Stock Shastra

The MCX IPO goes live today on the 22, February, 2012 with much excitement around it! The bleeding IPO market has seen no issue since October last year.

MCX is the largest commodity futures exchange in India, enjoying a leadership position in metals, bullion and energy futures. Financial Technologies is its biggest promoter. With, MCX being the first commodity exchange to be listed on the bourses, there are many news reports and expectations doing the rounds

So, does this IPO have what it takes? Let’s find out…

The Banking sector in India remains an investment favourite for most of us. This is but natural, given its excellent performance in the past decade. But, when it comes to understanding the structure, we find it too complicated! Most of us even shy away from it.

MoneyWorks4me thus brings to you a simple analysis of the Indian Banking Industry in two parts.

This first article will help you learn the structure of the Banking Industry and what is its business model?

The first month of the new year 2012 has been very good for the stock markets. The month of January saw the Nifty go up by 12.4% – the best monthly returns over the last 30 months! This rise has been fueled to a large extent by FIIs who were net buyers of more than Rs. 26,000 Cr. The month also saw many companies announce their December i.e. 3rd quarter financial results. Out of the BSE 500 companies as many as 212 companies have announced their results so far.
Let’s take a look at the report card for the December quarter and what it reveals:
The 212 companies which have reported their results so far (till 1st Feb’12) have clocked a healthy growth of 26.8% in Net Sales as compared to December 2010 figures. However, this growth hasn’t resulted into increased profitability as higher inflation and high interest costs have reduced operating [...]

The Supreme Court has cancelled 122 telecom licenses granted to telecom companies after 2008 under A. Raja’s tenure. These licenses were issued during an irregular sale of spectrum using ‘First-Come-First-Served’ basis. As directed by Supreme Court, the verdict will be implemented after four months from now. During this time the government will have to decide new norms to re-issue licenses to interested players. Due to these cancellations, a total of 55 Mhz of 2G spectrum (4.4 Mhz per circle) has been freed.

So, what is the impact of this on the different parties involved?

The much talked about Reliance buyback offer finally starts today! The markets have reacted positively to this news and have sent the share price soaring for the past few days. But, buybacks need not always be good news. At times they can be used for purposes not in the interest of shareholders.

So, does this buyback offer provide you a good opportunity? And should you participate in it?