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Showing posts from August, 2018

Small Investors should participate in the L&T buyback offer

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ET Intelligence Group: L&T has sprung a surprise on the Street, seeking to buy back more stock than what the average investor had pencilled in.  Hence, the acceptance ratio—number of shares accepted in the buyback for every 100 shares held by an investor—will now be 4.2 per cent, double of the earlier estimates of 2.1 per cent. This explains the 8 per cent gains for the L&T stock in the past five trading sessions. Small investors, in particular, should participate in the L&T  buy back offer.

*TOWER TALK* 🏦 _August 27 - September 02, 2018_

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*TOWER TALK*  🏦 _August 27 - September 02, 2018_ 🙂  Britannia Industries intends to split its share from Rs.2 paid-up to Re.1 in order to increase liquidity in the counter while making it more affordable to small retail investors. The company has huge expansion plans and is still an excellent buy. 🙂  Atlantia SpA, Cube Highways and Caisse de depot et placement du Quebec (CDPQ) are in separate discussions to acquire 35-40% stake in Sadbhav Infrastructure Project Ltd (SIPL). Buy Sadbhav Engineering, which holds 70% stake in SIPL. 🙂  The government has asked Oil & Natural Gas Corporation to list its wholly-owned subsidiary - ONGC Videsh Ltd (OVL) on stock exchanges and transfer the proceeds in the form of a special dividend. Buy ONGC for good returns in the next few months. 🙁  The US administration has slapped heavy anti-dumping duties on Indian metal pipes. Off-load Jindal Saw and Welspun Corp as they are most likely to suffer. 🙂  Prataap Snacks intends to buy 80% s

Is this a pause before the Storm?

Is this a pause before the Storm? Markets this week have been relatively flat and it looks like they have exhausted their up move and could be ready for a downward drift soon. Generally, markets take the support of an external event to begin their correction. However, there is a stark divergence in the small cap and frontline indices. In the last 10 days, the small and mid-cap indices have refused to go up along with Nifty50, which means that the fall is coming soon. Investors are therefore advised to remain cautious and take decisions wisely only after considering all the fundamental and qualitative factors about companies, they can also consider booking profits at current juncture.Currently, the Nifty500 and S&P 500 index share the same anatomy which is rare but important for us to understand the way forwardas India does have the history of mirroring US markets.The Trump-Xi trade war and Trump's two key men found guilty, rising dollar and rising interest rate scenario doe

RBI to transfer Rs. 50,000 crores to Central Govt. as surplus

The Reserve Bank of India (RBI) on August 9, 2018 said that it will transfer Rs 50,000 crore as surplus to the central government for the year ended June 30, 2018.   The Central Bank which follows the July-June year had transferred Rs 30,659 crore to the government's coffers for the year ended June 30, 2017.   According to RBI, the decision to transfer the surplus was taken by its Central Board which met here on Wednesday.   The Reserve Bank's income comprises of earnings from foreign and domestic sources, with the major portion being contributed by interest receipts, complemented by relatively small amounts of income from discount, exchange, commission, etc.   The RBI Act stipulates that after making provisions for contingencies and corpus funds as defined therein, the balance profit of the apex bank is to be transferred to the central government.

Indian Rupee plunges to record low of Rs. 70.05 against the Dollar

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The Indian rupee traded at record lows against the US dollar following concerns of a contagion from the plunge in Turkish Lira, a widespread decline in stocks across emerging markets and rising interest rates in the US.   The local currency traded at 70.05 per dollar, after recording its biggest single-day fall of 1.6% on Monday to 69.93 per dollar. Traders are reported to be betting light in view of India’s Independence Day holiday on Wednesday. Yet, under the nervous calm is a lingering concern the rupee may decline past 71 per dollar over the next few months.    Weak support for the rupee comes from India’s widening current account deficit, including the critical non-oil, non-gold imports, lukewarm overseas portfolio investments, elevated global crude oil prices, and a sense of uncertain investment climate in the country.    Emerging market currencies have been declining steadily this year. The Turkish Lira plunged 45% since 1 January 2018, Argentinian Peso 38%, Br

Some of the worst performing bank in the past one year.

Let's take a look at some of the worst performing banks. In case of Central Bank of India, the bad loans rate has gone up from 18.2% in June 2017 to 22.2% in June 2018. In case of Dena Bank, the rate has jumped from 17.4% to 22.7%. In case of Indian Overseas Bank, the jump is from 23.6% to 25.6%. When it comes to Dena Bank, the jump is from 19.9% to 25.7%. It needs to be pointed out here that this list does not contain IDBI Bank, which is by far the public sector bank, with the worst bad loans rate. The bank was recently sold to the Life Insurance Corporation of India. In comparison, the bad loans ratio of 17 private banks that CARE Ratings took into account was at 4.48%. This was significantly less than that of public sector banks. The ratio was at 4.05% in June 2017 and 3.02% in June 2016. Much of this jump has come about because of deteriorating numbers of Axis Bank and ICICI Bank, with the bad loans ratio of these banks coming in at 6.52% and 8.81%, respectively

Change in Blog Name

Hello friends, With a view to make the blog more reader friendly, popular and widespread - we have changed the name of the blog from Artha Niti to INVESTOR EDUCATION

How to avoid being cheated in Online frauds

Crooks use clever schemes to defraud millions of people every year. They often combine new technology with old tricks to get people to send money or give out personal information. Here are some practical tips to help you stay a step ahead. 1.     Spot imposters . Scammers often pretend to be someone you trust, like  a government official ,  a family member ,  a charity , or a company you do business with. Don’t send money or give out personal information in response to an unexpected request — whether it comes as a text, a phone call, or an email.   2.     Do online searches . Type a company or product name into your favorite search engine with words like “review,” “complaint” or “scam.” Or search for a phrase that describes your situation, like “IRS call.” You can even search for phone numbers to see if other people have reported them as scams. 3.     Don’t believe your caller ID . Technology makes it easy for scammers to fake caller ID information, so the name and number you

How to earn money in the Stock Market

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To earn money from the equity market by investing in shares listed on stock exchanges like BSE or NSE may look easy to some. After all, anyone can buy shares with the click of a button right? Well, not really.  Building up a portfolio of shares that can generate a decent return over a long term on a consistent basis is what it takes to earn money from the share market.  However, the reality is that investing directly in the stock market may not be everybody's cup of tea as equity has always been a volatile asset class with no guarantee of returns. The only silver lining is that over longer period of time, equity has been able to deliver higher than inflation-adjusted returns among all asset classes.   First, we look at how money can be made by buying shares. There are two primary ways to earn money from shares - through capital appreciation and from dividends.  Earning from capital appreciation   By investing in shares, one can expect to earn through capital appreciation, i.

ETFs versus largecap mutual funds

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ETFs versus largecap mutual funds   ETFs or exchange traded funds are similar to mutual funds as both instruments are a collection of securities to offer investors diversified portfolio in shares, debt, liquid, gold and also international indices.  Each ETF has its net asset value of the underlying stocks that it represents, which you can buy and sell on a real-time basis throughout the day, as it is baskets of securities that are traded, like individual stocks, on an exchange.  ETFs can be bought and sold, short sell throughout like any stock on screen based trading system and can be purchased on margin. Trading facility is on investors’ fingertips through mobile app nowadays. One needs to open a demat account with a SEBI registered stockbroker. One can investment minimum in one unit and it can be held for as long as the investor wants it in his demat account. ETF is beneficial for those investors that could not be analysing and picking stocks for their portfolio, as selecti