper neither gave any estimate of unaccounted money nor revealed any names that could be held responsible for its accumulation.

Citing the examples of the US, UK, France and Germany, the paper said, "In the past, India has also opted for voluntary disclosure schemes. A similar scheme, targeted at black money stashed abroad, can be a one-time option in view of the increasing capacity of tax administration to access information from foreign jurisdiction."  

Cairn India, BOB and Godrej Consumer enters MSCI, Suzlon Out

Cairn India, Bank of Baroda and Godrej Consumer Products has been included in MSCI global indices effective 1st jun 2012. These stocks have rallied in an otherwise weak market.

Godrej Consumer Products has rallied over 9% to Rs 567 on the National Stock Exchange.  Cairn India and Bank of Baroda are up 3% each on back of huge volumes.

However, Suzlon Energy has slipped 5% at Rs 18.85 on removal from the MSCI index. All changes in MSCI indices will be implemented on close of May 31, 2012.

Rakesh Jhunjhunwala buys RBS stake in Prime Focus

Rakesh Jhunjhunwala has increased his stake in visual entertainment services firm Prime Focus by acquiring additional shares worth Rs 11 crore through open market transactions.

According to bulk data available with the stock exchanges, Jhunjhunwala purchased 25.50 lakh shares (amounting to 1.71% stake) of Prime Focus held by Royal Bank of Scotland (RBS) for Rs 42.05 a share, valuing the deal to Rs 10.72 crore.

As of last month, Jhunjhunwala and his wife Rekha Jhunjhunwala held 5.93 per cent stake in the company.

Undervalued beaten down stocks in Sensex and Nifty

There can be no better alternative to stocks which are sector leaders and are available at very attractive valuations. Not very often we get opportunities where the market leaders are trading at discount to their intrinsic values. InvestorZclub has compiled a list of stocks which are leader in the sector they operate in but are available at the bottom range of the historical valuation due significant fall in stock prices. 

Sell Reliance Industries 640 Put Option at Rs.3

Option traders can consider selling 640 Put option of Reliance Industries (May Expiry) at the current market premium of Rs. 3.00. This trade would generate more than 3 percent return in less than 20 days. However it must be noted that if RIL falls below 637 then there would be loss of Rs. 250 on every rupee fall in the stock for each lot (RIL lot size 250).

Following are the details of the trade:

NIFTY to face resistance at 5125 - 5160 levels

Nifty after breaching of the last two months trading range has struggled to move past the 200 DMA (5103) during last week trade. The Nifty drifted lower after testing the 200 days SMA on Tuesday's trade. The corrective price action may continue until we see a faster retracement of the recent falls and a breach of the lower peaks and troughs formations.

Nifty has closed below the 61.8% retracement level (4950) of the December-February rally. In the process, it has also filled the previous rising gap area of 4980 formed on January 19, 2012. Sustenance below 4950 levels in the coming sessions will see the index eventually heading for a deeper retracement of the January-February rally to the extent of 70-75%, which projects major support near 4850-4800 area.

Countries with highest income tax rate of 50 percent

Are you based out of US, India or Canada and blame government for very high tax rates where the highest income tax rates are somewhere 30-33%. Checkout the income tax rates of the following countries and you will not feel that bad.

Austria: Average income in Austria, one of the world's best place to live, is about USD 50,700 while the highest income tax rate is 50%.

Belgium: Belgians in 2011, with average income of USD 52,700 pay, took home less than 45% of what they cost their employer, according to a survey by OECD. Here also the highest income tax rate is 50 percent.

Japan: It's the only asian country to have top tax rate of 50% which is more than double Asia's average rate of 23%

United Kingdom: UK increased its highest tax rate by 10 percentage points in 2010 to 50%.

Implied Volatility of NSE Nifty Options - India VIX Index - PDF

India VIX (Volatility Index) in a index to measure the implied volatility of Nifty 50 Index Option prices over the next 30 day period. The index reflects the investor's sentiment and is a helpful indicator of the amount of fluctuation that markets might witness in near term. Higher the implied volatility, higher the India VIX value and vice-versa.

Volatility is often described as the "rate and magnitude of changes in prices" and in finance often referred to as risk. 

Pipavav Shipyard's promoter stake pledge at 97 percent

In a disclosure made by the company to stock exchanges it was found that more than 97% of the promoter's stake have been pledged. Such high level of stake pledge is alarming for the investors as it's not clear whether the promoter is still interested in the company or not.

Following are the details of the equity capital structure of the company and the number of shares pledged by the promoter.

Capital (No. of Shares in Million): 691.20

Promoter Stake (No of Shares in Million): 299.58

Promoter Stake (in %) : 43.34

Pledged Shares (No of Shares in Million) : 291.47

% of Paid up Equity Pledged: 42.17

% of Promoter Stake Pledged : 97.29

Bharti Airtel Q4 2012 - 2013 Result Analysis

Bharti Airtel Ltd today reported a consolidated net profit of 10.06 bln rupees for the quarter ended March 2012, missing the Street's expectation of 12.46 bln rupees. The company's consolidated revenue for the quarter was 187.29 bln rupees.

Following are the highlights of the reporting quarter's earnings and comments of the company's management team: 

Barclays overweight on Bharti Airtel

Barclays has retained its "overweight" recommendation on Bharti Airtel, after the company announced its fourth quarter result, with a target price of 440 rupees.

The brokerage believes that improving subscriber additions could turn revenue growth dynamics in the company's favour. Also, the cancellation of some operators' second-generation licences will help competitive dynamics and allow Bharti Airtel the flexibility to balance pricing and volume. 

Home Loan Calculator with EMI Comparison Feature

Several Home Loan Calculators are available on internet for calculating your EMI (Equated Monthly Installments) obligation for taking a Home loan. 
InvestorZclub brings to you an advanced mortgage calculator which will not only calculate your EMI obligation but will also help you in comparing the EMI's for different rates, tenure and principals in the same window so that you can decide better based on your pocket.