Don't cling to this budget

Everyone has their eyes on the Indian Finance Minister would rise to present the budget on 6th July. Many expectations have been built in the minds of people due to continuous propaganda by the media. The media has been spinning many ideas as to what, how, why should a budget be. This hyped it all. I am not expecting anything big from this budget though. The finance minister has to tackle recession, fiscal deficit and a lot of other problems. The budget is going to pull the stocks down, rise the prices of goods and common people are going to feel the burnt too. Coming to investing as of now, Keep your cash in the same form till then. I think you should think getting your vehicle refueled as the prices are going to hike. Same goes with your rice, cooking oil, vegetables, milk, etc.

The appointment of Nandan Nilekeni as National ID card project is welcome step in reducing the corruption more than changing the security. Private participation in public assignments not only makes things close faster but also refines the way work is done.

New hot stock options

Security systems provider companies witnessed a sudden action in terms of both orders/enquiries as well as stock changes in the last 3 days.

Companies providing Automatic Identification and Data Capture (AIDC) solutions in India and internationally. It also offers Radio Frequency Identification Device (RFID) solutions, smart cards, and point of sale solutions. Also technological development such as access control, building management, crowd management, patrol management, retail security, campus management, canteen management, library management, application tracking, vehicle tracking, warehouse management, work-in-progress tracking, siren management, inventory management, job costing, consignment tracking, field service automation, sales force automation, and fleet management are in huge demand now after the Mumbai Terror attack.

Bet on Gold

In this time of crisis all over the stock market what is the best option of investment? Obviously the traditional way of saving: Gold. The price of gold never drops below a certain level and even if it does it is better off than the stock market. Now with the stock market expected to drop as low as 6000 points many people will be moving to gold which would cause its price to raise. So better buy now.

Its Movie time

Revenues for the Hindi film industry, which produces about 1,000 films a year, are tipped to increase to $3.9 billion (Rs18,291 crore) by 2012, from $1.9 billion last year, according to consultancy firm PricewaterhouseCoopers.


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Elephant becomes a tiger

For a change, its good news. The Indian economy is making waves. It seems to be growing fast and that too consistently for several years in a row. What the economists call, "a sustained high growth path". The latest official data says overall economic growth touched 9.4 per cent in 2006-7, giving the UPA government a nine per cent average during its three year tenure. There is, however, a dark lining to the silver cloud. Agriculture is lagging behind the rest of the country with a low 2.7 per cent growth rate, showing that the aim of inclusive growth has yet to be achieved.

Firstly, it shows that sustained high growth is possible for this country like the tiger economies or China. India no longer has to continue being compared to an elephant lumbering along slowly. Even if the high growth is uneven for the time being, this defect can surely be made up if concerted efforts are made by policy makers. Secondly, consistent high growth does have some amount of trickle down effect even though this may be a slow process. Which does not mean we have to wait for affluence to trickle down to the poorest of the poor. Anti-poverty programmes have an important role in this country. But it does mean that high growth will have a positive impact on large sections of the populace even in rural areas.

For instance, despite all the hoopla over the negative effects of large retailers on small traders in the country, they seem to be helping farmers in some regions.. Reports have come in about Jharkhand farmers finally getting a good price for their produce as large retailers are buying directly from them and bypassing the middlemen. Till recently, middlemen would buy at low rates from the farmers and sell at exorbitant prices in the retail markets. Farmers never got the benefit even when vegetable prices were ruling high. Now that cultivators are finally getting their due, politicians are taking up cudgels for the middlemen.

Read more here.

What is Monthly Income Plan?

MIPs or Monthly Income Plan would be suiting for retired people who would need a monthly income plan but they have not opted for assured pension during their working life period for various reasons.

Let us go through more in detail about the Monthly Income Plan

Objective: To generate regular monthly income to investors in the dividend plan

Asset Allocation:

• Fixed Income Instruments = 80-85%
• Equity = 15-20%

Assured Return?

• As with mutual funds , the monthly dividend payout is not assured butthere are certain good funds which has a good track record of givingmonthly dividens without fail

Taxation:

• For a person in the 30% income tax slab, MIP scores over other debt products by having a Dividend Distribution tax of 19% instead of 30% in bank FDs
  

Suitable Investors:

• Those who are nearing retirement or attained retirement

Some of the funds are given below. If you have any more please add to the list.

• ABN AMRO MIP
• Baroda Pioneer MIP
• Birla Sun Life MIP
• Birla Sun Life MIP II
• Birla Sun Life MIP II
• Birla Sun Life Monthly Income
• DBS Chola MIP
• DSPML Savings Plus Aggressive
• DSPML Savings Plus Conservative
• DSPML Savings Plus Moderate
• DWS MIP Plan A
• DWS MIP Plan B
• FT India MIP
• HDFC MIP Long-term
• HDFC MIP Short-term
• HSBC MIP Regular
• HSBC MIP Savings
• ICICI Prudential Income Multiplier
• ICICI Prudential MIP
• ING MIP
• JM MIP
• Kotak Income Plus
• LICMF Floater MIP Plan A
• LICMF Floater MIP Plan B
• LICMF MIP
• MMIP Floater
• Magnum Income Plus Inv
• Magnum MIP
• Principal MIP
• Principal MIP Plus
• Reliance MIP
• Sundaram BNP Paribas MIP
• Tata MIP
• Tata MIP Plus
• Templeton MIP-DM
• Templeton MIP-G
• UTI MIS-Advantage Plan
• UTI Monthly Income Scheme

Market trend

The stock market is going to be healthy with the government staying stable as expected. Does this mean the testosterone levels in the body and the jubilation increase risk taking, may be yes. So you know when to buy and when to sell. As for today the stock is expected to reach 14800 and in the next two days could reach anywhere near 16000 .

Stock Market Explained

“Wall Street never changes. The pockets change, the stocks change, but Wall Street never changes because human nature never changes.” All of them made initial trading losses and these early reversals led them to make an intensive study of the markets, formulate rules of trading and then discipline themselves to stick to the rules and not get swayed by market gossip.

At the same time, all of them realized the dangers of over-confidence and that it was no use fighting the market. They understood that traders were bound to make mistakes and they put in place rules such as stop-losses that would force them to sell if they made the wrong calls. What’s more, several of them emphasized the importance of analyzing and writing down the reasons why the trade turned out wrong, so that they learned from their mistakes.

------- Jesse Livermore

Sensex will go down to 14500

According to the analysis being done in Yahoo groups: Indian Stock Market, the sensex will further go down to 14500 and may even go as low as 14200.