Aug 8, 2011

Impact of downgrading of US rating by S&P !

As the US's rating has been downgraded by S&P from AAA to AA+, it is certainly going to impact the world in a direct or an indirect manner for sure. Its up to the US, how increases the cutting off expenditures from $2.1 Trillion to $4Trillion as recommended by S&P during this decade.
US is busy controlling the political theater of world, waging wars in Iran, Pakistan and Afghanistan(costing it around $3 Trillion and 6K Army Men and a recent Plane down by Taliban costing 31 special army men).
So, how does it impact India :-
1) Rupee is surely going to appreciate against dollar hurting the exporters. So, make sure before you invest in IT companies.
2) FIIs are going to fall as the US investors would now be busy in investing in swiss currency or gold.
3) Stock market around the world has been down by the record numbers but its bound to rebound due to its cyclical nature. One more reason is that, FIIs investing in pension funds in US will be tempted to invest in Indian stocks.
4) History has been evident the gold and stock market moves in opposite directions (most of time) and moreover the equity investors are going to sell their gold to make out their losses out of the stock market.
5) Crude oil is falling and will fall further with Brent Crude oil costing around $110, which is a boon for Oil Marketing Companies in India, whose stocks are on bullion mode inspite of spitfall in overall index.

Jul 23, 2011

Few of the noteworthy points before investing in Equity markets:-


A) Few of the I-Bankers have decoded a correlation between the subscription oversize and market correction of the IPOs. Noteworthy examples like – Reliance Power, Coal India, DLF etc.
B) If you get any information in ET, that the promoters are selling their stakes, immediately you can jump to a conclusion that something is cooking behind the bars of the company. Eg. Orchid Chemicals
C) Companies often employ a strategy of shares buyback in case their market share value falls below a threshold value.

Jun 5, 2011

YouTube - Acharya Tulsi historical clips 01

YouTube - Acharya Tulsi historical clips 01

India's Century

The First decade of the 21st century has been one of the most comprehensive decades as it defaced the myopic vision of the Developed Nations and the ramifications of Capitalism.
While the whole world was grappling with the throes of financial crunch, there were a few economies which were actually thriving and flourishing in that difficult period. India was one among those envied few and it is now esteemed to be one of the few resilient countries who have managed to come out of the Global recession pretty soon.

Telecom Policy and Regulations

To usher as a shining star and reach the utopia of developed world horizons, India has reached one step closer by achieving yet another astounding milestone of crossing the unbelievable mark of 700 million telecom subscribers and tele-density of around 60% in august 2010. Not only this, we have also added surprisingly high figures of broadband and DTH connections to our quiver.

Dividing the "Rural-Urban Divide

The last two years showcased the myopic vision of the Developed Nations and ramifications of the Capitalism in the form of Subprime Crisis, Euro Crisis, Dubai and Greek Debt Defaults etc. The testing time is over and the results are out with India as one of the few resilient countries who could manage to come out of the Global recession very soon. Few of the reasons are strong Indian Banking Fundamentals, sound monetary and fiscal policy, low Trade/GDP ratio etc.

RBI Intervention in Forex Market, Monetary Policy and Fiscal Policy

Forex Market—With RBI purchasing $ 400 million to control the capital inflows, it has gained mixed view across India. FDI has already bestowed us with $16 billion so far and FII with $33 Billion. No doubt that capital inflow contain our current account deficit but they do change the exchange rates. With dollar hovering around 44.2, the exporters are facing a huge trouble. With India mainly an import oriented company, it is further aggravating the trade deficit which is expected to cross $130 billion this fiscal.

Dubai Financial Crisis - An Eye Opener

The Dubai Financial Crisis is the extension of the Sub prime crisis and is similar to the 1990’s crisis of the TIGER Economies.
Dubai is a place with piercing towers, rotating buildings, spectacular architectural designs, flow of petrodollars, broad and clean road networks, Businessmen, investors, and luxury-seekers, used to visit Dubai with all zeal. As Dubai is not rich in Oil Resources unlike other six parts of UAE, it relies totally on the tourism revenues and that is the reason that it invests so much on the Real Estate. Not only Dubai but the whole world used to believe on the credibility of Dubai. So, while raising the money through Investor Bonds (1.9 Trillion Dollars), Dubai did not face any problem, FIIs were also investing with the full flow to the Dubai Exchanges. Due to all this a bubble of assets had been blown which busted in November 2009. The history of all this is as follows. The company is a classic example of huge borrowing beyond its means.

Euro Debt Crisis of 2010 – Understanding and proposed solution

This decade was one of the most comprehensive decades in teaching us a lot of lessons regarding the failures in Financial Accounting, side effects of Globalization and the wrongly designed policies for the Financial Growth.

The first failure was the happening in the world’s largest economy United States termed as “Subprime Crisis” due to Housing Assets Bubble (2008) and then the subsequent or eventual “Euro Debt Crisis” (2010) both of which are interrelated in some or the other way which questions the Financial Stability of Global Business Cycle.