thanks LearningToFly  & anthropod  it is clear now. I an new to investing  and did not understand that face value is being termed as nominal share capital

HDFC Securities is quite good. But you will have to open an account with HDFC Bank.

Dont know where to put this question ... so thought would put it here.

From the Ridham Desai Interview ET Now
link is here:

http://economictimes.indiatimes.com/Opinion/Interviews/You-cant-get-all-golden-eggs-in-a-single-day-Ridham-Desai-of-Morgan-Stanley/articleshow/6276344.cms?curpg=1

Kitna dum hai yeah argument mein. Without being stock specific.

1. Where is the level of greed, which is now there and it is there on evident basis in the consumption story. A very popular theme, but overstretched theme?

Ridham: Yeah. At the margin, you want to lighten up on consumption and favour investment. This is a very natural economic cycle. There is nothing odd about this. Economic cycles usually start with a recovery in consumption because interest rates are depressed, which allows consumers to start spending money and then it transitions to an investment cycle as capacity utilisation lives.


We are talking about, say, autos, we are talking about retail and consumer goods, durables. So that’s usually what kick starts a new economic cycle. So assume that in the third quarter of 2009 or may be not third quarter but second quarter of 2009, India’s economy dropped and then the recovery started. It was led by consumption. One thing which I will highlight here is that India has a very strong underlying income growth because we are structurally in a very different period now than what we were 10 years ago. So a young population that’s adding people to the workforce, drives income growth and it pushes consumption. So that’s what happened and interest rates were low. So consumption recovers, then capacity utilisation rises. So as consumption recovers, people produce more and capacity utilisation rises.

Good example is the auto sector where everybody is now approaching full utilisation rates and now looking to add capacity.

So when people start looking to add capacity, that’s when you want to buy the investment related stocks,
i.e.
- the industrials
- the companies that make capital goods
- the companies that make equipment

... those are the sectors that actually start doing well.

We want to start lightening up on consumption and buy investment and that should be pretty much the way you should position portfolios for the next 12 months.

<<Can people please express their views on this. It may be true that the a few stocks in the Consumption story will outperform, but do you subscribe to the overall above argument..>>


<<its Ridham >>

Edited by Shadofax - 09/Aug/2010 at 7:03pm

thanks shivkumar and pkumar.
I have decided to go with hdfc securities.