Friday, February 29, 2008

Budget 2007-08: Highlights.

No Change In General Cenvat Or Service Tax Rates

Ad Valorem Component Of Excise Duty On Petrol And Diesel Reduced From 8% To 6%


Excise Duty Exemption Limit For Small Scale Industry Increased From Rs. 1 Crore To Rs. 1.5 Crore

Service Tax Exemption Limit For Small Service Providers Raised From Rs. 400,000 To Rs. 800,000

Service Tax Extended To Some New Areas - They include services outsourced for mining of minerals, oil or gas, asset management and design services, development and supply of content for use in telecom and advertising purposes and renting of immovable property for commercial purpose.

Central Sales Tax To Be Reduced From 4 To 3%

No Change In Personal Income Tax Rates But Threshold Limit Of Exemption In All Cases Incrased By Rs. 10,000

CAPITAL MARKETS INITIATIVES IN BUDGET 2007-08 In line with measures announced every year to strengthen the capital markets, Finance Minister Shri P. Chidambaram proposed in the Budget 2007-08:

- PAN to be made sole identification number for all participants in securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account;

- Idea of Self Regulating Organisations (SRO) to be taken forward for different market participants under regulations to be made by SEBI;

- Mutual funds to be permitted to launch and operate dedicated infrastructure funds;

- Individuals to be permitted to invest in overseas securities through Indian mutual funds;

- Short selling settled by delivery, and securities lending and borrowing to facilitate delivery, by institutions to be allowed; and

- Enabling mechanism to be put in place to permit Indian companies to unlock a part of their holdings in group companies for meeting their financial requirements by issue of Exchangeable Bonds.

Maximum Limit Of Deduction In Respect Of Medical Insurance Premium To Be Increased To Rs. 15,000; For Senior Citizens The Limit Is Rs. 20,000

Corporate Income Tax Rate Remains Unchanged; Surcharge On Income Tax On All Firms And Companies With A Taxable Income Of Rs. 1 Crore Or Less Removed

Five Year Income Tax Holiday For New Hotels in NCTD - Fresh tax concessions have been allowed in the Budget 2007-08 to promote infrastructure facilities. A five year holiday from income tax has been allowed for two, three or four star hotels as well as convention centres with a seating capacity of not less than 3,000 located in National Capital Territory of Delhi or in the adjacent districts of Faridabad, Gurgaon, Gaziabad or Gautam Budh Nagar. These should be completed and begin operation during the period April 1, 2007 to March 31, 2010. The step is aimed at meeting the requirement of 20,000 additional hotel rooms for the Commonwealth Games.

Tax Holiday For Undertakintgs In Jammu & Kashmir Extended Up To March 31, 2012 - In the new Budget proposals, the Finance Minister has extended the tax holiday for undertakings in Jammu and Kashmir by another five years upto March 31, 2012. The step is aimed at promoting further investment in the State

Rate Of Dividend Distribution Tax Raised From 12.5% To 15% On Dividends Distributed By Companies And To 25% On Dividends Paid By Money Market Mutual Funds And Liquid Mutual Funds i.e. In the case of dividends distributed by money market mutual funds and liquid mutual funds, tax on dividends paid has been raised to 25 per cent for all investors.

Banking Cash Transactions Tax Exemption Limit For Individuals And Hufs Increased From Rs. 25,000 To Rs. 50,000

Additional Cess Of 1% Levied On Taxes To Fund Secondary And Higher Education - In the Budget 2007-08, an additional cess of one per cent on all direct taxes has been levied to fund secondary and higher education. This would also be used towards expansion of capacity by 54 per cent for reservation for socially and educationally backward classes. The present 2 per cent education cess to fund basic education will also remain.

Employees’ Stock Option Plan To Be Brought Under Fringe Benefit Tax - Employees’ Stock Option Plan (ESOP) has been brought under the Fringe Benefit Tax (FBT) in the Budget 2007-08. The value of the fringe benefit will be determined in accordance with a prescribed method on the date of exercise of the option. Expenditure on free samples and displays has been excluded from the scope of FBT.

CIGARETTES TO COST MORE ; PAN MASALA CONTAINING NO TOBACCO TO COST LESS Specific rates of excise duty on cigarettes are proposed to be increased by about 5 percent in the new Budget. Presenting the General Budget 2007-08 in the Lok Sabha today, the Finance Minister also proposed a raise in excise duty on biris from Rs.7 to Rs.11 per thousand for non-machine made biris and from Rs.17 to Rs.24 per thousand for machine made biris.

Shri P. Chidambaram has reduced the excise duty from 66 percent to 45 percent on pan masala containing no tobacco. He also withdrew the exemption for pan masala containing tobacco and other tobacco products that is now given to units in the North Eastern States.

Peak Rate For Customs Duties For Non-Agricultural Products Reduced From 12.5% To 10% - Custom Duties On Most Chemicals And Plastics Reduced From 12.5% To 7.5% - The peak rate Customs Duty for non-agricultural products is proposed to be reduced from 12.5 percent to 10 per cent. Announcing this, while presenting the General Budget 2007-08 in the Lok Sabha today, the Finance Minister, Shri P. Chidambaram said that this reduction is one more step towards comparable East Asian rates. He proposed duty reduction on most chemicals and plastics from 12.5 percent to 7.5 percent. Duty reduced on seconds and defectives of steel from 20 percent to 10 percent while all coking coal irrespective of ash content is fully exempted from duty.

The Finance Minister has reduced the Customs Duty on polyester fibers and yarns from 10 percent to 7.5 percent, consequently the duty on raw materials such as DMT, PTA and MEG will also be reduced from 10 percent to 7.5 percent.

Shri Chidambaram also proposed to bring down the duty on cut and polished diamonds from 5 percent to 3 percent; on rough synthetic stones from 12.5 percent to 5 percent; and on unworked corals from 30 percent to 10 percent. He has fully exempted dredgers from import duty.
During Three Years Of UPA Government, GDP Growth Rate Improves From 7.5% In 2004-05 To 9.2%



In 2006-07; Growth Rate In Manufacturing Goes Up From 8.7% To 11.3% And In Services From 9.6% To 11.2%



Average Growth Of Agriculture Sector During Tenth Plan Estimated At 2.3%



Average Inflation In 2006-07 Estimated At 5.2-5.4%


Bharat Nirman Makes Impressive Progress - The UPA Government will continue to give high priority to Bharat Nirman and other Flagship Programmes during the next financial year. Presenting the Union Budget for 2007-08 in Lok Sabha today, the Finance Minister, Shri P. Chidambaram announced that for Bharat Nirman, a sum of Rs. 24,603 crore would be provided in 2007-08 as against Rs.18,696 crore (including the NER component) in 2006-07. It marks an increase of 31.6 per cent.

Shri Chidambaram informed that in the current financial year, Bharat Nirman will create 24 lakh hectares additional irrigation potential, provide drinking water to about 73 thousand habitations, construct 15 lakh rural houses and provide telephone to 20 thousand villages.



Gross Budgetary Support For Plan To Be Increased to Rs. 205,100 Crore From Rs. 172,728 Crore


Non-Plan Expenditure To Go Up By 6.5% To Rs. 435,421 Crore


.Allocation For Bharat Nirman Increased by 31.6% To Rs. 24,603 Crore


Allocation For Education Increased By 34.2% and for Health & Family Welfare By 21.9%


Mid-Day Meal Scheme To Cover Children Of Upper Primary Classes in 3,427 Educationally Backward Blocks


National Means-Cum-Merit Scholarship Scheme Introduced For Students From Class Ix To Xii; 100,000 Scholarships To Be Awarded Every Year



National Rural Employment Guarantee Scheme To Be Expanded From The Current 200 To 330 Districts


Allocation For SCS And STS Substantially Increased


Provision Of Rs. 108 Crore For Multi-Sector Development Programme In Districts With Concentration Of Minorities


Interest Subvention Scheme For Short-Term Crop Loans To Continue


National Agricultural Insurance Scheme To Continue In Present Form


Death And Disability Insurance Cover Through LIC To Be Extended To Rural Landless Households under Aam Admi Bima Yojana


Limit Of Loans Under Differential Rate Of Interest Scheme For Weaker Sections Raised


National Housing Bank To Introduce Reverse Mortgage For Senior Citizens


Allocation For Defence Increased To Rs. 96,000 Crore - The Finance Minister, Shri P. Chidambaram, has proposed to increase the allocation for defence to Rs. 96,000 crore. While presenting the Budget proposals for the year 2007-08 in the Lok Sabha today, the Minister stated that this would include Rs. 41,922 crore for capital expenditure. He further added that any additional requirement for the security of the nation would be provided.


Allocation For E-Governance Increased From Rs. 395 Crore To Rs. 719 Crore - The Government has proposed to enhance the allocation for e-governance from Rs. 395 crore in the year 2006-07 to Rs. 719 crore in 2007-08. While presenting the Budget proposals in the Lok Sabha today, Finance Minister Shri P. Chidambaram stated that the Government has launched an ambitious programme for e-governance. Its main objective is to improve efficiency, convenience, accessibility and transparency in Government functions and take Government services to the common citizen.

Since the Central Government supports e-governance action plan at State levels, the Finance Minister also proposed to increase the allocation for such support from Rs. 300 crore in 2006-07 to Rs. 500 crore in 2007-08. He also proposed to provide Rs. 33 crore for a new scheme of manpower development for the software export industry.


Government To Support Creation Of About 100,000 Jobs Every Year For Physically Challenged


For Current Year Revenue Deficit To Be 2% and Fiscal Deficit 3.7% - Both Lower Than Budget Estimaes


Revenue Deficit For 2007-08 Estimated At 1.5% Of GDP and Fiscal Deficit At 3.3% Of GDP


Article Source : Share Market Basics

Thursday, February 28, 2008

15% short term capital tax and Sensex nosedives !

We find that Transit Jupiter in the 6th in India's national horoscope is creating havoc !

Short term capital tax at 15%, 60000 cr farmer's loans written off ( this can only increase the 156 billion dollar debt ) and here we are -- the Sensex down by 400 odd points !

The budget, as expected, was populist. Understandably, as elections are round the corner.

Let us congratulate the FM. He had done a wonderful job of populising ! Most of the sectors are down.

It will need a Herculean effort, if India has to become the 3rd power by 2020, as per Goldman Sachs estimates !

6th Jupiter strikes & India decelerates !

Indian economy is slowing down ! GDP growth rate comes down to 8.7 percent!

Agri 2.6
Mining 3.4
Electricity 7.4
Manufacturing 9.4
Construction 9.6
Industry, Hotel 12.4
Financing, Real
Estate 8.7
Community
Services 7.0

So it is not a bed of roses. Agri and mining sectors have to be improved considerably. Also power generation and manufacturing, if India has to come to the third place by 2020 ( as per Goldman Sachs recent GDP projections ).

Wednesday, February 27, 2008

Why outsourcing to India?

By: Krish Inc, 2008-02-27

India's human resources

Being the world's second highly populated country, human resources are a boon by itself. Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its diamonds, India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key to success in the field of IT outsourcing to India.

Cost efficiency of IT outsourcing in India
Significant cost saving can be achieved by IT outsourcing to India, owing to the wide gap between the personal costs in India and that of the developed countries. Offshore outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing.

The reliable communication facilities
Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good band connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore IT outsourcing to India.

Outsourcing gives you :
Better remuneration
Faster development and start up
Lower cost
Enhanced performance
A better-managed e-business infrastructure
Reliability
Security
Maximizes uptime
A more effective operating environment at the backend

India has a stable government and is one of the world's 10 fastest-growing economies
Fifty years of democracy: Indian service sector contributes a massive 51 per cent to India's GDP. Within this category, the most promising is computer software export, which grew at an amazing rate of 40-50 per cent every year during the 1990s.

Excellent investment potential: India ranked third in Asia, just after Japan and China, in terms of investment potential for the next 10-year period in a study by the Export-Import bank of Japan.

Privatization of the infrastructure sector: A convergent network is being created by the intertwining of the ISP, Telecom, VSAT, Cellular and networking sectors. India's large business houses and Public Sector Units are working towards creating greater bandwidth availability.

John Waltzer: Krish Inc. is affordable web design company. Web Design India, Krish Inc offer web design outsourcing services across the world.

How To Lessen Your Trading Risks In Penny Stock Investing

- By: Anthony Galz, 2008-02-27

The worst thing that could happen in this business is when you go broke. Nobody ever wants that to happen and so do you. If you run out of your investment funds, the stocks and shares just keep moving on and never stop. Of course you won't be able to operate anymore because you have no money to spare. That couldn't be difficult to understand, right? So that this horrible vision of bankruptcy will not happen, it is important that you set your limitations in penny stock investing.

It cannot be any clearer than that. No matter how cheap the stocks are, it is important to keep your reservoir full as well. The stock market trend is not predictable. You share can sell high today and you could lose it tomorrow. What if that loss was the last investment money you have? Sad story but this can happen to anyone who is not setting clear goals for themselves. This article talks about some random guidelines on how to keep your savings intact.

- Don't go beyond your budget. This is common sense. You can't spend any more than what you only have. But what this means exactly is that if you are into penny stock investing, don't pour in all your savings. Set aside a budget for your investment to bank roll. A reasonable margin would be not more than ten percent of your personal funds. Any profit made, you can always add it to your savings. But don't go above the 10% mark unless you can really afford it.

- Know the loops in penny stock investing. In this same way as setting up a business, you have to understand the dynamics and the operations. This will lead you to better understanding of the trade. With it, you can make decisions with better precision, not accurate but better.

- Acquaint yourself of the possible risks. Known to everyone in the trade, penny stock trading ranks the highest in risk scale. The stocks lack liquidity. Fraudulent exercises are very possible in this arena. You could lose your money like bubbles bursting in air. But good investors are natural risk takers. They understand it like it's at the back of their hands. With this mindset, you can set your investment funds better.

- Know when you need to say no and when you need to say yes. Don't get carried away if you stock price goes up. It can go down just as fast. So it is important to learn some timing strategies in penny stock investing. This should save you from losing more money and keep your savings steady.

- Do not think of your investment as gambling. If you lose the bet, you can't have it back. So you bet another. Although stock market trading behaves somewhat similar, it's not exactly the same. Investment aims for profit. When you get your share, you bank roll it for more profit. And you're not the only one benefiting it. Gambling is just for entertainment. Penny stock investing is for serious money makers.

Of course, the list on tips can go on and on. But no matter how sensible and persuasive these tips are, it's really up to you. It's your penny stock investing money. You have full authority over it. Small cap trading can make you smile a lot if you stop betting your money and start thinking of it as investment.

Be cautious of hot penny stock pick scams. Discover more about penny stock investing


Article Source : Article Wisdom

Saturday, February 23, 2008

Learn To Trade By Starting With Cheap Online Stock Trading Picks

- By: Anthony Galz, 2008-02-22

Investing has now become very easy through online stock trading. If you are a beginner, the best way to start investing is with small and cheap online stock trading picks.

The good thing about investing in stock online is that you are directly involve with trading itself. There are many brokerage firms that offer start-up accounts, as well as cheap online stock trading for beginners. You essentially become your own stock broker, directly connected to the goings-on on the stock market floor. Try checking out the varied online stock trading firms and pick one that gives you the best leeway in terms of your experience.

There are a lot of online brokerage firms that cater to individual non-professional stock traders who want that hands-on approach in dealing with their investments. For these beginners, many online stock experts say that starting with small and cheap online stock trading picks is the best.

Another advantage for starting small online is that online brokerage firms guide stock trading beginners with what to do concerning their online investments. A lot of brokerages offer cheap online stock trading for beginner-investors, before allowing you to move to bigger and riskier stock picks.

You may probably start off investing in cheap online stock trading picks, for as low as five or three, or even one dollar per share! Once you get the hang of doing cheap online stock trading investments, then you can move on to bigger shares.

Getting fresh updates is another advantage when you go for online stock market investing. Many online brokerage sites offer real-time quotes as part of their service and so you do get informed of the current trends and shifts in the stock you're interested in (buying or selling). Other financial and market online news sites may also offer information about the stock market, and specifics stocks and options you may be looking to buy. However, what they don't tell you is that making stock trades online is not instantaneous as it is on the floor.

It's possible to make out a buy offer, twelve or even twenty-four hours may have elapsed until you get the stock that you want. This is where things can get sticky, if the market moves quickly on the stock of your choice, then the trading price that you might be seeing on your PC screen could may not what be the same as the real-time price. Apart from starting a cheap online stock trading account. One thing that the Internet can't duplicate is the market hours. So, be sure to keep a pulse on what's happening in your market so you can make adjustments to you online buying and selling.

But the biggest advantage to starting with small and cheap online stock trading is that you can get a feel for online trading, while still learning the ropes. It's a little like online poker: You start with nickels and dimes before you head to the Big Game. Starting with small and cheap online stock trading as opposed to starting with bigger valued stocks is that even if it is, just five, ten or even twenty dollars of your money, you learn and begin forming your own stock trading strategy. This way, your online stock trading experience begins to grow and making the transition to bigger accounts would be easier. Heck, you could probably do it fulltime, in no time.

Know where you can find cheap online stock trading picks. Get links to online stock market investing guide

Article Source : Article Wisdom

Monday, February 11, 2008

Adverse Jupiter strikes and Reliance Power is 77 points down

The Indian stock markets are reeling, as Reliance Power loses 77 points than the issue price !

We had warned in our blogs about the negative posture of Jove, the financial planet

Not only America, but the whole world is going through a severe Economic Crisis. The subprime crisis had taken its toll. Citi group wrote off 8 billion dollars as losses. Many banks are in trouble.

The Fed cut rates by 75 basic points. The US is facing Recession. There are some American scholars who fear a Depression !

Asian indices are down as a result. All markets are interconnected. ( We had in our New Age Wisdom blog highlighted Bell's interconnectedness theorem ).

In other words, not only the US, but the whole world is facing an enormous economic crisis.

2008 will not be a good year for Global Economics. Let us hope, that after Jupiter leaves Sagittarius, things will progressively improve.

Thursday, February 07, 2008

General Trend Of The Stock Market

- By: Anthony Green, 2008-02-07

A man has to buy and sell to make a profit, that is, he has to get in right and get out right. Then he must watch for the proper time to start his trade and the proper time to close it. Getting in right does not help if you fail to get out right.

The time to act either when buying or selling must be determined by the condition of the market at the time and by the position of the individual stocks that you intend to trade in. You might be able to buy and make profits in some stocks after a bull campaign has about finished, while others you might be able to sell short and make profits after the major swing of a bear market has finished.

Do not buy a stock of one group just because some stock in another group goes up. Neither sell a stock of the same group because some one of that group has already started down. Analyze the position of the stock you intend to trade in. Find out if it has passed out of the accumulation or distribution zone. Stop to think before you act; look before you leap; examine before you buy and remember that it is always better to be safe than sorry. It is much better to take a small loss quickly than to hold on and hope and take a big one later.

Position Of Groups Of Stocks

It is very important to watch the position of the different groups of stocks. To be a success you must keep up with the times and follow the leaders.

General Trend Of The Market

There is always a certain group of stocks, which will follow the general trend up or down, while others for a long time will work opposite to the general trend. Therefore, it is necessary to make a close study of the individual stocks and determine their trend regardless of the trend of the general market. Always sell the weak stocks and buy the strong ones, which is really following the trend of each individual stock. By watching closely the daily high and low, weekly and monthly charts, you will be able to determine when each individual stock has changed its position from strong to weak.

How To Tell The Stocks In Strongest Postition

If you are waiting for an indication to buy stocks, you want to select the strongest stock in a certain group, as the stock which is in the strongest position is naturally the one that will lead in a Bull market and the one in weakest position will lead in a Bear market.

Truth Of Stock Market

You follow this same rule in any group of stocks in order to locate the strongest or weakest individual stock of the group. When you have the record of a stock for a long number of years back and see where it gets its support in extreme panic years and where it meets with resistance in boom years, you can easily tell the levels where it is safe to buy or sell with a risk limited to two or three points.

How To Tell Whwn Stocks Are In Weak Position

You always want to know the stocks that are in the weakest position, because they are the safest to sell short in a Bear market. The ones that show weakness first naturally will be leaders in a Bear market. After the trend turns down from the top and stocks have declined for quite awhile, the next thing which will show that a bigger decline will take place is the breaking of important support points.

Judging Final Tops And Bottoms

Before any stock, or group of stocks, starts on a big advance or decline, a long period of time is required for preparation, or accumulation or distribution. It requires time to prepare and lay the foundation for a building. The larger the building, the more time required to construct the foundation. It is the same with stocks. The greater the advance or the decline, the more time required in preparing for it.

Progressive Tops And Bottoms

It always pays to keep a chart of Averages of any group of stocks, as you can then judge when they have reached a level where they are receiving support or being distributed. But, of course, you cannot trade in Averages; therefore, must keep a chart of some of the individual issues of each group in order to determine the best ones to trade in and the right time to buy or sell.

On active stocks 5 to 10 point moves will help to show when tops or bottoms are being made. On stocks selling 25 to 60 per share 3-point charts will show best, but on stocks selling 100 to 300 per share 5 and 10 point moves are much better because it requires a wider range in which to buy or sell a large amount of stock. Sometimes stocks require several years to lay a foundation for a big Bull or Bear campaign.

Get the best stock market trading and turn $1000 InTo $1,00,000 with latest investing tips. For more stock trading related articles and information visit http://www.2stocktrading.com.

Article Source : http://www.articlewisdom.com

Monday, February 04, 2008

Worst January in Stock Market History

By: Robert Thomson, 2008-02-03


This month marks one of the worst Januarys in the history of the stock market. With the housing bubble bursting and the dollar fading the future for US investors doesn’t exactly look promising. It seems like anything our friends at the all mighty Federal Reserve try to do misses the mark every time. Is it time to shake things up in Mr. Bernanke’s fleet of Harvard economic geniuses, or does congress need a slap in the face and a lesson in long run economics? If you share my opinion we need a large helping of both and if we don’t, a portfolio fortification is critical.

In the likely occasion of a recession in the near future few investors cannot afford to ride this terrifying roller coaster out. A major revamp of your portfolio needs to be on the top of your financial to-do list. First off most advisors are suggesting less equities and more debt investing. We all know what that means; get out the less glamorous yet notably more secure bond list. Here were going to do something a little different then what the typical investor would think of doing. Instead of investing in the usual 10 year T-bill, we are going to go the other direction. Moving about 15% of our portfolio into more profitable corporate bonds can add the necessary security needed, with about a 2-2.5% larger ROI compared to your average treasury bond. This accounts for anywhere between 10-25% of your portfolio the next step is figuring out what to do with the rest.

With a recession impending on the horizon one awful truth is imminent. Company earnings will start to contract and with earning contraction comes employment contraction. With this alarming truth comes the necessity to start preparing for an extended period of time without an income source just in case. If you feel like there is even the most remote chance of termination you will need some cash put aside that is readily accessible in times of distress. The general norm is to have at least six months worth of living expenses set aside in an extremely liquid account. Let’s say that at the very most 10% of your portfolio should be some form of cash or any other easily accessible investment depending upon your net worth. With the safest investments out of the way lets move on to more profitable/secure investments.

We’re going to steer away from owning to many individual stocks in this volatile market so the next areas we will look into are mutual funds and ETF’s. Investing in foreign companies seems to be the most logical way to go when the US is teetering on the brink of a recession. Finding mutual funds that invest heavily in companies in China and other emerging markets have the most promise right now. ETF’s, emerging market funds, also offer a very nice blanket of diversity. ETF’s focus investments on an entire market sector such as energy, technology, agriculture and so on. Investing anywhere from 20-30% of your portfolio in these particular vehicles will provide you with optimal security and diversity.

Recently looking more and more attractive, are what some people deem “Sin Funds/Vice Funds”. These investments focus on stocks that do particularly well historically in times of ill market conditions. Unlike most stocks during a down turn in the market, sin stocks or vice stocks, earning actually increase. It’s really a phenomenon most investors ignore. Vice funds offer a very unique intangible asset that is impossible to duplicate in times considerably rough markets. Focusing most of there investments on companies people tend to use more of when stressed and pinched for money, such as tobacco and alcohol, makes sin funds a very safe investment. Committing up to 25% of your portfolio to a reputable sin fund could have you bragging to your friends while they are crying about how much money they’ve lost in recent weeks. As you can see individual stocks aren’t exactly the safest investments for this market, but there are some stocks that are considered as relatively safe.

If you must invest in individual stocks please take our advice and go big. Large cap stocks seem like the only way to go right now, offering little relative risk. Companies like Coca-Cola and Microsoft are looking decent right now, but don’t risk too much money on individual stock picks they’re probably not worth it in the end.

Hopefully we have provided at least a slightly enlightening way of invest your money securely in the uncertain near future. Remember with every problem comes an opportunity so keep your eyes open for companies severely undervalued. Value investing for the long term right now is your safest bet when it comes to stocks so steer clear of most growth stocks unless you know something I don’t!

Secure your portfolio and see how Sin Funds are becoming the investment choice of top Wall Street analysts and investors. Don’t take a beating from the current stock market when you can capitalize on its negative trends.

Article Source : http://www.articlewisdom.com

Tuesday, January 22, 2008

Sensex down 875 points

Again Jove in the Sixth strikes. The Sensex loses 875 to 16.7 K !

This is terrific. It seems only the floor can stop the Sensex.

How correct is the Dow Jones Theory. The bubble seems to have burst

"Higher levels cannot be sustained ", said Dow Jones. Imagine Mukesh Ambani losing 32000 crores of market cap in one day.

Peter Lynch said " The bluest of all blue chips, supposedly the safest of all propositions, can be risky". This is the lesson we have to learn !

We had warned in our website, www.eastrovedica.com and in our blog http://stockmarketastrology.blogspot.com about the impending disaster
initiated by 6th Jupiter. We had warned our readers to switch over to real estate. The ideal investor buys at low levels and sell off at very high levels,say, at 21000 !

Monday, January 21, 2008

$166 Billion of Market Cap washed away !

While Reliance Power IPO collected close to 200 billion dollars, next day the market wiped out 166 billion market cap.

Mukesh Ambani became poorer by 32,000 crores and his brother by 14000 crores. Sunil Mittal of Bharti lost 6000 crores !

We had warned in our blogs, sites and lenses about the adverse nature of Jupiter's Sixth transit. We had advocated the investors to switch over to Real Estate, as we felt that the market was overheated. We had, from our 20 year's experience, known that Bull market ends in big tears !

This is the biggest fall ever for the Sensex, well over 1400 points. The PM and the FM point out that Indian economy is fundamentally strong and that the market fell on fears of recession in US market !

But who can know how Fate through the planets operates !

Every Bull Market Ends in Tears !

Jupiter in the Sixth had struck !

The Decoupling Theory has been overriden ! The Sensex is down by 1600 points now ( ato 0245 PM IST

We had warned in our website www.eastrovedica.com about the impending Crisis. We had asked investors to switch over to Real Estate. We came under some criticism for that. But now ultimately we have been proved right !

We had also forewarned about the 6th Transit of Jupiter, which will be adverse for India. India already is suffering from Elarata Saturn, the dreaded 7.5 year cycle.

The growth of the power sector has come down to 5%. GDP growth to 8.5. 70% oil is imported, despite some entreprenuers coming out with a one lakh rupee car ( which is commendable indeed ). We have only 60% gas. The coming 1.5 years of Elarata Saturn is bound to be tension ridden. We are hoping against hope that this will not affect the stock market. The Decoupling Theory states the China and India are insulated against global cues, particularly the Subprime crisis in the US ( Major investors like JP Morgan, Citi, Lehman etc has written over 100 billion dollars as losses )

Friday, January 18, 2008

Sensex falls to 19013 !

Dow down by 5%, Brazil 12% and India 8%. This is the fall recorded due to global cues. Hope the impending recession in the US will not trigger a global one !

J P Morgan says India is vulnerable and not is not as good as China. All scrips are overvalued !

We had warned in this blog about Jupiter's Transit of the 6th House for India !

Thursday, January 17, 2008

Online Trading Firm: The Best Stock Market Investing Guide

- By: Anthony Galz, 2008-01-17

Beginners and non-professionals on the stock market industry can now invest and try their hand at stock market investment themselves. Thanks to online information offering the best advices and guides on stock investment, stock market is now made more available to more people.

The proper way to start is to find a credible stock market investing guide. For this, you'll need to sign up with an online trading firm. There are many online firms that offer free account registration. What matters is that you won't be left on your own, once you've started. Here are some tips to picking a reliable stock trading site as your stock market investing guide:

Trustworthy online trading firm should not only instruct you the tools of the trade, but it should also be your online stock market investing guide.

Most online trading firm would ask you to sign up with them as it is profitable on their part. But there are many fraudulent online firms that would not hesitate at taking advantage of your investments. One of the most common schemes these fraudulent sites would try is the "Pump and Dump" scheme. They'll hype and inflate prices of stocks and then dump these on investors who have no idea what they're getting into. So be careful when choosing which online trading firm you would want as your stock market investing guide.

You can find many online firms that handles individual stock traders who wants a hands-on involvement with their investments. A great stock market investing guide is one who can show you not only the tools of the trade, but how you can keep track of your stock investments, as well.

A good online stock market guide should be able to provide non-professional beginners with online trading support services.

Be cautious about online trading firms that offer to handle your investments for you. That's not a sign of a reliable stock market investing guide. Always ask to take control of your investments. Look for a trading site that offers services like direct investment options, listings of independent stock news sources, as well as courses on online stock trading. These are signs that a stock trading firm not only wants you onboard, it will take care of you and your investment by acting as a trustworthy stock market investing guide.

Information is a key element in stock market investing. When choosing a online stock trading site, make sure that the one you is updated and well-informed, particularly in the markets you're interested in. There are sites that serve that offer vital stock quote data, charts, news and information. There are also other sites that cater specifically to the online trading community in terms of offering tools and applications that help beginners with stock analysis, streaming stock quote data, and other useful information.

Don't rely on your stock market investing guide alone. Choosing a reliable online trading firm as your stock market investing guide is half of the work done. The rest is up to you. Once you get the hang of online stock trading investments you'll be more confident in investing bigger stock picks.

Discover the basics of stock trading before you invest. Get free stock market investing guide straight from the pros.

Article Source : http://www.articlewisdom.com

Interested In Commodities Investing? Try These Tips

- By: Noel Swanson, 2008-01-17

If you've heard of commodities trading, you might be interested in knowing more about it. Commodities are products of commerce that are traded in commodity markets. These are materials such as financial investments, foreign currencies, agricultural products, metals and petroleum. When commodities markets began, they were used as agricultural trade platforms for local communities, utilized for agricultural products. Today, commodity markets have gone global, with country barriers broken down via technological advancements. Globalization and industrialization have meant that these goods have also been industrialized and the world has become its own trading center.

There are certain rules that one has to follow when you are trading in commodities. First, the trading is to be done only for standard products. Second, commodities transactions take place through the use of "futures contracts." This is where commodities are actually bought or sold on the future date. Even though the transaction technically takes place at a later date, the commodity's selling price is the price that is agreed upon when the contract is made.

"Futures contracts" aren't the only type of commodities contracts. Spot contracts are put in place so that commodities get transferred when a contract is made instead of at a later date. You use a spot contract to exercise future contract after a period of time has gone by. Some types of commodities investing include commodity food market, commodity fund investing, and commodity petroleum.

At its start, investing in commodities was received only by a few sectors and were received to the trade of commodities meant for regular and everyday use. However today anyone interested in trading in commodities can do so.

There are numerous benefits in investing in commodities like its reduced risks. With these reduced risks, the gains you gain in commodity investing helps in counterbalancing other losses you may have in financial instruments of your portfolio. The reason commodities offer reduced risks is that it's investing deals with diverse items. In addition to this, contracts entered for future dates ensure that you exercise care to ensure that risk chances are reduced or nullified.

You can monitor a commodity's performance on the market quite easily. Another advantage to commodities trading is that in general, it performs well when other areas, such as the stock market, don't; similarly, it doesn't generally perform well when other areas, such as the stock market, do perform well. Therefore, it's relatively easy to predict what commodity prices will be and foresee the market's fluctuations. Even with this general rule of thumb, though, you should be forewarned that you should never actually correlate the fluctuations in the commodity market to opposite performance in the stock market, or vice versa.

If you're interested in learning more about trading commodities, there are commodity-trading advisors who can help you. These are individuals or firms who can help you decide what your position should be in the commodity market, either long or short. They can also tell you when it's best to liquidate your position. In addition, they can help you see if your goals will match with their particular trading philosophies and strategies.

To choose the best commodity-trading advisor for you, determine what your own goals and objectives are and then choose an adviser that matches you most closely. You can communicate with your advisor in a variety of ways, including phone, pager, fax, or e-mails. If you're not comfortable with trading in commodities yourself, there are several investment funds that utilize commodities trading in their portfolios.

If you want to learn more on commodity trading then please visit this Investment Fund

Article Source : www.articlewisdom.com

Difficulty of Funding for India’s Entrepreneurs

- By: Vivek B, 2008-01-17

Today India appears to be poised for phenomenal growth and this could be well observed at the start of the new millennium. India is becoming a priority destination for different foreign investors and venture capitalists. Today’s knowledge-based economy of India is considered as a fertile ground for the upcoming entrepreneurs. As a result, the Indian businesses are now adapting the global competitive environment. But previously, this was not the case; most of the early entrepreneurs had to face hindrances in the path of their success due to various reasons such as inadequate opportunities, scarcity of capital, lack of technology and many other factors.

India is a conservative nation and most of the people prefer regular monthly pay rather than embarking on any business venture on their own. In India, people do have innovative ideas but translating these ideas into business enterprises involves many risks which they find difficult to tackle. This has led to an overall cautious mindset amongst the upcoming entrepreneurs. Even if an individual makes up his mind to start up an enterprise, he fails to get proper motivation, financial backup as well as proper sources for funding. The most common difficulties faced by Indian entrepreneurs are non-availability of good credit schemes and complexities in acquiring long or short-term loans. Also the Indian banks show lack of interest in entrepreneurial projects and put hindrances in processing the funding request applications. These constraints make an entrepreneur feel handicapped in initiating any kind of business venture.

The reasons behind the difficulties of funding comprise of the communication gap between venture capitalists or finance agencies and entrepreneurs. Absence of good credit schemes as well as improper presentation skills also contribute to the difficulties of funding faced by Indian entrepreneurs. Many banks also fail to offer enduring loans for start up units. Most of the time, investors and finance companies do not thoroughly understand the entrepreneurs’ newly introduced concepts. It would help if the funding agencies and venture capitalists kept themselves abreast with newly developing technologies and their possible profitable uses.

However, the difficulties of funding can be solved by different entrepreneurship practices. The important aspect for entrepreneurship is the attitude to make the entrepreneur-investor partnership based on mutual trust. In this, one partner possesses the innovative idea and skills necessary for implementing an enterprise, whereas the other partner has capital required for execution. This kind of partnership can contribute to paramount success of an enterprise. The finance companies, funding agencies as well as banks should develop certain processes to asses the feasibility of any new business venture and based on this they should facilitate loans for good proposals. These investors, funding agencies and banks should also try and introduce credit schemes that are favorable for entrepreneurs and add to the economic development of the country.

PITCHINDIA.com, is an online business introductory service which connects global angel investors and VCs to entrepreneurs in India. Looking to invest in India? Visit: www.pitchindia.com and FORUM_PITCHINDIA You can reach the author at vivek@pitchindia.com

Wednesday, January 16, 2008

Asian Markets hit hard !

Fears of a recession in the US makes Asian indices come down. Nikki is down, so is Kospi and Bombay sneezes !

Well, the Sensex is well below the 20,000 levels. Now it is at 19868.

Many experts feel that Indian market will not be affected and that cash will come into India, which will make the Sensex and the Nifty rise.

Now Jupiter in the adverse 6th has changed the climate.

Reliance's Power has rewritten history, with 1.25 lakh crore worth applications on the first day itself. Let us hope that the Subprime crisis and the concomitant recession in the US will not affect the Indian market, which the experts say is well insulated.

Jupiter in the 6th can create an uncertain atmosphere. Small investors are now afraid to invest in the secondary market, as they fear their fingers will be burned.

Saturday, January 05, 2008

Stock Market - Basic Principles - Part 1 Of 4

Zigfred Diaz

A lot of people have asked me on whether they should invest in the Philippine stock market. Most of those who asked also wanted to know how to start doing it. I do not know if they are really serious about investing or if they are merely curious about it since it has been given emphasis lately considering its very positive performance.

The Philippine stock market or the stock market in general is not a child's play ground. If you are a true investor, you must have expectations as to how much you are going to earn for a certain type of investment. This is measured in terms of how much your money will grow at a certain period of time. (The most common measure being interest per annum) Since the Philippine Stock market is at its peak for months now, people think that they should join the party even they do not understand how it works. They are even naive with the basic principles involve. This is not to say that you should be an economist before you start investing.

The point I am making is that you should understand the basic principles first before you will be successful in the stock market. It is true that fortunes are made on the Stock market, however there are also stories of people loosing a large amount of their money. Other who just dive into the stock market without knowing the basic principles of investment quit after some time, telling themselves that the stock market does make any money for anybody.

Let us not begin first by discussing the "how tos" in investing in the Philippine stock market. Let us first understand the basic principles of investment so that we might enjoy trading and be successful in the stock market. There are ten principles involved. We will talk about the first principle here. Other principles will follow in the next articles. Visit my blog if you want to see the whole article.

1.) An alternative vehicle of investment - The first principle is that you must realize that the stock market is just another alternative vehicle of investment. There are other investment vehicles in which you could invest in. Each vehicle of investment is unique and one is not more superior than others. Each of them has their own advantages and disadvantages. This will not be discussed in depth here.

The stock market belongs to a category called "Capital Markets." In the Capital Market there are several vehicles wherein you could place your money in order for it to grow. You could place it in bonds, pension funds, insurance, real estate, different types of savings and time deposit accounts and of course the stock market. Why is it important to know this? Well, you should know the different types of investment vehicles under the Capital markets in order for you to determine whether or not you should invest in the Stock Market as there are other vehicles of investment.

Bear in mind that each vehicle of investment has their own advantages and drawbacks. The secret here is not to place all of your eggs in one basket. Even if most of my investments are in the Capital Markets, I diversified by placing investments in the stock market, bonds through mutual funds, pension, deposits and insurances.

Article Directory: http://www.articlewisdom.com/

With his diverse educational background and job experiences, Zigfred Diaz blogs on several topics including Financial managment and investing in the stock market

India, China May Outshine US by 2020’

‘India, China May Outshine US by 2020’

Chidanand Rajghatta, Times of India, Jan. 14

WASHINGTON: The rise of China and India as global players is heralding an Asian Century in place of a receding American Century, a US intelligence report said on Thursday.

In a far reaching projection, the CIA-commissioned report compared the rise of the two Asian giants to the advent of a united Germany in the 19th century and a powerful United States in the 20th century, and said the event will transform the world’s geopolitical landscape, with impacts potentially as dramatic as those in the previous two centuries.

“In the same way that commentators refer to the 1900s as the ‘American Century,’ the 21st century may be seen as the time when Asia, led by China and India, comes into its own,” the report titled ‘Mapping the Global Future,’ observed. “A combination of sustained high economic growth, expanding military capabilities, and large populations will be at the root of the expected rapid rise in economic and political power for both countries.”

The report is the third in a series of five-yearly forecasts of global trends published by the National Intelligence Council, a group of senior intelligence analysts who report to the CIA director. The earlier reports were for 2010 and 2015. The forecasts for 2020 were based on consultations with more than 1,000 non-government experts at 30 conferences on five continents over the past year.

Expectedly, the 2005 report for the 2020 projection reflected the post 9/11 changes, but it also contained a degree of certitude not seen in the two previous studies, including a more upbeat assessment for India. “Barring an abrupt reversal of the process of globalization or any major upheavals in these countries, the rise of these new powers (China and India) is a virtual certainty,” it predicted.

The report said while most forecasts indicate that by 2020 China’s gross national product (GNP) will exceed that of individual Western economic powers except US India’s GNP will have overtaken or be on the threshold of overtaking European economies.

But the rise of India also will present strategic complications for the region, the report suggested. Like China, India will be an economic magnet for the region, and its rise will have an impact not only in Asia but also to the north-Central Asia, Iran, and other countries of the Middle East.

As India’s economy grows, governments in Southeast Asia—Malaysia, Singapore, Thailand, and other countries—may move closer to India to help build a potential geopolitical counterweight to China, it said. At the same time, India will seek to strengthen its ties with countries in the region without excluding China.

Although the 114-page report is replete with references to the rise of China and India, it contended that despite daunting challenges “the United States will retain enormous advantages, playing a pivotal role across the broad range of issues—economic, technological, political and military—that no other state will match by 2020.” But in several places in the report, the analysts conceded that the western world will see significant decline.

Dubbing China, India, and perhaps others such as Brazil and Indonesia, as ‘arriviste’ powers, the report said they “have the potential to render obsolete the old categories of East and West, North and South, aligned and nonaligned, developed and developing.”

“Traditional geographic groupings will increasingly lose salience in international relations. A state-bound world and a world of mega-cities, linked by flows of telecommunications, trade and finance, will co-exist,” it said.

Article Source : http://timesofindia.indiatimes.com/articleshow/msid-990832,curpg-2.cms

Friday, January 04, 2008

Sensex zooms by 341 points to 20646

ICICI Bank and L& T surged and DLF, ONGC and RIL held firm.

Both Nifty and Sensex recorded all time highs ! L & T surged to 4240, ONGC to 1349, TISCO to 934, ICICI Bank 1282, SBI 2409 & HDFC to 1700. RIL surged to 2993

On the other hand, IT majors were subdued with Infy at 1683, TCS at 1006, Satyam to 423 and Wipro at 497.

We have said earlier that the cash flow to India will continue and there is no big threat to the stock market. But there can be secondary reactions.

According to Dow Jones Theory, the Stock Market is like an ocean. The primary trend is the Tide, the secondary trend is the wave and the tertiary trend is the ripple. Daily fluctuations are tertiary waves. Now the primary trend is bullish and we say the Tide is a Bull Tide. Secondary reactions are busts happening in a Bull Market. Last time the market slipped by almost 2000 points and this was a secondary reaction. After the secondary reaction, the bull market moves ahead, overtaking its previous highs !