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MV Chronicle: Ambani Shuts Down the BSE and more...

 

In the latest MarketVision Chronicle (Feb 19 2011): Read about how Ambani shut down the BSE for a couple days in 1982, and all else at MarketVision.

(Note: You have to register, and it's free)

Reader Q: How is NAV Calculated For Purchases?

Reader Anon asks:

Hi Deepak,
Could you plz explain if some one newly buying to a fund will affect the NAV? or is it like.... today fund came up with the NAV of the scheme and if I apply for 10000 Rs, they give me units say today's NAV/10000 or is it like (Today's NAV calculated including my 10000)/ 10000 as the NAV of today and I allot the units!

Lets take an example. A fund has Rs. 100,000 as its total assets under management (AUM) and, let's say, 5,000 units.

Short Take: Equity Mutual Funds

See our latest video in the Mutual Fund series on: Equity Mutual Funds.

(Video, 10 min)

Equity Mutual Funds

Deepak takes you through Equity Mutual Funds in India. 
 

  • Different kinds of equity funds in India - Diversified, Sector, Index
  • Lockin Though Exit Loads 
  • No Dividend tax and Why
  • Derivatives that Equity MFs can use
  • ELSS and Tax Saving Funds
  • Other types of Equity Funds

This video is 10 minutes long.

Gutkha Ban Reaffirmed by Supreme Court

The Supreme Court has reaffirmed the March 1 deadline banning packaging of all tobacco products in plastic sachets. This hurts UFLEX, JINDALPOLY and POLYPLEX. The news was out yesterday but the stocks have slid down 2 to 3% today. The govt. has already banned it on Feb 4 (enforced from March 1):

PA Inflation Down To 14.59% - Feb 5, 2011

Inflation seems to be coming under control, quite dramatically. The latest data  for Feb 5, 2011 shows a 14.59% headline number. It will no doubt be revised to 16% or more later, when no one remembers.

China Beats The Next 10 In Steel, Added Up!

Data from the World Steel Organization for 2010 is in, and there's an incredible show out there. China, with 626 million tons of production, is greater than the next 10 countries,  added up.

India is fifth in the list, with 66.85 million tons.

World Steel Production, 2010

Buffet Exits Bank Of America

You might think that when Warrent Buffet says "Rule One: Never Lose Money. Rule Two: Never Forget Rule One." it means that he makes money on every trade. He doesn't. At least, not when it came to BoA:

Warren Buffett’s Berkshire Hathaway Inc. sold its stake in Bank of America Corp., ending an investment that spanned three and a half years in which the lender’s stock lost more than two-thirds of its value.

Buffett’s firm had no shares in the Charlotte, North Carolina-based bank at the end of 2010, compared with 5 million shares three months earlier, Berkshire said late yesterday in a regulatory filing that lists the company’s U.S. stockholdings.

Berkshire, where Buffett serves as chief executive officer and head of investments, entered the Bank of America stake with the purchase of 8.7 million shares in the second quarter of 2007.

This is why you shouldn't follow what people say, follow what they do.

Money Matters: Trades for Less Than Cash?

A number of mails in a few newsgroups I've subscribed to go like this:

QIP of 71.7 lakh shares made at Rs 625 per share in October 2010- Rs 448 crore

Add Cash and Cash Equivalents on March 31, 2010

Net Current Assets-Rs 225 crore

PAT For 9Months to December 2010-Rs 89 crore

Cash and Cash Equivalents With Money Matters As of Dec 31, 2010- Rs 762 crore

Number of Shares Outstanding- 3.5 crore

Cash Value of Money Matters stock- Rs 217 per share.

SBI Will Sell Bonds at 9.95%

State Bank of India has a new bond issue out (Shelf Prospectus).

Size: Upto 10,000 crores from retail, but official issue size is 2,000 crores.
Listed: Yes, on the NSE/BSE.
Interest rates:

image

9.95% for retail on the 15 year bonds, and 9.75% for retail on the 10 years.