Tuesday, November 11, 2014

At the doorstep of 28 K

Bombay stock exchange (BSE) at the door steps of 28 K and its companies are too close to clock whooping 100 lakh crores . It’s the moment of sheer joy that our country joins the elite club of those countries which are in 100 lakh crores!!!! , so these are the companies whose market capitalization contributions are above 1 lakh crores – ONGC, Axis, HCL, TCS, RIL, Infosys, HDFC, Coal India, SBI, ICICI, Sun Pharma, HDFC, HUL, L&T, Bharti Airtel, Wipro, TATA Motors and NTPC.

Although the Reserve Bank of India has crashed the expectations of the market regarding the rate cut, but still the investors can make the hay while the sun shines by planning right away to make the most of the likely monetary easing over the next two years.

It would be more advisable to for the investors to invest half of their fixed income portfolio in a mixture of long duration funds, gilt funds and tax free bonds which are definitely very well poised to benefit than the falling interest rates.

As per the market’s expectations the key policy rate is to be cut by 75-100 basis points gradually during the next two years and as the interest rates fall the bond prices will move up and therefore the capital of the investors will get appreciated .To make a point clear over here is that the rates and bonds move in the opposite directions.

Even the consumer price inflation has dipped to 6.46% in September which is the lowest since the new series of consumer price inflation was released in January 2012 and so also the domestic fuel prices have dipped as the global crude oil prices have weakened to $82 per barrel inflicts a case for cut in the interest rates by next year, as the cut in diesel prices will bring pluck out the teeth of the inflation. So the long term income and gilt funds will fetch better yields on the ten year benchmark falls and will definitely give the investors a higher capital appreciation in long term and gilt funds. The fiscal deficit number projected by the government would play the main role in the direction of the ten year bond, if the fiscal deficit is on the lower side than what is projected than it would definitely boost up the rally bond market.

Another point to ponder is that when the rates fall the bond funds, gilt funds, tax free bonds with a longer maturity definitely benefit the most. In this bull run the markets are looking into the upward direction the market is too strong to take any hurdle in its strong march striding towards 35,000 and nifty at 10,000.

Saturday, November 8, 2014

India is back in MSCI EM Index

There is good news in the air that India is on the way back into the high life again , yes India is still to witness more of the FIIs money pooling in the equity markets as India has regained its earlier high of 7.25% in terms of weightage in the MSCI Emerging Market Index after long time. Another good news is that MSCI BRIC Index has risen to 17.35% by this October end.

MSCI EM is Morgan Stanley Capital International Emerging Market, it was started in 1988 wherein the MSCI launched the first comprehensive emerging markets Index. Since then the emerging markets have become an important and integrated part of a global equity portfolio allocation. In 1988 there were just 10 countries in the MSCI emerging markets index representing less than 1% of the world market cap but now it covers over 800 securities across 23 markets and represents 11% of the world markets and represents 11% of the world market cap. MSCI is a leading provider of investment decision support tools to over 6000 clients worldwide !!!!!

Now the news is that MSCI is about to add 44 Indian stocks to its global Small cap index while removing eight from its list , so a lot of foreign inflows into the Indian markets are expected soon .

Saturday, November 1, 2014

Must Read : Interesting Fact : You Could be Next Jhunjhnunwala Ji

Dear All,

Interesting read.....................

​Indian Investor Who lost Rs. 650 Crore by Investing in Property?

In the latest Interview of Mr. Rakesh Jhunjhunwala is popularly known as Indian Warran Buffet, with Forbes magazine, the following interesting point I derived out of it.

Rakesh, aged 54, is worth $1.86 billion (Rs.11, 346 Crore @ 1 USD = Rs. 61).

This entire Rs.11, 346 Crore has been built during last 3 decades through investing in Indian equity market, clearly shows how big equity market is either one give time or get advice from the financial advisor to get the best return.

Though he also trades at times, most part of his wealth has come from investing in high quality companies for long term and sticking on to this even the intermittent falls.

Conviction is more important, than what we know about anything!

Jhunjhunwala bought Titan shares in 2002-03 at an average price of around Rs 5; the stock then rose to touch Rs 80 and later fell to Rs 30, but he did not sell a single share. “That Rs 30 is nearly Rs. 400 today. And when it fell from Rs 80 to Rs 30, I lost Rs 300 Crore of value in my portfolio. But I never sold as I thought that neither EPS [earnings per share] nor PE had peaked and there was a lot of growth still to come.”

Jhunjhunwala plans to give away Rs 5,000 Crore or 25 percent of his total wealth, whichever is lower, to philanthropy when he turns 60 on July 5, 2020. And Jhunjhunwala’s track record would validate the ​chances of both targets comfortably.

In the recent past, we keep reading so many Indians are turn to philanthropy and donating multiple Crore of rupees. All of them are selling their equity share and none of them are coming from real estate builder or gold merchant as far as I read. Equity investors are not only creating huge wealth for themselves, and also passing so much of wealth to the society.

For a time being, please forget about passing wealth to charity; let us make money for ourselves by understanding.

Thursday, October 30, 2014

The Game Changer


The investors are always lured to the new pastures which always catch the investor’s attention, and it later on proves to be an investor’s paradise. Now there are few aspects that it’s quite possible that the investors by default invest in dying or matured stocks thereby burning their fingers but in the case of a successful investing will always require anticipating the changes and keenly watch the implications. One must make a strong note that the market is ever evolving and so it’s imperative that one must also evolve with the time and do thematic investment with the clear focus on the broader macroeconomic themes identifying strong companies as well as the trends and sustain over the medium term.

It’s an irony that the risks and returns are the two faces of the same coin, higher the risk and higher the return  but the need of any hour is that the investor must be able to identify the mega futuristic trends when they are about to take the baby steps. For example those who invested in IT and pharmaceuticals in 2008 must be definitely harvesting rich.

Now we suggest The Awesome Eight:-

1)   The internet and the Data duo:-If we compare amongst any other growing economies the number of internet users is just 10% against its peer where the internet users are 34% so also the emergence of smart phone are on the rise so also is the rise of 3G to 4G services and also the government is initiating and actively promoting the broad band and so the boom in data is expected. It’s not a surprise that the internet will potentially contribute to the India’s GDP by 8% from the present 4% that is just the double so this only goes on to strongly indicate that that those companies which are dealing in businesses related to internet or data in social media, mobiles and computers, service providers-commerce and networking are headed for huge earnings growth.

2)   The Tourists destination:-The tourism is now a hot potato as it is on the government’s top of the list as it brings in substantial foreign exchange. The government plans to kick start 50 tourist circuits. The tourists inflows has grown from 11% to 17% over the years and has got the potential to grow  5 to 10 times in the next five year or so if compared to Thailand,Malaysia,China and Turkey. India has got a plus point that it is rich in history as well as geography. As soon as the tourism picks up the rerating of both the hotels, transporters and travel operators will be rerated.

3)   The Financing Companies:-The Financial Sector never goes out of flavor. The valid point is that no economy can flourish without having access to the capital. So if we see that the investor is busy in India than his portfolio must definitely be having handful on financial sector stocks because the interest rates cycle I at its peak and is expected to reverse around the next corner. So watch out for the consumer financing, auto financing, housing loan financing, SME Financing, Micro and Rural would be the best bets.

4)   The concept of make in India:-This is the new flavor on the blocks. Since the past two decades China has dominated the international scene in exports is now losing the grip and is going downhill owing to the losing its grip on low cost capital, cheap labor and now the undervalued currency.

5)   The concept of made in India:-Now it’s better late than never, India is becoming more and more competitive in low cost capital, cheap labor and growing currency. India is fast becoming the world’s best destination for make in India and made in India. SO in the coming times we will witness a surge in presence of manufacturers dealing in various sectors such as chemicals, textiles, engineering and auto-ancillaries.

6)   The paradigm shift from unbranded to the branded:-There is a sudden change in taste in the new generation of Indian consumers which has shifted from unbranded to the branded. Right from the jewelry, Titan, dress materials, sanitary ware etc.

7)   Gold:-With the mega job opportunities cropping up there will be a definite rise in the living standards so gold will be the one of the most sought after metal. So your portfolio without gold would be incomplete.

8)   The Banking as well as NBFS:-The banking as well as the non banking financial sector are destined to boom in the next five years.

Wednesday, October 29, 2014

The Four Idiots

There are colossal reasons for these four Nifty stocks to lead the market and lead from the front .Because after a prolonged consolidation the Indian equity markets are raging bulls and investors are pouring in funds generously than ever before , Nifty is on a new highs, and these four idiots are sure to double in the next 42 months .

1)   Hindalco:- Finally the aluminium prices have started crawling up , as LME aluminium has increased to 20% during the past quarter and it only goes to indicate that the signs are positive for the company and the upward cycle has begun. And also the global automobile manufacturers are preferring the much lighter aluminium over steel to meet the stricter emission laws and also pressure is to improve the fuel efficiency .Novelis is the subsidiary of Hindalco which is going to benefit the most due to the great timing of the company’s auto grade capacity expansions underway, and Novelis accounts for 66% of Hindalco’s revenues. With these changes in the scenario the company sniffs 15% operating profit growth in the next three and a half years and in addition to the deleveraging process will only add to benefit to the net profit levels because even the interest too will start slipping down . And if we keenly observe the Novelis’s stock is trading at much lower multiples than its competitors and this gap is headed to reduce contributing to more than double of the Hindalco stocks.

2)   ONGC:- The Oil and Natural Gas Corporation is state run and currently contributes to 28% of the total under-recoveries in the Indian petroleum sector which totaled a grande Rs56,384 crore in last financial year .As the diesel prices deregulated this company is bound to be benefitted the most due to the reduced burden of the subsidies, even more so the company is heavily investing and focusing upon expansions which will help in clocking well above 20% to its current output and the direct beneficiaries will be its subsidiaries like ONGC Videsh and MRPL  and the news is the three mega project in downstream industries ONGC Petro-additions ,ONGC Mangalore Petrochemicals and ONGC Tripura Power will very shortly be commissioned which will trigger the super duper returns !!!

3)   Maruti Suzuki:-This is one Indian automobile company which has made its mark right from its day one and left its foot marks and there is no stopping it , with all state of art indigenous parts , this company promises to keep its dominating nature going on and on .This company is looking forward to multiple trigger the operational as well as its financial performances. It’s all new mid segment sedan ciaz has hit the bulls eye after few haywire hits and trials in this segment and it is definitely going to get immensely benefitted by the pent up demand in passenger car sales in the coming decade more so because the company has always lived up more to its expectations .Besides ciaz the company is also planning to launch five diesel variants soon .Besides the Maruti car is always any Indian’s first car and the company enjoys its strong portfolio and its products are well regarded for the low cost ownership and the very vast dealers and service center network and it is headed to eat into the major market share with its firm domestic growing sales volumes and to add to it its vigorous exports strategy .So Maruti company is marching ahead and has a looong way to go .

4)   Bharat Petroleum:- Bharat Petroleum is India’s Oil marketing company and the company’s market capitalization has excelled well over 2.5 times and still there is ample potential of growth . As there is a very steady growth in the book value of the company and hence the company’s value will be around Rs38,785 crores, as the company is currently trading at a price to book value in the multiple of 2.5 times and the and the price to earnings ratio of 11 and further more the company’s Current accounts and savings accounts (CAGR)over the next three years is bound to reduce the subsidies and lower the interest costs. And another feather in the hat is that Bharat Petroleum has its investments in listed companies like Oil India,Indraprast Gas and Petronet LNG which is currently valued at Rs3,600 crores . And with its E&P projects in Brazil and Mozambique will be commissioned soon and this will take the company ahead by leaps and bounds.

Tuesday, October 28, 2014

Combo Pack: For Smart Trader

Combo Pack

A) 1 month plan @ INR 30K [Basic Plan for investor/trader]
B) 3 months plan @ INR 60K [Affordable Plan]
C) 6 months plan @ INR 80K [Most Selling Plan]
D) 12 months plan @ INR 100K [Plan suitable for HNI, NRI or Sub-brokers]

Combo Pack:

Smart Traders understand very well that stock market does not give money every day, also every segment do not perform as per our expectation on day to day basis.

The facts which most of the traders do not know or do not want to accept are:

1)   Very few smart traders only make money from the stock market.
2)   You cannot earn daily profit.
3)   You cannot make money only from 1 segmented trading.

Whereas the most important fact which we often forget during trading is that, every month stock market gives 100% good opportunities which are very limited in numbers, and we miss those because of various reason. (Money already stuck in some stock, or capital loss etc.)

VPS Advisory Services gives opportunity to all traders to become smart and en-cash those market opportunities into your profit.

Combo pack is designed for those who understand above mentioned facts. The product features are as follows:

1)   Total 6-9 trades in a month.
2)   Trading in Stock future, Equity Cash, Stock Option, Nifty Future segments.
3)   Accuracy 100%.
4)   Holding Period Maximum T+3 days.
5)   Profitability 50k to 70k in a month.
6)    Investment required 1 lac to 1.5 lac.


Wednesday, October 22, 2014

Happy Diwali

VPS Advisory Wishes Happy and Prosperous Diwali to all .