Navbharat IAS Academy Foundation Programme

STAY TUNED

Dear followers,
Stay Tuned.....Big investment and trading ideas to be announced this weekend

Trap Ahead

Dear traders,
Dont get over excited by seeing the past three or two days nifty movement. I feel this is kind of a trap bcoz India's Fundamentals like rupee depreciation,Current Account Deficit,Inflation have not been solved yet.As Raghuram Rajan became RBI governor Market expecting some soft corner measures from him. That is why nifty seen a dramatic U-turn of 300 points.So I request not to  put your money in this mkt with intention of making quick returns.For me its a time for acquiring and buying on dips good quality large caps for next two or three years prespective

After this week I will be mentioning some names associated with banking licence and few other good quality stocks

                                                                   THANK YOU

Dont Invest In MCX and FT shares As of Now

National Spot Exchange (NSEL) has suspended trading of all contracts, other than e-Series and deferred the settlement, sparking fears of cash crunch and default of payment in the Financial Technology-promoted commodity bourse. The exchange has blamed the government for the structural changes it has instructed a few weeks back for creating market disequilibrium. 

While NSEL officials were unavailable for comments, brokers said that the exchange has stopped payouts on Wednesday due to financial crisis, which could impact operations of many of the brokers who are into commodity trading on Thursday. 

"National Spot Exchange (NSEL) has suspended trading of contracts, other than e-Series contracts till further notice. It has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days," NSEL said in a late evening press release on Wednesday. 
Today Financial Technology share hit a year low at 307 from previous close of 540.  MCX also tanked to 15% from yesterdays close of 638 to 536.So better avoid investments at this point until we get a clear picture

Simple Request

Dear fellow traders,

Pls don't take leverage on trading and kindly don't trade with borrowed money as market is much volatile and going through a weak sentiment.Better to buy with a long only view.

Why Nifty Tanked 130 Points today

1. Overnight interest rates in the U.S. have been near zero since December 2008 when the Fed initiated its bond buying programme. As a result of this ultra-low interest rate regime and abundant liquidity, money has flown out from the U.S. to emerging countries like India, where interest rates are comparatively higher. Foreign institutional investors (FIIs) have pumped almost $14 billion into India so far this year and $22.2 billion last year.
2. The Fed is now contemplating to reverse its policy because the U.S. economy seems to be coming back on tracks. Any tapering of bond-buying by the Fed could mean interest rates in the U.S. could start rising and money will flow back to government debt bonds in the U.S.
3. Fearing a reversal in the Fed policy, FIIs have turned sellers. FIIs have sold equities totalling over Rs. 4,000 crore over the last seven sessions. FIIs have sold Indian debt totalling $4.7 billion in 18 consecutive sessions.
4. A reversal of portfolio flows results in falling equity prices. Since May 22, the BSE Sensex is down nearly 6 per cent, while the Nifty has broken the 5,700 mark.
5. The withdrawal of funds has hit the rupee hardest because India runs a large current account deficit (the difference between inflows and outflows). Conversely, a weak rupee makes investment in Indian stocks unattractive.
6. Corporates with unhedged forex exposure could suffer increased losses as the rupee inches lower. This will further weaken investor sentiments.
7. Outflows from equity and debt markets raise concerns about financing of the current account deficit. An estimated $90 billion is required to fund the gap in India's balance of payments (export minus imports) in the current financial year.
8. Asset price volatility and a slowdown in capital inflows would hurt investment, as uncertainty further delays a revival of the capex cycle, global investment bank Nomura says.
9. The Reserve Bank of India, which has warned of upward risks to inflation on account of the rupee weakness, may be forced to hold on to its rates. This will further hurt stock markets. All this would delay India's GDP growth, which hit a decade low in the last fiscal.
10. The only positive from the Fed's reversal will be a fall in commodity prices, including gold, which will also help bring down high current account deficit.