Friday, January 25, 2008

Stock Markets -- On a lighter note

How Stock Market Works!!!!!

Once upon a time in a village, a man appeared and announced to thevillagers that he would buy monkeys for Rs10.The villagers seeing that there were many monkeys around, went out to theforest and started catching them.The man bought thousands at Rs10 and as supply started to diminish, thevillagers stopped their effort. He further announced that he would now buyat Rs20.

This renewed the efforts of the villagers and they started catching monkeys again.Soon the supply diminished even further and people started going back totheir farms. The offer rate increased to Rs25 and the supply of monkeysbecame so little that it was an effort to even see a monkey, let alonecatch it!The man now announced that he would buy monkeys at Rs50! However, since hehad to go to the city on some business, his assistant would now buy onbehalf of him.In the absence of the man, the assistant told the villagers. Look at allthese monkeys in the big cage that the man has collected. I will sell themto you at Rs35 and when the man returns from the city, you can sell it tohim for Rs50."The villagers squeezed up with all their savings and bought all themonkeys.Then they never saw the man nor his assistant, only monkeys everywhere!! !Welcome to the "Stock" Market!!!!!

(have received this as a forwarded mail....too gud)

Monday, January 14, 2008

The IPO and NFO fever

There is a sudden craze for investments in equities. Whether it is because of sky rocketing sensex that has created new hopes in stock markets or surplus cash with the educated middle class, companies are able to raise huge amounts. IPOs are creating records in terms of market cap raised one after the other. DLF followed by ICICI and now Reliance Power. Junta is not thinking twice to invest in securities. The returns are definitely high and more than in any other form of investment. The present market price of the ICICI or DLF or NTPC are more than 3-4 times their initial selling price. Clearly returns of 200-300%.

The present Reliance Power and Future Capital IPOs have created a new demand for demat accounts and it is not surprising that broking companies have ran out of stamp papers and forms. Any new request or a service request for an exisiting account is taking too much time. Stock brokers are coming up with innovative ways to help the investors buy shares even without a demat account(they allow people to subscribe by giving random DP Ids and by the time shares get allotted, demat account will be opened). Within few hours of the start date, Rel Power is subscribed four times..God knows how much it will be by 18th Jan.. Eventhough the chances are very unlikely (1 among 10 may be allotted shares) that every investor gets the amount of shares he subscribed for, there is no hesitation in peoples mind.

It is not just with IPOs, even in case of mutual funds, the investments have seen a rise of 25% over the last two years. Any New fund is making a killing with investors trying to put their money in diversified portfolios and thus reducing the risk of any loss. Also the tax saving advantage that some of the mutual funds carry is definitely the best option for a long term investment which returns back with dividends from time to time and good amount of tax benifit.

Definitely peoples risk appetite has increased and every has a dream to become a Warren Buffet.

Friday, January 11, 2008

Kudos to Ratan Tata and the team behind Nano

Everyone including the experts and a man on the street alike laughed at the idea of one lakh car and stated such a thing is impossible..but it is been proved from time to time, that nothing beats determination. Very few people have the conviction to fight all odds to realise the dreams they dreamt of. Ratan Tata is one such man and to describe the latest wonder from his production house in his own words

"since we started the project four years back, there has been a steep increase in input costs,but a promise is a promise " . YES SIR, you delivered what you promised. KUDOS to you.

No doubts, the most attractive thing about Nano is its cost, but what is appreciable is the engineering teams' ability to still provide superb features within the budget.

623 cc engine, 20-22 Kmpl, Nice looks, Good interiors, environment friendly and more space...what else..just everything that is needed.

It is indisputably one of the major technological achievements in the recent times by any of the Indian companies. All of us should learn a lot from the Nano story and work with re-newed energies to accomplish even more significant innovations.

Thursday, January 03, 2008


I wish all the readers and the visitors to my blog a VERY HAPPY AND PROSPEROUS NEW YEAR.
Also as we welcome 2008, this blog enters into its third year of succesful existence, I thank every one of you for your encouragement.

My new year resolution is to blog more regularly about more useful topics.