Monday, April 26, 2010
Motilal Oswal Financial Services to announce financial results Board meeting on 27 April 2010
The board meeting of Motilal Oswal Financial Services will be held on 27 April 2010 to consider the audited financial results of the company for the year ended 31 March 2010 and the audited consolidated financial results of the company and its subsidiaries for the year ended 31 March 2010. The board will also recommend dividend, if any.
Friday, April 23, 2010
Insights of commodity Space:
Volatility in gold due to currency:
22 Apr 2010, 1844 hrs IST,ET Now
Excerpts from an interview of
Kuljeet Kataria, Vice President at Motilal Oswal Securities Ltd, with ET Now.
ET Now
Gold prices have seen a bit of gain in the international markets but the Indian markets continue to lag behind how would you trade that one?
Kuljeet Kataria
I think because of the currency a lot of volatility is being seen in gold. I think current levels are the right levels to enter in the MCX market. I think we can buy at these current levels and have a target of around 16,785 in Indian currency. But in international market I think the range will be around $1132 to $1152.
ET Now
How would you want to trade silver because we have seen prices hold around between 27000 to 28000? What’s the range that you are working with and what is the strategy you would give the traders now?
Kuljeet Kataria
For a long term I think we should wait for a little dip from here at least 2% to 3% from here. But for a current, for a intraday market - because definitely there will be a spillover effect of gold or on silver too - I think around 27400 to 27370 should be the levels intraday. We should keep a buy and we can have intraday target of around 27635 or 27600. We should got profits for the day.
ET Now
Would you also buy in crude because we have seen a bit of gains come back into that? What kind of a range would you hold now?
Kuljeet Kataria
Unless and until low ECD demand comes in, I don’t think crude will pick up that kind of a bullish trend. But still I feel crude will be trading $82 to $85 - for at least 15 days - as crude in indian markets have shown some kind of a correction today. I think still around Rs 35-45 will be the levels from here. We can short sell from here and book a profits but for a long term view, I think we can keep a stop loss of around $81. We can start buying from $82 to $83 in between anything wherever get and we can wait for a little long and I think within second quarter around $86 to $87 we can definitely book the profits here.
ET Now
Base metal prices it hasn’t been a very good day today I mean the Chinese imports are seen as a negative because many traders feel that Chinese may be over supplied with metals. Ddo you think that would pressure on prices?
Kuljeet Kataria
As China has already given lot of signals to copper prices since long and the rally what we have seen from 262 to 272 at the current levels, China was only the major player and definitely because so much of over supplies is being seen in China and the inputs have reduced I think there will be a bit of correction. But there is nothing to worry long term.I think long term view should be very positive we should definitely buy with a three month to four month view. I think we can buy copper and we can keep a target of around 365 to 370 in long term.
ET Now
You are bullish on copper and you have a buy strategy but how about the rest of the metals because we have nickel as an outperformer? Do you see that continue because the steel demand is still on the higher side, do you see nickel making news of that?
Kuljeet Kataria
Definitely yes I am quite very bullish for a very long term. We should keep buying but as of now as we have seen since last 20-30 days. Nickel has outperformed all the markets. I think there will be a bit of correction. Anything below 1185, in between 1170 to 1185 should be the right levels to re-enter into nickel and we should have stop losses definitely and keep long term open. I think it should give you around 20% to 25% return in coming three months.
22 Apr 2010, 1844 hrs IST,ET Now
Excerpts from an interview of
Kuljeet Kataria, Vice President at Motilal Oswal Securities Ltd, with ET Now.
ET Now
Gold prices have seen a bit of gain in the international markets but the Indian markets continue to lag behind how would you trade that one?
Kuljeet Kataria
I think because of the currency a lot of volatility is being seen in gold. I think current levels are the right levels to enter in the MCX market. I think we can buy at these current levels and have a target of around 16,785 in Indian currency. But in international market I think the range will be around $1132 to $1152.
ET Now
How would you want to trade silver because we have seen prices hold around between 27000 to 28000? What’s the range that you are working with and what is the strategy you would give the traders now?
Kuljeet Kataria
For a long term I think we should wait for a little dip from here at least 2% to 3% from here. But for a current, for a intraday market - because definitely there will be a spillover effect of gold or on silver too - I think around 27400 to 27370 should be the levels intraday. We should keep a buy and we can have intraday target of around 27635 or 27600. We should got profits for the day.
ET Now
Would you also buy in crude because we have seen a bit of gains come back into that? What kind of a range would you hold now?
Kuljeet Kataria
Unless and until low ECD demand comes in, I don’t think crude will pick up that kind of a bullish trend. But still I feel crude will be trading $82 to $85 - for at least 15 days - as crude in indian markets have shown some kind of a correction today. I think still around Rs 35-45 will be the levels from here. We can short sell from here and book a profits but for a long term view, I think we can keep a stop loss of around $81. We can start buying from $82 to $83 in between anything wherever get and we can wait for a little long and I think within second quarter around $86 to $87 we can definitely book the profits here.
ET Now
Base metal prices it hasn’t been a very good day today I mean the Chinese imports are seen as a negative because many traders feel that Chinese may be over supplied with metals. Ddo you think that would pressure on prices?
Kuljeet Kataria
As China has already given lot of signals to copper prices since long and the rally what we have seen from 262 to 272 at the current levels, China was only the major player and definitely because so much of over supplies is being seen in China and the inputs have reduced I think there will be a bit of correction. But there is nothing to worry long term.I think long term view should be very positive we should definitely buy with a three month to four month view. I think we can buy copper and we can keep a target of around 365 to 370 in long term.
ET Now
You are bullish on copper and you have a buy strategy but how about the rest of the metals because we have nickel as an outperformer? Do you see that continue because the steel demand is still on the higher side, do you see nickel making news of that?
Kuljeet Kataria
Definitely yes I am quite very bullish for a very long term. We should keep buying but as of now as we have seen since last 20-30 days. Nickel has outperformed all the markets. I think there will be a bit of correction. Anything below 1185, in between 1170 to 1185 should be the right levels to re-enter into nickel and we should have stop losses definitely and keep long term open. I think it should give you around 20% to 25% return in coming three months.
Thursday, April 22, 2010
MODES”- Motilal Oswal Depository Services
Today MODES is available at all business locations of Motilal Oswal. In terms of number of accounts MODES is the second biggest Depository Participant in CDSL with over 150,000 accounts. The trust they have in Motilal Oswal is reflected by their cumulative holding in MODES worth over Rs. 3400 crores.
Holder of a MODES account receives regular account reports and an efficient service at all times. Clients having holdings over Rs. 10 lakhs receive special SMS service. They get recommendations on their holdings based on Motilal Oswal Research rated the "Most Independent Research - Local Brokerage" by Asia Money Brokers Poll 2006.
As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy:
Ø No bad deliveries
Ø No risk of loss, mutilation or theft of share certificates
Ø No stamp duty for transfer of shares
Ø Reduced paper work
Ø Fast settlement cycles
Ø Low interest rates on loans granted against pledge of dematerialized securities by banks
Ø Low margin on securities pledged with banks
Ø Increase in liquidity of your securities because of faster transfer and registration of securities in your account
Ø Instant disbursement of non-cash benefits like bonus and rights into your account
Regular account status updates available from MODES at any point of time.
Holder of a MODES account receives regular account reports and an efficient service at all times. Clients having holdings over Rs. 10 lakhs receive special SMS service. They get recommendations on their holdings based on Motilal Oswal Research rated the "Most Independent Research - Local Brokerage" by Asia Money Brokers Poll 2006.
As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy:
Ø No bad deliveries
Ø No risk of loss, mutilation or theft of share certificates
Ø No stamp duty for transfer of shares
Ø Reduced paper work
Ø Fast settlement cycles
Ø Low interest rates on loans granted against pledge of dematerialized securities by banks
Ø Low margin on securities pledged with banks
Ø Increase in liquidity of your securities because of faster transfer and registration of securities in your account
Ø Instant disbursement of non-cash benefits like bonus and rights into your account
Regular account status updates available from MODES at any point of time.
Wednesday, April 21, 2010
What is commodity market?Why commodities?
Ever since the dawn of civilization commodities trading have become an integral part in the lives of mankind. The very reason for this lies in the fact that commodities represent the fundamental elements of utility for human beings. Over the years commodities markets have been experiencing tremendous progress, which is evident from the fact that the trade in this segment is standing as the boon for the global economy today. The promising nature of these markets has made them an attractive investment avenue for investors. Earlier investors invested in those companies, which specialized in the production of commodities. This accounted for the indirect investments in commodity assets.
The commodity based products offer a huge array of benefits that include offering risk-return trade-offs to investors, providing information on market trends and assisting in framing asset allocation strategies. Commodity investments are always considered as defensive because during the times of inflation, which adversely affects the performance of stocks and bonds, commodities provide a defense to investors, maintaining the performance of their portfolios.
Commodity markets have a huge potential in the Indian context particularly because of the agri-based economy. With the government's initiative for agricultural liberalization, commodities' trading in India has gained increased momentum in activities. To increase the efficiency of the markets the Forward Markets Commission (FMC), the governing body of commodities trading in India has taken several initiatives for the establishment of national level multi-commodity exchanges in India.
The commodity based products offer a huge array of benefits that include offering risk-return trade-offs to investors, providing information on market trends and assisting in framing asset allocation strategies. Commodity investments are always considered as defensive because during the times of inflation, which adversely affects the performance of stocks and bonds, commodities provide a defense to investors, maintaining the performance of their portfolios.
Commodity markets have a huge potential in the Indian context particularly because of the agri-based economy. With the government's initiative for agricultural liberalization, commodities' trading in India has gained increased momentum in activities. To increase the efficiency of the markets the Forward Markets Commission (FMC), the governing body of commodities trading in India has taken several initiatives for the establishment of national level multi-commodity exchanges in India.
Wednesday, April 14, 2010
What is MOSL EAG?
To keep up our tradition of personalized services, we set up Equity Advisory group to provide customized and integrated equity solutions to High Net woth Investors. Equity research is an inherent strangth of MOSL. We believe in picking investment opportunities where the underlying value is higher than the market price. Our team has highly trained equity professionals, who act as your Equity Advisor.MOSL Equity Advisor proactively helps you take informed equity investment decisions and build a healthy portfolio.
Get Market updates:
http://www.motilaloswal.com/Equity/Market/
Get Market updates:
http://www.motilaloswal.com/Equity/Market/
Tuesday, April 13, 2010
For Whom Derivatives ?Benefits of Derivatives
Derivatives involve some form of leverage and any form of leverage is a double edged sword. It can multiply your capital if a right call is made but can even wipe out your capital if the trade goes against you.
Hence this product is advisable only for those who have a high risk appetite. Apart from risk appetite the other major requirement is discipline on the part of the trader. Our EAG will help you with the trading calls for F&O, but every good trader understands that trading involves probability and hence the discipline of stop loss is crucial for capital protection.
Benefits of Derivatives
As the underlying is equities is pays to have the same advisor who is capable of dealing in both cash as well as derivatives. Also you will not have to deal with multiple people for equities as a product.
Since the advisory only deals with equity as an asset class, his understanding of the derivatives and nuances of the market will be better than someone who deals with multiple asset classes.
The most important of all, the EAG gets inputs from the technical and derivatives research group, whose sole objective is to identify trading opportunities with a favorable risk-reward ratio.
The research products of the derivative and Technical desk will be available for you as a client.
Hence this product is advisable only for those who have a high risk appetite. Apart from risk appetite the other major requirement is discipline on the part of the trader. Our EAG will help you with the trading calls for F&O, but every good trader understands that trading involves probability and hence the discipline of stop loss is crucial for capital protection.
Benefits of Derivatives
As the underlying is equities is pays to have the same advisor who is capable of dealing in both cash as well as derivatives. Also you will not have to deal with multiple people for equities as a product.
Since the advisory only deals with equity as an asset class, his understanding of the derivatives and nuances of the market will be better than someone who deals with multiple asset classes.
The most important of all, the EAG gets inputs from the technical and derivatives research group, whose sole objective is to identify trading opportunities with a favorable risk-reward ratio.
The research products of the derivative and Technical desk will be available for you as a client.
Tuesday, April 6, 2010
What is Share / Stock / Equity? Why Invest in Stocks?
A share is one of a finite number of equal portions in the capital of a company, mutual fund or limited partnership, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Dividends are not guaranteed. They may be increased if the company performs well, but they may also be reduced or eliminated if the company performs poorly.
So when you purchase shares, you become part owner of a company.As an owner,you
are usually entitled to voting rights on the board of directors and corporate policy.
Although past performance cannot guarantee future market results, Stocks,
historically have outperformed all other long-term financial assets. They are the only financial asset that has significantly outpaced inflation over time.
Investors buy stock to potentially increase their return on investment in one or both of two ways:
1. Dividend Payments - Many companies pay portions of their annual profits to stockholders in the form of dividends. Stocks with consistent track record of paying attractive dividends are known as income stocks because investors often buy these stocks to receive the income by way of dividends in addition to being invested in the company's future growth prospects.
2By Selling the stock for more than they originally paid -Some companies
reinvest most of their profits back into the business in order to expand. Stocks of
companies with sales and earnings that are expanding faster than the general economy and faster than the average company are called growth stocks because investors expect the company to grow and expect the stock price to grow with it.
When such increase in the stock price is witnessed,investors can sell their shares for an amount greater than their purchase price, thus pocketing the difference as profit.
So when you purchase shares, you become part owner of a company.As an owner,you
are usually entitled to voting rights on the board of directors and corporate policy.
Although past performance cannot guarantee future market results, Stocks,
historically have outperformed all other long-term financial assets. They are the only financial asset that has significantly outpaced inflation over time.
Investors buy stock to potentially increase their return on investment in one or both of two ways:
1. Dividend Payments - Many companies pay portions of their annual profits to stockholders in the form of dividends. Stocks with consistent track record of paying attractive dividends are known as income stocks because investors often buy these stocks to receive the income by way of dividends in addition to being invested in the company's future growth prospects.
2By Selling the stock for more than they originally paid -Some companies
reinvest most of their profits back into the business in order to expand. Stocks of
companies with sales and earnings that are expanding faster than the general economy and faster than the average company are called growth stocks because investors expect the company to grow and expect the stock price to grow with it.
When such increase in the stock price is witnessed,investors can sell their shares for an amount greater than their purchase price, thus pocketing the difference as profit.
Monday, April 5, 2010
What are Equities? Who all can invest in equities? Why invest in equities?How to go about investing in equities?
Equities are pieces of a company, also known as "stocks or shares". When you buy shares of a company, you're basically purchasing an ownership interest in that company. A company's stockholders or shareholders all have equity in the company, or own a fractional portion of the whole company. They buy the shares because they expect to profit when the company profits. Companies issue two basic types of shares: equity and preference shares.
Equity shareholders are the owners of a company and initially provide the equity capital to start the business.
A first time investor needs to understand that every investment carries certain degree of risk and the potential to earn is directly linked to the degree of risk taken For a long-term investor, it is essential to ensure that he earns positive real rate of returns i.e. rate of return minus inflation. Equities, as an asset class, have the potential to achieve this. No doubt, equity markets can be volatile over the short-term and that makes equity markets a risky proposition in the short-term.
Participants in the stock market range from small individual to large hedge fund traders. Large institutions like pension funds, insurance companies, mutual funds, index funds, exchange traded funds, investor groups, banks and various other financial institutions also participate.
Ø Capital appreciation
Ø Dividends
Ø Voting privileges
Ø Marketability - shares can easily be bought or sold
Step 1: Understand how the stock market works
When you read you begin with A-B-C. When you sing you begin with Do-Re-Mi. And when you invest in stocks you begin with business-company-shares.
Before you embark on your journey to invest in equities, teach yourself how the stock market works. Read this easy guide.
Step 2: Learn how to choose a stock
Having understood the markets, it is important to know how to go about selecting a company, a stock and the right price. A little bit of research, some smart diversification and proper monitoring will ensure that things seldom go wrong.
It's not that difficult: Just follow these 4 golden rules.
1. Choose the right company
Look for superior and profitable growth. The company should earn at least 20% return on its shareholders’ capital.
Ideally a long-term investment perspective (more than five years) allows you to participate in the company’s growth. At the short end (3-6 months), share performance is driven more by market sentiment and less by company fundamentals. In the long run, the relevance of the right price diminishes.
2. Be disciplined
Stock investing is a long, learning experience. You will make mistakes, but also learn from them. Here is what you can do to ensure a smooth ride.
Diversify your investments. Do not put more than 10 per cent of your corpus in one stock, even if it’s a gem. On the other hand, don’t have too many – they become difficult to monitor. For a passive long long-term investor, 15-20 is a healthy number. Use this asset allocation tool to find out if you need to invest beyond equities.
Research and analyse your company's performance through quarterly results, annual reports and news articles.
Get a good broker and understand settlement systems.
Ignore hot tips. If hot tips really worked, we'd all be millionaires.
Resist the temptation to buy more. Each purchase is a new investment decision. Buy only as many shares of one company, as fits your overall allocation plan.
3. Monitor and review
Regularly monitor and review your investments. Keep in touch with quarterly results announcements and update the prices on your portfolio worksheet at least once a week. This is more important during volatile times when there can be great opportunities for value picking!
Also, review the reasons you earlier identified for buying a stock and check whether they are still valid or there have been significant changes in your earlier assumptions and expectations. And use an annual review process to review your exposure to equity shares within your overall asset allocation and rebalance, if necessary.
4. Learn from your mistakes
When reviewing, do identify and learn from your mistakes. Nothing beats first-hand experience. Let these experiences register as `pearls of wisdom' and help you emerge a smarter equity investor.
Step 3: Decide how much to invest
Since equities are high risk, high return instruments, how much you should invest would really depend on how much risk you can tolerate. Without going into complex profiling models, the simple rule of thumb is: 100 less your age should be your % allocation to equities
Step 4: Monitor and review
Monitoring your equity investments regularly is recommended. Keep in touch with the quarterly-results announcements and update the prices on your portfolio worksheet atleast once a week.
Equity shareholders are the owners of a company and initially provide the equity capital to start the business.
A first time investor needs to understand that every investment carries certain degree of risk and the potential to earn is directly linked to the degree of risk taken For a long-term investor, it is essential to ensure that he earns positive real rate of returns i.e. rate of return minus inflation. Equities, as an asset class, have the potential to achieve this. No doubt, equity markets can be volatile over the short-term and that makes equity markets a risky proposition in the short-term.
Participants in the stock market range from small individual to large hedge fund traders. Large institutions like pension funds, insurance companies, mutual funds, index funds, exchange traded funds, investor groups, banks and various other financial institutions also participate.
Ø Capital appreciation
Ø Dividends
Ø Voting privileges
Ø Marketability - shares can easily be bought or sold
Step 1: Understand how the stock market works
When you read you begin with A-B-C. When you sing you begin with Do-Re-Mi. And when you invest in stocks you begin with business-company-shares.
Before you embark on your journey to invest in equities, teach yourself how the stock market works. Read this easy guide.
Step 2: Learn how to choose a stock
Having understood the markets, it is important to know how to go about selecting a company, a stock and the right price. A little bit of research, some smart diversification and proper monitoring will ensure that things seldom go wrong.
It's not that difficult: Just follow these 4 golden rules.
1. Choose the right company
Look for superior and profitable growth. The company should earn at least 20% return on its shareholders’ capital.
Ideally a long-term investment perspective (more than five years) allows you to participate in the company’s growth. At the short end (3-6 months), share performance is driven more by market sentiment and less by company fundamentals. In the long run, the relevance of the right price diminishes.
2. Be disciplined
Stock investing is a long, learning experience. You will make mistakes, but also learn from them. Here is what you can do to ensure a smooth ride.
Diversify your investments. Do not put more than 10 per cent of your corpus in one stock, even if it’s a gem. On the other hand, don’t have too many – they become difficult to monitor. For a passive long long-term investor, 15-20 is a healthy number. Use this asset allocation tool to find out if you need to invest beyond equities.
Research and analyse your company's performance through quarterly results, annual reports and news articles.
Get a good broker and understand settlement systems.
Ignore hot tips. If hot tips really worked, we'd all be millionaires.
Resist the temptation to buy more. Each purchase is a new investment decision. Buy only as many shares of one company, as fits your overall allocation plan.
3. Monitor and review
Regularly monitor and review your investments. Keep in touch with quarterly results announcements and update the prices on your portfolio worksheet at least once a week. This is more important during volatile times when there can be great opportunities for value picking!
Also, review the reasons you earlier identified for buying a stock and check whether they are still valid or there have been significant changes in your earlier assumptions and expectations. And use an annual review process to review your exposure to equity shares within your overall asset allocation and rebalance, if necessary.
4. Learn from your mistakes
When reviewing, do identify and learn from your mistakes. Nothing beats first-hand experience. Let these experiences register as `pearls of wisdom' and help you emerge a smarter equity investor.
Step 3: Decide how much to invest
Since equities are high risk, high return instruments, how much you should invest would really depend on how much risk you can tolerate. Without going into complex profiling models, the simple rule of thumb is: 100 less your age should be your % allocation to equities
Step 4: Monitor and review
Monitoring your equity investments regularly is recommended. Keep in touch with the quarterly-results announcements and update the prices on your portfolio worksheet atleast once a week.
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