Stock Shastra

With the Union Budget 2012-2013 around the corner, the common man and the industry alike, await its arrival. The Indian economy has seen a lot of turbulence in the year gone by, in the face of global macro-economic crisis, high inflation and interest rates, rupee devaluation, policy bottlenecks, etc.

But all this has soared expectations to a very high level.

Let’s take a sneak-peek.

The Gross Domestic Product (GDP) in India expanded 7.7 percent in the second quarter of 2011 over the previous quarter – the slowest growth rate in six quarters. Rating agencies like CRISIL as well as the IMF have revised down their GDP forecast for 2012 to 7.6% and 7.5% respectively. So, what’s the cause of this slowdown?
This has primarily been attributed to rising interest rates, high inflation and global unpredictability, created specifically by the economic woes of the developed world.  Even as the Gross Domestic Product (GDP) of Asia’s second largest economy continues to hover below 8% for the second consecutive quarter, inflation and interest rates continue to rise. In fact The Reserve Bank of India (RBI) has raised rates a dozen times since March 2010, thereby making it amply clear that controlling prices remains its priority. In order to control inflation, the RBI is compelled to hike interest rates, [...]

In the last two decades, the global face of India has undergone a significant transition. The Indian economy has witnessed an impressive growth during this period. And the one sector that has driven this transition is the IT sector. Its contribution to the GDP has increased tenfold from 0.6% to 6% currently and is still growing; its role in generating employment has also been remarkable. Thus, the IT sector has changed the lifestyle of many Indians, leading to increased income and comfort level.
With such hype surrounding this industry, it becomes imperative that investors have a good understanding of this industry. More so, when companies like Infosys and TCS, which have proven gold mines to investors, form a part of this sector.
So how does the IT sector work? What are the future prospects of the sector? Also get a glimpse of the top players in this industry and whether they are [...]

If ever there was a Holy Grail for stock investors, then it surely would be the quarterly and annual report on the GDP! GDP report reveals all the facts about the economy, production, income, saving, investment; things which we feel are only for big shot economists and experts to deal with.
But just like investing in stock markets, understanding the dynamics of GDP is not rocket science. And understanding this economic indicator is all the more important because it reveals to us the health of our economy and has the power of shaping the course of the stock market.
So what exactly is GDP is and why is it important for us? And how can understanding it enable you to profit in the Stock market?

The role that a Government plays in the development of the country is similar to that of a parent raising a child. The Government is responsible for the growth and development of the nation as well as for the welfare of the people. And the way this it achieves this is through the money that it spends i.e. Government Spending.
Government spending might not be a word that we are fully aware of but it can significantly alter the prospects of a particular sector and even the entire economy. Infact, it also helped revive our economy in 2008-09 after the sub-prime crisis led to a market crash.
So, how does the government spending impact the economy? Which sectors are benefited the most by higher spending? And how can we use this knowledge to make profitable investments?