A new year means a new beginning for many. The calendar year followed by the world indicates 1 January as the start of a new year. However, in a diverse country like India people follow different traditions each year.
For most Hindus, the New Year begins in the summer. However, in Gujarati and Marwari traditions, it starts in Diwali.
India’s stock markets are dominated by brokers belonging to these two communities. Hence, every year, Diwali assumes a special place for those in the stock market.
Here are few things to know about Muhurat trading:
· Stock exchanges would open for trading at 6 pm on 3 November 2013 for Muhurat trading. The session lasts for an hour and a half. Muhurat means an auspicious moment to start something new. This is a tradition for over 100 years on the Bombay Stock Exchange and the mostly Gujarati and Marwari stock broking community. The session marks the end of the traditional financial year and the beginning of the new one.
· People look at stock markets from a point of view of wealth creation. Stockbrokers execute token trades on behalf of their clients or their own account to mark the occasion. Stock exchanges and broker offices are decorated to seek blessings of Lakshmi, the goddess of wealth.
· Chopda or Sharda Puja is performed. ‘Chopda’ is an account book. On the New Year day, you close your previous year accounts and start writing your financial statements in a new book. However, since most stock brokers are corporatized, accounts are no longer maintained physically. They are in electronic format. Also, for most companies in the business, the financial year starts on 1 April.
· Typically, the trading activity on Muhurat trading is thin. Over the years, statistics from the Bombay Stock Exchange data (available since 1992) shows that the Sensex has ended in positive territory 7 out of 10 times. The average gain or loss is not more than one per cent. Transactions mostly have a sentimental value than any impact on the portfolio.This work is produced by Simplus Information Services Pvt Ltd. Customer engagement through content. Like this article? Click here for more articles from the same provider.
Showing posts with label trading. Show all posts
Showing posts with label trading. Show all posts
Sunday, 3 November 2013
Sensex scales new high on special Diwali trading
Mumbai, Nov 3 (IANS) The Indian equities markets key indices closed at record high in the special Diwali trading Sunday led by good buying support in auto, FMCG and oil and gas stocks.
The 30 scrip sensitive index S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 21,278.08 points, ended the session at 21,239.36 points, up 0.20 percent or 42.55 points from its previous close at 21196.81 points.
This is the record closing high for the benchmark Sensex. The previous record high was 21196.81 points hit Friday.
The special session called Mahurat trading was organised to mark the beginning of Samvat year 2070, a new year according to Hindu calendar.
Nifty of the National Stock Exchange (NSE) also scaled a new closing high. Nifty ended the day 10.15 points higher at 6,317.35 points.
Sensex hits record high in Muhurat trading
MUMBAI (Reuters) - The BSE Sensex rose to a second consecutive record high in a special trading session on Sunday, led by gains in Indian Bank, Tata Motors and ONGC on expectations of better quarterly earnings, while strong foreign flows continued to boost sentiment.
Stock markets opened for a special 90-minute Muhurat session to mark the festival of Diwali, considered an auspicious time for Indians.
The Sensex has been propelled by foreign inflows of around $3.5 billion since the Federal Reserve unexpectedly delayed tapering of its monetary stimulus.
The index rose to a record high of 21,321.53, surpassing the previous all-time high set just on Friday. It closed up 0.2 percent.
Hindustan Petroleum Corporation Ltd and Indian Oil Corp rose 3-4 percent while banking stocks Corporation Bank , Dena Bank and Indian Bank rose 2.6-15 percent.
(Reporting by Swati Pandey; Editing by Robin Pomeroy)
Mahurat Trading: 5 stocks to buy this Diwali
A new year means a new beginning for many. The calendar year followed by the world indicates 1 January as the start of a new year. However, in a diverse country like India people follow different traditions each year.
For most Hindus, the New Year begins in the summer. However, in Gujarati and Marwari traditions, it starts in Diwali.
India’s stock markets are dominated by brokers belonging to these two communities. Hence, every year, Diwali assumes a special place for those in the stock market.
For most Hindus, the New Year begins in the summer. However, in Gujarati and Marwari traditions, it starts in Diwali.
India’s stock markets are dominated by brokers belonging to these two communities. Hence, every year, Diwali assumes a special place for those in the stock market.
Here are few things to know about Muhurat trading:
· Stock exchanges would open for trading at 6 pm on 3 November 2013 for Muhurat trading. The session lasts for an hour and a half. Muhurat means an auspicious moment to start something new. This is a tradition for over 100 years on the Bombay Stock Exchange and the mostly Gujarati and Marwari stock broking community. The session marks the end of the traditional financial year and the beginning of the new one.
· People look at stock markets from a point of view of wealth creation. Stockbrokers execute token trades on behalf of their clients or their own account to mark the occasion. Stock exchanges and broker offices are decorated to seek blessings of Lakshmi, the goddess of wealth.
· Chopda or Sharda Puja is performed. ‘Chopda’ is an account book. On the New Year day, you close your previous year accounts and start writing your financial statements in a new book. However, since most stock brokers are corporatized, accounts are no longer maintained physically. They are in electronic format. Also, for most companies in the business, the financial year starts on 1 April.
· Typically, the trading activity on Muhurat trading is thin. Over the years, statistics from the Bombay Stock Exchange data (available since 1992) shows that the Sensex has ended in positive territory 7 out of 10 times. The average gain or loss is not more than one per cent. Transactions mostly have a sentimental value than any impact on the portfolio.
Diwali is the time of the year when investors review their investments. They shuffle the stock portfolio based on their assessment for the year gone by and the road ahead. Various brokerage firms give recommendations for investors.
Here are five stocks most recommended for buying this Diwali:
1. ICICI Bank:
Target price: Rs 1,195
The second-largest private bank is one of the top picks this Diwali. Deposits are a key method of raising funds for a bank, and are cheaper than borrowing from the RBI. So a high ratio of current and savings account deposits to total deposits (CASA ratio) means the bank is attracting money at very low cost. This increases its profitability. ICICI Bank has the highest ratio among private sector banks. Its overall balance sheet also improved in the July-September quarter despite a slowdown in the economy.
2. Axis Bank:
Target Price: Rs 1,430
The bank has been increasing its presence in the retail banking segment by attracting more consumers to open current and savings accounts. It has also been consistently delivering better-than-industry growth due to this, according to Religare, a brokerage firm. Also, its asset quality has not worsened significantly in the first half of this fiscal. It has also turned cautious in offering loans on account of uncertain macro-economic conditions.
“Notwithstanding moderate concerns on its corporate book asset quality, we expect the retail business to drive earnings,” Angel Broking said in a report.
3. Tech Mahindra:
Target Price: Rs 1,830
India is seeing a pickup in exports. IT services exports account for a significant chunk of total exports. With the rupee hovering at 60/$-levels, the IT sector has the most to gain as it earns in dollars and other foreign currencies. Tech Mahindra, the first largest IT company in India post its merger with Satyam, has aggressively acquired deals. This is expected to help post a strong revenue growth. Also, the stock price is currently at attractive levels. “Its growth momentum likely to continue due to the pick-up in discretionary spending and strong deal momentum in the US and some parts of Europe,” Religare said in a report.
Other favourites in the IT space are Wipro and Infosys.
4. Colgate
Target Price: Rs 1,450
Oral care company Colgate has consistently reported strong volume growth by maintaining an aggressive strategy to reduce competition. This is expected to drive future growth too. Also, changing trends in consumption of tooth paste in rural areas and the power to increase prices without affecting demand are other positive factors for the consumer goods company. “We prefer Colgate India in the fast moving consumer goods (FMCG) space due to a better growth outlook and a better performance on the volume growth, which remains at 9-10% despite intense competition,” Sharekhan said.
Cigarette-maker ITC and Godrej Consumer Products Ltd are other favourites in the space.
5. L&T
Target Price: Rs 1,130
Despite a slowdown in the Indian economy, analysts are bullish about the infrastructure major L&T. It is expanding its presence outside India, which is now expected to contribute 30% of its total revenues. Even in the domestic front, it has posted a strong growth in terms of winning orders. This shows its ability to withstand a slowdown. “With a healthy order book, strong balance sheet, wide ranging capabilities and international presence, the company is optimistic about its growth,” Religare reported.
Sensex jumps 69 points on special Diwali trading
Mumbai, Nov 3 (IANS) A benchmark index of the Indian equities markets rose 69 points in the special Diwali trading Sunday, led by good buying support in auto, FMCG and oil and gas stocks.
The 30 scrip sensitive index S&P Sensex of the Bombay Stock Exchange opened the special session at 21,278.08 points and was ruling at 21,265.84 points, at around 6.30 p.m., up 0.33 percent or 69.03 points from its previous close of 21,196.81 points.
The special session called Mahurat trading was organised to mark the beginning of Samvat year 2070, a new year according to the Hindu calendar.
Nifty of the National Stock Exchange was up 19.25 points higher at 6,326.60 points.
Saturday, 2 November 2013
JPMorgan discloses wider probes of hiring, currency trading
REUTERS - JPMorgan Chase & Co , the biggest U.S. bank by assets, disclosed on Friday that the U.S. Department of Justice and agencies from other jurisdictions are investigating hiring practices in Hong Kong that were already being probed by the U.S. Securities and Exchange Commission.
The company also said that it is being questioned about its currency trading by various authorities, which are in the early stages of their investigations.
Other big banks have made similar disclosures recently about probes of possible manipulation of foreign exchange rates.
JPMorgan also gave more details about U.S. government investigations into the bank's relationship with convicted Ponzi schemer Bernie Madoff. Two government offices, the U.S. Attorney's Office for the Southern District of New York and the Office of the Comptroller of the Currency, are currently looking into the ties between Madoff and the bank.
The U.S. Attorney's Office for the Southern District of New York is also investigating the bank's activities in the California and Midwest power markets that were the subject of a $410 million settlement between JPMorgan and the Federal Energy Regulatory Commission.
Additionally, the bank offered more specifics on the amount of claims that investors and bond insurers had over mortgage-backed securities. Total claims added up to approximately $117 billion, $88 billion of which involves Bear Stearns, Washington Mutual, JPMorgan or its affiliates as an issuer and $29 billion of which involves the entities solely as underwriters.
The company made the statements in a quarterly filing with the U.S. Securities and Exchange Commission.
(Reporting by David Henry and Peter Rudegeair in New York; Editing by Phil Berlowitz)
Monday, 21 October 2013
Goldman Sachs profit falls 2 pct as trading revenue slumps
REUTERS - Goldman Sachs Group Inc's third-quarter profit fell 2 percent as weak bond-trading volumes hit revenue in its biggest business, pushing down the bank's shares in premarket trade.
Revenue from Goldman's fixed income, currency and commodities (FICC) business, which undertakes trading for clients, fell 44 percent to $1.25 billion in the quarter ended September 30.
The fifth-largest U.S. bank by assets reported a profit of $1.43 billion, or $2.88 per share, beating the average analyst estimate of $2.43, according to Thomson Reuters I/B/E/S.
In the year-earlier period, the bank earned $1.46 billion, or $2.85 per share.
Goldman's shares fell 2.5 percent to $158.23 in premarket trading despite the stronger-than-expected earnings and an increase in quarterly dividend to 55 cents per share from 50.
"The third quarter's results reflected a period of slow client activity," Chairman and Chief Executive Lloyd Blankfein said in a statement.
Fixed-income trading was muted for several weeks leading up to the Federal Reserve's meeting in mid-September amid speculation that the central bank was about to start winding down its bond-buying stimulus program.
Goldman was not the only Wall Street bank to be stung by weak fixed-income trading. However, it is more reliant on trading income than its bigger rivals, which have significant consumer banking operations.
JPMorgan Chase & Co's trading revenue fell 8 percent in the latest quarter, while Citigroup Inc's dropped 26 percent and Bank of America Corp's
Revenue from Goldman's own investments also fell. Revenue from loans and principal investments slid 18 percent to $1.48 billion.
Equity trading revenue dropped 18 percent to $1.62 billion, while investment banking advisory revenue slid 17 percent to $423 million. However, underwriting revenue rose 13 percent $743 million.
(Reporting by Lauren Tara LaCapra in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)
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