Archive for 2010



Tip for 2011

Written by HARIKRISHNAN.T
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Since all the trends are positive, we expect the Sensex will hit 24000 by the end of 2011.

I think the market will not make much more boom in the first quarter of 2011

The investment in gold will not give much return in 2011 when compared with 2009,2010

Bank deposit is not attractive in this scenario

Start investing in shares because this is the right time and we expect a correction soon.

Please avoid speculation and Day trading.

I prefer yes bank, Bharat forge, Tata global beverages for long time investment.

The details about these shares will be discussed soon.......

( These are my calculations & conclusions, It may vary according to the market mood. So use your ideas and experience b4 investing  )

References:   Dhanam, Sambadhyam, Internet.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "




Different Sectors

Written by HARIKRISHNAN.T
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Sector wise analysis is very important in the share market. There are different Sectors in BSE & NSE. They include the following

Sectors in BSE

1) Banking & Financial Services ( Andhra bank, Allahabad bank etc)

2) Automotive (Hero Honda, Tata motors, Bosch, Maruti Suzuki etc)

3) Consumer durables (Hitachi Home, Whirlpool etc)

4) Cement & Construction (ACC, Ambuja cements, GMR infra, Jaiprakash Asso etc)

5) Information Technology (Infosys, TCS, Wipro etc)

6) Food & Beverages (Britania, Nestle, GlaxoSmith etc)

7) Engineering & Capital goods (ABB, BHEL, Larsen etc)

8) Consumer non durables (Dabur India, Emami, Colgate etc)

9) Chemicals (Asian paints, Berger paints, Tata Chemicals etc)

10) Conglomerates (Bombay Dyeing, Grasim, Voltas etc)

11) Metals & mining (COAL India, SAIL,Tata Steel etc)

12) Manufacturing (Bharat Forge, Raymond etc)

13) Media & Entertainment (Dish tv India, Sun tv network etc)

14) Oil & Gas (BPCL, Cairn India, MRPL, ONGC, Reliance etc)

15) Real estate (DLF, Sobha Developers etc)

16) Pharmaceuticals (Ranbaxy, Glenmark etc)

17) Telecommunication (Bharti Airtel, Idea cellular, Reliance communication etc)

18) Services (Appolo Hospital, Jet airways etc)

19) Tobacco (ITC, Kothari product etc)

20) Utilities (Reliance infra, NTPC, Reliance power, Tata power, Power grid corp, Neyveli Lignite etc)

21) miscellaneous (Titan industries, V-guard ind etc)

(NSE also has these sectors. But the listed Companies will be different. Some companies listed in both NSE and BSE)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



Financial Terms

Written by HARIKRISHNAN.T
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Hello these are the very important terms that we usually hear in connection with the share market.


1) Bid- A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a thing. It can be a company, share or something like that.


2) Block trade- Block trading is actually a large amount of securities being traded, typically at least 10000 shares or something like that.


3) Blue chip stock- A blue chip stock is the stock of a well-established company having stable earnings good management strategies and no extensive liabilities.


4) Buyback-  Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price.


5) Circuit breaker- Circuit Breaker is a system to sustain sanity of the stock market. For example In the third week of January 2008 the BSE SENSEX index went into a free fall. The index hit the lower circuit breaker in barely a minute after the markets opened at 10 AM. Trading was suspended for an hour. 


6) Defensive Stock- A stock that tends to remain stable under difficult economic conditions. 


7) Earnings Per Share (EPS)- Total earnings divided by the number of shares. For example let the share price of a company say 'A' be Rs. 20 and the EPS of A be Rs. 12. It means that the company 'A' makes a profit of Rs.12 annually by using 20 rupees that is invested by an investor.


8) Face Value- Face Value of a share is the value which is decided by the company issuing it, at the time of initial offering 


9) PE (Price Earning Ratio)- The most common measure of how expensive a stock is. The P/E ratio is equal to a stocks market capitalization divided by its Net Income over a 12-month (4 Quarters) period.


10) Penny stocks-  stock that trades at a relatively low price and market capitalization.


11) Speculation- Stock market speculation, by definition, involves taking a position that will benefit from a certain outcome. Speculators doesn't care about the inherent value of the stock. when investors become speculators they are purchasing a stock with the sole purpose of selling it to someone else at a higher price.

12) Stock dividend- A dividend payment made in the form of additional shares, rather than a cash payout.

13) Stock Split- A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the market capitalization of the company remains the same after the split, so that dilution does not occur.

Regards Hari  " लोका समस्ता सुखिनो भवन्तु "



SENSEX

Written by HARIKRISHNAN.T
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Iam sure that everyone will hear the term 'SENSEX'. When watching news channels or reading news papers we can often see that the SENSEX hits 20000 or the SENSEX is crashed by 150 points or something like that. 

Do you know how market calculates the value of SENSEX......??????

1) BSE SENSEX consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. 

2) For the calculation of the index we take '1978-79' year as the 'Base Year.

3) The Base value of these shares is set as '100' in '1979 April'

4) We are calculating and adding the 'Market Capitalisation' of this 30 shares together.

Market Capitalisation= (Number of shares * Share value)

5) We are comparing this Market Capitalisation value with the '78-79' base year Market Capitalisation value and representing it in Percentage.

6) Finally we get the value of BSE SENSEX.

The 30 stocks are the following

  1. ACC
    2. 

  2. BHARTI AIRTEL
    3. 

  3. BHEL
    4. 

  4. DLF
    5. 

  5. GRASIM
    6. 

  6. HDFC
    7. 

  7. HDFC BANK,
    8. 

  8. HINDALCO
    9. 

  9. HUL
    10. 

  10. ICICI BANK
    11. 

  11. INFOSYS
    12. 

  12. ITC
    13. 

  13. JAIPRAKASH ASSOCIATES
    14. 

  14. L&T
    15. 

  15. MAHINDRA & MAHINDRA
    16. 

  16. MARUTI SUZUKI
    17. 

  17. ONGC 
    18. 

  18. NTPC
    19. 

  19. RANABAXY LAB
    20. 

  20. RELIANCE
    21. 

  21. RELIANCE COMM
    22. 

  22. RELIANCE INFRASTRUCTURE
    23. 

  23. SATYAM
    24. 

  24. SBI
    25. 

  25. STERLITE INDUSTRY
    26. 

  26. TATA MOTORS
    27. 

  27. TATA POWER
    28. 

  28. TATA STEEL
    29. 

  29. TCS
    30. 

  30. WIPRO.
    31.



(SENSEX is acronym for 'Sensitive Index'. Often it is known as BSE-30 index. SENSEX published for the first time in 1986 January 2nd)


Regards Hari  " लोका समस्ता सुखिनो भवन्तु "



Warren Edward Buffett

Written by HARIKRISHNAN.T
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Warren Buffet is widely regarded as one of the most successful investors in the world, often called the "legendary investor. In 2008 he was ranked by Forbes as the richest person in the world with an estimated net worth of approximately US$62 billion. In 2009, after donating billions of dollars to charity, Buffett was ranked as the second richest man in the United States with a net worth of US$37 billion with only Bill Gates ranked higher than Buffett. His net worth is up to $47 billion in the past 12 months.


Some of the best quotes of Buffett


"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. "


"If a business does well, the stock eventually follows. "


"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. "


"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. "


"Our favorite holding period is forever"


"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. "














Regards 
      Hari "लोका समस्ता सुखिनो भवन्तु "