Technical Buy

Buy Greaves cotton ltd with a target of Rs 90 for a period of 3 months. 

Currently its trading at Rs 66. 

As per following technical parameters its coming to be a buy:

100 day mva : its trading above its 100 day mva. 

MACD : As per this indicator also its coming to be buy. 

Trendline: Its current chart is forming a upward trend. 

Sensex slipss !!

Inspite of the early gains in the sensex, the sensex ends up in red. Why ? The reason fir this is the higher WPI of 7.52. 

This higher wpi raised the concerns of a hike in interst rates by the RBI in its meeting schduled to be held later this week. 

Economic crisis ?

With the beginning of the elections, the indian govt is going to face the pressure of keeping its fiscals goals under their limits. UPA has felt the heat of state elections and in order to sustain its power in other states it would have to loosen its wallets and have to spend with both hands open in order to win the trust of the common man. Already the govt has exhausted its 85% of the expenditure in first half of the fiscal, with very little remaing for the other half and that too in the election times. So its hard to believe that govt can restrict its fiscal deficiet target to 4.8%. At this point of time govt cant even think of reducing the subsidies on diesel etc. In fact govt would try to lure the common man by offering more subsidies and other welfare programmes, that would lead to presure on govt funds and in a way lead to increasing of fiscal defciet. 

Catch The Crash

Is it the time to pessimistic about the Indian Stock Market? If we go as per the macros and the experts, most people will say yes its the time to be pessimistic and advice you to stay away from the Indian Stock Market. But personally i don't think so. As per my view its the time to invest in stock market but in fundamentally strong stocks. People are being very pessimistic and are selling the fundamentally strong stocks also out of panic and fear and this has led to the price of some good stocks also falling down. One should take the benefit of this pessimism and invest in these stocks. When the market will revive and macros will turn to positive from negative then one can earn good returns. My this view has also got the support from an article in Economic Times. Bill McGlashan who heads TPG Growth, an investment platform for growth investments, is optimistic about India.

A testimony to his belief in Indian businesses is that he has moved his residence to Mumbai a couple of months ago. This is very unusual. So many private equity funds have been struggling to survive. And here we have an American who sees opportunity in India.

How does Bill manage to take a contrary view? He says, "Our discipline is around micro stories. We are more concerned about individual companies and try not to get bogged down too much by the macro." Take benefit of this fall of the market. I am not saying that market will not fall further but start investing now in a staggered manner, meaning that dont invest your money in a stock at once, buy at dips. Also invets in one sector. Diversify your portfolio.
Here are some recommendations from me :
IFCI-Financial Instituion
PFC-Finance
HDIL-Realty
TATA STEEL-Iron & Steel
INDIABULLS POWER-Power Genration
STERLING INTERNATIONAL-IT
DENA BANK-Banking

Is it worth doing business in India ?

That the Indian economy is facing challenges is not new. The country is facing a mountainous problem in the form of high deficits, weakening currency and failing investor confidence. This has hurt nearly every industry and company in the country. And this has prompted many of them to move beyond the country's borders to try and boost their fortunes. The country's policy framework has not really helped companies. The red tapism and bureaucratic procedures have made doing business next to impossible. The government dillydallying on existing policies has not helped the situation either. At the same time structural roadblocks have kept inflation high. To add to this is the problem of the falling Rupee. All this have forced RBI to keep interest rates high as well. Therefore the only way out for many companies is to move out of the country. Leading business tycoon, Kumar Manglam Birla has already indicated that he prefer to do business outside the country due to lack of transparency in the government policies. As things are worsening many more businesses seem to be opting to either cancel their expansion plans in India or to shift focus to overseas markets. The only way out is for the government to step in and do its job. But is it willing to do so?

Where will businessmen go? Is growth potential all that matters? The answer seems to be no. Some very critical factors that play a decisive role in where businessmen will invest are red tape, corruption, infrastructure, etc. India ranks very poorly on these important parameters. This explains why despite having great untapped growth potential, the Indian economy is struggling. And this is also why economic activity is shifting out of India. 

An article in The Economist very aptly articulates this point. Here are some noteworthy instances. Indian airplanes are usually serviced in Dubai, Malaysia and Singapore. Why not in India? The reasons are high penal taxes in India and high customs duties on imported spare parts. Many Indians have headquartered their businesses in Dubai. The reason is simple. Dubai offers a much better logistical base with its ports, air links and immigration rules. 

Take Singapore. It is said to be the largest hub for Indian trade. It thrives as an investment banking center owing to stringent regulation of India's banks and debt markets. Indian e-commerce firms too often get their data crunched in Singapore. Similar is the case with legal services. It is worth noting that at least half of all rupee trading takes place outside India. 

Then there is Colombo, a very important port in Sri Lanka. Of the containers bound to India, about 30% go via intermediate hubs fed by small vessels. Why so? There are majorly two reasons. Either big shipping lines do not want to deal with India's customs regime or their ships are too big for India's ports. 

One can understand economic activity moving out of developed economies owing to high costs. But for a developing country like India, it is a very grave sign. Policymakers ought to wake up before India's growth prospects go down the drain. 

Source : Equity Master

All Women Bank

Paving the way for setting up of all-women bank , the government on Thursday approved Rs 1,000-crore seed capital for Bhartiya Mahila Bank Ltd.

The Cabinet cleared setting up of all-women bank, sources said.

The proposed bank will be headquartered in New Delhi. It will start with 6 branches in North, South, West, Central and North Eastern part of the country.

The bank is expected to become profitable in five years of its operation.

The initial capital of Rs 1,000 crore for the bank has been so decided that the bank is not capital constrained for expansion of normal business, he had said.

The move to set up Bhartiya Mahila Bank is aimed at encouraging women in general and women self-help groups (SHGs) in particular, he had said.


The proposed bank is likely to be operational by November this year.

Companies warming up for raising funds through IPO

Even in this sluggish secondary market there are companies that have filed their applications for raising funds through primary market-IPO. Inox Wind, Shemaroo Entertainment & Trimax IT are set to raise funds through IPO.

Lets see whther these companies get the desired response from the investors. 

Experts say that untill there are 5 IPO's from different sector in a month for IPO, it cannot be called the revival of the primary market. So lets see whther these companies can do the magic and bring back the winds of succesful primary market.