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Indian Economy - Powering Ahead!
 The Equity Desk Forum :Economy, Markets and commodities :Indian Economy - Powering Ahead!
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brijwanth
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Quote brijwanth Replybullet Topic: Interesting Snippets
    Posted: 18/Aug/2010 at 6:23pm
I have some Interesting General Markets(not stocks) analysis to share here

Indian households have typically been wary of investing in stocks. Data from the RBI shows that bank fixed deposits are the most preferred investment avenue for Indians. Primarily because they are conceived to be much safer despite the lower yields. In an economy with no provision for social security like in the West, safety of investments is paramount. However, the stock market scams and bubbles wherein many investors lost their shirts are also responsible for the low exposure. Unfortunately, each time Indians warmed up to investing in stocks, a scam or a bubble hit the market. As a percentage of GDP, Indian households' investment in stocks nearly halved in the past decade. It has come down from the highs of 8% in FY95 to 3.5% in FY10.

Nevertheless, as they say, every clouad has a silver lining. And in this case, the silver lining is equity investments not being restricted to the metro cities. Equity research as well as trading services have become more accessible. Thanks to the penetration of the internet to the smaller town and cities. As a result, cities like Kochi, Rajkot, Hyderabad and Pune accounted for 5.4% of the total cash turnover of the National Stock Exchange in FY10. While Mumbai continues to dominate with 56% share, the other metros lag with single digit shares. What is encouraging is that the share of smaller towns has grown exponentially over the past two years. And we hope that this trend continues. What would be interesting to see is whether the interest in equities sustains in event of markets correcting. After all only then will Indian stockmarkets have the ability to do away with dependence on FIIs.


Edited by riser3 - 18/Aug/2010 at 6:24pm
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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brijwanth
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Quote brijwanth Replybullet Posted: 18/Aug/2010 at 6:27pm
After having looked at many company's growth numbers I would suggest to look and few Parties Growth numbers to invest LOL may be vivekji can help a little more on this

What is the first thing you would do to know whether a business is doing well or not? Most likely, you would look at the financials. The same could be said about politicians and political parties. At a time when our esteemed MPs want to give themselves a massive pay hike, the financials of political parties are in the pink of health. As per the Times of India, the Congress had the highest income at Rs 5 bn for FY09. Between 2002 and 2009, its assets have increased by 42%. The BJP and BSP have declared their income for FY10 at Rs 2.2 bn and Rs 1.8 bn respectively. The maximum growth rate in total assets from FY03 to FY10 has been shown by BSP (59%) followed by NCP (51%) and SP (44%). Brilliant numbers, won't you say? They could teach a lesson or two on running profitable operations to entrepreneurs. But then we have always suspected that politics is a fantastic business. Mind you all these are merely the official numbers!
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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brijwanth
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Quote brijwanth Replybullet Posted: 18/Aug/2010 at 6:29pm
The US and certain European nations are grappling with very high debt burdens. And yet they enjoyed triple AAA credit ratings. In effect putting a question mark over the rating practices of agencies themselves. However, the prolonged bleak picture in the developed world has compelled rating agencies to have a re-look at these ratings. And so, Moody's has stated that the top AAA ratings of the US, Great Britain, France and Germany are 'well positioned'. But these countries could face new challenges that would increase the possibility of a downgrade. Most of these governments injected massive doses of liquidity when the crisis was at its peak. That yielded some benefits for a short period. But have not done much in bolstering the recovery process. Meanwhile, most of them have been saddled with dollops of debt. This should be reason enough to downgrade their ratings further. But Moody's for some reason chooses to defer the inevitable.
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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Quote brijwanth Replybullet Posted: 18/Aug/2010 at 6:33pm
The fate of the PIIGS (European nations now infamous for their huge debt burdens) may have come as a rude shock to investors in Europe. But the economy which is the biggest investor in US Treasuries does not think so. In fact China is now supposedly more bullish on the Euro zone than on the US.

The Chinese central bank has been buying more of Euro bonds rather than selling the same. As against this its sale of US Treasuries over the past few months has been well documented. Japanese bonds too have found takers in China. This may seem to be just a case of diversification of investments. However, the underlying fact may be of huge concern to the US Fed. Asian central banks, holding around 60% of the world's foreign exchange reserves, are turning away from the dollar. The world's reserve currency is in dire need of support.

The chinese are always right with regard to timing we can see the history may be we too need to follow them
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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nannu_68
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Quote nannu_68 Replybullet Posted: 18/Aug/2010 at 7:56pm
good effort
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bharti
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Quote bharti Replybullet Posted: 18/Aug/2010 at 7:56pm
Hello Riser3,
Coincidentally, I saw some of the above same snippets on E Q U I T Y M A S T E R   5 minote wra_p. If your source is same, just wanted to point out that that site does not permit copy/paste. Basantji jad shared this sometime back. 
Just wanted to tobe sure that you were aware of this.
-Vishal
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brijwanth
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Quote brijwanth Replybullet Posted: 18/Aug/2010 at 8:14pm
I would like to draw your attention these snippets are delivered for membership Capitline News Arc. Which delivers news. The ironic thing is they sell the same to institutional investors as well as mutual funds as well as websites. so wherever you see it is their content. However about the copyright factor I'll checkout with my manager if it permitted to share selected data which might be not as important in an discussion forum. I think the content I selected is pretty harmless(nothing like Alert notifications) and moreover it is like sharing a page from a book which I have bought(in this case my bank).

one more thing. I just called my friend(he is the source) who gave me this thing and he said that they infact source it from different news papers. so pretty complex as far as copyright is concerned will check it out 2moorrow
meanwhile  you can find about it here

http://www.capitaline.com/new/newsarc.asp


Edited by riser3 - 18/Aug/2010 at 8:21pm
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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Quote brijwanth Replybullet Posted: 20/Aug/2010 at 9:11pm
I have received clarification that the information is to be rephrased so as to not infringe copyrights. as it is similar to sharing what you have known
Past will not be repeated in future but peaks and troughs do revert to mean, period and order of those peaks, troughs and mean days is the one i.e. not predictable- riser3 valuations
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