Friday, January 22, 2010

The Future of Education-Become a Farmer

Jim Rogers Says that people who got MBA's should go & try to exchange them for farming degrees or mining degrees. He says farmers will drive Lamborgini's & will be great for the next 20 years...the last 30 years of finance & banking is over it's done with.

Before you laugh, know that Jim Rogers is a multi-billionaire & paved his way investing. Anyone have an opinion on this? If farming is a field to get into, I never thought that you'd be expected to get a degree or that there were any degrees available.

Sorry for being off the topic, but hopefully some bright minds on here will give opinions on what careers people should be looking...

Healthcare or Agriculture etc..

Friday, January 15, 2010

Year 2010....

What year 2010 will bring for Indian market...?
We can see the consolidation phase of major indices, Nifty & Sensex, while Midcap & Smallcaps continue to outperform the Indices..

Returns :

Though the market in consolidation mood, it has no much downside in sight,
We can see the support at 5100 & upside limited 5600 as first resistance to Nifty.

Seeing at budget, we can see removal of stimulus package in phased manner...
This may show some correction for a while, but remember "every correction can be converted to buying opportunity"

India is poised at the growth just more than 9% in coming year, already showing a strong IIP data.
but at the same time, Food inflation continue to rise, Sugar seeing reaching Rs.50 per Kg.
Crude oil, got some set back in its growth, as Inventory in US has risen,
Crude oil is hovering near $80/ bbl.
Commodity prices seen increase in past 1-2 months.
Rupee is seeing the resistance to it continuing appreciation at Rs. 45 versus, dollar.

This all indicating to break to growth of capital goods, capital intensive industry, But we can see very good growth in all ancillary companies to this industry.
Healthcare can be the next in sight sector.
Agro food products companies are seeing all time highs in there history,

Happy Investing...

Monday, January 11, 2010

Revised Standardized lot size for derivative contracts on individual securities

SEBI has standardized the lot size for stock future. The revised lot size is given below:

The revised lot size will be effecice from 31 March 2010.

The Stock exchanges shall review the lot size once in every 6 months based on the average of the closing price of the last one month and whenever warrented, revise the lot size by giving an advance notice of atleast 2 weeks to the market.

If the revised lot size is higher than the existing one, it will be effective for only new contracts

The circular is available on the SEBI website under Derivative-Circulars.

Thursday, January 7, 2010

Tax Planning with Confianza Consultants Pvt. Ltd.

  • Investment options to maximize tax benefits available under Sec 80C & 80D. Maximum benefit available under this section is Rs. 1 lakh. At Confianza Consultants Pvt. Ltd., we suggest our clients different instruments that helps them in availing maximum benefits under section 80C and 80D.

    1. ELSS (Equity Linked Savings Scheme):
    High risk, high return product. It is also one of the options where the lock in of your investment is least, i.e. 3 years. Maximum limit under 80C is rs. 1 lakh. SIP (Systematic Investment Plan) is a good way to invest in this ELSS as it averages your cost over the year by buying every month. SIP is one of the best option as it allows one to invest regularly and contribution of small amounts every month leads to accumulation of wealth annually.

    2. Insurance:
    One should not just avail insurance policies for getting the Tax benefits. Insurance is very important for an individual and it should be done after taking into consideration the dependents in the family. We suggest the instruments to our clients on the basis of his dependants and tax liability.

    3. Medical insurance:
    One can avail up to Rs 15,000 deduction on medical premium of himself, spouse and dependents. In addition, medical insurance premiums for your parents, is eligible for another deduction of up to Rs 15000 and up to Rs 20,000 if they are senior citizens. Medical insurance is very important for all the indiciduals and every one should have it. We suggest this instrument taking into consideration various factors like age, illness (previous), capacity to pay the medical insurance, etc.

    4. PPF account:
    Public Provident Fund (PPF) is one of the safest debt products where you can invest up to Rs. 70000 every year. The investment done every year is exempt from taxes and the interest and maturity is exempted.

    Benifits of Tax Planning at Confianza Consultants Pvt. Ltd.:
  • Professional Advice on selection of instruments.
  • All instruments under one roof.
  • Systematic processing of applications.
  • Quick and efficient service for all clients.
  • We distribute tax planning products of all AMC's and Insurance Companies.
  • Periodic review of your Investments.

Wednesday, January 6, 2010

Auto Expo 2010

Yes Auto Expo 2010,
Making India a hub of small cars. More n more global players are trying their fate in fast growing small car market.
Maruti Suzuki will face a stiff competition, which sells every second car sold in India.
After Tata launched Nano, global players felt the importance of small cars, in developing as well in developed coountries, as these small cars are cheaper as well very fuel effiicient than the traditional gas guzzlers.

Surely India, the second fastest growing car market after China, will be benefited by more n more players setting up their plants in India.

Some launches on day 1,
Ford Figo, 1.2 petrol & 1.6 diesel engine, priced 4-5 lakhs
Volkswagen Polo, 1.2 petrol & 1.6 diesel engine, priced 4.5 -6 lakhs,
Maruti Eeco, MUV, 1.2 Petrol engine, prices 3-4 Lakhs
Honda Concept, Compact car, 1.2 Petrol engine, 5 lakhs
Toyota Etios, Compact, 1.2 Petrol Engine, 4-5 Lakhs,

some more... 1st day attractions
Maruti RIII, 7 seater MPV, 1.3 Ltr engine, expected price, 5 Lakhs
Skoda Yeti, SUV, 2 lt petrol/diesel engine, expected price, 15-16 Lakhs
BMW X1, 2.4 ltr, petrol & deisel engine, expected price, 35-40 Lakhs

Tata Aria, 7 seater , 2.2 lt petrol....

more to come.....

My view.
Auto ancillaries stock will rock....

Monday, January 4, 2010

Sectorial Overview : 2010

This is the end of the calendar year 2009. The year started with a depressed market. However, the market sentiments made a U-turn in the course of the year and the markets are closing with over a 100 percent gain from their lows. Positive sentiments are prevailing in the markets. The market will appreciate even further from the current levels as the world economy is improving and the earnings of domestic companies would gain momentum in the coming few quarters. 

In general, every stock with strong fundamentals has the potential to gain during a bull run. However, some sectors usually perform better than the others. Investors have to analyse the economic and business conditions, and figure out the favourably-placed stocks and sectors in order to get better returns in the markets .  

Based on the current situation , these are some of the sectors that are expected to perform well in the medium to long terms: 

1. Information technology:  

The information technology sector has performed very well during the second half of 2009. Positive developments in the global economic conditions have kept the IT stocks in a bullish mode. As economic conditions are improving in the developed markets, these stocks will perform well in the near to medium terms. However, investors should track the currency movements in the international markets. The sharp appreciation of the rupee against the dollar can play spoilsport for these stocks. Investors should invest in large-cap companies with strong balance sheets for better gains. These companies also have a wider base and more power to hedge against sharp currency movements.  

Stocks to look for: TCS, Infosys, Wipro, Tech Mahindra. 

2. Auto:  

The automobile sector is another one where stocks appreciated significantly this year. Most of the frontrunning companies in the auto sector have managed to show good volume growths during the last few months. The volume growth is expected to remain strong given the positive sentiments of consumers and availability of easy financing. Those invested in this sector can stay invested with a short to medium term perspective.  

Stocks to look for: Maruti, M&M, Tata Motors, Hero Honda. 

3. Public sector units:

Investors can look at taking positions in select public sector unit (PSU) stocks. There are talks on consolidation, disinvestment, increasing the public holding etc. These stocks are also good for diversity in a portfolio. Investors should do their homework before taking any investment decision. For example, the proposed disinvestment is not going to change anything from the control perspective of PSUs and the money collected as part of this disinvestment would mostly go to the government. 

Stocks to look for: NTPC, ONGC, SAIL, SBI. 

4. Hospitality:  

As the domestic economy is coming back on to a high growth path and the world economy is coming out of recession, the hotel industry is expected to benefit. Currently, India accounts for around 0.5 percent of world tourism. A strong GDP growth, improving infrastructure, confidence in the country's economic prospects, and open sky policy has improved the outlook for the tourism industry here. This positive outlook would increase the number of foreign tourist arrivals in the country. Domestic tourism is also gaining momentum due to increased confidence of consumers, rising disposable incomes, cheaper airfares and better connectivity.

Stocks to look for: Jet Airways, ITC, IHC. 

5. Power:

Power is one of the sectors that have a huge potential to grow here, but investors looking at investing in the power sector should plan for the long term (more than 2-3 years) as this sector is investment-intensive and returns are mostly back-ended. With a stable government at the centre, one can expect more reforms and ease in terms of structural issues to execute projects. 

Stocks to look for: Reliance Power, NTPC, Tata Power.

6. Pharma:  

Traditionally, the pharma sector is seen as a defensive sector in the market. However, the stocks in pharma sector have given very good returns in the recent past. The pharma sector growth in the recent past has been driven by the growing middle income segment and their growing affordability, and greater access to healthcare. The outperformance of pharma stocks is expected to continue in the medium to long terms. Pharma stocks also add diversity and defence to the investment portfolio. 

Stocks to look for: Ranbaxy, Sun Pharma, Glenmark, Apollo. 

Source: Economic times.