Expect some extraordinary gains on this ‘Mahurat trading’

With the festival season well under way and Diwali just round the corner, it is that time of the year again, when “feel-good” is thick in the air. Some of us, who believe in work-life balance (with a tilt towards the right), hardly need prodding to put in that leave application — we try to make the most of the string of holidays accompanying the biggest festival of them all in India.

The coming week is one big fat moolah-making opportunity. Businesses of all hues and sizes are going all-out with their special-offer and discount-sale spins.

The commencement of the traditional New Year “Samvat” is marked at the bourses by a special trading session known as “Muhurat trade”. With many broking establishments opening new books of accounts on the big day, symbolic orders (mostly buys) are placed in the Muhurat trade to mark fresh trade in the New Year. The hope is that a good start will set the tone for the year to follow. After all, well-begun is half-done. This year, November 5 heralds the beginning of Samvat 2067, and in keeping with time-honored traditions, the stock exchanges have announced a special one-hour trading session this evening.

With the sharp run-up over the past year and half, the market is no longer cheap and a lot many positives seem to have been priced in. But as always, there will always be the hidden gems, which the discerning investor should be able to dig out with effort and some luck.

On that note, here's wishing all of you a cracker of a Diwali!

Source :  Buisness Line

What are gold ETFs?

What is gold ETF’s?

Gold ETF is a financial instrument like a mutual fund whose value depends on the price of gold. As the price of gold rises, the price of the ETF is also expected to rise by the same amount.

Similarly, a fall in the price of gold will also be reflected by a drop in the price of the ETF. However, unlike a mutual fund, the units of gold ETF have to be purchased or sold on the stock market.

Merits of investing in Gold ETFs :

Gold ETFs have the advantages such as lack of making charges, impurity risk, resale hassles, absence of wealth tax and long-term capital gains tax.

According to financial experts, investors can invest a small part of their portfolio in this fund for the purpose of diversification and hedging.

Indian stock market becomes the show stealer of the world!

Indian shares have entered a new bull market with a 20% gain from 2010 lows and so have other emerging markets as investors from developed nations chase returns.

It is believed that rally may continue as central banks in the west keep interest rates at record lows, forcing to borrow cheap and invest in highly-yielding emerging markets.

What’s driving the Indian stocks?
Foreigners are flocking to most emerging markets, including India since returns are higher as compared to other countries.
Indian companies earning growth would be sustained due to domestic demands where consumers don’t suffer from high debt, unlike economies in the west.

Which sectors are likely to do well?
Banks, Capital goods, Real estate and Metals are preferred picks of traders since they provide high returns in Bull Market.

How long will the rally last?
As long as the US fed and European central bank keep interest rates low, or west plunges into recession again.

What are the possible downsides?
Interest rates may go up as inflation accelerates which in turn could reduce demand.

Source : ET