Volatile Markets and Capitalizing on chaos
Making sense of the Sensex definitely calls for brave hearts, if not strong minds, given the extremely volatile  markets we have had in recent times. Blame it on the new system, set to make its debut soon, which has been adding to the swinging markets. The demise of deferral products like badla is causing the nervousness in the market place and thereby creating a chaos like situation.

MNC open offers and their impact
Today one opens the papers and is flooded with news about buybacks, at attractive offer prices especially by MNC’s. Why does a MNC make an open offer to acquire all the shares of the domestic shareholders, what are the aims behind it, how does it impact the company and its future?

Interpreting the Results carefully
With the quarterly results becoming a norm, investors are flooded with a deluge of information. But what should an investor focus on - the year on year results or the quarter on quarter results - What if they show conflicting trends? One shows a revenue growth and the other a profit growth, which is more important or indicative of a trend?

The rules of the new game
Come July 2nd, SEBI will be enforcing some important decisions to streamline market operations. With the introduction of rolling settlement, options on individual stocks and ban of deferral products a new era will be launched in the history of the stock market here in India. After the advent of the NSE and dematerialisation of stocks, this may be the most important set of changes in the stock market.

Bye bye Badla, Options are here finally
It's time now to say good bye to Badla and all such deferral products like ALBM and BLESS. Come July 2, the Indian bourses will be ushering into an era of options finally. In a move which is bound to have far reaching implications, the market regulator SEBI has finally decided to put a ban on badla and all deferral products, effective July 2, 2001.

Some great paying scrips
And still the bear market continues. Even though many stocks have fallen so much that they are now fairly valued -- or even undervalued -- investors are afraid to buy. Analysts across the board seem to agree that though the valuations look attractive, may be the market has as yet not bottomed out and thus, may be one should wait and watch.

The MSCI turmoil
Every six months or so we have the clouds of the MSCI index re vamp looming over us. The impact of the weight gainor loss in the index on the foreign institutional inflows into the country, especially an emerging market like India, is tremendous. But what is this MSCI index and why is it so important to emerging markets such as India?

Time to pick IT stocks selectively
Good IT stocks with clear cut business plans will rebound from the current recession. The US economy is more robust than what was assumed and with the recent fed rate cut, one would soon see the US economy bouncing back. This would give a fillip to Indian IT companies

What drove the markets down ?
Since April 6th, 2001, the BSE 30 sensitive index shed 392 points, of which 125 points or 32% can be attributed to the drop in the price of petrochem giant Reliance. With a weightage of 13.52%, in the sensex, Reliance, is the second largest stock after HLL in the benchmark index

Will the techs rise again ?
Early signals from the Nasdaq will be crucial for pricing of tech stocks in the domestic market. The recovery of the domestic market this time round is likely to be long-drawn, but steady. So, for the time being, techies will be best avoided, what with more downsides left

Two way fungibility is happening
ADR/GDR holders, can now take an active part in the buoyant M&A markets in India. Earlier if an ADR holder wanted to offer his ADRs for participating in the open offer in case of a takeover, these (ADRs) had to be first get converted into domestic shares to be eligible. Not any more

Media keeps you entertained
There are a number of media stocks in the market like Balaji Telefilms, Mukta Arts, Crest Communication etc. Investors can concentrate on the leaders like Balaji Telefilms and Mukta Arts in which most growth mutual funds also have huge exposure

Why good results led to bad bourses?
It was a bright Wednesday morning of April, 2001. Infosys was due to come out with its results. Every analyst worth his salt had predicted the results to be good. But one thing that nobody expected was the impact that the results could have on the bourses. The results sent the markets into a dizzy tailspin. Why did this happen?

Is the tech mania over, not really
India already enjoys significant competitive advantage (but other countries like the Philippines, China, Mexico and some CIS countries are also increasingly gaining ground) for software outsourcing (at US $5-6 billion, accounts for roughly 1% of global outsourcing market), a phenomenon that is set to grow rapidly

Just another Financial Scam
Hats off to greed, lust and money mania, the Indian stock market has once again served a scam curry in a span of less than one decade. For those with short memories, Indian investors had the first taste of stock market scam in 1992. And, her tryst with doom has continued since then

How to be a smart Online Investor
Investor protection - at its most basic and effective level - starts with the investor. In this day and age, there simply is no substitute for a person's awareness and wariness. So investors will do better in this fast moving environment if they have done their homework before clicking away

How to Diversify Your Stocks?
We’ve often heard of "the secret of successful investing is to diversify their risk" - so how does one go about this? And what does diversification really mean - does it only mean that one should spread ones portfolio across various types of assets, in terms of cash, debt, shares, mutual funds, deposits etc? Or can one diversify ones portfolio even further?

March Madness - Honey, is it all about Money?
Hey, it's March Madness. The country finally seems to have been realizing this cruel reality. But sadly it is too late now. The infectious desease has striken back in its most horrible form. By now it is clear, the bug of corruption has bit them all, be it bureaucrats, corporates, defence personnel or politicians. The common people is a bewildered lot, and has been left asking one another - honey, is it all about money?

Size Matters
Investing is not about avoiding risk but avoiding it. To that end, an investor should always be reluctant to commit too much capital to a single position. Not because you don't believe in your flair for stock picking, but because sometimes the best way to manage risk is not to take it in the first place.

Stock Market Crash - Bamiyan at Bourses
While during the last week Bamiyan (in Afghanistan) was being ravaged by the Taliban militia, another Bamiyan act was on full display at India's bourses. The desi version of mission destruction (of wealth) saw several heads (equities) rolling - courtesy local stock mafias. The irresponsible acts of some of the vested interests once again shattered the markets across the country.

Is it Pharma's Turn Now?
Currently after cement and petrochemicals, the pharma is much a touted as a sector which is expected to experience a rally in the near future. Traditionally also the Indian pharma sector has attracted good valuations. Due to its export orientation, low costs and the product patents rather than process patents in force, this sector has done well for itself in India as well as overseas.

Stocks or Stock Funds?
Should I dump those boring stock funds for a handful of shares in a few zesty companies?- Hasn’t this question arisen in your mind when you have decided to go in for equity related investments. And it is pretty clear that the movement in stock prices is  reflected in the corresponding funds after a time lag. So is it be better to go in for stocks or stock funds?

Trading Places and Styles
As an investor you should develop a strategy or game plan that is consistent with your goals and style. The ultimate goal is to make money (win), but there are many different methods to go about it. You could be comfortable with a conservative style or an aggressive style depending upon your personality.

How to Choose your Online Broker
Selection of an online broker depends on his physical infrastructure and research backing apart from the regular requirements. So remember as in every service – customer is king and you have the right to choose the service which suits you the best. And drive a hard bargain

Is a Monkey Portfolio better ?
A buy and hold is definitely good as long it is a long run play and the investor has researched the fundamental strengths of the stock. However, mutual funds provide a medium for uninformed investors to participate indirectly in short term profits. But don't fall into the monkey portfolio trap

Magic Mantras for Smart Investing
The secret of making money at the stock markets doesn’t lie in buying low and selling high, but more on identification of what to buy and what to sell (where many investors go wrong) and then buying or selling the same smartly, i.e. at the right time and price!

Day Trading - More Science than Art
Learn to trade with uncertainty. Successful traders are comfortable with risk. They know that they can't wait for certainty for the trade to be profitable before they do the trade. They trade in anticipation of a pattern or event. This mindset is extremely difficult and is usually the trader's waterloo

Exit Badla, enter BLESS
The existing system of Badla lacks transparency and the rates are determined more by the random forces of demand and supply. And that is where the new BLESS on the lines of NSE's ALBM assumes importance as a exchange sponsored borrowing and lending mechanism.

Fly-by-night Tech Companies
Most Tech companies which made an IPO debut in the last year are non-existent or illiquid. In all this it was the Investor who was made the scapegoat. Many of them lost their shirts in the process. The question is to how to avoid the next big craze, be it biotech or media

Rolling Settlement rolls on
Rolling settlements is actually a welcome move. It will go a long way in reducing transaction costs in the market by narrowing the bid-ask spreads. It will also eliminate the need to synchronize the settlement dates on the NSE and the BSE and ensure that mindless arbitrage is eliminated

US GAAP versus Indian GAAP
Learn to read between the lines of US GAAP and Indian GAAP. Items like ESOP costs, deferred taxes, important write-offs on account of bad investments, doubtful trade receivables etc., made by the companies in their annual, half yearly or quarterly results are key differences

More Transparency, less IPOs
The recent changes in IPO guidelines by SEBI are likely to bring more transparency and less IPOs. While these changes will eliminate unwanted elements from participating in money raising activities in the market they also mean that the IPO market is unlikely to pick up in the near future

Pretty Stocks - Irresistible Temptation
Bloated valuations of IT scrips now look like a thing of the past. The patrons' neglect looks like did the trick as the beauties which had turned to gym after being ignored for a long, have returned back slim, smart and of course are looking irresistibly attractive! Can anybody resist ?

Quarterly Results - Say Hello!!
In today's changing business landscape where technology obsolescence is so high, international trade barriers are falling and information dissemination is rapid and fast, there needs to be room for greater transparency and information sharing by companies. Quarterly results are the answer

Hey ! You got a Warning in Your Mail
A rational investor should not be swayed by short-term hiccups and take his or her investment decision keeping in mind his/her long-term investment objective only. Profit warnings should not be allowed to sway market sentiment. Happy New Year and wise investing

Indian ADRs - Ditched Darlings
Infy, the darling of millions of investors, seems to have lost its glamour and charm for its US patrons and Sify is suddenly unsexy. Hit and wounded by the Nasdaq bullet, the Indian ADRs have been put on a fatal diet by the bear operators in the US markets. A tale of ditched darlings

Strategy to Time the Market
The stock market is not an anxious game of Las Vegas roulette. In roulette, the longer they stay in, the greater their chance of experiencing a big loss. With stocks, history shows the opposite to be true. The easiest way to improve gain is to hang on to your portfolio

Price to Sales ratio : Better than P/E
With investors increasingly getting disillusioned with the P/E ratio, the trend is more towards the usage of Price/Sales ratio. Apart from being a cycle-neutral ratio, the P/S ratio is more eminently suited to the unique requirements of the dotcom business. Find out why it is better than P/E

MSCI - Full marks for Free Float
The IMF estimates that the share of India in the MSCI All Country World Index could come down from the current 7.5 to 4.25 per cent, if MSCI applies its free float principle to Indian stocks. Meaning Indian markets will have to pay the price of illiquidity in the lower of lower FII inflows

Market Liquidity matters
Be it gold, real estate, equities, debt, or bank deposits, each has its own liquidity factor. In fact other than the traditional measures of risk and return, what can really make a difference to an investment decision is the liquidity or otherwise of the asset. Why liquidity matters a lot

Trading Days are here Again
In investing, intuition also plays an important role. Good intuition derives from experience and good psychological habits. Losing money can be very upsetting, but you need to be consistent and not quit the game easily. Learn to use a loss as a lesson, just as professional traders do

Book Building is here to stay
The IPO market has undergone a sea change. With every issuer of equity shares of Rs 250 million and above having an option to make an issue through the Book Building Process, the age of the big boys has begun. And going by recent trends, this process is here to stay

It is time for Value Investing now
In the current market value investing seems to be the investing magic wand. Sectors like infotech, pharma, telecom, cables, paints and may be even cement merit an investment and remember the saying that when the shoe shine boy starts giving you tips, its time to get out of the stock

Interpreting Company Annual Reports
The annual report of a company is more than just a routine feature. It contains valuable information on the health and cash flow position of the company. How can an investor interpret income statements and balance sheets to get a bird's eye view of company financials

Wipro lists on Big Apple
Wipro has finally made its presence on the Big Apple. The recent ADS listing is one such step. The company issued American Depository Shares (ADS) and got listed on NewYork Stock Exchange (NYSE). What are the company's future plans and where does it go from here

Bajoria pecks at Takeover Code
The Bombay Dyeing Takeover story has had several twists and turns over the last fortnight with excessive wrangling between Arun Bajoria and Bombay Dyeing over alleged violation of takeover code. Apparently the Takeover Code has outlived and needs a serious rethink

Sensex Southward Ahoy
The downward movement of the Sensex over the past few weeks has been disconcerting. After breaching the psychological support level of 3800 it is now looking at a level of 3600 to settle down. What are the implications of the falling sensex on investor confidence and future of markets...........more

IPO Devolvement - Low Retail Confidence
Increasingly major IPO issues are getting devolved on the underwriters. The chilling trend has been that while the book built portion is being oversubscribed, the public portion is being devolved. Maybe the Sebi can do well to permit companies to retain the oversubscribed portion of the book built portion ..........more

Whimsical bears grip Dalal Street
The last couple of weeks has seen a virtual domination of bears on Dalal Street. Uncertainty over oil prices and the weakening rupee have been responsible for this bear run. What does the markets hold in store? When is the market likely to see a revival ..........more

Understanding the Media Buzz
With the slowdown in the TMT stocks, once darlings of the bourses media stocks seem to have come a full circle. But in many ways the action may have just begun. With narrowcasting on the anvil and convergence waiting to happen, the real media boom is perhaps round the corner..........more

IPO - Damsel in distress
It has been a bad 6 months for the IPO markets. Most of the big bang issues of the early part of 2000 have done abysmally in the post listing phase, Cadilla, Cinevista and Elder Pharma being some of the examples. What does this augur for the IPO markets in general and premium issues in particular.........more

Why Hughes Tele.com is attractive
The recent IPO by Hughes Tele.com offers a golden opportunity to take a long term bet on the telecom industry. With the Tax rebate benefits extended to the company, any medium term investor can make a killing by taking a long position in Hughes Tele.com. Short term investors better stay away...........more

VSNL : What a Bonus
The recent decision of VSNL to issue a 2:1 bonus is definitely to meet the paid up capital requirements as stipulated by the government. But what is likely to be the impact on VSNL prices with the equity substantially diluted? Is the government policy in the right direction on this front? .......more

Telecom stocks are happening
If software is not steaming hot, media is hype and cement is unsexy what do investors do? Not to worry, telecom is really happening. With the explosive growth of the internet and convergence business growing, all the segments of the telecom industry hold tremendous potential for the Indian investor.......more

FIIs : Alive and Kicking
Are FIIs net sellers and getting out of the Indian markets? Have they stopped influencing the movements of the Sensex? Not if one looks at recent statistics. FIIs continue to be the prime movers behind the sensex movements and their impact if any is only getting stronger than before ..........more

Dotcoms better get transparent
The recent report of the Malegam Committee is likely to be a watershed in valuing internet IPOs in the Indian market. The report has called for greater transparency and better disclosure practices for dotcoms going public. How well this followed up will largely rest on SEBI..........more

Pharma - A new medicine
With software scrips and ICE stocks showing their true colors, it is perhaps time for investors to look at other investment avenues. Pharma which has grown smartly in the last one year and coupled with biotechnology poses a major challenge for software as the preferred investment sector for investors.......more

Stock Splits - In vogue
Indian markets have seen a spate of stock splits in the recent past with companies increasingly splitting to bring them into a more popular trading gamut. But have stock splits added value in India? Has it atleast been instrumental in bringing illiquid stocks into the liquidity gamut?.........more

Dotcom Valuation goes traditional
The recent shakeout in the dotcom companies world over has redirected thinking on dotcom valuation along traditional lines. Investors are increasingly veering towards the view that in the dotcom business like in any other business what finally matters is the future cash flows...........more

Bharti Telecom - IPO once again?
Bharti Telecom is in the news again and this time with its proposed mega IPO issue. But considering the poor returns to Bharti shareholders in the past and the slow growth of private sector basic services, how attractive is this IPO issue? Is that more to it than meets the eye.........more

Bajaj Buyback, Dive or Thrive
The decision of Bajaj Auto to revise the buyback price to Rs.400 strikes a delicate balance between the interests of exiting and continuing shareholders. But the issue of a creeping rise in promoters stake needs to be understood in a broader and more analytical perspective...........more

Talaaq, Talaaq, Talaaq
Recent trends show that the positive movement relationship between the Nasdaq and BSE has been bucked. Does it mean that the Sensex has stopped catching a cold when Nasdaq sneezes? Not if you appreciate the fact that the link is still strong and only taking different forms...........more

E*trading is Easy trading
In the realm of online ebusiness the in thing today is etrading. Not surprising because the extent to which it empowers the investor is unprecedented in the annals of financial market history. What does etrading do, how it enhances investing quality and where it stands in India .........more

Arbitrage - Safety with Smartness
The introduction of index futures ushers in the possibility of riskless arbitrage between stocks and futures. An investor can perfectly hedge his position as also the investor can profit from pricing anomalies by going long or short on index futures. How can an investor actually benefit...........more

Choosing your Investment Mix
In a market scenario marked by volatility how does an investor choose his right investment mix. Should an investor be overweight on equities, mutual funds or bonds. Remember the golden rule of not putting all your eggs in one investment basket still holds good in a volatile market..........more

Circuit Breaker Relax!
The recent decision of SEBI to relax the circuit breaker from 12% to 16% in select scrips could bring about the much needed predictability to Indian equity markets. SEBI seems to have finally realized that compressing circuit breakers only increases volatility instead of curbing it..........more

ADR@Rediff.com
The recent listing of Rediff.com's ADR at $21 brings good tidings for Indian dotcom ventures. How is Rediff going to deploy these funds and what are its future revenue streams? More importantly what does this imply for horizontal and vertical portals in India.........more

IDBI's Death Call
The recent decision of IDBI to call back its flexibond series deep discount bond issued in 1996 spells a death knell to the lakhpati dreams of millions of Indian investors. Where did the Indian investor go wrong in his judgement and why an investor needs to read the fine print more carefully..........more

Charge of the FII Brigade
In the last few years the foreign institutional investors (FIIs) have come to play a predominant role in Indian markets. Do the FIIs continue to determine the direction of the markets? What are the implications of FII predominance? Do statistics bear out to the significance of FIIs in the markets...........more

Market Volatility
During the recent bull run and the subsequent bear attack markets exhibited extremely volatility. Also a trend of markets registering huge intra-day gains and losses has become the order of the day. What does it mean for investors? What is the method that an investor can discern out of this madness of volatility..........more

Satyam's Trump Card
The share prices of Satyam have been see-sawing over the past few days moved by a variety of positive and negative news relating to the company. What are the implications of this volatility and why is Sebi taking a serious look at news leakage during trading hours..........more

MSCI Recast
The recent decision of the Morgan Stanley Capital Index to reduce India weightage and change the composition raises interesting questions about the timing and implications. If the idea was to include software stocks then why was it done when the tech stocks were at the lowest? How can an investor also be an arbiter of investment weightages and priorities .........more.

Sensex Jitters
In the past couple of months the BSE Sensex has become highly volatile. The secular trend which was typical of the sensex some time ago is now conspicuous by its absence. What does a volatile sensex mean to investors in particulars and the markets in general ........ more

And the Crash
Information Technology was the buzz on the bourses few days back which had powered the Sensex beyond the 6000 mark, albeit briefly. Ironically, these are the same stocks that brought the sensex down to less than 5000 in the last one month. How and why did the sensex jump so high and why did it fail to sustain?........ more

Private Party
Private placements are an innovative method for investors to make an assured killing in the market without a lock-in stipulation. But this has generated an unhealthy practice of unscrupulous promoters with little commitment to the project making hay while the sun shines. Welcome to the murky world of private placements......... more

ICE ICE Baby
The ICE revolution in the Indian markets has drawn a clear line of demarcation between the old economy sectors like cement, steel, aluminum and banking and the new economy ICE sectors. Stars of yesteryears like ACC, Tisco, Reliance, Telco and SBI have given way to the likes of Wipro, Infosys, Satyam and Zee Telefilms..... more