Posted at 12:30 PM , on August 20, 2018
When we talk of economic reforms in India, the focus is normally on Dr. Singh and Mr. Narasimha Rao. While they certainly pioneered the reforms process in India under pressure from the IMF, the practical thrust came from Mr. Vajpayee. In fact, had it not been for Atalji, Indian markets may have never seen the big bull market of 2003-2007. Let us also remember his significant economic contribution, apart from his vision and unmatched oratory.
When the NDA government announced an Rs.75,000 crore outlay for the Golden Quadrilateral project in the 2003 budget, it was an audaciously large allocation. Over the last 15 years, if India has seen a major thrust to trade, commerce, production and income levels; it is all thanks to the trigger that came from Golden Quadrilateral project which remains India’s first major infra thrust post liberalization.
Posted at 11:00 AM , on August 18, 2018
Derivatives, as the name suggests, derive their value from an underlying asset. Let us take the example of a tomato farmer and a ketchup factory. The farmer grows tomatoes in his farm and supplies it to the ketchup factory on a regular basis. However, the ketchup factor and the farmer want more predictability and stability in their price and their costs and revenues. Let us assume that tomatoes are currently being supplied at Rs.20/kg to the ketchup factor. But there are sharp seasonal variations in these prices. The farmer will be happy if he can get a price of Rs.19-22 per kilogram for his tomatoes while the ketchup factor is open to a price of Rs.20-23 per kilogram in the ideal case scenario.
Posted at 5:56 PM , on August 17, 2018
DURING THE COURSE OF TRADING YOU MUST HAVE SURELY TRIED TO EVALUATE HOW OFTEN YOU GOT YOUR CALLS BANG ON TARGET. FOR MOST SUCCESSFUL TRADERS THE SUCCESS RATIO IS ABOUT 55-60% IN A BEST CASE SCENARIO. THEN WHAT DRAWS THE LINE BETWEEN A SUCCESSFUL INVESTOR AND A NOT SO SUCCESSFUL INVESTOR. THE PROBLEM IS THAT THERE IS JUST TOO MUCH FOCUS ON BEING RIGHT. BUT BEING RIGHT IS NOT THE SAME IS BEING PROFITABLE. WHAT REALLY MATTERS IS WHAT YOU DO WHEN YOU ARE RIGHT AND WHAT YOU DO WHEN YOU ARE WRONG. REMEMBER, WHEN IT COMES TO TRADING BEING RIGHT IS NOT THE SAME AS BEING PROFITABLE…
Posted at 2:00 PM , on August 14, 2018
The last time that the Turkish Lira faced a crisis was in 2001 when many Turkish banks went bust. The Turkish Lira has plummeted more than 42% since the beginning of the 2018 with the currency losing nearly 16% on Friday itself. Where does Turkey go from here and what does it mean for other emerging market economies?
Posted at 2:00 PM , on August 13, 2018
The Board of Britannia recently approved the issue of bonus debentures to its shareholders in the ratio of 1:1. Like a true-blue bonus, the issue of bonus debentures will be free for shareholders. Instead of issuing bonus shares and reducing the market price, the bonus debenture is a better way of rewarding shareholders without diluting the price. Here is what you need to know about bonus debentures.