Once bitten twice shy investors often fall victims to popular myths about investing rather than learning from their mistakes.
In the bargain, they lose out on other opportunities.
Here we took a look at some of the myths that are prevalent in the minds of those who have lost money
Investors feel that they do not need investment advisors and can make investment decisions on their own using their trusted sources. However, one must remember that markets today are far more complex.
It is virtually impossible for any one individual to track all asset classes. Hence choosing a good advisor, helps.
“An advisor is equipped to look at your changing needs and risk profile, and offer appropriate solutions given the market conditions and basket of products available.
"They are experts and will help you navigate the journey towards financial freedom with a high degree of certainty,” says Ashish Kehair, business head, private wealth management at ICICI Securities.
The NAV is the total value of all the securities in its portfolio, less any liabilities, divided by the number of units outstanding.
The NAV does not signal an entry or an exit point. Instead, one should look at the portfolio quality of the fund, see whether it is a large cap, mid-cap or small-cap oriented, the fund manager, the past performance and the style of investing.
“Individuals should look at the return on investment rather as a pure number to the NAV has no meaning”, says Anil Chopra, Group CEO, Bajaj Capital.
Bonds or debt mutual funds carry interest rate risk.
In a rising interest rate scenario, the value of your bond falls and you lose money and vice versa. Besides, there is a credit risk with bonds of private companies.
Hence investors must factor in that before making an investment in debt.
his works for a lot of people, but this is not sacrosanct.
For example, if you are 30 years old and have a loan and are the only working member in your family, and barely manage to meet your monthly expenses, it may be risky for you to put 70% of your assets in equities.
Alternatively, if you are an HNI and 60 years old, with your retirement nest built and well taken care of, then you can still afford to invest more than 40% in equities.
Hence, it is best that you discuss the same with a financial planner before taking a final decision.
A lot of investors are constantly trying to find the next multi-bagger. First, in an individual capacity it is not easy to spot one.
Even if you have a multi-bagger but it constitutes a small percentage of your portfolio then it does not make significant difference to your returns.
“In the process of identifying a multi-bagger, investors accumulate as many as 15 small-cap stocks, 14 of which would go down, so it is not really worth the effort,” says Radhika Gupta, director and founder of Forefront Capital.
Most investors think that they will buy at the bottom and sell at the top, in short they want to time the market. However, during their investment journey sooner or later they realise that timing the market is not possible and in the process they miss out on many opportunities.
“There is no best time to invest, but there is a best time horizon to invest. If you have the time horizon to live the shocks of the particular asset class, you will make money,” says AV Srikanth, executive director, Anand Rathi Wealth Managers.
Investors should build a portfolio over a period of time, depending on the risk that he can take.
Financial advisors advise diversification of portfolio to increase returns and reduce risk.
However, diversification does not mean buying stocks and funds at random.
“Overall we believe that investors should not have more than 20 instruments be it stocks, mutual funds or fixed deposits in their portfolio as diversification beyond that reduces returns without reducing risk”, says Sandeep Raichura, business head, wealth management at Pioneer Wealth Management.
Wednesday, June 9, 2010
Nifty ends at 5K amid volatility; Bharti up 5%, ITC dips 4Nifty ends at 5K amid volatility; Bharti up 5%, ITC dips 4%
The benchmark Nifty closed with modest gains, after witnessing a consolidation throughout session. It settled at 5,000 level, after struggling to hold the same level since beginning of trade today.
The markets consolidated today after previous two-day sell-off on back of weak global cues. The Sensex shot up more than 200 points after European markets opened 1% higher but that could not sustain for long.
The 30-share BSE Sensex closed at 16,657.89, up 40.79 points or 0.25% and the 50-share NSE Nifty rose 13.20 points or 0.26% to settle at 5,000.30. Nifty June futures turned into premium of 7 points from 20 points discount.
Telecom, oil & gas, metal, capital goods, private banking and realty companies' shares helped indices to remain in positive terrain. However, the sell-off in technology and FMCG companies' shares along with NTPC, Tata Power, Tata Motors, SBI, Power Grid, Hero Honda and Siemens added to volatility.
Bharti Airtel was the top gainer on Nifty; shot up 5.3%. The telecom major was in focus as it closed the Zain Africa acquisition on Tuesday. However, rating agency Standard & Poor's tried to play party pooper and cut Bharti's rating to BB+ from BBB-. The downgrade was on account of worsening leverage and cash flow ratios.
Akhil Gupta, Deputy Group CEO and MD, Bharti Enterprises, said he absolutely disagrees with S&P's assessment. "We see no reason why our business will go down. We have built up net cash positions in the past for major acquisitions. Every good company should have a reasonable amount of debt."
Among other telecom players, Reliance Communications was up 1.5% and Idea Cellular up 0.3%.
ONGC from oil & gas space was the leading counter; gained 2.23% and heavyweight Reliance Industries rose 1%. Cairn India, GAIL and BPCL went up 0.66-1.66%.
The most beaten down metal space also bounced back today; SAIL, Sterlite Industries and Tata Steel gained 1.6-3.3%. Hindalco was up 0.6% and Jindal Steel up 0.4%.
In the financial pack, HDFC Bank, ICICI Bank, PNB, Axis Bank and IDFC were up 0.9-1.7% while SBI lost 0.5%.
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L&T from capital goods space rose 0.9% and BHEL was up 0.7%. ABB went up 0.3% while Siemens fell 0.6%.
Unitech from realty segment moved up 2.4% and DLF gained 0.35%. ACC from cement pack rose 1.9% while Ambuja Cements was flat.
In auto space, M&M and Maruti were up 0.7-1.3% while Hero Honda and Tata Motors declined 0.5-1%.
On the other side, Wipro and TCS from technology pack slipped 2% each. Infosys was down 1% and HCL Tech down 0.5%.
ITC was the biggest loser on Nifty; plunged over 4%. HUL was down 0.7%.
In the midcap space, Marico, Bajaj Holdings, Bombay Rayon, Anant Raj Industries and Kwality Dairy gained 5-6% while Thomas Cook, Rajesh Exports, Gujarat Mineral, Info Edge and Pantaloon Retail fell 3-5.5%.
However, KPIT Cummins was locked at 20% upper circuit. The company formed joint venture with Bharat Forge to manufacture an indigenously developed hybrid technology solution for automobiles.
Ashapura Mine, Titagarh Wagons, DCM Shriram Consolidated and Diamond Power went up 6-9%. However, Shristi Infra, Kanani Industries, Alcobex Metals, Money Matters and Timken lost 5-11.5%.
The market breadth was positive; about 1624 shares advanced while 1458 shares declined on BSE. Nearly 225 shares remained unchanged.
Volume remained above Rs 1 lakh crore mark; the markets reported total turnover of Rs 1,08,677.93 crore. This included Rs 11,735.54 crore from NSE cash segment, Rs 93,058.52 crore from NSE F&O and the balance Rs 3,883.87 crore from BSE cash segment.
On the global front, Shanghai surged 2.78% post Chinese exports in May grew about 50% from a year earlier, sources told Reuters on Wednesday.
Hang Seng gained 0.7% while Nikkei and Taiwan fell 1% each.
At 14:07 hours IST, the benchmark Sensex turned volatility again after witnessing sharp upmove in the last one hour of trade. The Nifty was consistently facing resistance at around the 5000 level. European markets also came off their day's high, were trading flat with positive bias.
Heavyweights slipped from their day's high and some financials came under pressure. Technology and FMCG companies' shares were down along with NTPC, SBI, Tata Motors, Sun Pharma, Hero Honda, Jaiprakash Associates, Power Grid, HDFC, DLF, Siemens and Kotak Mahindra Bank.
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However, buying continued in telecom, metal, private banking and oil & gas companies' shares.
The Sensex was trading at 16614, down 2 points and the Nifty was at 4986, down 0.45 points.
Sesa Goa, Tata Steel, SBI, Tata Motors and Hindalco were the most active shares on bourses.
In the midcap space, Marico, Bombay Rayon, Kwality Dairy, Bajaj Finserv and Anant Raj Industries gained 4-7% while Rajesh Exports, Gujarat Mineral, Thomas Cook, Hindustan National Glass and M&M Financial fell 2-5%.
In the smallcap space, KPIT Cummins surged 19.5%. Ashapura Minechem was up 12.10%. Thiru Arooran, Diamond Power and Thinksoft went up 5%. However, Sundram, Kanani Industries, Maharashtra Polybutenes, Alcobex Metals and Money Matters lost 4-5%.
Nifty holds 5K; ONGC, Bharti, RIL, ICICI Bk, BHEL lead
At 13:30 hours IST - the benchmark Nifty was trading higher on back of short covering and was consistently holding the 5000 level, after seeing sell-off in previous two sessions. Positive European cues were quite supportive today, which were down for last three days; CAC, DAX and FTSE gained more than 0.5%.
Metal, oil & gas, realty, banking, pharma, capital goods and telecom companies' shares were helping the Sensex to trade with more than 100 points gains; respective sectoral indices rose 1-2%.
However, there was a bit of volatility due to selling in heavyweight ITC, which was down 3.4%. Tata Power, Wipro, Infosys, NTPC,Tata Motors, HUL, Power Grid and Jaiprakash Associates were other losers in trade.
The Sensex was trading at 16756, up 139 points and the Nifty was at 5031, up 44 points. However, the Nifty June future trimmed its discount to 11 points from 20 points.
Among Asian markets, Shanghai surged 2.8%. Chinese exports in May grew about 50% from a year earlier, sources said on Wednesday, a figure that blew past expectations and fuelled a big jump in domestic stocks.
Hang Seng gained 0.7% while Nikkei and Taiwan fell 1% each.
The market breadth was positive; about 913 shares advanced while 343 shares declined on NSE.
Top gainers - Bharti Airtel was trading at Rs 271.05, up 4.92%; Sterlite Industries was at Rs 624.50, up 2.50%; Reliance Infrastructure was at Rs 1,081, up 2.20%; ACC was at Rs 860.30, up 2.13%; SAIL was at Rs 193.10, up 2.12% and ICICI Bank was at Rs 831.85, up 1.83%.
(With inputs from Reuters)
Sensex trading strong; oil & gas, realty, pharma up
At 11.54 hrs IST, the Sensex was trading strong with 100 points gains at 16,719. Buying was seen in oil & gas, realty, pharma, metal, banking and auto stocks. However, FMCG stocks witnessed selling pressure. Stocks like Reliance, ICICI Bank, L&T, HDFC and HDFC Bank were the positive contributors to the Sensex while Infosys, ITC, HUL, Tata Motors and NTPC were the negative contributors.
The Sensex was up 102.44 points or 0.62% at 16719.54, and the Nifty was up 38.85 points or 0.78% at 5025.95.
About 1738 shares advanced, 1115 shares declined, and 453 shares were unchanged.
Top gainers on the Sensex were Bharti Airtel at Rs 270.50 up 4.93%, ONGC at Rs 1,198 up 2.78%, Reliance Infra at Rs 1,078 up 2.01%, ACC at Rs 857.65 up 1.95% and M&M at Rs 580.65 up 1.69%.
Index heavyweight Reliance was trading at Rs 1,010.50 up 1.41% from its previous close of Rs 996.45.
Refinery major HPCL was trading at Rs 358 up 2.89% from its previous close of Rs 347.95.
However, Top losers on the Sensex were ITC at Rs 280.60 down 3.14%, Tata Power at Rs 1,227.25 down 1.2%, Wipro at Rs 641.90 down 0.31%, Infosys at Rs 2,649 down 0.23% and HUL at Rs 251.25 down 0.1%.
Cigarette major ITC was trading at Rs 280.60 down 3.14% from its previous close of Rs 289.70.
Markets Outlook
Markets, globally, continue to witness a bout of turbulence leading to massive volatility since the past many trading sessions. However, Raamdeo Agrawal of Motilal Oswal Financial Securities feels the current fall is not alarming yet but he does agree to the fact that the cyclicals have been impacted more by the recent correction.
Concentrating on specific stocks and sectors rather than the global scenario, which, according to him, is unlikely to have any catastrophic impact on Indianmarkets in the near term, he says he is bullish on public sector banks. "The State Bank of India (SBI) looks attractive from that pack," he adds.
Suresh Mahadevan of UBS Securities "Maintaining a target of 22,000 for the Sensex by March FY11. If the markets rebound, metal stocks will do very well. He is positive on banks, pharma, real estate and power. “Also, steel stocks look attractive. In fact we have upgraded SAIL to buy,” he adds.
Sensex consolidates; Bharti, ONGC, BPCL top gainers
At 10:23 hours IST - the benchmark Sensex was consolidating at current levels, after previous two-day sell-off on weak global cues. On the one side, oil & gas, telecom, realty and bankingcompanies' shares were helping the markets.
However, selling continued in ITC, Wipro, Infosys, Tata Motors, Tata Power, L&T, Hero Honda, Sun Pharma, Jaiprakash Associates, HCL Tech, HDFC, Power Grid, Hindalco, Jindal Steel and Cipla.
The Nifty continued to face resistance at 5000 level and was trading at 4999, up 12 points. The Sensex rose just 38 points to 16655. However, the Nifty June futures have been in discount since the beginning of series; it was trading at 16 points discount.
The broader indices were outperforming the benchmark indices; about 866 shares advanced while 320 shares declined on NSE.
Top gainers - Bharti Airtel was top gainer on bourses; shot up nearly 6%. The company has made an announcement on Tuesday that it has taken control of Zain Assets.
BPCL was trading at Rs 558.50, up 2.71%; ONGC was at Rs 1,194.25, up 2.57%; Idea Cellular was at Rs 54.20, up 1.78%; M&M was at Rs 577.60, up 1.20%; Reliance Communications was at Rs 169.40, up 1.04%; HDFC Bank was at Rs 1,878, up 0.95% and DLF was at Rs 259.70, up 0.87%.
In the midcap space, Bajaj Finserv, Marico, Kwality Dairy, Simplex Infra and Redington gained 4-7.5% while Rajesh Exports, Triveni Engg, Thomas Cook, M&M Financial and KS Oils fell 2-3.5%.
In the smallcap space, KPIT Cummins, Shrenuj & Company, Shirpur Gold, Thinksoft and Jindal Worldwid went up 5-7% while Kanani Industries, Maharashtra Polybutenes, Ferro Alloys, Henkel India and Oscar Investment lost 3-5%.
Nifty flat with positive bias; oil & gas, metals up
The benchmark Nifty started the day on a flat note following quiet trade in Asian markets. It was facing resistance at around 5000 mark. Oil & gas, metal, realty, financials and auto sectors were on the buyers' radar.
At 9:03 hours IST, the Nifty was trading at 4998, up 112 points and the Sensex was at 16650, up 30 points.
The CNX Midcap rose 55 points to 7796 and BSE Smallcap gained 32 points at 8501. About 513 shares advanced while 161 shares declined on NSE.
Among the frontliners, ITC (went ex-dividend today), HCL Tech, Tata Power, Infosys, HDFC, Reliance Communications and NTPC were under pressure.
However, BPCL, Bharti Airtel, Hindalco, Cairn India, SAIL, Sterlite Industries, ICICI Bank, Reliance Industries, Unitech, ONGC and DLF were gainers in early trade.
Midcap & Smallcap space:
Bajaj Finserv shot up 10%; Berkshire Hathway arm is in preliminary talks with the company, reports CNBC-TV18 quoting sources.
M&M Financial gained just 0.6% on rumours that PE companies may buy some stake in the company.
Rana Sugars rose 2%, as the company is considering demerger of hotel, sugar business.
Texmo Pipes rose 5% and Marico shot up 6%.
Fortis Healthcare, Lakshmi Vilas Bank, Sesa Goa and Ashok Leyland gained 1.2-1.5%.
Global cues:
Asian markets were a bit soft in trade. Nikkei fell 1%. Hang Seng, Jakarta, Kospi and Taiwan lost 0.3-0.4%. Shanghai and Straits Times were flat.
Market cues:
FIIs were net sellers of USD 45.7 million in equities on June 7
NSE F&O Open Int was up Rs 3564 crore at Rs 1.25 lakh crore
As per provisional data of June 8, FIIs were net sellers of Rs 243 crore; DIIs were net buyers of Rs 41 crore in cash markets. FIIs were net buyers of Rs 169 crore in F&O.
F&O cues:
Futures Open Int up Rs 734 crore
Options Open Int up Rs 2830 crore
Nifty Futures add 18 lakh shares in Open Int
Nifty Futures at 18-point discount
Nifty Open Int PCR at 1.32 versus 1.37
Nifty Puts add 14 lakh shares in Open Int
Nifty Calls add 31 lakh shares in Open Int
Nifty 4500 Put adds 4.8 lakh shares in Open Int
Nifty 4900 Put adds 4 lakh shares in Open Int
Nifty 5000 Put sheds 6 lakh shares in Open Int
Nifty 5000 Call adds 8.9 lakh shares in Open Int
Nifty 5100 Call adds 6 lakh shares in Open Int
Stock Futures add 1 cr shares in Open Int
The markets consolidated today after previous two-day sell-off on back of weak global cues. The Sensex shot up more than 200 points after European markets opened 1% higher but that could not sustain for long.
The 30-share BSE Sensex closed at 16,657.89, up 40.79 points or 0.25% and the 50-share NSE Nifty rose 13.20 points or 0.26% to settle at 5,000.30. Nifty June futures turned into premium of 7 points from 20 points discount.
Telecom, oil & gas, metal, capital goods, private banking and realty companies' shares helped indices to remain in positive terrain. However, the sell-off in technology and FMCG companies' shares along with NTPC, Tata Power, Tata Motors, SBI, Power Grid, Hero Honda and Siemens added to volatility.
Bharti Airtel was the top gainer on Nifty; shot up 5.3%. The telecom major was in focus as it closed the Zain Africa acquisition on Tuesday. However, rating agency Standard & Poor's tried to play party pooper and cut Bharti's rating to BB+ from BBB-. The downgrade was on account of worsening leverage and cash flow ratios.
Akhil Gupta, Deputy Group CEO and MD, Bharti Enterprises, said he absolutely disagrees with S&P's assessment. "We see no reason why our business will go down. We have built up net cash positions in the past for major acquisitions. Every good company should have a reasonable amount of debt."
Among other telecom players, Reliance Communications was up 1.5% and Idea Cellular up 0.3%.
ONGC from oil & gas space was the leading counter; gained 2.23% and heavyweight Reliance Industries rose 1%. Cairn India, GAIL and BPCL went up 0.66-1.66%.
The most beaten down metal space also bounced back today; SAIL, Sterlite Industries and Tata Steel gained 1.6-3.3%. Hindalco was up 0.6% and Jindal Steel up 0.4%.
In the financial pack, HDFC Bank, ICICI Bank, PNB, Axis Bank and IDFC were up 0.9-1.7% while SBI lost 0.5%.
Watch CNBC-TV18 live only on MYTV >>
Also Read
* See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows
* See how Global Markets are trading
* Indian ADRs
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Click here
L&T from capital goods space rose 0.9% and BHEL was up 0.7%. ABB went up 0.3% while Siemens fell 0.6%.
Unitech from realty segment moved up 2.4% and DLF gained 0.35%. ACC from cement pack rose 1.9% while Ambuja Cements was flat.
In auto space, M&M and Maruti were up 0.7-1.3% while Hero Honda and Tata Motors declined 0.5-1%.
On the other side, Wipro and TCS from technology pack slipped 2% each. Infosys was down 1% and HCL Tech down 0.5%.
ITC was the biggest loser on Nifty; plunged over 4%. HUL was down 0.7%.
In the midcap space, Marico, Bajaj Holdings, Bombay Rayon, Anant Raj Industries and Kwality Dairy gained 5-6% while Thomas Cook, Rajesh Exports, Gujarat Mineral, Info Edge and Pantaloon Retail fell 3-5.5%.
However, KPIT Cummins was locked at 20% upper circuit. The company formed joint venture with Bharat Forge to manufacture an indigenously developed hybrid technology solution for automobiles.
Ashapura Mine, Titagarh Wagons, DCM Shriram Consolidated and Diamond Power went up 6-9%. However, Shristi Infra, Kanani Industries, Alcobex Metals, Money Matters and Timken lost 5-11.5%.
The market breadth was positive; about 1624 shares advanced while 1458 shares declined on BSE. Nearly 225 shares remained unchanged.
Volume remained above Rs 1 lakh crore mark; the markets reported total turnover of Rs 1,08,677.93 crore. This included Rs 11,735.54 crore from NSE cash segment, Rs 93,058.52 crore from NSE F&O and the balance Rs 3,883.87 crore from BSE cash segment.
On the global front, Shanghai surged 2.78% post Chinese exports in May grew about 50% from a year earlier, sources told Reuters on Wednesday.
Hang Seng gained 0.7% while Nikkei and Taiwan fell 1% each.
At 14:07 hours IST, the benchmark Sensex turned volatility again after witnessing sharp upmove in the last one hour of trade. The Nifty was consistently facing resistance at around the 5000 level. European markets also came off their day's high, were trading flat with positive bias.
Heavyweights slipped from their day's high and some financials came under pressure. Technology and FMCG companies' shares were down along with NTPC, SBI, Tata Motors, Sun Pharma, Hero Honda, Jaiprakash Associates, Power Grid, HDFC, DLF, Siemens and Kotak Mahindra Bank.
Watch CNBC-TV18 live only on MYTV >>
Also Read
* See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows
* See how Global Markets are trading
* Indian ADRs
RSS feed for news
Click here
However, buying continued in telecom, metal, private banking and oil & gas companies' shares.
The Sensex was trading at 16614, down 2 points and the Nifty was at 4986, down 0.45 points.
Sesa Goa, Tata Steel, SBI, Tata Motors and Hindalco were the most active shares on bourses.
In the midcap space, Marico, Bombay Rayon, Kwality Dairy, Bajaj Finserv and Anant Raj Industries gained 4-7% while Rajesh Exports, Gujarat Mineral, Thomas Cook, Hindustan National Glass and M&M Financial fell 2-5%.
In the smallcap space, KPIT Cummins surged 19.5%. Ashapura Minechem was up 12.10%. Thiru Arooran, Diamond Power and Thinksoft went up 5%. However, Sundram, Kanani Industries, Maharashtra Polybutenes, Alcobex Metals and Money Matters lost 4-5%.
Nifty holds 5K; ONGC, Bharti, RIL, ICICI Bk, BHEL lead
At 13:30 hours IST - the benchmark Nifty was trading higher on back of short covering and was consistently holding the 5000 level, after seeing sell-off in previous two sessions. Positive European cues were quite supportive today, which were down for last three days; CAC, DAX and FTSE gained more than 0.5%.
Metal, oil & gas, realty, banking, pharma, capital goods and telecom companies' shares were helping the Sensex to trade with more than 100 points gains; respective sectoral indices rose 1-2%.
However, there was a bit of volatility due to selling in heavyweight ITC, which was down 3.4%. Tata Power, Wipro, Infosys, NTPC,Tata Motors, HUL, Power Grid and Jaiprakash Associates were other losers in trade.
The Sensex was trading at 16756, up 139 points and the Nifty was at 5031, up 44 points. However, the Nifty June future trimmed its discount to 11 points from 20 points.
Among Asian markets, Shanghai surged 2.8%. Chinese exports in May grew about 50% from a year earlier, sources said on Wednesday, a figure that blew past expectations and fuelled a big jump in domestic stocks.
Hang Seng gained 0.7% while Nikkei and Taiwan fell 1% each.
The market breadth was positive; about 913 shares advanced while 343 shares declined on NSE.
Top gainers - Bharti Airtel was trading at Rs 271.05, up 4.92%; Sterlite Industries was at Rs 624.50, up 2.50%; Reliance Infrastructure was at Rs 1,081, up 2.20%; ACC was at Rs 860.30, up 2.13%; SAIL was at Rs 193.10, up 2.12% and ICICI Bank was at Rs 831.85, up 1.83%.
(With inputs from Reuters)
Sensex trading strong; oil & gas, realty, pharma up
At 11.54 hrs IST, the Sensex was trading strong with 100 points gains at 16,719. Buying was seen in oil & gas, realty, pharma, metal, banking and auto stocks. However, FMCG stocks witnessed selling pressure. Stocks like Reliance, ICICI Bank, L&T, HDFC and HDFC Bank were the positive contributors to the Sensex while Infosys, ITC, HUL, Tata Motors and NTPC were the negative contributors.
The Sensex was up 102.44 points or 0.62% at 16719.54, and the Nifty was up 38.85 points or 0.78% at 5025.95.
About 1738 shares advanced, 1115 shares declined, and 453 shares were unchanged.
Top gainers on the Sensex were Bharti Airtel at Rs 270.50 up 4.93%, ONGC at Rs 1,198 up 2.78%, Reliance Infra at Rs 1,078 up 2.01%, ACC at Rs 857.65 up 1.95% and M&M at Rs 580.65 up 1.69%.
Index heavyweight Reliance was trading at Rs 1,010.50 up 1.41% from its previous close of Rs 996.45.
Refinery major HPCL was trading at Rs 358 up 2.89% from its previous close of Rs 347.95.
However, Top losers on the Sensex were ITC at Rs 280.60 down 3.14%, Tata Power at Rs 1,227.25 down 1.2%, Wipro at Rs 641.90 down 0.31%, Infosys at Rs 2,649 down 0.23% and HUL at Rs 251.25 down 0.1%.
Cigarette major ITC was trading at Rs 280.60 down 3.14% from its previous close of Rs 289.70.
Markets Outlook
Markets, globally, continue to witness a bout of turbulence leading to massive volatility since the past many trading sessions. However, Raamdeo Agrawal of Motilal Oswal Financial Securities feels the current fall is not alarming yet but he does agree to the fact that the cyclicals have been impacted more by the recent correction.
Concentrating on specific stocks and sectors rather than the global scenario, which, according to him, is unlikely to have any catastrophic impact on Indianmarkets in the near term, he says he is bullish on public sector banks. "The State Bank of India (SBI) looks attractive from that pack," he adds.
Suresh Mahadevan of UBS Securities "Maintaining a target of 22,000 for the Sensex by March FY11. If the markets rebound, metal stocks will do very well. He is positive on banks, pharma, real estate and power. “Also, steel stocks look attractive. In fact we have upgraded SAIL to buy,” he adds.
Sensex consolidates; Bharti, ONGC, BPCL top gainers
At 10:23 hours IST - the benchmark Sensex was consolidating at current levels, after previous two-day sell-off on weak global cues. On the one side, oil & gas, telecom, realty and bankingcompanies' shares were helping the markets.
However, selling continued in ITC, Wipro, Infosys, Tata Motors, Tata Power, L&T, Hero Honda, Sun Pharma, Jaiprakash Associates, HCL Tech, HDFC, Power Grid, Hindalco, Jindal Steel and Cipla.
The Nifty continued to face resistance at 5000 level and was trading at 4999, up 12 points. The Sensex rose just 38 points to 16655. However, the Nifty June futures have been in discount since the beginning of series; it was trading at 16 points discount.
The broader indices were outperforming the benchmark indices; about 866 shares advanced while 320 shares declined on NSE.
Top gainers - Bharti Airtel was top gainer on bourses; shot up nearly 6%. The company has made an announcement on Tuesday that it has taken control of Zain Assets.
BPCL was trading at Rs 558.50, up 2.71%; ONGC was at Rs 1,194.25, up 2.57%; Idea Cellular was at Rs 54.20, up 1.78%; M&M was at Rs 577.60, up 1.20%; Reliance Communications was at Rs 169.40, up 1.04%; HDFC Bank was at Rs 1,878, up 0.95% and DLF was at Rs 259.70, up 0.87%.
In the midcap space, Bajaj Finserv, Marico, Kwality Dairy, Simplex Infra and Redington gained 4-7.5% while Rajesh Exports, Triveni Engg, Thomas Cook, M&M Financial and KS Oils fell 2-3.5%.
In the smallcap space, KPIT Cummins, Shrenuj & Company, Shirpur Gold, Thinksoft and Jindal Worldwid went up 5-7% while Kanani Industries, Maharashtra Polybutenes, Ferro Alloys, Henkel India and Oscar Investment lost 3-5%.
Nifty flat with positive bias; oil & gas, metals up
The benchmark Nifty started the day on a flat note following quiet trade in Asian markets. It was facing resistance at around 5000 mark. Oil & gas, metal, realty, financials and auto sectors were on the buyers' radar.
At 9:03 hours IST, the Nifty was trading at 4998, up 112 points and the Sensex was at 16650, up 30 points.
The CNX Midcap rose 55 points to 7796 and BSE Smallcap gained 32 points at 8501. About 513 shares advanced while 161 shares declined on NSE.
Among the frontliners, ITC (went ex-dividend today), HCL Tech, Tata Power, Infosys, HDFC, Reliance Communications and NTPC were under pressure.
However, BPCL, Bharti Airtel, Hindalco, Cairn India, SAIL, Sterlite Industries, ICICI Bank, Reliance Industries, Unitech, ONGC and DLF were gainers in early trade.
Midcap & Smallcap space:
Bajaj Finserv shot up 10%; Berkshire Hathway arm is in preliminary talks with the company, reports CNBC-TV18 quoting sources.
M&M Financial gained just 0.6% on rumours that PE companies may buy some stake in the company.
Rana Sugars rose 2%, as the company is considering demerger of hotel, sugar business.
Texmo Pipes rose 5% and Marico shot up 6%.
Fortis Healthcare, Lakshmi Vilas Bank, Sesa Goa and Ashok Leyland gained 1.2-1.5%.
Global cues:
Asian markets were a bit soft in trade. Nikkei fell 1%. Hang Seng, Jakarta, Kospi and Taiwan lost 0.3-0.4%. Shanghai and Straits Times were flat.
Market cues:
FIIs were net sellers of USD 45.7 million in equities on June 7
NSE F&O Open Int was up Rs 3564 crore at Rs 1.25 lakh crore
As per provisional data of June 8, FIIs were net sellers of Rs 243 crore; DIIs were net buyers of Rs 41 crore in cash markets. FIIs were net buyers of Rs 169 crore in F&O.
F&O cues:
Futures Open Int up Rs 734 crore
Options Open Int up Rs 2830 crore
Nifty Futures add 18 lakh shares in Open Int
Nifty Futures at 18-point discount
Nifty Open Int PCR at 1.32 versus 1.37
Nifty Puts add 14 lakh shares in Open Int
Nifty Calls add 31 lakh shares in Open Int
Nifty 4500 Put adds 4.8 lakh shares in Open Int
Nifty 4900 Put adds 4 lakh shares in Open Int
Nifty 5000 Put sheds 6 lakh shares in Open Int
Nifty 5000 Call adds 8.9 lakh shares in Open Int
Nifty 5100 Call adds 6 lakh shares in Open Int
Stock Futures add 1 cr shares in Open Int
Here are the top 5 mistakes people do in their financial life-Courtesy Manish chauhan
Here are the top 5 mistakes people do in their financial life:
Buying products from close one's
Will you sell a junk product to yourself if there's a 35% commission and it will be a burden to you all your life? I don't think so!. But if you had to sell it to your friend, colleague, brother-in-law, sister-in-law, father's friend etc, you'd consider it, wouldn't you? That's what happens in real life too. Most times, the "Best plan" comes from one of your relatives or someone known.
A simple 'NO' might hurt your relations with said person, but it will save you, your hard-earned money, rather than waste it on idiotic products, which you'll regret for life. It's just common sense that there are better advisers and consultants than your relatives or a close ones, unless they themselves are known and respected in the field (of finance). Most of the investors have their bitter personal experiences, where they bought products because it came from their relatives, uncle's et al.
This happens a lot with young guys yet to start working, and their fathers have bought policies for them and then delegated the premium paying responsibility to them once they start earning, it's a real "burden of legacy".
Spending more than they should
With many people, savings occur, only if they are left with any money at the end of the month. This needs to change - start saving first, then spend on what's necessary and then spend on your desires - last.
Sometimes, people spend impulsively, on things which they do not really need. Just because, your plastic card is in your wallet and you "might" need it in future makes you believe that you need to get it right now.
A brand new camera, with a 100 megapixel sensor and a 2000 x zoom is available at an EMI of just 1999 per month - and suddenly you're interested in Photography! An EMI of 2500 a month, for that magical million colour, anorexic Flat Screen TV creates a magical belief in you that your normal TV at home is now really blurry these days (not to mention really fat!).
Is there a need, to splurge on Movies and eat out, every weekend? A regular meal at home, with a movie on TV is also a good weekend, at times. It's all about knowing what you need and what you don't, & knowing it well!
No financial education to spouse and kids
Most people are not comfortable talking about 'FINANCE' to kids. They don't feel the need to tell their children that they have bought life insurance, in case they be hit by a bus tomorrow (the parents, not the kids). Once children reach an age of maturity like 16 or 17; when they can understand things & reason well and can take on responsibilities to some extent, parents can start telling them about money and finances.
Kids should know how much you earn. They should be clear on how you are saving money to fund their education, bike, trips etc. Once they know about all these things, chances are they will be a lot more supportive, would be realistic in their demands & stay well within their limits. Kids don't know sometimes, how much pain you take in earning money. Most of the times, kids know your salary and your designation at company and assume the family to be a "higher middle class" one.
Once you tell them about Home loan EMI, Car Loan, other liabilities, Retirement Savings, Education Expenses, Marriage expenses and the medical emergencies for which you are saving, they will have a better idea about the current situation and they will act responsibly. The same applies to spouses.
Imbalanced asset allocation
A lot of people have a tendency to start working and then never look at, or review their finances. Tax Planning is nothing more than a "signature" on some form for them. When they finally look back at their finances, they find that they have huge money in Fixed Deposit's and much more lying in Bank earning them pennies.
This happens a lot with NRI's working outside the country, who are in middle 30-40's and have huge cash in debt or Cash. On the other hand, there are investors who have no PPF, no FD, no Debt Funds, no bonds; they just do share trading, buy direct stocks, invest in just Mutual funds (pure equity).
Their imbalanced Asset allocation is responsible for the huge ups and downs their portfolio takes. One year the worth of their portfolio will be 10 lacs, the next year it will be 7, then suddenly it will be 14 lacs the next year. The numbers dance with huge fluctuations, but at the end of let's say, a decade, they look back & find they are nowhere better than their "High debt Instrument" kind of Investor brothers.
Unrealistic returns
Risk free returns, in our country are amongst the highest in the world. In countries like US, the interest rates are 1-2%. Equity markets in our country continue to provide 12-15% annual returns. But how much do investors expect from equity these days? A lot! No one is ready to settle below 20-25%? This happens when you look at short-term returns.
Investors who started in 2004 started thinking that they are all "Warren Buffet" and can leave their jobs in some years! Whereas all investors who started in 2007 end or 2008 start compare equity with their mother-in-laws, they just can't stand it. Think long-term, and timing will just not matter much.
For retirement and child education, which is 15-20+ years away, just start a SIP in an Index fund and then go into a COMA, come back once in a while and just review it every 6 months to a year. That's all.
Buying products from close one's
Will you sell a junk product to yourself if there's a 35% commission and it will be a burden to you all your life? I don't think so!. But if you had to sell it to your friend, colleague, brother-in-law, sister-in-law, father's friend etc, you'd consider it, wouldn't you? That's what happens in real life too. Most times, the "Best plan" comes from one of your relatives or someone known.
A simple 'NO' might hurt your relations with said person, but it will save you, your hard-earned money, rather than waste it on idiotic products, which you'll regret for life. It's just common sense that there are better advisers and consultants than your relatives or a close ones, unless they themselves are known and respected in the field (of finance). Most of the investors have their bitter personal experiences, where they bought products because it came from their relatives, uncle's et al.
This happens a lot with young guys yet to start working, and their fathers have bought policies for them and then delegated the premium paying responsibility to them once they start earning, it's a real "burden of legacy".
Spending more than they should
With many people, savings occur, only if they are left with any money at the end of the month. This needs to change - start saving first, then spend on what's necessary and then spend on your desires - last.
Sometimes, people spend impulsively, on things which they do not really need. Just because, your plastic card is in your wallet and you "might" need it in future makes you believe that you need to get it right now.
A brand new camera, with a 100 megapixel sensor and a 2000 x zoom is available at an EMI of just 1999 per month - and suddenly you're interested in Photography! An EMI of 2500 a month, for that magical million colour, anorexic Flat Screen TV creates a magical belief in you that your normal TV at home is now really blurry these days (not to mention really fat!).
Is there a need, to splurge on Movies and eat out, every weekend? A regular meal at home, with a movie on TV is also a good weekend, at times. It's all about knowing what you need and what you don't, & knowing it well!
No financial education to spouse and kids
Most people are not comfortable talking about 'FINANCE' to kids. They don't feel the need to tell their children that they have bought life insurance, in case they be hit by a bus tomorrow (the parents, not the kids). Once children reach an age of maturity like 16 or 17; when they can understand things & reason well and can take on responsibilities to some extent, parents can start telling them about money and finances.
Kids should know how much you earn. They should be clear on how you are saving money to fund their education, bike, trips etc. Once they know about all these things, chances are they will be a lot more supportive, would be realistic in their demands & stay well within their limits. Kids don't know sometimes, how much pain you take in earning money. Most of the times, kids know your salary and your designation at company and assume the family to be a "higher middle class" one.
Once you tell them about Home loan EMI, Car Loan, other liabilities, Retirement Savings, Education Expenses, Marriage expenses and the medical emergencies for which you are saving, they will have a better idea about the current situation and they will act responsibly. The same applies to spouses.
Imbalanced asset allocation
A lot of people have a tendency to start working and then never look at, or review their finances. Tax Planning is nothing more than a "signature" on some form for them. When they finally look back at their finances, they find that they have huge money in Fixed Deposit's and much more lying in Bank earning them pennies.
This happens a lot with NRI's working outside the country, who are in middle 30-40's and have huge cash in debt or Cash. On the other hand, there are investors who have no PPF, no FD, no Debt Funds, no bonds; they just do share trading, buy direct stocks, invest in just Mutual funds (pure equity).
Their imbalanced Asset allocation is responsible for the huge ups and downs their portfolio takes. One year the worth of their portfolio will be 10 lacs, the next year it will be 7, then suddenly it will be 14 lacs the next year. The numbers dance with huge fluctuations, but at the end of let's say, a decade, they look back & find they are nowhere better than their "High debt Instrument" kind of Investor brothers.
Unrealistic returns
Risk free returns, in our country are amongst the highest in the world. In countries like US, the interest rates are 1-2%. Equity markets in our country continue to provide 12-15% annual returns. But how much do investors expect from equity these days? A lot! No one is ready to settle below 20-25%? This happens when you look at short-term returns.
Investors who started in 2004 started thinking that they are all "Warren Buffet" and can leave their jobs in some years! Whereas all investors who started in 2007 end or 2008 start compare equity with their mother-in-laws, they just can't stand it. Think long-term, and timing will just not matter much.
For retirement and child education, which is 15-20+ years away, just start a SIP in an Index fund and then go into a COMA, come back once in a while and just review it every 6 months to a year. That's all.
Is Warren Buffet drawn towards Bajaj FinServ
Warren Buffett Chairman and Chief Executive Officer of Berkshire Hathaway may look at investing in Bajaj FinServ, through a subsidiary, reports CNBC-TV18 quoting sources.
It is being learnt that Berkshire Hathway’s arm is in preliminary talks with Bajaj FinServ, the holding company of Bajaj Allianz Life Insurance Co Ltd and Bajaj Allianz General Insurance Co Ltd.
Sources also inform that Bajaj FinServ's Managing Director, Sanjiv Bajaj is expected to visit the US by this month end. Commenting on the issue, Bajaj said private equity funds and other investors have shown interest to invest. However, he denied the news of being in talks with any Warren Buffet companies.
It is being learnt that Berkshire Hathway’s arm is in preliminary talks with Bajaj FinServ, the holding company of Bajaj Allianz Life Insurance Co Ltd and Bajaj Allianz General Insurance Co Ltd.
Sources also inform that Bajaj FinServ's Managing Director, Sanjiv Bajaj is expected to visit the US by this month end. Commenting on the issue, Bajaj said private equity funds and other investors have shown interest to invest. However, he denied the news of being in talks with any Warren Buffet companies.
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