Posted at 11:07 AM , on January 27, 2020
The markets started off on a somber note during the week with the Sensex losing nearly 820 points in the first 3 days. The fall was significant for two reasons. Firstly, such sharp falls are not seen in the midst of a pre-budget rally. Secondly, the fall in Sensex happened with a sharp spike in the VIX. Here is what actually drove the indices lower.
A worrying quarter
The results are coming in thick and fast and there were some real concerns in a number of heavyweights. HDFC bank and Kotak Bank reported larger than expected NPAs. TCS had growth issues and RIL saw GRMs and petchem margin falling. Of course, there were smaller banks like RBL which saw a sharp fall in profits but the macro worry appears to be that the consumption slowdown is beginning to hit the private banks. Now PSU banks will be closely watched. Continue reading
Posted at 1:41 PM , on August 7, 2015
Forget about hot tips and peer pressure. Buy the stock of a company, whose products you or your family members understand. This familiarity could stem from your jobs, purchases or usage. These ideas are available all around if you care to observe. Don’t ever hold on to a stock which does not pass the litmus test of your conviction! It is actually quite simple. Continue reading
Posted at 6:02 PM , on July 30, 2015
The Federal Open Market Committee (FOMC) meet that ended on July 29th still leaves the big question open; will the Fed hikes in September or will they postpone the rate hike? For one, the Fed has enough time till September 16th as there are no intermediate meetings scheduled. That will give the Fed a full 7 weeks to analyze data on growth, labour, wages and inflation before arriving at a rate hike decision. However, as one breaks up the press release issued by the Federal Reserve Board after the FOMC meet, it looks quite likely that the rate hike may be put off from September to December. Let us understand why! Continue reading
Posted at 3:42 PM , on July 27, 2015
That is a lot of money stashed away abroad
Most readers may be surprised to know that the US-based companies have kept cash profits to the tune of $2 trillion abroad. That is roughly equivalent to the GDP of India and roughly half the market capitalization of the UK stock market. Close to 9% of this stash belongs to Apple. In fact Apple has a cash chest of $200 billion of which $180 billion is held abroad. If you are wondering about the reasons for the same, it is all about taxes. Continue reading
Posted at 3:40 PM , on July 27, 2015
It is hard to say what will be the final outcome of the proposed Cairn-Vedanta deal but one thing comes out crystal clear. The minority shareholders are having a major voice in merger deals. But, first some background.
The recent amendments to the M&A rules in India specifically require approval for any merger from a majority of the minority shareholders. Let us understand this a little further. Continue reading