Key Events - Next Week - Sanil SonalkarKeep an eye on two important events in the next week which may have some impact on one's portfolio :(1) RBI's monetary policy announcement on Tuesday : this should keep rate sensitive sectors like banks buzzing with activity as a 25 bps hike is widely expected by most analysts. This may also be a good time for long-term investors to accumulate blue-chip private banking stocks at lower levels since last week was not a particularly good one (case in point is Axis Bank which lost 12% over 5 trading sessions)....
Saturday, 30 April 2011
Wednesday, 27 April 2011
There is a very famous measure of finding out how expensive Gold and Silver as compared to each other. The Mean is about 50 whereas during extreme times it oscillates between 20 and 80.What we mean here is how many ounces of silver, 1 ounce of gold will buy. Right now ratio is 33.If we take price of silver to stabilize at 45 dollars an ounce, then gold should trade at 2250 dollars an ounce.Conversely, Silver should drop to 31 dollars an ounce to...
Saturday, 23 April 2011
The Full Year Results are pouring in and nothing exciting about the Results from Infy, TCS and Reliance. Gold is at an all-time high and the P/E ratio is at 22.18. What are all these telling us.1. Lets start off with the P/E ratio. As per data from the NSE, its at 22.18 suggesting that the index is fully valued.It has gone up to a ratio of 28 only twice in 2000 and 2008 culminating in major falls. Nifty P/E at 28 leads to Nifty at 7422.2. If Nifty corrects from here, fair value comes at 3700 - 3900 band.3. The Annual results have ranged from just...
Wednesday, 20 April 2011
Sunday, 17 April 2011
Gold has jumped up to new all time high of 1486 dollars. Why is Gold rising and what could be the factors driving it?Lets take a look at it Technically and Fundamentally.1. Gold is an hedge against inflation.Inflation is rising globally and especially in the United States. Rise in crude oil prices is driving inflation. Inflation has lead to a rise in commodity prices and Gold is no different.2. Gold was supposed to be the currency against which national currencies were linked.Countries went off the Gold Standard and printed their currencies without...
Its the Results season and already Infosys has hit a road block. The Markets tanked on Friday and lets have a look at what could be the road ahead for the markets.1. Infosys had a double whammy. Poor results and Mohandas Pai leaving the company. Infosys is a company built on processes and too much is being made of a departure of a certain Individual. The knee-jerk reaction also is significant in highlighting the dangers of a personality cult.2. More worrying is the drop in Margins to 29 pc. Infy is well known for high Margins of 33 pc for all these...
Friday, 15 April 2011
With oil prices ruling above $100 per barrel, India’s trade deficit iswidening and inflation remains a major concern. Lets looks at the implication of high oil prices for investors, and see how we can benefit from this adversity.Continue Reading at:http://investmentsfordummieslikeme.blogspot.com/2011/04/implication-of-high-oil-price-for.h...
Sunday, 10 April 2011
The markets were flat this week, but there were a number of interesting happenings which could be a precursor of things to come. The coming week should be decisive in telling us whether the Up move is done with or if we can go higher.1. Gold closed at an all time high of 1474 dollars. The rupee has strengthened to almost 44 to a dollar and hence this is not reflected in rupee terms price of gold. Gold now has given a breakout from its previous top...
Monday, 4 April 2011
Saturday, 2 April 2011
Its a new financial year and what has changed for the markets? Lets take a look at a few fundamental and technical factors at play.1. The March auto sale numbers seem to be mind-blowing. In spite of high fuel prices and the fact that i Feb a lot more cars were bought factoring in expected hike in excise prices in the Union Budget, the March Car Sale numbers were amazing.2. The FIIs have pumped in a whopping 8395 crores or almost 2 billion USD. That...
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