Investing Questions and Answers

Stock exchange is going down to down?

BSE and eve other stock market values r going down since 2 days. What happen?


Answers: i have already answered it within a different question

in attendance are three main reason

1. Investors in western countries are surrounded by fearful of US recession so its affecting foreign investments coming into India. (saying US is responsible is a wrong term, even our stock marketplace is jittery).

2. people own sold out their existing shares in establish to buy reliance power ipo, and even new buyers applied for reliance power. when this happen obviously prices of other stocks will dribble.

3. as markets fell, investors lost the side-line money. they withdrew to prevent further loss. this resulted contained by market fall down.
not since 2 days
but almost since the last week
its a highest correction tht has come into the mkts
beacause of the suspicion of us recession
things will stabilise n i think the correction for mkts is overn in a minute...
check
moneycontrol.com
for more news
recession is within the air. we are on kerb of publicly announcing a global recession.

recession mechanism decline in income, loss of investors idea and in extreme cases soaring level of laying-off and possible inflation.

gov'ts will stall but it is indifferent, recession must occur to hold back the overspending so we can bounce once again.
It will recover soon.
don't verbs

Why do you suggest the souk have such a lot in life?

The sensex has suffered a jerk over the last sometime..what can be the underlying reason?


Answers: Many factor. One, there is a transmute in the intercontinental investment climate. One of the primary triggers is the huge fear of the United States' reduction going into a recession with foreign institutional investors trying to restructure their funds from risky emerging markets to stable developed market. Analysts are now expecting a cut surrounded by US interest rates.

Hedge funds and FIIs could have be the biggest sellers within the Indian markets, booking profits and making the most of the unprecedented bull run that have dominated the Indian stock market for a long time presently.

The current volatility is also linked to worldwide bourses. There is a big correlation among global market. The presence of hedge funds across asset classes, along next to increased global movement of wealth, has increased event-related volatility.

Volatility surrounded by commodities markets have also significantly affected equity market.
there are three prevalent reasons

1. Investors surrounded by western countries are in fearful of US recession so its affecting foreign investments coming into India. (saying US is responsible is a wrong permanent status, even our stock market is jittery).

2. family have sold out their existing shares within order to buy reliance power ipo, and even unmarked buyers applied for reliance power. when this happens visibly prices of other stocks will fall.

3. as market fell, investors lost the margin money. they withdraw to prevent further loss. this resulted in open market fall.
This situation is because of the nutty run that the market have been witnessing surrounded by the past. Now the corrections give the impression of being to be very savage.

This condition be largely motivated by the Global cues from other Asian Peers and mainly from America's slowdown contained by the economy,
American are living beyond their process at the expense of asian economy.
American want to control the world cutback by such shocks , and Indian govt is suck on such matters

Should I start buying shares now,or do I wait a little more?




Answers: i think its a good opportunity to buy
stocks like rpl rnrl rel ongc etc
strong companies
but accumulate little little slowly watching the mkt everyday
but this opportunity shall not come again
so buy buy...
The carnage in the Indian markets on Monday has surely made many brave hearts tremble. And why not?

The Bombay Stock Exchange's benchmark index, the Sensex, fell 7.41 per cent or by 1408.35 points while the S&P CNX Nifty was down 8.7 per cent or 496.50 points compared with their respective closes on Friday. This follows last week's 8.7 per cent and 7.98 per cent decline in the two indices, respectively.

This bloodbath, however, provides investors with yet another opportunity to buy quality stocks at cheap valuations. And many experts buy this argument.

"Such panic selling provides long-term investors with an avenue for deployment of long-term savings in quality stocks," said Ved Prakash Chaturvedi, managing director, Tata Mutual Fund. "I think the correction was partly on account of higher valuations. The markets now seem to have bottomed out and trading at reasonable valuations. One can use this correction and accumulate value stocks," said Jigar Shah, head of research, KIM ENG, a Singapore-based FII.

While the consensus seems to be emerging in favour of selective buying, the reasons are not very different either - the India growth story and fundamentals continue to remain intact. And, thanks to this correction, the excesses in the market, to a large extent, also stand corrected. But some concerns do exist.

I V Subramaniam, chief investment officer, Quantum Advisors added, "Looking forward, the fundamentals of Indian corporates still look good. However, from the point of view of international money flow, a lot of global issues still exist which would impact the near-term fund flow into India. This, in turn, will keep the markets volatile."

In this scenario, what is the outlook for the market, one would think. The answers are a bit tricky, especially if one has a short-term perspective. However, the overall picture is not that bad.

Said Sandeep Sabharwal, CIO, JM Financial [Get Quote] Mutual Fund, "The market looks pretty good in terms of opportunities."

"The risk to reward ratio is in favour of investing. One can expect a 4 to 5 per cent downside while 20 to 25 per cent in terms of returns."

Deepak Jasani, head of retail research, HDFC [Get Quote] Securities, said, "We may not go below Monday's low and I expect trading to bounce back over the next 8-10 days. After that, there is a possibility of the markets again running into some road block."

Sabharwal said, "Investors should focus on companies with strong cash flows. There is value across the board but there are specific sectors which offer more value. The sectors I like, include IT (large companies are available at 12-13 times FY09 earnings and have strong cash flows). Construction and auto, which did not perform in the rally, look even more attractive after the current fall." He, however, feels that infrastructure and power utility stocks look expensive.

On the other hand, Ambaressh Baliga, Vice-President of Karvy Stock Broking believes that there are many mid-caps that are back to attractive levels.

Besides that, he says, "We are still avoiding realty and telecom, and power to some extent where we still see them to be overvalued as compared with market valuations. Other than that, we are investing across sectors like IT, pharma, capital goods, infrastructure."

To sum up, despite short-term volatility, experts suggest that investors can derive returns of about 25-30 per cent from current levels by prudently picking stocks.
Buy just what?

Do you want to be left holding the bag?

I would do what the first answerer says, and wait it out, perhaps as long as a few more weeks.

Just be patient, and try to see where this global sell off goes.

It was a long time in the making, and when it reverses like it has in the past three weeks, it takes more time to understand how severe it can get.

Most advisors will tell you it's all okay.

Just a piece of history to ponder...

A week before the 1929 crash began, the head of a large New York Banking Company (don't know which one) was asked about the economy.

His answer was that things were never better.

Don't tell me about things have gotten better with the stock market today, and we have safeguards in place, and all that stuff.

When cattle get frightened, they stampede.

Nobody can predict when they do to perfection.

Those on Wall Street that earn a heck of a lot follow each other.

There are no true leaders anymore.

We have smoke and mirrors to guide us.

Stay tuned, looks really ugly now.
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Today the market has gone up,it is a signal for a time to buy
Those who wait too long are going to regret it,Indian market is healthy
Those who buy now are going to be wealthy when the market hit 20000 again
The markets will start rising anytime from now. Try buying in small numbers and buy shares of strong companies. I won't tell you which are the strong companies. Yourself can make it out. Don't invest a huge amount in one company share, invest in small lots in various. Within another 4 weeks market will become stable and you can see your profits soar.

So happy trading!.

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