At a Moneylife event, Debashis Basu, explained in detail all the things that a saver needs to know about how and when to invest in stocks and bonds, given the current market environment
The BSE Sensex and the NSE Nifty continue to hit their all-time highs. A majority of Indian retail investors suddenly feel left out of the market and the new bull run.
However, the question on many savers' minds is, “Is the market now too high to jump into stocks?” or “Should we wait for a 'correction'?” At a Moneylife event titled, “Achche Din for Investors?— Investing successfully in the new regime”, Debashis Basu, editor and publisher of Moneylife, explained all that a saver needs to know about how and when to invest using a methodical approach and what should one expect from the new government.
In the first part of the session, Mr Basu captivated the audience by explaining how the average saver is influenced by the ‘noise’ from the media. Mr Basu spoke about seven facts of the stock market and what an investor should consider for making wise investment decisions.
Many investors seek, and blindly follow, tips and advice that are freely available. Most do not follow due process nor have the discipline to cross-check the facts and invest with conviction. An average investor has generally no clue about what he is buying or selling.
Mr Basu explained how to pick the right stocks at the right time and exit profitably. By giving historical evidence, Mr Basu showed how investors could time their buying and selling.
As the markets were moving sideways for most past of the last three to four years, fund houses have been constantly pushing debt funds as safe products. However, as Moneylife has pointed out many times in the past and re-emphasised in the section on when to buy bonds and bond funds, the returns from debt funds can be volatile and low. When comparing the returns to fixed deposits, debt funds may not always be a better option even post-tax. To answer the query about how the returns from debt can be better by having a sense of timing. Mr Basu explained how one could time their bond investments by analysing bond yields.
Mr Basu spoke on what one should be expecting from the new government and whether we are in for a ‘structural’ bull market. In the highly awaited last session, Mr Basu spoke on what to buy, keeping in mind the Central Bank’s stance on interest rates, market valuation and expected reforms from the new government.
The session included a lively interaction. Smart saving and smart investing is all about buying the right product at the right time. If you missed out on this event, not to worry, Moneylife will be conducting many more sessions such as this in future. Keep yourself updated on such events and new services, click here to become a Moneylife member.
AAP leaders Kejriwal, Sisodia and Yadav were granted bail in a defamation case after they furnished personal bonds of Rs10,000 each
Aam Aadmi Party (AAP) leader and former chief minister of Delhi, Arvind Kejriwal and two other party leaders were on Wednesday granted bail by a Delhi court in a criminal defamation case filed by a lawyer after they furnished personal bonds.
Metropolitan Magistrate Muneesh Garg released Kejriwal, AAP leaders Manish Sisodia and Yogendra Yadav on bail after they appeared before it in pursuance to summons issued against them.
Kejriwal, Sisodia and Yadav, through advocate Rishikesh Kumar, furnished a personal bond of Rs10,000 each. The court has now fixed the matter for 16th August.
The court had earlier summoned them on the complaint of advocate Surender Kumar Sharma under sections 499, 500 (defamation) and 34 (common intention) of the IPC.
It had said there was prima facie material to summon the accused.
“The press release published in newspapers as well as testimonies of witnesses reflect that defamatory remarks were published in the newspaper, which affected the reputation of complainant in the society and lowered his reputation in the eyes of other members of the society,” the court had said.
The court, however, had rejected the complainant’s plea that AAP leaders had conspired and cheated him, saying in the absence of the very element of deception, there was no prima facie material against any of the accused for the offence of cheating and criminal conspiracy.
Sharma had alleged that in 2013 he was approached by the volunteers of AAP who asked him to contest Delhi Assembly election on party ticket as Kejriwal was pleased with his social services.
He filled up the application form for contesting on an AAP ticket and was later on told by Sisodia and Yadav that the Political Affairs Committee of the party had decided to give him the ticket but it was later denied to him.
He started his political campaign and incurred an expense of about Rs five lakh on the campaign, the complaint alleged.
On 14 October 2013, the complainant read articles in leading daily newspapers in which “derogatory and defamatory language” was used against him, adding “defamatory, unlawful and derogatory words used by the accused persons as published in the newspapers have lowered the reputation of the complainant in the Bar and society’’.
The articles had also mentioned that AAP had decided to replace its candidate from the Shahdara Constituency, he said.
The articles quoted a party statement saying that it was found that there were criminal cases and FIRs pending against its candidate (complainant) and that in his application, he had failed to mention about it.
Titan is well positioned to gain from an improvement in consumer spending with both the watches and jewellery segments set to see improved growth, says Nomura
With growing expectations of a pick-up in GDP growth over the next two years, Nomura sees discretionary spending as a key beneficiary. Titan Industries is well positioned to gain from an improvement in consumer spending with both the watches and jewellery segments set to see improved growth over the next two years. These are the observations made in a research note by Nomura.
The Q4 FY14 results hinted at a turnaround in the demand metrics of the company. Over the next six months, restrictions on import of gold are likely to abate and there could also be a reduction in import duty, which will be a positive to spur demand, points out Nomura.
According to the research note, company management has been focused on improving profitability in the jewellery segment over the long term with investments in brand building, mix improvement as well as distribution in terms of setting up stores throughout the country.
Nomura is a little cautious on the watches segment of the company. The watches segment is under-penetrated in India and there is significant room for growth in the long term. However, Nomura points out that the segment is also very competitive and hence gaining share from other players in the segment will not be easy.
According to Nomura, Titan is a structural play on jewellery retail in India. Nomura believes near-term regulatory risks are abating, and demand is starting to see a rebound which underlines the 'Buy' recommendation for the company's share in the stock market. In terms of share price, the research note says, “We are moving up our TP (target price) from Rs305 to Rs350 as we roll forward our TP base by one quarter.”
The research note adds, Over the past five years, Titan has traded at a premium whenever its jewellery segment volume growth has been high. FY15 could see a return to those valuation premiums.
Nomura's forecasts for Titan are given in the following table: