Sunday, September 12, 2010

Stock Market Investment Strategies - BSE enables trading through mobile phone

Trading in stocks is set to be simpler soon. BSE has issued guidelines for the brokers to make use of its mobile platform for trading. Over time this will evolve and enable more and more people to get into trading and stock market. A trader can place orders, view positions and trade from anywhere in the country through the mobile.

This facility is expected to be operational by October. To avail of the facility, trading members will have to submit an application that will be followed by a system audit. The charges for this has to be bourne  by the trader.

Wednesday, August 25, 2010

Stock Market Investment Strategies - Real Estate Investment Trust - REIT

Real estate Investment trust is like a mutual fund which invests in real estate directly, either through properties or mortgages. The returns you get on the property is primarily through rent if invested directly, else it would be in the form of interest on mortgages. There are also mixed type of REIT's which invest on properties directly as well as earns on mortgages.

REITs invest in shopping malls, office buildings, apartments, warehouses and hotels. Many of the REIT's invest specifically in one area of real estate - shopping malls, or in one specific region, state or country.

Advantages of REIT's over owning a real property are:-

  • Can invest any amount.
  • More liquid than real property.
  • Also diversifies the money in different properties. (Usually REIT's come with the condition that any one property should not be more than 15% of the total fund amount)
  • Doesn't give the headache associated with properties ;-)

REIT's are yet to be introduced in India even though its is very highly successful in countries like Singapore, USA.

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Saturday, May 8, 2010

Stock Market Investment Strategies - SC favours Mukesh, dumps Anil

The SC today gave the verdict in favour of Mukesh. SC ruled that government has full authority over the pricing of gas and no MOU between the brothers can change that. It requested Anil to renegotiate the deal with Mukesh. This is a big win for Mukesh since there wont be much of negotiation between them further.

The fortunes of the two Ambanis have moved in different directions in the years. Mukesh has grown stronger and stronger every year. However, Anil has had many setback in the last few years. RNRL shares went down drastically after the verdict. it went down by 22%. With the gas sharing agreement going aganist Anil it has effected reliance power, reliance infrastructure and reliance natural resources limited shares. Already his reliance communication is facing stiff competition by other players and gone down drastically. Have to see how Anil comes out of all this. The only company that's doing well is his Reliance capital.

Mukesh RIL has done very well in the past few years since the split between the two brothers. The difference in their wealth has increased greatly. The difference since 2008 has widened to $15.3 billion, from $9.4 billion in 2004.

Wednesday, April 21, 2010

Stock Market Investment Strategies - 3G mobile spectrum bids crosses 6634 crores


Bids for a 3G mobile spectrum licences rose 90% from the base price to Rs 6,634.31 crore after 10 days and fifty-eight rounds of bidding. Auction is on for three slots of 3G airwaves in 17 telecom service areas. The auctions for broadband wireless spectrum are scheduled to begin two days after completion of the 3G sale process.

Delhi, Mumbai and regions of Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu continued to witness maximum demand. However, almost 50% of the country, the demand for 3G airwaves has been negative.

Overall the auction of 3G and Broadband spectrum put together is likely to fetch somewhere around Rs 44,000-45 ,000 crore.

Bharti Airtel, Vodafone Essar, Reliance Communications, Idea Cellular, Tata Teleservices and Aircel are participating and competing against each other in this process. The auction is likely to continue till the end of next week.