INTELLECTUAL TRADING

The main agenda for most of the discussions throughout the country for now is the anticipation of what is likely to be announced in the Union Budget 2017-18. The year 2016-17 has been a year of twists and turns where in the demonetization effect  People are expecting changes in taxation structure of the income tax slabs. Apart from this tax structure of the capital market instruments are also anticipated to shuffle. Announcements of public benefit schemes, demonetization notifications etc. are also expected to be in store of budget agenda. Market may expect a substantial rejig too and traders may be keen to shuffle their existing portfolio looking at what the Union Budget 2017-18 may bring in. The experts suggest to take an easy way and not to reshuffle their portfolio based on the contradictory predictions around the corner of the Union Budget 2017-18 date. Based on the experts/ financial advisor’s views, we bring before you 6 simple ways in which you should ease yourself

All the definitions on arbitrage trading say that it is “Buying in one market, selling in the other and profiting from the price difference.” Well, at first I thought it would be buying a share from BSE and selling it in NSE, as all the examples say- buying saaris from Surat market, where you get them cheap and sell in Mumbai market, where it can be sold expensive. However, trading like this is not allowed in the stock market ieyou cannot buy and sell the same stock among exchange (NSE to BSE) in real time. So you cannot arbitrage by buying on NSE and Selling on BSE without holding the stock in your demat account. In case you do that and at T+2, the stock have not come in your Demat account, there would be a short delivery and will be taken to  auction which can have huge implications in terms of penalty. So then how do we do arbitrage in equity markets. Types of arbitrage opportunities The most common arbitrage available in Indian stock market is a cash-futures arbitrage. Here

Since some time, Indian pharma players have faced problems from global regulators relating to noncompliance of good manufacturing practices (GMP). However, throughout the whole episode, one group of pharma companies has been largely unaffected - the CRAMS (contract research and manufacturing services) players. These companies provide cutting-edge, low-cost solutions to MNC drug companies. Their services range from supplying active pharmaceutical ingredients (for existing generic and branded drugs as well as drugs under development) to providing R&D services (companies providing R&D are known as contract research organisations or CROs). Given various global and some domestic companies depend on CRAMS for their supplies, CRAMS' facilities are often audited by their customers (the buying pharma companies). So CRAMS tend to pay close attention to their processes and product quality. With a high reliance on export revenue, the nature of their business too calls for tig

Looking at annual returns, 2015 and 2016 were rather forgetful years for the BSE Sensex Index. At current levels, the index is still down around 10% from its all-time highs. It has been a testing time for those who've stayed put in equities. How do the prospective returns look for the index? Can we expect attractive returns from the current levels in a decade's time? Let's see what insights we can glean by tracing the index's historical returns using one crucial valuation metric - price-to-book value (PBV). It seems logical that before even thinking of buying any common stock, the first step is to see how money has been most successfully made in the past.  -  Phil Fisher Please note this is not an attempt to forecast index levels. This is only an attempt to study the history of markets to gain some insights. Now, using twenty years of BSE Sensex PBV data, we calculated ten-year CAGR rolling returns while noting the historic PBV. For example, 30 March 20