Markets choppy due to profit booking

Indian equity markets opened in the green as per the indication from the SGX, but readily slipped into the red, thanks to some listless trading fervour that seems to be more inclined towards profit-booking for the year end rather than any fresh build-ups! However, there are pockets of strength in the market, esp with newsflow around some of these – case in point is the Railway Sector – post the UPA Govt’s announcement to pursue FDI within this citadel of the government, most of the stocks that are present in this segment – the likes of KALINDEE RAIL, TEXMACO, BEML, KERNEX etc have been abuzz! Though it is difficult to correlate any direct benefit to any of these accruing from a proposal of the government to liberalise the sector since it is early days yet and there would be a lot of clarifications that would be required before any fervent buying can be envisaged. The other area of activity seems to be the mining pack – SSLT and NMDC have again started attracting some attention from investors/traders ever since some expectations on the Karnataka mining ban being lifted have surfaced. The rest of the market, barring IT and BANKING seems to be sideways and could continue this way till the resumption of serious participation by institutional investors in the new year! Investment management services and investment strategies have come to hold a lot more importance, given the present state of volatility. Financial Planning Advisors, estate planning services providers and business wealth management provders must make the most of this situation.

Markets seen active as F&O expiry nears

With the F&O expiry for the ongoing Dec series around the corner rollovers have started taking centre-stage in terms of activity by market participants. The initial rollover statistics clearly indicate an all-round participation in the markets, with a higher percentage coming into sectors like REAL ESTATE, CAP GOODS, INFRASTRUCTURE, PHARMA and IT. As far as stock specific activity goes, the heavyweights like RIL, ONGC, TCS, INFY continue to dominate the movement of key indices while its the midcap segment of the market that’s abuzz with a lot of activity. There is continued interest that seems to be growing in the usual suspects – stocks like VIP, VOLTAS, IRB, LICHSGFIN, HAVELLS have all seen significant price-volume action in recent sessions and continue to participate in the momentum. Markets could head slightly higher to the 6350 zone by Thursday, post which, the expectations from the January series will start deciding the future course.

Contemplation on RBI meet and US Fed policy turn market red

Market continues to be in red with a fresh bout of selling pressure on concerns of high inflation and RBI policy meet tomorrow and a key US Federal Reserve policy decision later this week. The S&P BSE Sensex is moving in a narrow range as traders have stayed on sidelines ahead of the Reserve Bank of India's policy meet. Sectoral indices are in the positive terrain except for the S&P Bankex, Realty, Power and Oil & Gas. While Banking shares are witnessing a fall in their prices, Realty sector too is witnessing selling pressure on expectation of a rate hike by 25 bps tomorrow by RBI. On the flip side, defensive Health Care, Technology and Fast Moving Consumer Goods counters are the prominent gainers of the session. Cipla and Ranbaxy are amongst the top gainers on the Nifty today, rising 3 percent and 4 percent, respectively. HDFC Bank was under pressure after the Reserve Bank of India restricted foreign institutional investors from buying additional shares in the country's  second-largest private lender, as their shareholding exceeded limit.

The benchmark 10-year bond yield was trading down 1 basis point on the day at 8.86 per cent in low volumes as investors mostly staying on the sidelines ahead of the Reserve Bank of India's monetary policy review on Wednesday.  Traders said a 25 basis points hike in the key rates has already been discounted by the market and the tone of the policy statement will be crucial for providing direction

RBI announcements to bring a temporary cheer?

As expected yesterday, the RBI chief did come out with some key measures which will be instrumental towards curbing inflation. He increased the repurchase rate by 25 basis points, or 0.25 percentage point, yesterday to 7.75 percent, the second increase in two months. He also cut the marginal standing facility, or MSF, and bank rates by 25 basis points to 8.75 percent. These steps will ensure that there is enough liquidity in the market, observed Sachin Karpe.

Subsidy rollover really a gimmick?

Sachin Karpe feels that India’s subsidy reshuffle and rolling it over to the budget of next fiscal will see some strategic advantages.

The step is taken by finance minister P Chidambaram to portray the meeting of fiscal deficit target. The ballooning subsidies have always offered respite to the citizens of India but have continued to hurt the pockets of government. Due to the socio-political advantage it offers, subsidies have prevailed in important segments like fuel.

India one of the nations to have large number of HNIs: Sachin Karpe

Credit Suisse released its Global Wealth Report for 2013 with some surprising insights. Top 1% of the population owns 46% of the global wealth, which indicates a huge disparity in wealth distribution, cites Sachin Karpe.

How should a youngster invest? : Part 1

Investment should ideally begin at an early stage when there are no responsibilities and one can easily divert funds for saving, advices SachinKarpe.

How should a youngster invest? : Part 4

Most people usually stop at comfort and never aspire to achieve more. They must be faced with some apprehensions that stops them from moving ahead, feels Sachin Karpe. To become rich, and not just comfortable, you need to think beyond an average investor. It is not merely about investing money but about

Multifamily offices in India, a brief by Sachin Karpe

Multifamily offices, a trend lesser known in India but soon-to-pick up, holds lot of opportunities for wealth managers, says Sachin Karpe. A veteran banker, SachinKarpe has set up India’s largest multifamily office in India. He gives a small brief on the business of MFOs in India.

How should a youngster invest? : Part 3

Once you have attained security of your investment, you are in a comfortable position to move ahead, opines SachinKarpe. Comfortable here would mean, staying comfortable without worrying much about having less money. A house of your own, a proper retirement plan, child education planning, health and medial planning are investments that will make you comfortable, explains SachinKarpe.

These goals can be achieved by investments in life insurances, mutual funds, SIPs, infrastructure bonds etc that help reduce your tax burden under Income Tax Act 1961 section 80cc, SachinKarpe tells us while educating on tax rebates. With these investments you can lead a comfortable and a content life. But to lead an abundant life, stay tunes to this space.

How should a youngster invest? : Part 2

Best time to begin investing money is right when you start to earn. As Sachin Karpe informed you about three main steps to saving money, now lets us have a look at each one of them one by one.

 Plan to be secure: It is your onus to secure your life, advises Sachin karpe. This can be done by buying a term life insurance policy, so you are buffered of any life-risking danger. Save enough money, at least 3 months’ contingency fund for any kind of emergency. This will help you feel confident about the next step. Once the securing pat is done, it is time to gear up for comfortable planning which Sachin Karpe will continue in the next post.

Stocks reach to F&O contract expiry

Observing the markets today, Sachin Karpe explains that riding on the final day of September F&O contract’s expiry, equity markets had a flat start. Domestic institutional investors went heavy on profit booking today even when FIIs were in the mood to buy.

Since we are in a threshold of earnings season, which has turned out to be the weakest in many quarters, the effect will show on the market which will again go volatile. Therefore, it is possibly the right time to move out of tactical and positional calls before the start of a new F&O Contract, feels Sachin Karpe.

The general positive mood in markets kept the rupee at positive but it continues to show signs of slipping down by month end. Sachn Karpe warns saying, Global cues too continue to be critical for the RUPEE’s stability and add to the inherent uncertainty in the forex market.

What motivates the youth of today

India is witnessing a dynamic time, feels Sachin Karpe. With the mean age of India being 24, the dynamism increases manifold, as we are evolving as an economy, civilization and culture. Since the young minds are going to be the driving force, it is important to impart direction and guidance to them, comments Sachin Karpe.

It begins with knowledge and wisdom. Unless you have read enough, you can’t have your minds open. Books are gateway and a peek to peoples’ lives that have set an example by doing something exemplarily, asserts Sachin Karpe. Some autobiographies like Steve Jobs, Lance Armstrong, Richard Branson can be a good source of inspiration, especially as these people thrived on the success, mostly brought to them by youngsters, tells Sachin Karpe.

After the cheer, RBI blows it up for the stock market

Markets continue to react negatively to the tough stance taken by the RBI after it blew the bugle on its war against inflation in Friday’s credit policy announcement, observed Sachin Karpe. While the hike in REPO may not be as unfavourable as the markets may make it look at this point in time, the reaction in the market being witnessed currently, is also a fallout of the impending expiry of the Sep series in F&O Contracts, feels Sachin Karpe.

Banks, particularly the bigger ones (PNB, SBI, BoB, AXIS, HDFC) continue to see lack of interest from investors while the Pharma and FMCG space, despite fears of high-valuations continues to draw favour. Sachin Karpe also observed that some of the Power sector stocks too are witnessing mild accumulation by traders in anticipation of some favourable announcements from New Delhi.

Rural banking, a step towards a comprehensive growth

Agriculture still forms the crux of Indian economy, but it lacks the impetus that will help some profound growth in the sector. Sachin Karpe is of an opinion that t his can only happen when Indian private banks think seriously about financial inclusion of the rural population. This financial inclusion has the potential to fill a gap caused by ever soaring provisions which have hurt the financial statements of banks.

Banks have largely been resistant to the idea of launching rural branches due to reasons like high operational and maintain costs, tells Sachin Karpe. But, what they will sow now will reap them huge benefits in future. With some effort in educating the rural population, they can gain long term loyalty, increase their spending power leading to consumerism thus contributing well to the Indian economy. Sachin Karpe says, with right policies and plans, financial inclusion can do wonders in favour of Indian banks, if its far sighted benefits can be seen.