He believed in investing in companies with strong cash flows
The investor is voting for safe investment avenues and is not impressed by the lucre promised by Dalal Street, says Mahesh Vyas.
He said cheap valuations, improving sentiment and the ongoing reform momentum coupled with increased transparency due to the internet are driving investors to the Dalal Street.
The Sensex ended at 16,877, weaker by 220 points and the Nifty closed at 5,033, lower by 72 points.
With the bulls staging a rally at Dalal Street, Foreign Institutional Investors (FIIs) are likely to ramp up their investments in Indian stocks significantly in the coming days, analysts say.
China now world's second largest share market, India is 7th
At the heart of these predictable manifestations of business cycles usually were financial instruments which became so popular that they came to be more commonly referred to by their abbreviations or acronyms than their original names.
"The market will most probably open in negative territory but national fervour could help it in closing better," said Arun Kejriwal, director, Kejriwal Research and Investment Services. Global research firm Moody's Economy.com said, "Although the terrorist attacks are expected to affect market sentiment, local investors in Mumbai are well acquainted with terrorism and unlikely to engage in panic selling."
The United Progressive Alliance government conveyed its intentions to tap the stock market for raising resources through sale of PSU shares while retaining 51 per cent stake in the state-owned firms.
Faster account opening, which allows investors to start trading without ever leaving their homes or visiting a physical branch of their local brokerage has played a role in the surge.
Blockchain's promise: Dramatically speeding up transactions, explains Ajit Balakrishnan.
Earnings spread for foreign investors down to 10-year low of 1.1 per cent, from 2 per cent at the beginning of the year and record high of nearly 5 per cent in 2013
The total wealth, measured in terms of cumulative market capitalisation of all the listed companies on the Bombay Stock Exchange, has surged to a high of Rs 60,74,290.48 crore (Rs 6,0742.9 billion), the latest data available with the bourse shows.
The broader NSE Nifty reclaimed the 11,600 level, zooming 326 points or 2.9 per cent to settle at 11,600.20. Top gainers in the Sensex pack included Bajaj Finance, L&T, Asian Paints, ITC, Axis Bank, Kotak Bank, ICICI Bank, HDFC twins, Maruti and SBI, rallying up to 8.70 per cent.
In an hour-long chat on rediff.com on Wednesday, market expert Pranav Sanghavi offered some valuable tips to our readers.
Dalal Street is expected to open a notch higher tomorrow on the back of strong Asian and European cues when markets open after four-day long holiday. Japan's Nikkei ended 1.33 per cent higher on Monday, while Shanghai closed up 1.51 per cent.
The rally was over before they could even blink.
Bulls may be pinning hopes on Diwali fireworks at Dalal Street, but fund managers are uncertain whether this time around the 'festival of lights' will again trigger a historic trend of mostly positive movements.
Even as foreign institutional investors rapidly pull out their money from Dalal Street, Norway's sovereign wealth fund, the world's second largest, is set to invest $2 billion in Indian stocks.
Till 15 days ago, only two PSUs - Oil and Natural Gas Corporation (ONGC) and National Thermal Power Corporation (NTPC) - ranked amongst the five most valuable companies. But with two more PSUs, Mineral and Metals Trading Corporation (MMTC) and National Mineral Development Corporation (NMDC), seeing sustained rise in the last three months, the number has risen to four.
In an hour-long chat on rediff.com on Wednesday, market expert Pranav Sanghavi offered some valuable tips.
This comes a couple of days after activists of the Sena's student's wing, Bharatiya Vidyarthi Sena, targeted establishments that still have Bombay in their names, including the city's prestigious school, Bombay Scottish, a Bombay Dyeing showroom and offices of The Times of India, whose city supplement is called Bombay Times. Senior Sena leaders on Tuesday held a protest outside PJ Towers on Dalal Street and threatened further action if their demand was not met.
Analysts say lack of strong moves in stocks or sectors contributed to markets moving indecisively.
According to an analysis of the changes in the listed companies' shareholding patterns since the beginning of this year, the number of companies where foreign institutional investors have raised their holding is bigger than that of those where FII holdings have gone down.
The UPA government will follow an inclusive reforms agenda all the while keeping a check on India's fiscal health, says Manoj Vohra, research director at Economist Intelligence Unit.
Dalal Street is likely to cross the 15,000 level on Tuesday and may hit the first upper circuit of 10 per cent as the upbeat market sentiment may attract retail investors to cash in on the bullish phase, analysts said.
Making the things worse, those hitting their record low share prices included big names like Reliance Power, Cipla, Ranbaxy, Ambuja Cement, Hindalco, Indian Hotels, Jaiprakash Associates, Jet Airways, Suzlon Energy and Idea Cellular. Realty majors DLF Ltd, Unitech, Parsvnath, Sobha Developers, Omaxe and Puravankara also plunged to their all-time lows.
"In next 12 to 18 months we should see a lot of uncertainty being cleared, and might see a new high certainly in late 2009 or early 2010, when uncertainty in global market is diminished and domestic concerns like inflation and high interest rates come under control," Religare Securities President (equity) Amitabh Chakraborty said.
The combined market valuation of all the listed companies in the country dropped to Rs 30,86,075 crore (Rs 30,860.75 billion) on the last day of this fiscal as against Rs 49,72,953.37 crore (Rs 49,729.53 billion) on March 31, 2008, leading to a loss of over Rs 18,86,000 crore (Rs 18,860 billion) during the period.
With mutual funds, promoters turning net-buyers, foreign investors may have to bid up prices to raise holdings.
Reliance closed at Rs 2,195, higher by 3.3% on the BSE, after having placed a bid for a controlling interest in LyondellBasell Industries.
Stock investors can expect another rollercoaster ride on Dalal Street this week as the equity markets remain vulnerable to meltdown in the US sub-prime mortgage
Ahead of the credit policy markets were down by 400 points and after RBI announced the credit policy, it went into a downward spiral falling by another 337 points to below 9,000-points mark, a level last seen in July 2006. RBI on Friday kept its key rates unchanged in the mid-term review of annual monetary policy and lowered economic growth projections to 7.5-8 per cent for 2008-09.
According to a Credit Suisse report, the steep Sensex fall has validated two fears: (1) The Indian market is linked to global developments; and (2) Foreign flows are the biggest drivers of the market.
The CSE is a novel concept created by the students of Indian Institue of Management-Ahmedabad and IIT-Roorkee that allows cricket-crazy fans to trade virtual stocks of their favourite players online.
Investors on Dalal Street seem to have nothing to fear as over 228 scrips on Wednesday surged to their upper circuit levels, even as the benchmark index Sensex had plunged 10 per cent to touch its lower limit in the morning trade. As per the data available on the Bombay Stock Exchange, 228 scrips across all groups touched their upper circuit limit, representing the cap on the upward movements, while just 132 stocks touched their floor limit.
The circuit breaker system becomes effective at three stages of the index movement -which has been fixed as 10 per cent, 15 per cent and 20 per cent in either BSE's Sensex or NSE's Nifty whichever is earlier.In case of a 10 per cent movement on either side in either of the two benchmark indices, there would be a one-hour halt if this movement takes place before 1 pm
The years when investors had reaped positive gains included 2007 (3.88 per cent), 2005 (9.11 per cent), 2003 (7.46 per cent), 2001 (3.2 per cent). The Sensex's over 28 per cent jump in May this year, makes the biggest gains in a month over the past 10 years.
On the heels of huge success of Parsvnath Developers' public issue, which was over subscribed 62 times, domestic real estate firms are planning to raise nearly Rs 22,500 crore (Rs 225 billion) through their public offerings.
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