Banking and IT are the two sectors where you can make money by reverse trades. That is, buy one, sell the other and profit from the widening differential.
In the next two years, invest in leading companies in key sectors and buy more when prices fall further.
In 1991, during the balance of payments crisis, it was an even-money bet that India would become a basket case. In hindsight, it was a great entry-point for investments because the economy made a spectacular recovery. But nobody could have been sure about the turnaround.
What do technical analysts feel about the market in 2008? Three experts share their views.
There are at least three lead players, maybe more, involved in each surrogate birth. The one who has borne the child to term may not have contributed DNA (unless she's also the egg-donor); the "parents" who rented the womb may not have contributed DNA, either!
The Nifty flirted around 4,000. Volumes high considering that most firangis are still in Mauritius, or wherever, recovering from hangovers.
A large chunk of the population works for the IT/ ITES sector and works at staying au fait with US trends. The preferred mode of Gurgaon transport is a personal vehicle since public transport is almost non-existent. The shopping experience centres on malls.
In the 12-18 month time frame, these cyclicals are likely to recover. And they're relatively cheap.
An efficient debt-recovery would make a huge difference to the banking sector's performance. It is time we simplified the legal processes.
A look at the differences in the sector-coverage of the Sensex and the Nifty suggests that the divergences in index movements could increase.
One of India's better business schools recently asked hopefuls to write a 300-word essay on this subject. Given the format, there is no "right" answer. The school is seeking coherent, logical arguments couched grammatically. However, there is a "right" answer that one can arrive at logically by asking two simple questions. One: Can you buy a knighthood for USD 1 million? The answer is no.
Though fraught with risks, small business can easily fetch better returns than the established companies.
The near-term prognosis isn't good. For the last three years, the Indian stock market has ridden to successive highs on a tsunami of forex inflows. A large proportion of that is through participatory notes. A lot of that money will flow out in the short run.
The IT industry dismisses a certain type of announcement as "vapourware". This is a product or application hyped as possessing huge potential. Only, it is due to be launched many months or years later. Despite the apparently ludicrous nature of 'vapourware', it can drive up valuations. Somebody somewhere will buy stock on the news.
A strong trend in the spot market translated into settlement with good carryover and very high volumes in the futures and options market. In particular the FIIs have big exposures across both markets.
In the broadest sense, style can be classified as either 'investment' or 'trading'. A trader will go both long or short. An investor will not short. Investors can be further subdivided into 'active' or 'passive'.
There are many questions on where the stock markets will head in the next few days. Here are some answers.
Stock market volatility is increasing along with prices. How should you use leverage in such situations?
The performance of real estate companies is dependent on a lot of intangibles and is prone to errors in assumptions.