TEAM STOCKRESEARCHERS:ALL REPORTS ARE COPYRIGHT FREE AND ARE STRICTLY MEANT FOR PUBLIC CIRCULATION.EMAIL TO STOCKRESEARCHERS@GMAIL.COM FOR PREMIUM SERVICES DETAILS.FOR FREE TRIAL using your phone, SMS 'ON SRESEARCHERS' to 09870807070.OR SMS JOIN SRESEARCHERS TO 567678 FOR TRIAL CALLS.
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
dear friends, well the new financial is starting so early the better. so i am sending a very important info.
one of my most favourite investment instruments is the Public Provident Fund (PPF). I strongly believe that every Indian, male or female, salaried or self-employed, married or unmarried, should have a PPF account ticking for him or her.
Leave aside the tax deduction, leave aside the 8% tax-free interest --- this is your social security. Over 16 years, an annual contribution of Rs 70,000 grows to over Rs 21 lakh, which is almost 30 times the annual investment. The capital built over time can serve multiple purposes -- catering to children's education, medical emergencies and even retirement.
Apart from the tax deduction under Sec 80C and the 8% tax-free interest, the general framework of a PPF account has several other features and nuances. Based on feedback received from readers, today's article focuses on some of these key but lesser known aspects of PPF.
Withdrawals Many readers have complained that even bank officials aren't aware of the rules, especially on how much can be withdrawn and when.
It is to be noted that though PPF is a 15-year instrument, it ignores the year of opening the account. Therefore, it actually becomes a 16-year account and the account holder can contribute to it even during the 16th financial year, even on the last day. This creates confusion in case of withdrawals.
Let's take an example. Let's suppose your account was opened in FY 1993-94. Maturity date: Add 15 to the financial year end => 1994 + 15 = 2009. Account matures at the end of the 2008-09 financial year, on April 1, 2009.
First withdrawal date: Add 6 to the financial year end => 1994 + 6 = 2000. It can be effected in 1999-2000.
Amount of first withdrawal: The 4th preceding year will be 2000 - 4 = 1996 (FY 95-96) and preceding year 2000 - 1 = 1999 (FY 98-99). Amount withdrawable in the 7th year, FY 1999-2000 is 50% of the balance to the credit as on March 31, 1996 or March 31, 1999, whichever is lower.
Slightly complicated, but once you go through it a couple of times, it becomes clear.
Reviving dead accounts
Another frequently asked question is to do with forgotten, 'dead' accounts. In a specific case, a reader's father had opened an account for her some seven years back but she had never bothered much about it. Now, seven years on, could she open a new account or could something be done about the old one?
Well, if the investor fails to subscribe even the minimum Rs 500, the account is considered as discontinued. Loans and withdrawals are not available from a discontinued account. At the end of the term, the investor will be paid the balance with accrued interest for the full term.
However, the good news is that it is possible to revive the old account by contributing Rs 500 with a penalty of Rs 50 for each year that the account lay dormant. This fact is not known to many. They feel that very old discontinued accounts cannot be regularised. Note that the penalty does not attract any interest or deduction.
Post-maturity treatment
By far the most commonly asked question is to with post-maturity treatment of PPF. In other words, what happens after the 16 year period is over?
Though some investors start a fresh PPF account, the idea of keeping funds locked in for another 16 years does not appeal to all. Especially to investors of an advanced age who look towards an element of liquidity in their investments.
But did you know that once the initial term of 16 years of PPF is over, you can extend the account for 5 years at a time and that too indefinitely? In other words, instead of 16 years, the same PPF account can be converted into a 5 year scheme and what's more --- with additional liquidity than what it offered during the initial term. If this feature of PPF is used optimally, it can be literally converted into a 5-year deposit that offers the 8% tax-free interest, tax saving under Sec 80C and immense liquidity -- and all this for your lifetime.
As already mentioned, at its maturity, the PPF account can be continued for a block period of 5 years. This facility is available for any number of block periods -- there is no limit on how many times you can extend the account.
Now, this continuation can be with or without further contributions. The only thing that investors should be careful of is that once an account is continued without contributions for any year, the subscriber cannot change over to with-contributions extension. [Notification F.3(6)-PD/86 dt 20.8.86].
Liquidity
An investor continuing his account with fresh subscriptions can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more instalments, but only one per year. For example, say the term of your PPF account is ending on March 31, 2009. The balance at that time in the account is say Rs 15 lakh. Now, you may opt to continue the account for five more years (i.e. till March 31, 2014) and invest regularly as you have been. However, over the period of five years till March 2014, you may withdraw Rs 9 lakh, which is 60% of the balance to your credit as on March 31, 2009.
What if you wish to continue but not invest further? That too is possible. In case the account is extended without contribution, any amount can be withdrawn without restriction. However, only one withdrawal is allowed per year. The balance will continue to earn interest till it is completely withdrawn.
Post-maturity continuation
There are a couple of formalities for declaring your intentions regarding post maturity continuance. Form-H is to be used to declare the intention of continuing the account with subscription for each extended period. It should be filed before the first contribution is made for the first year of extension. In its absence, the account will be treated as without-subscription extension. Fresh contributions made to such accounts will enjoy neither the deduction u/s 80C nor the interest (MoF (DEA) 7/21/88-NS-II dt 10.8.90).
Last point
It is also possible to invest Rs 1 lakh in PPF for those who wish to do so. Remember, Sec 80C doesn't impose any sectoral caps on investments. It is PPF rules that limit the investment to a maximum of Rs 70,000 in the PPF accounts of self and minor child. However, tax deduction is also available under PPF for investments in the name of spouse and children. Consequently, one can invest Rs 70,000 in one's own account and the balance Rs 30,000 in say the spouse's or major child's account and thereby avail of the full deduction of Rs 1 lakh through PPF.
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Adhunik Metaliks Limited (AML) is only integrated steel company in India which offers merchant mining and merchant power. The unique portfolio of integrated steel operations along with merchant mining and merchant power offers significant value in terms of high operating margin diversification across business verticals. The key attraction of AML lies in its natural resources reserves and which include iron ore, coal and manganese ore. AML is geared to rise up in the value chain by integrating and consolidating its three business verticals resulting in expansion of value proposition for stakeholders.
AML has a 0.45mt integrated steel facility located in the mineral rich state of Orissa. It is one of the leading players in alloy and special steel catering largely to automotive, construction and engineering industry. Its steel facilities are integrated backward with captive iron ore and coal mines.
AML is setting up a 540 MW (270MWx2) merchant power unit in its subsidiary Adhunik Power & Natural Resources Limited (APNRL). The project is financed through a debt equity mix of 75:25. While 80% of the debt is already closed, the balance 20% closure is expected by the end of this month. BTG order for 540MW has been placed with BHEL and all necessary regulatory approvals are in place. It has a captive coal block allocation in alliance with Tata Steel (APNRL's share 69mt) and the same is expected to commence production in 2-3 years time.
Stable steel pricing environment, strong control over key raw material (coal and iron ore) and predictability of revenues from its proposed merchant mining business places Adhunik in an enviable position. Moreover, scaling up in operations and captive linkages for iron ore (FY10 onwards) would result in substantial topline and net profits growth. Thus at the CMP, there is a huge scope for re-rating due to asset mis-pricing, as well as growth prospects.
BUY BANK OF BARODA
Target - 690
Upside Potential - 10%
Holding Period - Short to Medium Term
INVESTMENT RATIONALE
The bank which was incorporated in 1908 and nationalized in 1969 is the fifth largest bank in India with 1,238 ATMs and 3,050 domestic branches across the country and proposes to open 50 more branches by the end of FY10. The bank operates in 25 countries through 78 offices. It was the first bank to venture overseas and entered into capital market in 1996. It provides financial services to over 3.52 crore customers globally and has uninterrupted record in profit making and dividend payment.
Attractive liability franchise- The bank has third largest branch network of over 3,050 across the country which enables it to build a very strong retail liability franchisee to fund its growth. Domestic CASA ratio pegged at 36.9% as on December 2009 which is quite healthy and grew by 27% y-o-y basis in Q3FY10
Lowest yield risk- Bank has limited yield risk as only 19.9% constitutes AFS portfolio and duration is much lower at 2.18. Considering the fact that yields are likely to harden further thanks to rising inflation, unlike other PSB peers, the bank has less volatility in its earnings vis-à-vis treasury losses.
Asset quality remains resilient- Bank has high asset quality as GNPAs stay largely stable at 1.4% of advances. Albeit NPLs increased by Rs339 crore y-o-y the coverage ratio is maintained at healthy 78.4%. Slippages are on decline and restructured assets and stressed assets stands at 3.1% and 4.6% respectively. We expect early recovery in asset quality in FY11.
Robust Core Fee Income- In Q3FY10 core fee income in the form of commission brokerages grew by a robust 26% from Rs 490 cr to Rs 624 cr. This growth helped the bank in arresting the decline in other income portion to only 22%. In FY10 we estimate a muted growth of 10% in FY10 however we expect fee income to grow by ~20% in FY11.
Sustainable returns- Bank has improved its return on equity significantly to ~19% in FY09 from ~13% couple of years ago. Going forward, we expect further improvement on returns on account of strong recovery, better margin management, declining credit cost and productivity.
Valuations & Views – Today, bank touched a new high of Rs 635 and trading at P/Adj BV of 1.33 on FY11E Adj BV of Rs 469. We believe that bank should be able to generate RoE in excess of 20% as we move into FY 11 and further into FY12. We maintain the bank to BUY due to the continued improving outlook in the business scenario with moderating slippages in the loan book. We believe the justified valuation would be 1.45XFY11 ABV with a price target of Rs 690.
Buy Pennar Industries Limited
Target - 55
Upside Potential - 53%
Holding Period - Medium to Long term
Company Background
Pennar Industries Ltd. (PIL) has transformed itself from a pure commodity player into value added & niche engineering products company thereby improving its overall profitability over last 5-6 years.
Investment Rationale
Around 70% of FY09 revenues of the company came from Value added segment (VAS) as against just 20% in FY2003-04. We believe going forward; more than 85% of the revenues of the company will come from this segment hence enhancing profitability. The VAS attracts higher EBIDTA margin of around 15% than the cold rolled steel segment of 7-8% margin. We believe that the continuous focus by the company in the value added segment would further drive the EBIDTA margin for the company.
The company has over the years increased its business presence in the railways segment, whereby there has been consistent order flow from companies like Texmaco, ICF & Titagarh Wagons. From a contribution of just Rs.176 crs (24% of revenues) in 2009, railways are set to contribute around Rs. 270 crs (32% of revenues) in FY10E & Rs.320 crores in FY11E, thereby increasing the earnings visibility of the company
Pennar has forayed into a new opportunity named Pre-engineered Business Segment (PEBS), where it has technical collaboration with NCI Building Systems (USA), one of the world's largest pre-engineered building solution providers. The concept is gaining momentum in Indian market, which we feel will positively impact the Revenues of the company. Currently PEBS has order book worth of Rs. 60 crores for Q1FY11 & is expected to contribute around Rs. 150 crores to the top-line in FY11. With margins higher than its traditional businesses, which we believe will be instrumental in better margins going forward.
Valuation Recommendation
We have valued the Company on an EV/EBIDTA basis, wherein, we believe that the company will trade at 5.5Y11E EV/EBIDTA, arriving at a target of Rs. 55 per share, implying an upside of 49% to the current market price of Rs. 37 per share. At Rs. 37 per share the stock is currently available at a PE of 5.8x in FY11E & 5.1x in FY12E estimated earnings. The target price of Rs. 55 per share discounts FY11E earnings at a PE of 8.6x & FY12E earnings at 7.6x
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Nifty continued its journey of consolidation by remaining within the broad range of supports in last two trading sessions.
Watch for inflation data in today's trading session. Post the same have a watch on the bank stocks.
Do note that the results season would start within the next fortnight and it would be the most important trigger for a richly valued market...............................
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
TSR UNIQUE GUARANTEE: CONFIRM ALL TRADES WITH 200+ CLIENTS/MEMBERS AT THE CHAT ROOM..
DO READ THE DISCLAIMER ON THE BLOG.PLEASE SEE THE BLOG FOR OUR PAST PERFORMANCE.ALSO REMEMBER THAT PERFORMANCE SHOULD NOT BE TAKEN AS AN EXPECTATION,INDICATION OR ACTUAL FUTURE PERFORMANCE.DO REMEMBER PROFITS ARE ONLY INDICATIVE AND MAY VARY FROM PERSON TO PERSON BASED ON HIS RISK APPETITE.
INTRADAY FUTURES PROFITS +4250. in Just 1 Lot of Trading.Charges 6600 for 2 months.
TSR NIFTY -3500. IN JUST 1 LOT.Charges 3700 for 2 months
INTRADAY OPTIONS +2433 IN JUST 1 LOT.Charges 3900 for 2 months.
Here are the trading calls given by Team Stock researchers to its premium clients today.Its intra/futs/nifty futs /options service.Calls are sent by both sms and yahoo messenger.All are live calls.We dont give premarket calls.
3 calls Hits target 0 sl taken and 2 booked at costs
CASH CALLS:
sell dlf below 312 sl 315 tgt 309-307 9:11:06 AM r3 Target hit
BUY STERLITE 847 SL 837 TGT 856-861 9:16:37 AM r3 entered at 846 exited at 844
small sl trade buy icici bank 963 sl 958 tgt 971-976 9:53:15 AM small sl trade r3 re enter icici longs sl at 953.95 CORRECTION WWW.NIFTYVIEWS.COM exited at 961
buy unitech 73.10 sl 72.25 tgt 73.85-74.20 taking contra trades today.Kindly trade in small qty www.niftyviews.com TARGET HIT
BUY HEXAWARE 68.30 SL 67.4 TARGET 69.5-70.2 RANK3 TARGET HIT
Sell Bank Nifty 9460-70 Sl 9520 Tgt 9400- Sl Taken (-50)
TOTAL=-70
OPTIONS CALLS: 31.3.10
1. #time# BUY APRIL ICICIBANK 940 PA AT CMP 20.30, SL 17, TGT 1 = 25 WHICH IF COMES BOOK 50% AND KEEP REST FOR NEXT TGTS WITH SL AT COST. #time# APRIL ICICIBANK 940 PA AT FIRST TGTS AT CMP 24.85-25, BOOK OUT HALF AND KEEP REST FOR NEXT TGTS WITH SL AT COST OF 20.30. #time# ICICIBANK 940 PA HITS TSL AT OUR COST AT 20.30, CALL OVER. WE MADE GOOD MONEY THOUGH.
PROFITS = 24.85 - 20.30 = Rs.1593
2. #time# BUY APRIL DLF 300 CA AT CMP 20.55, SL 18.55, TGT 1 = 23.55 WHICH IF COMES BOOK 50% AND KEEP REST FOR NEXT TGTS WITH SL AT COSTS. #time# DLF 300 CA , BOOK 50% IN IT AT CMP 21.60 AND KEEP REST FOR NEXT TGTS WITH SL AT COST OF 20.55 #time# BOOK OUT FULLY FROM DLF 300 CA AT CMP 20.55,TSL HIT AT COSTS, WE MADE A LITTLE THOUGH. IT SAW A HIGH OF 23. ALL CALLS OVER.
PROFITS = 21.60 - 20.55 = Rs.840
TOTAL PROFITS = 1593 + 840 = Rs. 2433
For a Free Trial Sms Join Sresearchers and send to 567678
To subscribe FOR FREE TRIAL using your phone, SMS 'ON SRESEARCHERS' to 09870807070.
DO READ THE DISCLAIMER ON THE BLOG.PLEASE SEE THE BLOG FOR OUR PAST PERFORMANCE.ALSO REMEMBER THAT PERFORMANCE SHOULD NOT BE TAKEN AS AN EXPECTATION,INDICATION OR ACTUAL FUTURE PERFORMANCE.
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
As an investment destination, India often suffers in comparison to China,
but India's problems come from tackling its most difficult problems first.
We now perceive a tipping point where structural impediments have been sufficiently dismantled to permit a new form of economic growth. Many investors ignore the order evolving out of India's apparent chaos, while also failing to accept that China's state-imposed order will one day decompose.
This dynamic means that returns from Indian equities are likely to far surpass Chinese equities over the medium and long term.
Structural mispricing of money is ending in India, but not China
��
India often compares unfavourably to China, but India's problems come from
tackling the most difficult problems first; China has postponed these problems.
��
China is not working to privatise its financial system or create a more porous
capital account.
��
China is not focused on domestic consumption-driven growth, nor is it moving to a
more representative, less corrupt political system.
��
China's economic foundations are based on government-determined prices,
whereas India has moved materially towards market rates.
The post-mercantilist world will begin in India
��
India is far advanced on China in developing a private-sector financial system.
��
India is nearer to a market rate for exchange rates and interest rates than China.
��
India is less reliant on exports and can move more easily to a consumption-driven
economy than China can.
��
India's private-sector banking system can more easily provide consumer credit,
whereas Chinese credit is still needed to support state businesses, not consumers.
��
If China does not abandon mercantilism, it will depress inflation and help India
to grow.
India's democracy is starting to look like the USA's circa 1900
��
Foreign investors regularly fled from the chaotic democracy of the late-19th Century
United States.
��
The order of the British Empire was an investment illusion.
��
When India's democracy works, Indians can be as successful at home as abroad.
In 2010 there is a general realisation that mercantilist policies have reached their limit. The West's ability to continually gear up to buy more stuff is clearly much more limited now. In particular, it is difficult to see how very populous countries such as China and India can achieve western living standards by sticking with mercantilist policies.
A key question for investors must be how easy it will be for any individual country to make the transition to the post-mercantilist world. While this report deals with the many differences between China and India, the crucial conclusion is that China still faces many hurdles, whereas India is far ahead.
Whichever emerging market can make this transition would both deliver the returns expected from high GDP growth, while simultaneously breaking the correlation of returns with developed markets. India is the Asian equity market most likely to deliver.
While there is much to criticise in Indian bureaucracy, there is also much to praise. In particular, the financial regulators at the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are forwardlooking and are methodically steering the financial system towards something more fitting to the 21
st Century.
As communications experts vaunt the ability to leapfrog out-of-date technology, so the SEBI and RBI have the ability to leapfrog the intellectual cul de sac
of the dangerous risk-taking activities born of the efficient-markets hypothesis.
No regulator will ever be perfect and faults will occur, but the relative stability of the Indian financial system during the recent extreme trial is a key indicator that SEBI and the RBI have, at this stage, put firm foundations in place for India's financial superstructure.
While other regulators have much bad to undo and much to relearn, the Indian financial bureaucracy is ahead of the game. As the western world rebuilds or recasts its financial regulation with the usual unforeseen consequences, it will be "steady as she goes" for the Indian financial system.
We are all in bed with the bureaucrats now, so what matters is whether you are investing in a jurisdiction with good or bad bureaucrats. In the new structural normal, a bad bureaucrat can screw up returns on equity with the same unintended precision as bad management.
In this light, India's plodding but improving bureaucracy has much to recommend it over the newly resurgent bureaucracy of the West, desperate to show its power relative to capital and likely to be rolling up its sleeves and getting ready for a brawl.
India's state is on the retreat. The public debt-to-GDP ratio is already falling. While of course much will depend on the pace of economic growth, a structural rise in the tax take is also working in India's favour. By pushing ahead with the direct Tax Code and the GST, India is making structural strides to fix its fiscal problems at a time when other countries' structural fiscal problems are getting worse.
The "new normal" is more government. In India this might not be the case - and anyway, that government is likely to be one of Mr Rumsfeld's 'known knowns' rather than the numerous 'unknown unknowns' inherent in the rising role of government intervention elsewhere in the world.
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
Nothing in this article is, or should be construed as, investment advice.
Share reports. Share knowledge. Contribute and Gain. Together we grow BETTER and BIGGER. Share your reports with everyone. Take, and help others take informed decisions.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ We understand that reports are copyrighted materials of their respective authors/firms, and we pay sincere tribute to their efforts. We don't copy, we share. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ARUN (SAUDI ARABIA) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -- For Anything related with Stock market be Online at http://www.niftyviews.com/
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
Get free updates on your mobile phone. SMS- JOIN SRESEARCHERS to 567678for our market updates
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
To unsubscribe email Stockresearcher-unsubscribe@googlegroups.com
for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
CALLS FOR 30/08/11
-
Buy LITL future/cash 16.5 stoploss 15.9 target 17.2-17.7
PROFIT=8000
SELL BATA FUT 710 SL 716 TGT 704-698
BOOKED AT 697
PROFIT=13000RS
SELL BATA FUT 710...
INTRADAY CALLS FOR 21.06.10
-
We are giving a free trial to register FOR FREE TRIAL using your phone, SMS
'ON SRESEARCHERS' to 09870807070.
If you want this newsletter to be delivered...
Disclaimer
-
Disclaimer
By accessing WWW.NIFTYVIEWS.COM and subscribing to premium/free services
provided by TEAM STOCKRESEARCHERS PVT. LTD., you have read, understood ...
Posts
