MAX India Ltd

"Max India Ltd is demerging its health & allied business and specialty film business into Taurus Ventures Ltd and Capricorn Ventures Ltd, respectively. Effective at the open of Wednesday, January 27, 2016, Max India will be dropped from the indices," BSE said in a circular issued on Thursday.

In all, Max India will be excluded from seven indices, including S&P BSE 200, S&P BSE 500, S&P BSE AllCap and S&P BSE Industrials.

Kansai Nerolac Paints and Syngene International will fill its slot in BSE 200 and BSE 500, respectively.

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Capital Gains Tax

At the time of Sale of any Asset, tax is liable to be paidon the gains earned on the sale of Asset. Such Gains could either be Short Term or Long Term. The Clssification for the same for Assets other than Shares and Mutual Funds are as follows,

1. Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 36 Months

Classification for Sell of Shares or Mutual Funds:

1. Short Term Capital Gain (STCG): If the Asset is held for less than 12 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 12 Months

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Stocks to Invest: Maruti Suzuki

 Company: Maruti Suzuki India Limited
Type: Public
Traded as: BSE: 532500, NSE: MARUTI
Industry: Automotive
Founded: 1981
Number of employees: 12,900(2015,Sept.)
Slogan: Way of Life!

Current Models:
Omni - 1984 - Minivan
Gypsy - 1985 - SUV
WagonR - 1999 - Hatchback
Swift - 2005 - Hatchback
Grand Vitara - 2007 - Mini SUV
DZire - 2008 - Sedan
Ritz - 2009 - Hatchback
Eeco - 2009 - Hatchback    
Alto K10 - 2010 - Hatchback    
Ertiga - 2012 - Mini MPV
Alto 800 - 2012 - Hatchback
Stingray - 2013 - Hatchback
Celerio - 2014 - Hatchback
Ciaz - 2014 - Sedan

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Foreign Investors

Qualified foreign investors (QFIs) can now invest directly in Indian equities. A QFI is an individual, an association or a group from a foreign country complaint with standards mandated by the Financial Action Task Force, an inter-governmental body that formulates policies to combat money laundering and terrorist financing. Foreign institutional investors (FIIs) and foreign venture capital investments do not come under the QFI category.

An individual QFI can invest up to 5 per cent of the paid-up capital of a listed company. Total investment by QFIs in a listed company cannot exceed 10per cent of its paid-up capital. Foreign investors will also be allowed to acquire equity shares by way of rights issue, bonus shares or equity shares on account of stock split, amalgamation, demerger or such corporate action.

The QFI investment limits will be over and above the ceilings set for FII and non-resident Indians under the Portfolio Investment Scheme for foreign investment in India.

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Stocks to Invest: Hindustan Unilever

Traded as: BSE: 500696
Industry: Consumer goods
Founded: 1932
Headquarters: Mumbai, Maharashtra, India
Products: Foods, beverages, cleaning agents personal care products and water purifiers.
Revenue: Rs 30,170 crores (2014-15)
Net income: Rs 4,315 crores (2014-15)
No. of employees: 18,000

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

Food brands:

• Annapurna salt and atta 
• Bru coffee 
• Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea 
• Kissan squashes, ketchups, juices and jams 
• Lipton tea
• Knorr soups & meal makers and soupy noodles 
• Kwality Wall's frozen dessert 
• Modern Bread 
• Magnum

Homecare Brands: 

• Active Wheel detergent 
• Cif Cream Cleaner 
• Comfort fabric softeners 
• Domex disinfectant/toilet cleaner 
• Rin detergents and bleach 
• Sunlight detergent and colour care 
• Surf Excel detergent and gentle wash 
• Vim dishwash 
• Magic – Water Saver

Personal Care Brands: 

• Aviance Beauty Solutions 
• Axe deodorant and aftershaving lotion and soap 
• LEVER Ayush Therapy ayurvedic health care and personal care products 
• Breeze beauty soap
• Clear anti-dandruff hair products 
• Clinic Plus shampoo and oil 
• Close Up toothpaste 
• Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants 
• Denim shaving products 
• Fair & Lovely skin-lightening products 
• Hamam 
• Lakmé beauty products and salons 
• Lifebuoy soaps and handwash range 
• Liril 2000 soap 
• Lux soap, body wash and deodorant 
• Pears soap 
• Pepsodent toothpaste 
• Pond's talcs and creams 
• Rexona soap 
• Sunsilk shampoo 
• Sure anti-perspirant 
• Vaseline petroleum jelly, skin care lotions 
• TRESemmé 
• TIGI

Water Purifier Brand: 

•  Pureit Water Purifier

 

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BLUE-CHIP STOCK

Blue-chip Stock can be defined as stock of a large, well-established and financially sound company that has operated for many years. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector. You will invariably find that is to be a household name. Most blue-chips have a record of paying stable or rising dividends for years. The term is believed to have been derived from poker, where blue chips are the most expensive chips.

A blue-chip company may have survived several challenges and market cycles over the course of its life which leads to it being perceived as a safe investment.

 

 

 

 

 

 

 

 

 

 

 

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Stocks to Invest: SBI

The ‘SBI (State Bank of INDIA) group’ which consists of many subsidiaries and joint ventures both from banking and non banking sectors is the largest loan provider for people and business in India. According to the SBI’s website the bank has 4713 branches in India, operates 21,000 ATMs and has 180 offices in 34 countries as on June 30^th 2011. Logically, the bank holds high amount of Current Account Savings Account deposits which carries lower interest liability. This has helped the bank to give loans at the most competitive rates in India.
With many subsidiaries and a variety of financial services such as insurance, mutual funds, merchant banking, credit cards, factoring, stock broking, pension fund management etc and with spreading business in every nook and corner of India, it would be hard to beat this bank in terms of revenues. Also Government of India’s has holding of approximately 60% in the bank. SBI always stands in an advantageous position with the government being its main promoter.

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Support & Resistence

Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic is that, when the price declines, there will be more demand for the particular share. By the time the price reaches a particular level, it is believed that demand will overcome supply and prevent the price from falling below support.
Resistance is just the opposite of ‘support’. A Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic behind the theory is that , as the price advances , sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches a particular level it is believed that supply will overcome demand and prevent the price from rising above resistance.

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Bonus Share

Bonus shares are additional shares given to the shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares. The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of shares held to the number of shares outstanding. For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.

Companies issue bonus shares to encourage retail participation and increase their equity base. When price per share of a company is high, it becomes difficult for new investors to buy shares of that particular company. Increase in the number of shares reduces the price per share. But the overall capital remains the same even if bonus shares are declared.

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Stocks to Invest : L&T Ltd

The company is well poised to capitalise on the upcoming business opportunities, particularly in the infrastructure, power and defence sectors, which are likely to benefit from the government's thrust.

The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, including nuclear power plants, T&D, etc. 

Larsen & Tourbo

BSE: 500510 | NSE: LT | ISIN: INE018A01030 | SECTOR: INFRASTRUCTURE - GENERAL

Target Price: 2123

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Technical Analysis: Price GAP

A gap is an area on a price chart in which there were no trades. It is easy to see gaps if you take candle stick charts. Let us try to understand gaps in another way. The fluctuations in stock prices are coherent in nature. That means that the price rises or falls gradually.  Thus, in rising scrip, if on one day the low was Rs 100 and the high was Rs 135, on the next day the low would be Rs 130 and the high Rs 140. Here, the low for the next day falls within the high-low range of the previous day. But suppose for the second day, the low was Rs 145 and the high Rs 150. Then, the low for the next day has fallen above the previous day High-Low range, or it was higher than the previous day’s high. So, when one draws bar charts showing High-Lows every day, there would be a discontinuity, termed as a ‘Gap’ in technical theory. An interesting feature of Price gaps is that it gets filled within a short amount of time. That is, the price would come back to fill the price gap of Rs 140 – Rs145, where there was no trade in the previous days.
In simple terms-a gap occurs when the current bar opens above the high or below the low of the previous bar. On a price chart, a space appears between the bars indicating the gap.








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Share Market Timings

Trading on the Indian equities segment takes place on all weekdays. There is No trading on Saturday, Sunday and Published Indian Stock Market Holidays declared by the Indian Stock Exchange in advance.

• The Market Opens at: 09:15 hours and Closes at: 15:30 hours
• Pre open trade session will be from 09:00 ~ 09:15 hours

Pre-open trade session is a 15 minute trade session from 9:00AM to 9:15AM on the 50 stocks of NIFTY index .
Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.

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Why Invest in STOCK MARKET

Stock markets is the only place where you can start creating wealth with a little money. All it requires is a bit of discipline, average intelligence and good temperament. Any other form of investments like real estate, gold are not strictly regulated like stocks and they may also require substantial capital investment. Although in reality people have made more money by investing in assets like real estate and the stock market still remains infamous for destroying common man’s wealth. People with bad temperament and emotional attachment generally fail in stock markets.
The reason for this is that, profitable investing in stock requires proper financial knowledge and a cool mental attitude.So choosing right Stocks is most important. There will be many choices available & it is not an easy task to select few out of them. Depending on the type and nature of investment you choose, there are varying degrees of risk associated with it. And risk is part and parcel of all type of investments and success of any investment you’ve made depends on how well you have managed the risk part of it.

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Valuation of Shares

• Whether you do simple valuation process or very complicated methods, remember that value is a relative measure. What you’re trying to find is a bargain. Opportunity to buy shares at a bargain generally arises when something is out of favor.
• Always look for moderately undervalued shares rather than trying to find out grossly undervalued shares. If a share is grossly undervalued, it means that there is something terribly wrong with that company.
• You should be able to justify why you bought a share and before buying, make sure you know what would make you sell the stock.
• Never compare your decisions with others. If you are ready to buy a stock at a particular rate for a reason, there’s someone equally ready to sell that stock for some other reason. So, it’s natural; for others to think contrary to your views.

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Interest Rate

Interest Rate in simple words means the cost of borrowing funds. It is the payment we make to the lender for the facility of using his money for our own purpose. Many times our spending decisions are also guided by the interest burden that we would be bearing.

But, more than the returns we should be concentrating on real returns on our savings (real return = interest rate- inflation). Even as consumers, interest rate is an integral part of our spending habit as we borrow from the bank for buying house, cars, house old items etc. For the business community interest rate is also very important as they borrow money from bank for investment activities like capacity expansion, setting up of plants, acquisitions, modernization etc. So interest rates play a critical role in a business’s profitability and hence, on stock prices.

How many of us would invest in stock markets if our bank would pay 12% interest in fixed deposits? Many of us will prefer to deposit money in that bank than invest in stocks (as well as mutual funds). Why? Because, we have the opportunity to earn higher returns at very low risk. As a result, funds move out of stock market affecting the stock markets adversely.

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Mutual Fund Flow Chart

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Large-cap Stocks

Stocks of the largest companies in the market such as Tata, Reliance, ICICI are classified as large-cap stocks. Being established enterprises, they have at their disposal large reserves of cash to exploit new business opportunities. The sheer volume of large-cap stocks does not let them grow as rapidly as smaller capitalized companies and the smaller stocks tend to outperform them over time. Investors, however gain the advantages of reaping relatively higher dividends compared to small- and mid-cap stocks while also ensuring the long-term preservation of their capital.

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Mid-Cap Stocks

Mid-cap stocks are typically stocks of medium-sized companies. These are stocks of well-known companies, recognized as seasoned players in the market. They offer you the double advantages of acquiring stocks with good growth potential as well as the stability of a larger company. Generally companies that have a market Capitalization in the range of 250-4000 crores are mid cap stocks

Mid-cap stocks also include companies that show steady growth backed by a good track record. They are like blue-chip stocks (which are large-cap stocks) but lack the size of those companies. These stocks tend to grow well over the long term.

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Small-cap Stocks

The stocks of small companies that have the potential to grow rapidly are classified as small-cap stocks. These stocks are the best option for an investor who wishes to generate significant gains in the long run; as long he does not require current dividends and can withstand price volatility. Generally companies that have a market Capitalization in the range of up to 250 Corores are small cap stocks.

These companies are relatively new. It is difficult to predict how they will perform in the market. Being small enterprises, growth spurts dramatically affect their values and revenues, sending prices soaring.
On the other hand, the stocks of these companies tend to be volatile and may decline dramatically.

Most Initial Public Offerings (IPO) are for small-cap companies. Aggressive mutual funds are also enthusiastic about adding small-cap stocks in their portfolios. Because they have the advantage of being highly growth oriented, small-cap stocks can forego paying dividends to investors, which enables the profits earned to be reinvested for future growth.

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Stock Charts

Stock charts gained popularity in the late 19th Century from the writings of Charles H. Dow in the Wall Street Journal. His comments, later known as "Dow Theory". His theory says that markets move in all kinds of measurable trends and that these trends could be deciphered and predicted in the price movement seen on all charts.

A stock chart is a simple two-axis (x-y) plotted graph of price and time. Each individual equity, market and index listed on a public exchange has a chart that illustrates this movement of price over time. Individual data plots for charts can be made using the CLOSING price for each day. The plots are connected together in a single line, creating the graph. Also, a combination of the OPENING, CLOSING, HIGH and/or LOW prices for that market session can be used for the data plots. This second type of data is called a PRICE BAR. Individual price bars are then overlaid onto the graph, creating a dense visual display of stock movement.

Stock charts can be drawn in two different ways. An ARITHMETIC chart has equal vertical distances between each unit of price. A LOGARITHMIC chart is a percentage growth chart. It has equal vertical distances between the same percentages of price growth. For example, a price movement from 10 to 20 is a 100% move. A move from 20 to 40 is also a 100% move. For this reason, the vertical distance from 10 to 20 and the vertical distance from 20 to 40 will be identical on a logarithmic chart.

Stock chart analysis can be applied equally to individual stocks and major indices. Analysts use their technical research on index charts to decide whether the current market is a BULL MARKET or a BEAR MARKET. On individual charts, investors and traders can learn the same thing about their favorite companies.

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