Avoid Investing in Airlines stocks in India - stick to basics

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Sorry for posting after a long time...busy due to preoccupations. anyways here is my post on Aviation Industry:
Since Indian government has passed FDI decision for Aviation Industry. By which now foreign players can buy stake up to 49 percent in Indian airlines, But the question arises is will any Foreign Airlines invest in Indian aviation market which is highly taxed which basically means government still thinks that travelling as fast as Airplane is only for rich people and hence should be taxed heavily(which is 100 percent wrong in era of globalization).

So In present environment I suggest to avoid Airlines stocks to invest in as it is highly risky sector with wafer thin profit margins(for a company working ideally). Now since management of Airlines in India is substandard (not very intelligent/intellect) hence we cant see them turning their balance sheets into green either.

I was checking website of Federation of Indian Airlines and it is showing a disastrous picture of Indian aviation market due to policies of government. Now all of you might be thinking why one should avoid Aviation sector stocks in india? Here are the reasons supporting the same thinking:

1. Taxes on ATF in india is too high: ATF price in India is 77 percent higher then International ATF price ie currently it is Rs. 37,800 / kilolitre whereas international price is Rs. 21,400 / kilolitre, This brings in additional burden for Indian domestic carriers which can be negated if Aviation ministry makes some logical changes in their policies.

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BSE | NSE gets 4th 5th place in emerging economies

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So some good updates wrto Indian stock exchanges as Bombay Stock Exchange and National stock exchange got position in top 5 bourses for emerging markets.

Indian stock exchanges, Bombay Stock Exchange ranked fourth with market capitalization of 1,101.87 billion and National stock exchange followed with fifth rank as it has market capitalization of 1,079.39 billion. Out of total 14 bourses from emerging markets were ranked by World federation of exchanges. China and Brazil topped the list of emerging markets. Shanghai Stock Exchange topped with market capitalization of 2.4 billion dollars. Shenzhen Stock Exchange is second and Brazil's BM&FBOVESPA remained third.

However the not so good news wrto Bombay Stock Exchange is that it's net profit declined by 76% in last quarter. net profit of BSE declined to 15.4 crores only.

Indian stock markets decline on weak economic conditions

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bechmark Indian stock indices including Bombay Stock Exchange's SENSEX and National stock exchange's broader index NIFTY closed in deep red today as sparse monsoon may boost inflation further and RBI doesnot look like cutting interest rates, the only positive coming today was that INR gained over 70p to USD. All of the sectoral indices of Bombay Stock Exchange remained in red with Banks and realty leading the pack. Foreign Investors sold stocks worth $66 million today.

The 30 component BSE SENSEX closed for the day at 16,639.82, down 206.23 points. The large cap index touched a high of 16,899.77 during day's trade today. BSE Midcap Index and the BSE Smallcap Index declined by 2.07 percent each. BSE Realty Index was down 3.07 percent, the BSE Capital Goods Index was 2.04 percent lower, the BSE Bankex declined 1.67 percent and the BSE FMCG Index was 1.57 percent lower.

The broader index Nifty ended at 5,043, down 66.60 points. The 50-share NSE index touched a low of 5,032.40 in intraday trade today.

Economic woes pulls Indian stock markets down

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It can be called as a bad day for Indian stock markets and indian economy, The only positive news coming is that worst finance minister has now finally taken oath as president, thus we might see now various economic initiatives being taken immediately. Meanwhile rupee is consistently at 56+ to a USD, Foreign direct investments in may declined to a meagre 1.32 billion USD, Indian economy loosing sheen as political class is sleeping (still).

Benchmark Indian stock indices including BSE's SENSEX and NSE's NIFTY closed down today, as investors wait for any economic update from the government to keep economy on track and preventing rupee to deteriorate further. Sensex ended a choppy session in the negative territory on Wednesday after shedding some of the intraday losses ahead of July series F&O expiry.

30 component Sensex closed at 16,846.05, down 72.03 points. The most follwed index touched a high of 16,899.01 during daytrading today. The broader index NIFTY closed at 5,109.60, down 18.60 points. It touched a low of 5,076.60 in intraday trade today.

Sector-wise updates from Bombay Stock Exchange:

BSE Metal Index closed down by 2.03 percent, the BSE Power Index was down 1.41 percent and the BSE Capital Goods Index declining by 0.91 percent. The BSE FMCG Index was however up by 0.41 percent and the BSE IT Index gained 0.28 percent today.

SENSEX | NIFTY decline by over 1.5 percent

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Today looked like a bad day for major Indian stock indices including BSE's SENSEX and National Stock exchange's nifty with both indices closing in red by over 1.5 percent today.

Short term investors sold their stocks thus booking profits in recently outperforming sectors such as banks after global risk aversion hammered Asian shares. The euro zone crises and spain bailout is haunting minds of global stock investors thus keeping Indian stock market rise in check and timely corrections.

The 30 component BSE's Sensex ended at 16,877.35, down 281.09 points or 1.64 per cent. It touched a high of 17,047.73 and a low of 16,849.28 in trade today.

The 50-share NSE Nifty closed at 5,117.95, down 87.15 points or 1.67 per cent. It touched a high of 5,164.20 and a low of 5,108.10 in trade today.

5 June - Indian Stock markets analysis

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Greetings from LiveBombayStockExchange, your daily dose for Indian stock market updates.

Major Indian stock indices including BSE's SENSEX and NSE's NIFTY closed higher today. Following is today's analysis report of Indian stock markets.

Stock traders booked profits near the higher end of the narrow trading range following weakness in the rupee against the dollar. Capital goods, banking and power stocks led the gainers on hopes of an interest rate cut by the Reserve Bank of India. 30 component most watched Sensex ended the day at 16,020.64, up 32.24 points. The large-cap index touched an intraday high of 16,138.29 today.

The broader index NSE's Nifty closed at 4,863.30, up 15.15 points touching a low of 4,847.70 during the day's trade.

Indian Stock markets highlights for today:

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