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Saturday, September 25, 2010
Investing tips for IPO's in Indian stock markets
Initial Public offering of any upcoming company is very crucial both for company's growth as well as for investors confidence, These days there are lots of IPO's arriving in stock markets but all of them are not the best companies or consist of best management.
So investor should follow atleast these tips for investing in IPO:
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BSE IPO Index
An Investor should first know how the management of the company is as this is the single most important factor which comes into play for growth of the company.
Investors should not be misguided by the advertisements in newspapers about the company whose IPO is to come as these advertisements show wrong picture of the company, And we cannot trust advertisements in world where print media is on sale and has lost values, Even the best selling English daily in India tops the list of improper and wrongly edited news, To keep a check on these false advertisements by the IPO companies SEBI is going to change guidelines for advertising by companies and this would make sure that the facts shown in advertisement is same as that in Red herring prospectus of the IPO, you can read full post here.
And lastly the most important tip for IPO investing is that you should wait for atleast 3 to 4 days before purchansing the shares as in 3-4 days the hype of IPO created would settle and true picture of interest being shown by investors would be in place.
For Initial Public offering of very large companies it will be a high profile event, which will attract a large number of institutional fund managers as well as smaller private investors to put their money into the IPO Such IPO's follow an upward trends for few sessions until coming back to original levels and even below that, looking at the sentiments, The biggest such IPO failure is ADAG's RNRL which was so much oversubscribed due to the Reliance factor but company could not flourish at all, So one should be very careful, although chances of such huge failures are very less.
Just follow these very basic IPO investing tips if you want to make your investment in IPO's a real profitable one.
IPO Advertisement rules to be changed - SEBI
The latest news from SEBI is that the rules for IPO advertising are all set to change as the Securities Exchange Board wants it to be inline with the Red herring Prospectus for that IPO, currently many IPO's give advertisement which is false and misguides investors who are new to share markets.
Related Post:
Tips for investing in IPO
So we will now see a tightened set of guidelines for an Companies IPO which maches with the draft of the Red herring prospectus for the IPO. Thus helping the investors in knowing the true picture of the company whose IPO is being floated in market.
Hence merchant bankers should become careful and more responsive now onwards.
FII'S comeback pushes SENSEX | Nifty up
Foreign institutional investors invested in indian markets thus showing the confidence in Indian stocks markets which would rise further now, European markets are still looking skeptical and are running almost flat.
Indian Stock indices like Bombay Stock Exchange's SENSEX and National stock exchange's Nifty are now maintaining levels of above 20000 and 6000 respectively, looks like Realty sector is getting heated up as is looking very bullish at current levels, however I think still some correction is inevitable in coming days as other foreign peers are showing stagnation signs. and might be Indian markets are overpriced at current levels. stock prices of IT companies are also showing growth as US and UK companies are showing more interest in outsourcing by cutting costs.
oming to yesterdays close Sensex ended at 20045.18 and NSE'S Nifty closed at 6018.30, up 58.75 points which is nearly 1 percent.
Wednesday, September 22, 2010
Profit booking pulls BSE SENSEX | Nifty down today
Major Indian stock markets closed lower today as investors booked profits from two weeks of rally, Both Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty closed in red today.
Sensex closed under the psychological mark of 20000 and NSE's Nifty also closed under 6K mark in today's trading
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About United Stock Exchange
The 30 component Sensex closed at 19,940.02, down 61.53 points. The benchmark index touched intra-day low of 19,804.02 and high of 20,105.54 during day trading today.
Analysing sectoral indices today both BSE Midcap Index closed down 0.39 percent and BSE Smallcap Index closed down by 0.23 per cent.
BSE Realty Index closed lower by 1.69 per cent, BSE IT Index also followed by 1.31 percent slip and BSE Oil&Gas Index declined by over 1 percent.
Reliance Communications, DLF, TCS headed the list of todays losers, whereas Maruti Suzuki, HDFC lead the list of those in green.
National Stock Exchange's broader index Nifty also closed under the psychological mark of 6000 and was at 5981.80 at closing and touched high of 6037.40 in intraday trading
Tuesday, September 21, 2010
SENSEX crosses 20000 points closes at 20001.55
The 30 stock benchmark index SENSEX closed over 20000 mark today as Foreign Institutional investors did most of the purchasing today, but Indian Stock markets might see a correction of tune 10 to 20 percent. For reading full post about Indian stock markets today click here
| SENSEX | 21 Sep 17:31 | |||||
| Company Name | Industry | LastPrice | Change | % Chg | Mkt Cap(Rs cr) | Weight |
| ACC | Cement - Major | 1,015.50 | -4.90 | -0.48 | 19,085.31 | 0.63 |
| Bharti Airtel | Telecommunications - Service | 365.50 | -0.80 | -0.22 | 138,799.73 | 4.60 |
| BHEL | Engineering - Heavy | 2,478.95 | 38.20 | 1.57 | 121,349.56 | 4.03 |
| Cipla | Pharmaceuticals | 320.75 | 5.50 | 1.74 | 25,753.70 | 0.85 |
| DLF | Construction & Contracting - Real Estate | 358.80 | -4.80 | -1.32 | 60,902.83 | 2.02 |
| HDFC | Finance - Housing | 720.00 | 13.15 | 1.86 | 105,057.24 | 3.49 |
| HDFC Bank | Banks - Private Sector | 2,470.70 | 25.00 | 1.02 | 113,575.78 | 3.77 |
| Hero Honda | Auto - 2 & 3 Wheelers | 1,807.30 | -12.50 | -0.69 | 36,089.52 | 1.20 |
| Hindalco | Aluminium | 191.10 | -2.15 | -1.11 | 36,566.53 | 1.21 |
| HUL | Personal Care | 294.80 | 2.05 | 0.70 | 64,334.79 | 2.13 |
| ICICI Bank | Banks - Private Sector | 1,124.45 | -3.95 | -0.35 | 125,427.75 | 4.16 |
| Infosys | Computers - Software | 3,058.50 | 52.60 | 1.75 | 175,527.65 | 5.82 |
| ITC | Cigarettes | 172.75 | -3.85 | -2.18 | 132,212.54 | 4.39 |
| Jaiprakash Asso | Construction & Contracting - Civil | 123.10 | -1.70 | -1.36 | 26,154.25 | 0.87 |
| Jindal Steel | Steel - Sponge Iron | 703.50 | -8.55 | -1.20 | 65,702.89 | 2.18 |
| Larsen | Engineering - Heavy | 2,034.75 | 35.30 | 1.77 | 122,729.43 | 4.07 |
| Mah and Mah | Auto - Cars & Jeeps | 681.90 | -5.85 | -0.85 | 39,443.45 | 1.31 |
| Maruti Suzuki | Auto - Cars & Jeeps | 1,412.75 | 14.30 | 1.02 | 40,815.77 | 1.35 |
| NTPC | Power - Generation/Distribution | 206.90 | 2.00 | 0.98 | 170,598.66 | 5.66 |
| ONGC | Oil Drilling And Exploration | 1,401.60 | -0.80 | -0.06 | 299,784.37 | 9.94 |
| Reliance | Refineries | 1,032.90 | -6.80 | -0.65 | 337,886.14 | 11.21 |
| Reliance Comm | Telecommunications - Service | 173.20 | -1.80 | -1.03 | 35,748.95 | 1.19 |
| Reliance Infra | Power - Generation/Distribution | 1,073.45 | -13.90 | -1.28 | 26,285.60 | 0.87 |
| SBI | Banks - Public Sector | 3,104.25 | -3.30 | -0.11 | 197,083.71 | 6.54 |
| Sterlite Ind | Metals - Non Ferrous | 171.45 | 0.10 | 0.06 | 57,634.66 | 1.91 |
| Tata Motors | Auto - LCVs/HCVs | 1,077.40 | 21.20 | 2.01 | 61,476.44 | 2.04 |
| Tata Power | Power - Generation/Distribution | 1,301.95 | 37.95 | 3.00 | 30,896.22 | 1.02 |
| Tata Steel | Steel - Large | 615.00 | -1.50 | -0.24 | 54,575.72 | 1.81 |
| TCS | Computers - Software | 952.75 | 42.20 | 4.63 | 186,474.23 | 6.19 |
| Wipro | Computers - Software | 435.10 | 14.35 | 3.41 | 106,577.75 | 3.54 |
FII's push SENSEX above 20K | NIFTY above 6K
Large stock purchases from Foreign institutional investors boosted Indian stock markets today as both Bombay Stock Exchange's SENSEX and National Stock Exchange's Nifty closed just over psychological figure of 20000 and 6000 respectively today.
The 30 share benchmak Sensex rose over 95 points in today's trade and ended at 20,001.55, up 95.45 points and National Stock Exchange's broader index Nifty also closed up by 0.48 percent,by closing at 6,009.05, up 28.60 points in today's trade. However the movement of Indian stock markets is looking too sceptical when we consider the global peers performance in recent weeks, Most of the purchasing of Indian Stocks currentlyis being done by foreign Institutional investors, which mainly concentrated on BSE30 Stocks hence a rise in SENSEX stocks whereas BSE Midcap Index was down 0.98 percent and BSE Smallcap Index declined 1.34 percent.
Since Stock prices of BSE 30 stocks are going beyond the reach of common man's hands hence selling is seen at midcap and smallcap stocks, The rise is purely due to foreign players and might not show indian sentiments to some extent.
Watching sectoral indices today BSE IT Index gained 2.43 percent and BSE Capital Goods Index gained 1.12 percent higher. BSE FMCG Index however declined by 1.34 percent and BSE Realty Index closed down by 1.30 per cent.
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