Stocks Analyst Headlines

Pledge Shares – Rope tied to kneck of a hanging person

Rajesh Singla

Pledged shares have once again become a very bad word. And what was being viewed as merely a ploy by bear cartels, is catching wind and threatens to blow into a raging fire. Why this sudden news about pledged shares? The worry is that in companies where promoters have pledged more than 25% of their shares, there is a possibility that given the low prices, the promoters might opt to sell out. Traders say that there is a bear cartel too at work. How this works is that by floating negative news, they hammer down the future prices, which in turn naturally, gets down the stock prices too. And when stock prices crash, promoters with pledged could get margin calls from the lenders with whom they have pledged shares. Pushed into the corner, promoters have only two options – either repay a part of the loan or get more collateral by pledging more shares. If they do either, they manage to save the day. But when they are not able to do either, the lender is then forced to dump the shares. This brings down the stock price further. And this is precisely what the bear cartel wants – they will go home with a neat pile of profits. Take the case of S Kumars. The promoters have pledged 83.06% of their stake with a bevy of nationalized banks. Rumours were abound that they might sell off the shares. The stock was down yesterday by 12%, falling almost 28% in intra day. Ditto with Orchid. 79.9% promoter’s stake is pledged and the stock was battered down 11%, falling 18% during intra day. There were others too – Suzlon, Unitech, Pipavav, India Cements, Ansal Properties and many more. There are around 210 companies where promoters have pledged more than 50% stake of which, during the last one week, 49 fell more than 10%, 15 have fallen more than 15% and four have fallen over 20%.

How Ramesh Damani see Market panning out in 2011?

Rajesh Singla

The Nifty has been through a tough week. Inflation is still heavy and RBI’s move to hike interest rates by 25 bps with a flat global market scenario has made Nifty nervous, pushing it down significantly. However, Ramesh Damani, member of BSE tells CNBC-TV18 that he sees no ‘sharp fall’ in the Indian markets. “The Market has already factored in the Greek default. There are no real signs of speculative froth in Indian markets,” says Damani. Defying to side with the collapse sentiment, Damani says, “I don’t see the Nifty going towards 4,800 levels.” Further, on the retail side, he sees disenchantment among the investors. He says most IPOs have resulted in losses. While investors are yet to recuperate from the losses made in IPOs, even public sector follow-on public offers have faired miserably at the bourses. He says that barring Coal India , no other public sector scrip has managed to create wealth for investors. Cherry picking stocks, he expects Dabur , ITC and HUL to ‘play catch up’, and is bullish on Akzo Nobel and broadly on the cable TV space.

Why Warren Buffet visited India after ignoring it for 80 Years?

Rajesh Singla

The response to the first visit of Warren Buffet was stunning. Warren Buffet stayed in India for 3 days for opening his Insurance arm in India with Joint Venture with Bajaj Allianz, for Philanthropy & for meeting new people sharing his witty Ideas. The point here arises whether Warren Buffet presence overwhelmed the Indian’s & while everyone seemed to be busy following the Legacy of the Legend, somewhere down the line the main objective of the visit was forgotten. The Question arises: Why Warren Buffet visited India after ignoring it for 80 Years? Let us try to find out

How Stock Market will behave in 2011?

Rajesh Singla

What Biggies think how Stock market should behave in 2011. After the Budget, what are the challenges for the Indian equities & how it should be overcome. Must read for the people who are in learning phase of Stock Investing. Some great Insights shared by Rakesh Jhunjhunwala, Madhu Kela & Akash Prakash.

Warren Buffet is all set to Enter India

Rajesh Singla

Warren Buffet is all set to enter India by Non Life Insurance Products. The Interesting Point will be to know if there is any agenda for Buffet to offer Indian Investors with Investment Products such as Mutual Funds exclusively target for India in near future. This is one dream wish for every Indian Investor to get from the Warren Buffet.

HDFC Comes up with Philanthropic Funds

Rajesh Singla

HDFC launched a three year close-ended capital protection scheme debt fund for cancer cure of which 50% or 100% dividend income will be donated. This social initiative was taken up for the tenth anniversary of company. He added that the tax deduction available under Section 80G. Barve further said the mutual fund industry had seen positive inflows for last two months with net inflows of Rs 1,370 crore in equity oriented funds in January.

Marc Faber – Commodity Guru – Views on Stock & Commodity Market

Rajesh Singla

Investment guru Marc Faber said investor sentiment is positive right now on developed markets. “High inflation in emerging markets gave investors an excuse to sell down their holdings and move some money back into the United States,” he stated. However, he said, EMs have not bottomed out yet

Brandhouse Retail is an Interesting Story

Rajesh Singla

Ashish Chugh do sound good for the Brandhouse Retail Keep this Stock in Watch. The Stock is at pretty Cheap as compare to Pentaloon or Shopper Stop & Business Model is Quite Good.It looks like this can actually turn out to be a Mutlibagger over the Years. Do your Analysis & Research before Entering in this Script.

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