Over the last few months a very key set of macros are playing out in India. On the one hand, crude prices are going up sharply and in fact have gotten close to the $80/bbl mark. On the other hand, the Indian rupee is gradually weakening. While the rupee is still off the 2013 lows …
Why is it that FMCG stocks with relatively higher P/E ratios have outperformed in the last one year while PSU banks with an attractively low P/E have continued to disappoint investors? The rules of value investing dictate that one can make higher returns in the stock market by buying good stocks at lower P/E ratio. …
Imagine that you have a corpus of around Rs.2 crore either in your bank or in the form of shares. What exactly can you do with these funds? Firstly, you can select stocks and create a portfolio of equity stocks and constantly monitor the same. Secondly, you can allocate the entire monies to a set …
How do you judge the profitability of a company? There are various approaches to measuring profitability. For example, profitability can be measured as a percentage of the total revenues which tells you how efficiently you have been generating sales. Alternatively, profitability can also be measured as a percentage of the total assets or the equity. …
What do we understand by leverage? As the name suggests, it refers to the strategic use of debt (as a lever) to reduce your cost of capital. The logic here is that the cost of debt is lower than the cost of equity. As a result, by adding debt to your capital structure you end …
When Stephen Hawking, the world renowned physicist, passed away on March 14th 2018, there was more a sense of awe and admiration rather than grief. Here was a man who had achieved so much despite the obvious challenges that he had faced. Hawking had done groundbreaking work on “Black Holes” and Cosmology during his lifetime. …
Ask any veteran investor about his secret of investment and he will ask you to “Sell on greed and buy on fear”. If you look back at the markets over the last 10 years, this strategy would have precisely yielded rich dividends. Then why is that most investors and traders find it so difficult to …
As India prepares to launch the historic Goods and Services Tax (GST) effective July 01st, the big question is whether it will impact investors in a big way. Obviously, a mammoth implementation of such proportions is going to have an impact on your investment costs and your investment strategy. Here is what you need to …
The first Sovereign Gold Bond (SGB) issue of the fiscal year 2017-18 that is open from April 24th till April 28th has both macroeconomic and cultural significance. The macroeconomic significance is that it is being launched at a time when global geopolitical uncertainty is at a high. The war in Syria is getting messier and …
he Index of Industrial Production (IIP) for the month of January 2017 came in sharply higher at 2.7% compared to (-0.6%) for the month of December 2016. The IIP for January was important as it was the first full month of reported IIP after the demonetization drive was stopped on December 31st. Hence it was …
