Posts Tagged ‘India’

Indian Stock Exchanges - Are They 2 Different?

Wednesday, July 28th, 2010

When one just starts to explore stock markets, his first question is obviously, how to determine which stocks to buy? Moneyvidya can of course be of great help you to choose good stocks to buy for short term, and long term. Moneyvidya has been integrated to both BSE, and NSE, so you can find NSE stock tips, as well as BSE stock tips here.

You always also have this second question in mind. Why there are 2 exchanges in India? Why there are 2 indexes (Sensex & Nifty)? What makes one better than other?.

Let’ see their pros and cons against each other one by one.

1. What is BSE? - BSE is the grand daddy of stock markets (oldest in Asia - founded in 1875)

2. What is NSE? - NSE is newer kid on the block (founded in 1994)

3. NSE has a more sophisticated technology, being the newer entrant

4. BSE has more number of stocks listed (World no - 1, around 8000 companies listed) and more total market cap than NSE.

5. BSE has much more number of midcap, smallcap and penny stocks listed. So, if you are interested in high risk-high return, low volume trades of penny stocks, BSE is the place to be at.

6. Volume of shares (liquidity) is much more on NSE, than BSE.

7. NSE has much more volume of derivatives (futures & options). BSE is almost non-existent in it.

8. BSE has the famous primary index, Sensex, formed by top 30 shares.

9. What is Nifty? - Nifty is the primary index of NSE - weighted avg. of 50 blue chip shares, formed in 1995

10. Even though Nifty has more companies than Sensex, their movements are almost always correlated.

11. Index funds mostly track themselves against Nifty, as NSE has more volumes

12. Overall, BSE is losing ground. They recently slashed their membership fees to Rs. 10 lakh from 1 crore, in order to gain some ground.

13. You can use the difference in quotes to buy at one exchange and sell at the other quickly, to make small amounts. This is called “Arbitrage Trading”.

Which one is better? If you want to play in small cap stocks, BSE offers much more opportunity. For all other purposes, like regular retail investment, and also derivative trading, NSE is the place to trade.

For a retail investor, it does not matter much. In general, the thumb rule for cash segment (regular delivery trades) is you check if the stock is listed at NSE, if yes, buy it on NSE, else buy on BSE. The minor difference in quote won’t matter for most practical purposes. The quote that you see in your trading platform, and the actual price that you get delivery for, might be slightly different, especially for low volume mid cap stocks. What matter more, is what stocks you buy!

Moneyvidya.com is an Indian startup that helps you choose the top stock tips. It is done by tracking the performance of all the stock tips on several parameters like profits and consistency.

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Porsche 977

Friday, December 11th, 2009

A new Porsche 911 is always intriguing because it’s exciting to see how after more than 40 years of improvement the Porsche team still manages to bring changes and advancements to this iconic model.

The new 997 blends the silky modern looks of the 996 series with the fashionable retro styling of the older 911’s. The front end is finished with round lights and separate parking/fog/indicator lights. This modification, coupled with wider hips echoes the last of the air-cooled 911’s, the 993. Other changes in the body shell are the new door handles, wing mirrors and the trendy cut of the rear wings into the bumper/lights.

Even if the 997 looks a lot like the previous model, the 996, the new car is actually 38mm wider which creates a more forceful look. With each new model introduced, Porsche has attempted to lessen the drag co-efficient helping the 911 slide through the air more effectively thus increasing performance. The same thing has been done with the new car, and if we compare the 993 Cd of 0.34 to the 997`s 0.28, we can see how far the aerodynamic game has moved on. The latest body shell and rear wing combine with new under body paneling to also offer improved levels of down force for this latest generation of Porsche’s finest.

The latest Porsche model has the best handling 911 ever. Improving a car’s rigidity helps ensure that the suspension can work more effectively and while not making such a quantum leap as the team did with the 996, Porsche enhanced torsional rigidity by 8% and added as much as 40% more strength.

For their new model car, Porsche sought to enhance crash safety provisions so they added two new air bags, which are located in the side of each front seat back-rest and are calculated to protect the thorax. They also kept the earlier two front and two side airbags, which means that now there are six air bags in total. For the same reason, that is crash safety, the reinforced body shell features additional protection such as a more widespread use of very high strength steel.

The most recent model is also 50 kg heavier than the 996. The reason is that modern crash safety regulations sort of force vehicle makers to produce new cars of increased weight, despite the prevalent use of a large range of weight saving measures, such as an aluminum bonnet.

Aside from the crash safety advancements, much of the increased weight can be attributed to the higher standard specifications of the new cars. The power to weight ratio is analogous with the latest car offering 233 bhp per tonne against it’s predecessors 238 but the new model’s superior aerodynamics must help it achieve Porsche’s claimed performance figures, which are identical to those of the 996.

If you are interested in Cars in Thailand, please follow the link or Cars in India on the second link.

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Buy Gold During Times of Inflation

Thursday, November 19th, 2009

Many are turning to gold in these times of inflation and economic uncertainty. Gold hedges your money from the risk of inflation. If you assume that gold is just a piece of pretty metal that people strap on their bodies, then you are sorely mistaken.

Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to be

1. The ability to be durable. It must stand the test of time and not wither.

2. The ability to be portable. Good money needs to hold value in a small space.

3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it’s own value.

4. It must hold a rare value or quality.

Aristotle was aware of something about money that most people today would struggle to comprehend. Paper money has no value, and that is what Aristotle described in his qualities of money.

Paper has very little value. It can be printed on demand. Paper has no rare or durable features. The value that the dollar has is only held up by our faith in it.

A dollar bill is nothing more than a piece of paper with ink stamped on it. That’s it. It would be the same thing if someone gave you a sheet of writing paper to mow their lawn. There is no difference between the two. The two are paper.

If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.

Our money becomes more worthless each day our government prints more money. A dollar crisis is happening right now, and most don’t know it. Gold and silver were the first real established currencies that stood the test of time. This is because gold cannot be printed at will.

Gold and silver exploration companies have to survey and drill sites, and then they must mine the ore out of the ground. All of this takes energy and time. Only until relatively recently have governments used paper money as currency. It is important to not that there have been hundreds of paper currencies in history, and they all effectively went to zero.

Buying gold coins and silver coins are the only proven way to protect your assets during times of inflation. Gold will hold its value while paper money falls in value.

Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It’s because gold can not be inflated. What does inflated even mean?

Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.

If you print more money then you have inflation, but inflation does not mean higher prices. Higher prices are the result of inflating the money supply. Basically, you should be diversifying out of dollars as soon as possible.

You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it’s time to get invested in gold and silver.

God bless you.

Garrett Strong can give you more information on how to buy gold.

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