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Showing posts from June, 2018

Market Outlook- short term

Market index NIFTY failed to touch the all time high even after the recovery from March 2018 bottom.We have seen a consolidation phase between 10500 and 10800 in last two months and volume spurtwas not happened.Means,buyers are not active above 10800 level.Instead,profit booking is still going on.Foreign institutions are continuing net selling this year,though domestic institutions accumulate at discount situations.

Like any previous election year,2018 is also uncertain for general index, although IT secor made a strong recovery recently.A High PE of 26.5 is a big concern for foreign institutional investors,as they search undervalued opportunities across the globe.US Market also trades at an over bought phase;but their dividend yield looks better than India.Rising non performing assets in banking sector affected the market sentiment badly.Major Public sector companies corrected more than 30% and still the bottom fishing not started.
     We have seen a trend channel break down in Februa…

Why we should examine Values of a corporate ?

Now a days, values are not prominent in life and business- people have forgotten it and same is the case of companies too. but, the real value creators will leave a legacy in the world. Great business men lead companies with ethical values and standards. Such businesses become steadily growing and financially strong in the long term.
     Few historical examples are: Infosys, the Tata group, Maruti.In 1990, N.R.Narayanamurthy came up with the IPO of his company Infosys and many people were reluctant to invest due to  the nascent stage IT sector in India. Infosys became one of the giants in IT industry, employing more than two lakh people, raising the promoters to billionaires.An investment worth INR 10,000 in the 1990s would have become INR 4 crores by now.Tata have faced many difficulties like huge debt accumulation in Tata Steel and Tata Motors, but managed to rise over all of them. Tata Motors acquired top automobile brands such as Jaguar Land Rover. Visionaries never aim to be the …