Archive for September 24th, 2009

Investors Wealth Up 80% in Just Over Five Months :)

Investors-gain-Rs25lakh-cr

Investor wealth has increased by over Rs 25 lakh crore in just over five months from the beginning of the current financial year, on improving sentiments in the domestic and global markets.

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According to an analysis of the valuations for the period (Apr 1-Sep 18), the combined market capitalization of all the firms listed on the Bombay Stock Exchange increased by Rs 25,02,749 crore or nearly 80 per cent.

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Analysts believe the rise in investor wealth has been due to the upbeat market sentiments on indications of global economic recovery.

“The markets have given a healthy return on the back of positive mood among domestic and international investors,” SMC Global‘s Vice President Rajesh Jain said.

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The total market valuation increased to Rs 56, 35,835.75 crore on Sep 18 from Rs 31,33,086.7 crore on Apr 1.

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While, the 30-share benchmark index Sensex has given a healthy return of nearly 70% to hover around 16,700 level in September against 9,900 level in April.

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The Sensex companies, which comprises of about 45 per cent of the total market capitalisation of all the companies, saw its combined market valuation rise by over Rs 10,00,000 crore in the reviewed period.

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The combined market capitalisation of the 30 blue-chip stocks rose to Rs 25,31,831.55 crore on Sep 18 from Rs 15,31,252.34 crore on Apr 1.

However, the total turnover of the Sensex companies dropped to Rs 1,597.42 crore on Sep 18 from 1,705.52 crore on Apr 1.

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Jain also said that the drop in the volumes is due to less participation of retail investors in the markets, which reflects that the run is mainly on account of institutional money, both domestic and international.

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Meanwhile, foreign investment into the Indian stock markets are likely to cross USD 10 billion-mark by the end of this month.

Huge sum of USD 9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far in 2009.

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Note : For More latest Industry,Stock Market and Economy News Updates, Click Here

Systematic Investment Plan(SIP)..Whats That?

Systematic-Investment-Plan-SIP

Wealth creation is an art and over the years it has changed its avenues and area of interest for investors.

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In this blog, we will discuss what is SIP and what are the benefits of SIP?

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SIP or systematic investment plan is a simple and time honored investment strategy for creation of wealth in a disciplined manner over long term period.

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It aims at a better future for investors by giving a good rate of return as compared to one time investor in volatile market by lowering the average purchase cost.

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It is evident from the recent slowdown that the Mutual fund invested trough SIP route has prevented the pitfalls of equity investment and is enjoying the high returns, if compared.

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So it makes all the more sense today when the stock markets are volatile.

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BENEFITS of SIP.

1. Power of compounding:

If money is invested at an early age one can make money work with greater power of compounding with significant impact on wealth accumulation.

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2.Rupee cost averaging:

It is not so easy to predict the movements of the market.

An automatic market timing mechanism that eliminates the need to time one’s investments is Rupee cost averaging.

Though SIP does not guarantee profit, but one can invest through it as it goes a long way in minimizing the effects of investing in volatile markets.

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3. Convenience:

It is very easy and convenient to operate through SIP route as it could be done by simply providing post dated cheques with the completed enrolment form or give ECS instructions.

The cheques can be deposited on the specified dates and the units credited into the investor’s account.

The SIP facility is available in most of the categories in domestic Mutual Fund industry.

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SIP features:

If one would like to earn a good return from its principal then he should have a disciplinary approach.

The disciplinary approach is a vital to earning good returns over a longer time frame.

Once invested through sip route, investors are saved from bothering to identifying the ideal entry and exit points from volatile markets.

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Conclusion:

Though SIP resolves a dilemma often facing investors due to ups and downs in the market price but investor finds it difficult to decide when to invest in the equity scheme.

The success of investors SIP hinges on the performance of his/ her selected scheme.

If the investor is able to make wise decisions and make the best of the Indian volatile market, SIP is definitely a powerful tool to create wealth over time.

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India To Press For Stimulus Package Continuance at G-20 Summit !

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India will seek continuance of the stimulus package that was devised to get the global economy out of the worst crisis since the Great Depression of the 1930s at the G-20 Summit in Pittsburgh .

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Prime Minister Manmohan Singh, who leads the Indian delegation at the summit being hosted by President Barack Obama, will voice developing countries views that the developed countries should return to the trend growth and stabilization of the banking and financial sectors.

Such measures affects exports, capital flows and investment of the developing economies.

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Indian PM is going to pitch strongly against any attempts at protectionism and advocating reforms of the international financial institutions in this G 20 Summit .

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Planning Commission Deputy Chairman Montek Singh Ahluwalia, National Security Adviser M K Narayanan, Finance Secretary Ashok Chawla are among the members of the Indian delegation which attending the summit.

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This Summit will also be attended by world leaders including British Prime Minister, German Chancellor, French PresidentΒ  among others.

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The summit represents 90 per cent of the world’s GDP, 80 per cent of the world trade and two-thirds of humanity.

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The summit is important for emerging economies like India, which have been affected by the global economic crisis not of its making, to tell the world that there was need to continue the stimulus package that was agreed at the Washington summit last November and a decision to pump in USD 1.1 trillion was decided at the London Summit in April last.

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Indian delegation are of view that the continuance of the stimulus package was in the interest of the poor countries and the emerging economies and developed economies should not adopt any strategy to exit from it.

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India will voice strongly the need for avoiding the temptation to resort to protectionism by the developed countries under the present crisis.

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