Wishing all my friends, readers in the world a very happy and prosperous new year 2015.
It wouldn’t be wrong to say that Indian market in 2014 performance was one of the best in the world. The confidence is back in the economy green shoots are visible and you might see soon the Elephant dancing.
The markets are euphoric and media making the noise to the extreme, there is a rise in the demat account openings, Mutual funds saw record rise in investments. The FII’s are continuously flirting. FDI in various sectors getting nod to increase the stake. Everyone is busy in predicting the market at the end of Dec 2015.
Anybody’s ability to predict should be taken with a pinch of salt. When it comes from a broker take it with a pinch of salt. Continue reading “Happy New Year 2015 – Make your own Rules”
“The point is, ladies and gentleman, that greed, for lack of a better word, is good.” – Gordon Gekko
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” – Warren Buffet
Greed may have been good for Gordon Gekko (at least for a while), but in the investment world it rarely is as Warren Buffett is famous for saying.
Investors are unequivocally greedy today, and with some perspective it is hard to blame them. Continue reading “Greed is Good ?”
The Rupee’s as you know has its historic low – 58.84. Exporters see this as an opportunity to make India the world export powerhouse by de-bottle-necking manufacturing infrastructure. Were as the weaker currency makes imports costlier, especially of foreign oil on which India heavily relies, and will stoke already high consumer inflation.
New Delhi is attempting to ease corporate concerns, saying it will take measures to curb the widening current account deficit as imports outpace exports.
Let’s try to explore the reason behind the free fall:
1) Dollar Trading at 3 Year High : USD is trading at 3 year high at 84.3, US stock market are at life time high, Strength in USD indicating recovery in US economy. Housing market is recovering. Job situation is improving which makes market participants believe the US fed will be tapping the QE infinity. Continue reading “The Rupee Free fall and the reasons”
The Mint a financial newspaper from India reported that the Inflows from foreign institutional investors (FIIs), the main driver of Indian equities, topped $20 billion (around Rs.1.1 trillion today) in the first 11 months of the calendar year—the second highest since 1993, when India opened the doors to this class of investors. So India is attracting more FII than the FDI’s let’s try to go through some basic and try to find the difference in both of them,
Foreign direct investment is an investment of assets done by foreign origin company into the domestic equipments, organization, and company. (FDI)
An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. (FII)
Lets try to understand the differences Continue reading “(FDI) Foreign direct Investment & (FII) Foreign Institutional Investors : (Back to school)”