How Futures and Options Affect Share Prices?
Of course, the price of derivatives (including futures and options) has a major impact on the price of the underlying share (and vice versa). How can you as a trader benefit from this co-relation has been the subject of many books and much research work. While it is not important to trade on this basis, it is […]
NRI Investment in Indian Shares – Documentary Requirements
Sometime back I wrote an article on how resident Indian’s can invest in shares of companies listed on foreign stock exchanges. Likewise, many overseas investors would like to invest in shares of companies listed on the Indian stock exchanges. In this article, I will focus on how Non Resident Indians (i.e. NRI’s) can invest in […]
Sensex Target for 2020: Are 40,000 – 60,000 levels achievable?
A lot of research goes into predicting future prices and Sensex targets. Analysis of past data for such predictions suggests that analysts are far more accurate over a longer term. Shorter your time frames, higher are the chances of error. Yet, analysts and market commentators regularly throw out targets for anywhere between a few years […]
How Stock Picking Became My Full Time Business
Today when I look around, I see thousands of opportunities in India. Anyone born in this era should realize how fortunate he is to be born at a time when coffee costs Rs. 150 and it takes an average of 15 minute to be served a takeaway. To not capitalize on the opportunity the market […]
Choosing Fundamentally Strong Stocks for Trading
I often get emails asking for what are the good shares for trading in the Indian stock markets? One particular inquirer asked me to name some – fundamentally strong stocks for trading. I think this is worth writing about. At first, to come up with any coherent answer, the question must be broken in at least […]
Best Savings Bank Account in India
Last week, I met someone who wanted to discuss investment options with me. While I don’t do consulting of this nature, he happened to be in my distant family. Fair enough. I went in wondering if he will ask me about stock investments or may be some complex derivative products, indeed if I could help […]
Are You Buying Stocks For The Next Bull Market?
Exactly one year ago, I wrote a piece about the hypothesis that “markets are always ahead” of the real economy. At that time, I said that empirical evidence suggests that stock markets can indicate the future prospects of the broader economy. That stock prices decline before deterioration in the general economy and vice-versa. If you […]
Future Prospects of Indian Economy
India’s population today is 1.237 billion and growing at 1.3% every year. This makes India the second most populated country in the world with China leading the charts with a population of 1.35 billion. According to the most recent census survey, India occupies 17 % of the world’s population and 65 % of these people […]
Fixed deposits in India – Best safe investment option for the future?
There Seems to be an amazing rush to grow money by investing in Fixed Deposits (FD) and other fixed income schemes. Someone recently asked me about the best safe investment option for the future and after some discussion I realized what he really wanted to know was the safest scheme within the sphere of fixed deposits in India. That […]
Best Stocks for Medium Term Investment in India – Educated Speculation
Market participants and financial media regularly classify stock purchase decisions based on the time horizon or holding period of the investor (i.e. how long can the investor do away with his money and put it in stocks). This classification is usually styled as long term, medium term and short term. There are absolutely no fixed rules as to […]