Retirement Postponed!!

We were hearing people planning to retire by 50....no no 40.....or still less, but do they still hope to achieve it??

The melt down in the stock market which has made the blue chip stocks look like penny stocks has reduced savings for lot of investors.

We all know that in the longer term equity outperforms all investment class so it would be wise to continue your investment plans.....Reduced level of stock market gives a an opportunity to buy good stocks at throw away prices.

Instead of being greedy and buying lot of stocks at one go we and see get its value reduced by 10% we can buy regularly in small quantities...

Regular and disciplined investment will still give u the chance to achieve your financial freedom.....

Below 10K people are talking about going a lot down to find the bottom when price will stop falling and probably stop rising too and just hanging in there for sometime. I think now the Indian stock market warrants long term investments...

Downgrade in earnings are already covered in the fall in PEs and most of the bad news is factored... After the panic subsides and rationality comes back we will again see happy days...

Why do we need stock market......

WHO, WHAT, WHY?

The BBC Magazine answers...follow the link....

http://news.bbc.co.uk/2/hi/uk_news/magazine/7672274.stm

FII Lending Data

FII Lending Data by Sebi released today...

HDFC Bank: 2.5 lakh shares
HDIL: 12.66 lakh shares
Hero Honda: 3.98 lakh shares
HUL: 7.85 lakh shares
ICICI Bank: 2.68 lakh shares
ITC: 22.91 lakh shares
L&T: 8.21 lakh shares
NTPC: 5.49 lakh shares
Punj Lloyd: 3.44 lakh shares
Rel Comm: 1.31 lakh shares
RIL: 1.21 lakh shares
RPL: 3.26 lakh shares
SAIL: 3.99 lakh shares
Tata Steel: 3.25 lakh shares
Axis Bank: 1.39 lakh shares
BHEL: 1.05 lakh shares
HDFC: 400 shares
Infosys: 38,611 shares

Good Riddance

Good Riddance - Time of your life

"Time grabs you by the wrist, directs you where to go
So make the best of this test, and don't ask why
It's not a question, but a lesson learned in time"

Recent turmoil in the equity market has given us lot of valuable lessons though at a heavy price ;-)

Unpredictability , irrationality , greed are all part of this market.....Time and Price correction were both required..

Its very important to find the right value for everything then only we can identify whether it is cheap of expensive...

Earlier we were buying not because it is cheap ( stock might be horribly expensive) but is still going to rise more.....targets were set and nobody wants to miss out the joy ride.....

now all this seems to be a dizzying rollercoaster.......

Be patient and don't sell it at a loss, for long term investor some more downside should not be a dampner. Recession or slowdown from now on slowly and steadily we can start putting small amount of money in the markets.

Remember 50% downside will bring 100% profits
90% downside will bring 1000% if the stocks are retraced to their original levels...

Many stocks are already beaten down 80-90% and they don't have much to loose......

Finally...

It's something unpredictable, but in the end it's right.
I hope you had the time of your life.

Timing Matters in Stock Market

A very good article by Arun the stock guru

Timing is everything for investors

Go and enjoy reading it....

Rolta India - Stock Coverage

In current turmoil in stock market and not so good outlook for Indian IT industry which sources its revenue mainly from US and somewhat from Europe, the IT stocks are out of flavor. nearly 40% of the revenue comes from BFSI segment which has collapsed.

One stock which stands apart is Rolta India. It is a market leader in providing specialized IT-based solutions toe the geospatial and engineering sectors.Rolta has broadened its engagement and geographic footprint with strategic joint ventures with Stone & Webster and Thales.
It has a near monopoly in the verticals it is playing.
* 70% share of Indian GIS market
* 90% share of Indian EDA market
* 95% share of Indian Defence GeoSpatial market

Rolta provides a full complement of specialized services in the following areas:

Information security, software packaging and testing, ERP consulting and integrated CAD/CAM /GIS services

Animation,modelling, programming, interactive media. and game design solutions

Fully integrated C4ISTAR for armed forces

Global leader in IT-based Geospatial, Engineering Design and information security and defence solution

End-to end geospatial and photogrammetry solutions for diverse applications and industries

Engineering design and automation solution for the energy, ship building and industrial segments

I don't want to give a target price for this stock nor I have a right price for you to enter because I cannot judge the bottom of stocks in current scenario. Logic doesn't follow in fearful market. But if someone wants to be in the IT world in a niche segment which is growing they can take an exposure to this stock.

Rolta India can also benefit from the nuclear deal signed by India. It is aiming to provide engineering design and automation solutions to EPC players. L&T and BHEL are already its clients who are eyeing a huge pie in the nuclear business oppurtunities.

source : rolta india website, hindu business line

Interbank Rate

What is Interbank Rate?
It is the interest charged by one bank to other bank for short term loans. This interest rate is regularly fluctuating based on money availability, demand, current rates, time horizon and other terms.

There are some standard bank rates used as a reference by different banks and other interested parties in the economy.
Eg: LIBOR (London Interbank Offered Rate) , MIBOR (Mumbai interbank offer rate). Indian Banking Association(IBA) has pushed for it to the RBI.
Benchmark rate they say helps eliminate the fuzziness in loan and deposit pricing and usher in more transparency in the entire system.[source : Rupee time]


Why do bank need to borrow when they are themselves lenders?
Banks need to borrow to manage liquidity and meeting various statutory requirements placed by the RBI or other federal agencies.
Banks are required to keep some amount of liquid capital or asset to fulfill the withdrawal requirements of the customers. This is a fixed percentage of the total assets. If their is a temporary shortfall banks need to borrow to meet the liquidity requirements.
The lender bank earns interest on the excess assets lent.

Time to turn the tables?

Indian stock markets are in turmoil, thanks to current situation in the west with US,European Union and Japan facing recession.

Indian markets are classified as emerging markets and hence considered risky!! But are they riskier than the markets(considered developed) where capital is fleeing? Is US treasury bonds more attractive than our desi G-Secs?

We have for long depended on US and Europe for our growth. They grow, they consume so we grow. They provide capital for growth.

Do we need their capital or they need ours truely :) Household savings have increased and domestic market can be kept stable by local consumer demand and huge capital spends on infrastructure. Indian companies are buying abroad creating job oppurtunities or atleast saving the existing jobs abroad. They are providing cash to sick units and turning them around.

Now its time that we provide the support and stabilizing effect to the world finance. Foreign investors, instead of exiting can think this as oppurtunity here. We need to strengthen our markets from fickle incoming/outgoing capital.

In this globalized economy we can find succor locally in our less leveraged economy.