Best Rising Market Stock Pickers Buy Drug Manufacturers to Retail

The only three rising market stock pickers who avoided losing money for customers in worst rout since 1998 say now’s the time to purchase Indian drug manufacturing companies, Philippine retailers and Chinese Internet firms. Lewis Kaufman, Managing Director and Portfolio Manager at THDAX (Thornbug Developing World Fund) stated that PGOLD (Puregold Price Club Inc.), a Manila-based company will be benefiting from 20% sales growth. CNI Charter Emerging Markets Fund (RIMX)’s Anindya Chatterjee boosted his position in Tencent Holdings Limited, a China based company as initial quarter profit rose 37%. Mr. David Semple has been purchasing Indian pharma stocks for Van Eck Emerging Markets Fund as rupee’s tumble boosts exports.

Relative Value

MSCI (Morgan Stanley Capital International) emerging markets index, which declined 0.5% to 896.40 in Hong Kong, is headed for worst first half since 1998. The gauge has trailed MSCI World Index of developed country shares by 21% points this year through 21^st June, the largest gas in 15 years. Emerging markets index is valued at 1.4 times net assets, the lowest level since 2011 and 28% below MSCI World Index, the largest discount since 2005.

Ibovespa of Brazil, Hang Seng China Enterprises and IGBVL (Peru Lima General Index) Index all lost over 19%, the largest declines among 21 emerging market equity measures tracked by Bloomberg. OGXP3 (OGX Petroleo & Gas Participacoes SA), controlled by Brazilian billionaire Eike Batista and the Rio de Janeiro-based oil exploring company, slid 81% for steepest drop in MSCI emerging gauge.

Bernanke Effect

Developing nation bonds and currencies also tumbled in initial part with lira (Turkey) and rupee (India) sinking to record lows against dollar past week. After Ben Bernanke, Chairman at U.S. Federal Reserve mapped out a timetable to end unprecedented bond purchasing program of central bank, even the best performing rising market share funds have declined in June. THDAX fund lost around 8.9% so far in June, whereas Van Eck fund dropped 8.3% and CNI fund slid 8%.

Reducing Risk

Brevan Howard Asset Management LLP’s $2.7 billion emerging markets hedge fund marketed positions and cut risk by over half it lost 11% in 2013, two people with knowledge of this matter said past week. Geraldine Sundstorm, who oversees the fund for Brevan Howard, A London-based Company, declined to comment. GBRAX (Goldman Sachs BRIC Fund), a $328 million firm which invests in China, India, Brazil and Russia declined 18% for largest drop amongst 92 United States-domiciled emerging stock mutual funds.

Eddie Perkin, Chief Investment Officer for emerging and international markets equity at Goldman Sachs Asset Management stated that as a believer and contrarian in mean reversion, the fact that BRIC markets have underperformed for several years, that makes very interested in those markets.

Fund Outflows

According to Morgan Stanley, traders withdrew $18 billion from emerging-market stock funds in the last 10 weeks. John Paul Smith, a London-based strategist at Deutsche Bank AG said while the retreat in emerging markets has left stocks oversold; the longer term outlook for asset class is still negative. He also stated that shares marketed in China, the largest emerging market might extend declines.

World Bank lowered its 2013 forecast for growth in China to 7.7% for June, which would be the slowest since 1999, from 8.4% estimate in January. The Washington-based lender cut its prediction for developing nation growth from 5.5 to 5.1%, unlike the 1.2 percent projection for advanced economies.

Consumer Bets

Kaufman holds shares of MAPI (PT Mitra Adiperkasa), which operates Domino’s Pizza Inc. and Starbucks Corp. outlets across Indonesia and OAO Magnit (MGNT), the biggest food retailer of Russia. Tencent that boosted users of its mobile messaging application by 228% in the initial quarter to 194 million has climbed 15% in 2013. The shares are valued at 25 times estimated 2013 profits vs. 43 times for Menlo Park, California-based Facebook Inc., operator of biggest social network. The biggest listed Internet business of China by revenue, Hong Kong-traded Company was the 4^th largest position in CNI fund as of March after Chatterjee boosted holdings in the initial quarter.

Glenmark, Apollo

As per a market research firm, Euromonitor International, consumer spending in emerging markets of Asia will perhaps increase 9.2% on average this year. Mr. Chatterjee said that in this international environment, it makes more sense to focus on domestic demand driven by demography which has covered Asian economies and markets for more than a decade at companies including Jefferies Group LLC and Bear Stearns Cos.

Adverse Conditions

Glenmark that recorded over 70% of its sales outside India in 3 months ended March has climbed 3.1% even as the benchmark Standard & Poor’s 500 BSE Sensex index dropped 3.4%. Chatterjee, Kaufman and Semple said they tend to avoid state-owned organizations as slower economic growth increases the likelihood of wasteful spending and government intervention. China-based China Construction Bank Corp. (939) and Russia-based OAO Gazprom (GAZP), state controlled companies with 2 of 7 largest weightings in MSCI emerging index, dropped over sixteen percent.

BSE Sensex, Nifty Flat; Jet Airways Crashes 9 Percent

The market opens on a stable note as it seems to be quite relaxed ahead of the RBI credit policy review. The Sensex is up 79.32 points at 19257.25 while the Nifty is up 9.00 points or 0.15% at 5817.40. About 193 shares have advanced, 81 shares declined, and 29 shares are unchanged.

ITC Holdings Corporation, Tata Motors, Wipro, Jindal Steel and GAIL are the most significant losers in Sensex. Ahead of mid-quarter review of monetary policy today, SBI (State Bank of India) said if apex bank can’t reduce CRR rate that’s a must for lending rate cuts by banks, they need to pay interest on cash reserves, which banks park with monetary authority. Pipavav Defence bags contract worth Rs. 1160 crores for building 2 offshore vessels for European client. Stock is up 0.9% on Bombay Stock Exchange. Incidentally, many analysts expect Reserve Bank of India to hold rates during its mid-quarter monetary policy review.

Kotak Securities, brokerage house has updated its rating on Reliance Industries from reduce to add and increased price target from Rs. 855 to Rs. 870, on the hopes of higher margins and volumes in the refining and petrochemical business. The beginning of significant capex cycle (more than $15 billion) in its main businesses will be translating into two margin enhancements for petrochemical and refining categories and one growth in volumes for exploration and production and petrochemical categories. Amongst midcap shares, Punj Lloyd, Balrampur Chini, Opto Circuits, Future Retail, Jet Airways and Guj Flourochem are major losers.

A day after Congress Party revamped its organization, it is now expected that Sonia Gandhi, UPA Chairperson and Manmohan Singh, Prime Minister will be reshuffling the Cabinet today. Nifty is down 6.65 points at 5801.75, while Sensex is down 1.08 points at 19,176.85. Jet Airways crashes around nine percent as government deferred clearance of Etihad’s proposal for purchasing 24% shares in domestic airline.

Mahindra & Mahindra has announced the multi-structured deal entering into stock swap with CIE Auto of Spain purchasing 13.2 percent shares in CIE Automotive. The organization will be funding this purchase through selling shares in 3 group companies to CIE. Mahindra Forgings is up 2.47%, while Mahindra Ugine Steel Company is up 9.97%. Maruti Suzuki, Tata Steel, Sun Pharma, Hindalco and Mahindra & Mahindra are some top gainers in Sensex. In the meantime HUL (Hindustan Unilever Limited) and Wipro are on the downside in opening trade.

Mr. Agam Gupta, Standard Chartered Bank stated that rupee could reinforce marginally on the rate cut and on the positive trade data. The bank expects 25bps Repo rate cut; nonetheless the risk of no rate cut is high because of current rupee depreciation. The range for rupee is seen between 57.40/57.90/USD. Japanese markets were up almost two percent, while trade in rest of equity markets of Asia was subdued ahead of this week’s Federal Reserve policy meeting. In commodities, Brent Crude hit 9-month high, increasing above 105dpb (dollars per barrel). From precious metals space, gold is hovering around 1388 dollars an ounce.

 

Share Trading Tips

Share trading isn’t a job; it’s an art of grabbing opportunities and understanding, while making money and risking your investment. There are some share trading tips, which every novice trader must remember, while investing in stock market. At times, online share trading can be a daunting task and even downright confusing for some, particularly to novice investors. Nonetheless, with basic knowledge of classic online share trading techniques, traders can know the pros and cons of the trading scene and apply their own unique style to trading.

When it comes to trading shares online, you will need to learn few common sense tips to help you out. There is always some risk taking when it comes to investing money in stock market no matter how experienced you are. So, to minimize your risks you will want to use a bit of common sense. This will mean having a strategy of action before you start your investment project. Expertise in share trading will only come with effort, loads of practice and time. You can’t just rule the market in one day of trading.

Before investing your hard earned money in the Indian stock market, use the simulated websites which provide share trading tips, BSE India tips, stock tips, options stock tips, nifty options, futures tips and more.

The expert trader takes calculated risks without fear of loss.

Each loss is a lesson which will help you enhance understanding and knowledge of the stock market.

Go with the prediction of stock price and don’t attempt picking the top and the bottom.

If the share market isn’t reacting as per your expectations then just don’t trade for a while.

Discipline must be exercised by traders.

Recording periodic analysis and trading results of same will prove beneficial.

Never go against the market, be submissive to the will of shares, and keep in mind that stock market is forever right.

Not all trades moves can be profitable ones refrain from pushing a deal too hard.

Rationale, patience, determination and perseverance are keys to becoming a successful share trader.

Instinct and its realization is the important quality that a good investor needs to develop. Although this will come with time, yet keep a keen lookout on the share prices and patterns.

Never exceed the risk limit set. Once decided, the limit should be adhered too.

Don’t focus or invest in numerous shares, instead limit yourself to fewer ones that you can manage.

Never be negative, trading and business may have unexpected turns; however positivity should be maintained in all dealings. It is advised to take trading as a game and enjoy it, only then you will be able to huge and good profits.

Nifty Option Tips

Today with the boom of internet, information is accessible at your fingertips. This is because stock market is touted with feasible option to beat the current economic crisis. Even common people are planning to invest their money in Indian share market. Thus they are collecting info about market situation. With online trading, even medium and small traders can for highly profitable nifty option. It’s a product, which helps you earn half of what you invest. When you plan to invest money in the equity market, you should try to get some information of the shares, as this would help you remain on a much better in addition to safer side of the market.

To understand all the concepts of Indian stock market, you need to get some good time so that you would be able to get right info of what is currently going on in the market. When you plan for option trading just 1/10^th of usual capital is required in a way you do your usual trading. Even when market goes down, you can get profits from nifty option. With trading strategies from a stock advisory firm, you can make most of present market condition even in case of profit and risk associated with it. Stock market trading is all about how well you trade, thus several modes are used to make sure profit margin.

Nifty option tips are recommendations offered for nifty options category. Most hidden features are present that have to be checked while subscribing to any nifty option tips provider. For this type of options trading, the investment is minimum unlike nifty future or nifty cash trading. When it comes to nifty options tips, the losses and profits are calculated in terms of percentage and not in terms of points. You also need to check some key features that are portrayed in our nifty option tips article. Like nifty futures, you can’t carry forward nifty options as the premium keep on falling with time. Nifty options traders must keep time period in mind while subscribing to any nifty options tips providers. Sometimes, Sell today buy tomorrow (STBT) and Buy today sell tomorrow (BTST) calls and tips are dangerous when options are nearing expiry.

Characteristics to check while using nifty option tips

Tips accuracy

Whether free nifty option tips are published on website or will be received through SMS

Are the calls at current market price levels or “buy above and sell below”

Premium of nifty option calls

Whether free nifty option tips are OTM, ATM or ITM

Whether calls are of intraday or positional; because in positional, free clients might not get updates

Are targets and stoploss given with the call?

If yes, what is the reward and risk ratio of free nifty option tips?

 

These are some of the factors; you need to consider and to be checked carefully while trading in free nifty option tips.

BSE India Tips

Share tips are also known as intraday share/stock tips or stock tips in Indian stock market. Money making is the primary and most significant objective of all investors in any commodity or stock market world over. Trader’s success or trading strategy is judged by the amount of return it generates. If you are seriously planning to invest in Indian share market then it is important for you to do a bit of homework, meaning you need to research in best possible ways. You need to get precise information so that it helps you to get best shares possible. You can also make good efforts to know how to get precise BSE India tips.

BSE India tips, NSE tips, guidelines and suggestions have always been handy for both seasoned and novice traders and investors. NSE (National Stock Exchange) is one of the major stock exchanges in the country, one more being BSE (Bombay Stock Exchange). Index applied by NSE is called nifty. Several activities and operations of National Stock Exchange are performed under directive of SEBI (Securities Exchange Board of India) that was founded by the Government of India to govern all exchanges in India. This suggests that you can’t be fooled by trading in BSE or NSE stock market.

Besides stock market, traders also opt for commodity market, which consists of NCDEX (National Commodity & Derivatives Exchange) and MCX (Multi Commodity Exchange). Thus several commodities tips are also sought by traders to taste success in such markets. MCX market comprises metals, which include copper, gold, zinc, silver, lead and aluminum. You will also find numerous agencies in the market, which provide BSE India tips, MCX tips and advices on intense analysis basis to make investment in specific metal. They have professionals who have in-depth knowledge of market movements and create analysis by researching international markets also.

Coming back to nifty tips, they are principally based on or concerned with news updates on NSE, top gainers and losers, stock charts, real-time nifty stats and more. BSE India tips and NSE tips assist investors and traders in making knowledgeable decisions by making watchful studies of market trends. By making most of share tips, novice investors derive significant advantages by getting the complete scenario of the market. Nonetheless, you should realize that investing money in commodity or share markets involves huge risk. For instance, you might get disturbed witnessing downturn in the stock market.

BSE India Tips and NSE Stock Tips for profitable investment decisions:

Traders should have fair knowledge of Indian stock market to be proactive and take control of their financial investments. Hence, NSE and BSE India tips are fundamentally for those who are not able to do proper stock market research because of lack of time.

NSE Stock Tips and BSE India Tips can help you understand the market and develop sound investment plans for commodity trading and share market trading.

You can also opt for few stocking broking firms, which provide tips for its customers.

It is not always essential that NSE Stock Tips and BSE India Tips that are offered by broking companies are credible enough to do stock trading. For this, you also need to open stock trading and Demat account with reputed broking firm, so that you can depend on their stock tips and advice.

Once you start NSE and BSE stock trading, it is beneficial that you should have minimum knowledge about stocks.

You can also look for multiple broking companies for BSE India Tips and NSE Stock tips, as different broking firms provide different advantages and services.

Always follow Indian stock market

Never hesitate to ask for the advice of a professional

Always keep n mind, this is your hard earned money. So you need to take care of it and be cautious at every level, if you are taking calls from professionals too.

India to be world’s fastest growing economy by 2012

India is set to become the fastest growing major economy in the world by 2012 and will be third largest by GDP-size in the next two decades, behind China and the USA, a global study by British banking giant Standard Chartered said.

“India would have overtaken Japan and will be trailing the US by a slim margin by 2030. China would be at a comfortable number one position,” StanChart’s Head of India Research, Samiran Chakraborty, said citing the findings of the Super-Cycle Report here today.

The country‘s contribution to global GDP will go up to 10 per cent of the total pie of approximately $600-trillion while China’s will be 24 per cent, he added.

StanChart expects the country to grow at an annual 9.3 per cent for the next two decades and the per capita income of Indians will shoot up to $7,000 by 2030 from the current $1,000, he added.

The world is currently growing through the third super cycle — a period of sustained high economic growth driven by a particular country — which will go till 2030, and India and China will be the biggest beneficiaries from the current cycle, Chakraborty said.

The previous two super cycles were 1870-1913 (led by the US) and 1946-1973 (led by Japan).

For India, the biggest positive would be the conducive demographics and the country will continue to grow on the domestic demand front rather than being an export hub like some of its Asian peers, Chakraborty said.

The biggest risks for the expectations to not come true, are a collapse of China, confirming to theories of its growth being a bubble; the US going into a 10-year moratorium like Japan and protectionism gaining currency, he said.

Nifty likely to scale new highs on strong fund flows

Betting in the options market indicates that the broader S&P CNX Nifty is poised to scale new highs soon, as global fund flows accelerate to get higher returns.

Maximum open interest in Call options has been in 6500 Calls, which has added more than 7.2 million units, also suggests that it could be a resistance level. The Nifty’s all-time high was 6357.10 on January 8, 2008.

“We expect the Nifty to trade in the range of 6200-6450 in the short term, with futures maintaining a premium of 15-20 points consistently ,” said Manoj Murlidharan, AVP-derivatives , IIFL PReMIA.

Trading has been in the range of the 6,000-6200 level and may move up even as those sceptical of sharp gains raise their bets. Over 4.5 million units in open interest were built in the past one week at 6300 Put options. This is despite options concentration in Puts continues to be highest at 6000 levels, adding around 7.3 million units in open interest.

“On Tuesday, 6300 Put options added more than 1.59 million units in open interest, which is reasonable enough to suggest that the trading range is expected to move higher ,” said Shshank Mehta, derivatives strategist, Nirmal Bang. If the Nifty manages to breach 6325 on the upside, 6300 will act as a very strong support zone, he said.

Foreign institutional investors have been buying options-based hedging in at-the-money Puts (equal to current market price) to prevent losses in their physical holdings of Nifty constituents.

Analysts say that this strategy is expected to give handsome returns to institutional investors as the delta of 6300 Put is currently around 0.7. This indicates that for every 100-point fall in the Nifty, the premium of the options will increase by 70 points.

Implied volatilities are expected to decline in the absence of any major significant development. The India–VIX , a traders measure of immediate volatility, closed at 18.75%, down 4.39% from a day earlier. It has been moving in lower end of the range at 19-23 .