Reality stocks in for a big correction

The real estate stocks are experiencing a huge correction. Most of the stocks including heavy weights like DLF, Untiech, Parsvnath and omaxe are witnessing heavy correction. The basic reason behind this is that they are now in for a phase where there would be a sharp reduction in demand for their products and would result in fall in realestate prices. Many of the companies like Parsvnath and omaxe are in dire need of cash to meet their commitments. Omaxe had earlier pleged its shares to raise money and now the news is that the promoters are intersted in selling a part of their stock to raise money. With interest rates on a rise and likely increase in EMI's there is likely to be a fall in the total disbursement of home loans further adding to the problems of the real estate players. So if you are in for investing in these stocks then dont expect quick returns. You need to be careful and take a long term view of the stocks.

Taming inflation

The RBI today announced steps to curb the money supply in the system by announcing a 50 basic point increase in the CRR to 8.75%. This hike would be in two stages 25 basis points from july 5 and another 25 basic points from july 19. The repo rate has also being hiked by 50 basis points to 8.5%. This is likely to suck of over Rs 60,000 crores from the system. The move would have impact on the economic growth of the nation as the cost of funds is going to increase.
I feel that the govt missed the bus and is now desperate to take short term measures to cut inflation. The fact that no steps have been announced where in it shows that the govt has in mind to keep infalation under control in the long term surprises me. Everytime the govt meets on ways to curb inflation i hope for the same but in vain.
Here are some of my views to curb inflation over the long term.
Lets ananlyze what are the major concerns today. The very first one rising crude prices and with it depreciating ruppee. Both quite out of the control of the govt. So what can be done. We need to promote alternative sources of fuel and energy to cut down the requirement for crude over the longer term. Steps need to be initiated to promote green energy like solar power, wind energy and hydel power. Sources for all these are in abundance here. But no steps have been announced till date on these fronts. Have we ever analysed that kind of fuel we are burning in traffic jams. I think a study on these can be an eye opener for the policy makers. Why not promote buidling highways, bridges to cut down travelling time and thus fuel consumption. Many would argue that the govt does not has enought funds. Here the answer is private public relationship.
Steps need to be taken to promote fuel effecient vehicles. The recent increase in taxes on larger engines sounds funny. Why not classify vehicles as fuel effecient and inefficient ones. Then levy heigher taxes on ineffecient vehicles giving the manufacturers clear signals that they have to move to an effecient regime.
Crop planning is another area where the govt needs to take a look. IN one year we have a bumper crop which may be followed by a shift in farming and the very next year we are scarce in that very product. A planning of the areas according to their suitablity to the crop could not only help in keeping prices under control but also lead to heigher yeilds per acreage helping the farmer as well as controlling inflation.
What the govt seems to be doing today is just short term moves to prepare for the elections. Hope somebody is listening.

Pay per post - any blogger would love to be here

payperpost When i began with blogging i thought its just the simplest way to make money on the net. I had researched the net and found that people have made a seperate earning stream by blogging. I began with my blog and started with what i knew the best Stock markets. I used to visit other blogs and came to know that one can earn by posting posts on one's blog. This seemed to be a great opportunity and i certainly needed to take a look at this. I am glad that i did. I applied for approval by Pay per post and my blog was approved.
Let me tell you more about Pay per post.
Firstly, why would one like to register here. Because you get an opportunity to post on your blog regarding opportunities provided to you and inturn you get paid for the same.
The registeration process is pretty simple. You need to submit your blogs URL for review. Pay per post will reivew your blog and see if it meets the standards set by them. Before submitting your blog take a look at the terms you need to fulfill.
1. Your blog should be atleast 30 days old.
2. The blog must carry atleast 10 entries in the past 30 days.
3. Blogs with a gap of more than 30 days between one entry and the other are not accepted.
These i feel are purely to keep at bay bloggers who are not serious at their work. The attempt is surely to get in quality blogs.
Once your blog is approved you will be provided your own page which will carry opportunites available for you and also a total list of opportunites available to all bloggers. You can go through their description and the links one need to post along when writing on the topic. The reward attached for the same is also specified and the tone in which one need to write is also specified.
Once you have read the requirements and are sure that you can meet the same you can click on 'reserve this opportunity' button and you would be carried to the next page. You would be provided with a link that you need to paste in your post. Also remember to copy and paste 'my custom tracking image' in the post. Once you have written the post in your blog submit the post and its done.
One thing worth mentioning here is that the number of posts per post are limited as per the requirements of the advertiser so you need to be quick to grab one.
Finally, i would say that this is a perfect place for any blogger to be in. Go for it.

You can join Pay per post here

When to invest

The key question today for an investor is when to invest and what kind of investments to go for. Should one go for long term investments or one needs to move in to day trading. This will all depend on the kind of funds available with the investors. An investor who has the capability to invest for the long term should keep his funds ready now. With the nuclear twist taking a final turn there could be a sharp fall if the govt falls. This would be an excellent opportunity for the long term investor to park his funds. The advance tax data is expected to be robust and this could lead to short term upward spikes in the market however the trend surely seems to be down with a lot of uncertainity on the political and the inflation front. Another investment opportunity which would come up over the coming months would be the debt market mutual funds. The interest rates are on a rise and the when signals appear in that the rates have peaked and the trend is likely to be reveresed then one should park money in debt funds as this would result in not only good interest income but also capital gains as the reducing interest rate would lead to higher valuations for the bonds.

Inflation hits seven year high

The wholesale price index (WPI)-based inflation rate unexpectedly accelerated to a more-than-seven-year high at 8.75 per cent for the week ended May 31, surprising analysts and policy makers.
Current inflation rate is the highest since January 13, 2001, when it stood at 8.84 per cent. Inflation rate for the corresponding week last year was 5.09 per cent.
Finance Minister P Chidambaram termed the inflation as a "worrying" factor but said the government was confident of bringing down the price rise.
However, more worrying for the government is the fact that the latest surge in inflation is largely driven by rise in food prices.
Planning Commission deputy chairman Montek Singh Ahluwalia said today a good monsoon would strengthen the agriculture sector and bring down prices of commodities.
Analysts also apprehend that the Reserve Bank of India (RBI) may further tighten monetary measures before its quarterly policy review on July 29. The central bank on Wednesday unexpectedly raised repo rate by 25 basis points to a six-year high of 8 per cent, to keep a check on rising inflationary expectations.
The fact that the govt has failed to control inflation is a worring factor for the stock market and is likely to have a negative impact on monday and the future weeks to come.

Reliance power bags UP power projects

Anil Ambani-controlled Reliance Power has emerged as the lowest bidder to build two power projects in the Allahabad district of Uttar Pradesh, pipping Lanco Infratech, National Thermal Power Corporation and two other bidders.
Reliance Power agreed to supply power at Rs 2.64 a unit for the 1,980-mw project in Bara and Rs 2.60 a unit for the 1,320-mw project in Karchchna.
The other bidders for the 3,300-mw projects included Lanco Infratech, National Thermal Power Corporation, Jindal Steel and Power and CESC.
The Uttar Pradesh power regulator last month ordered fresh bids for the projects after the previous lowest bid of Lanco was rejected for being on the higher side.
Now the matter would be put before the evaluation committee and the energy task force for the final decision.
This should be good news not only for reliance power but also for reliance energy which is likely to get good business through these projects.

Its here

Yes we finally had a price hike on the fuel front from the govt. The hike includes a 5 rs hike for petrol, 3rs for deisel and a Rs 50 hike in LPG cylinder. The govt also resorted to duty cuts on import of crude and diesel to cut losses of the oil marketing companies to the tune of Rs 22,000 crores. What i found missing in this whole episode was any concrete steps to reduce dependence on imported fuel. I was expecting some steps on setting up of solar power plants and plans to set up pipelines for the use of natural gas which is available in india in abundance. But all this was missing. Hope the govt tries to make the country self dependent by changing the way fuel is consumed in large projects. The markets did not take this lightly and the stock market tanked by over 447 points. This could be a good time for some investment now. I feel its time to begin making some investments. My personal picks would be petronet lng, noida toll, rpl, reliance industries, morepen labs, lakshmi elec, larsen & tubro.

stock market in for a toss

The indian stock market is in for hard times keeping in mind the current scenerio where in there are a combintion of political, local and international economic pressures on the system. The economists seem to have a hard time trying to balance between them all and till date with no results. The congress loosing elections in karnatka has just added to the woes. The fertiliser subsidy, loan wavier for farmers, rising fuel subsidy is just threatening to take the fiscal deficit out of control. All this could lead to a fall in the growth in the economy. What is very much worring is that the FII's are pulling out money out of the indian stock markets even today when the ruppee has depreciated and the stock market are nearing the january lows. This means that either they are busy booking their profits or they feel that the indian markets are not the best choice and their attitude towards the indian markets could mean a further downslide for the markets as they are surely largely dependent on the large foreign input they got in the past and had a long bull run. Now with the things just reversing this may be the bears time to celebrate for sometime now unless oncourse the govt takes some concrete steps to check the increasing fiscal deficit. This requires great political courage and it seems to be missing. Most actions are focousing on keeping allies happy so that the govt keeps going and this has slowly led to a situation which is now too tricky to solve in a single go. Lets hope tomorrows meeting on the fuel price hike is successful and the govt sends a message that its serious about the economic crisis we are in.