Tag Archives: US
Company Shastra – Biocon Ltd.

Company Shastra – Biocon Ltd.

Many of you may be aware that we are initiating a new series of Company Shastra, which will cover safe stocks having favorable future growth opportunities. Our first pick for this series is Biocon- the leader in the biotech sector.

Biocon is an integrated healthcare company manufacturing biopharmaceuticals and providing research services. A highly innovative company, it has strong R&D capabilities which have resulted in creating potential blockbuster products in its research pipeline. While its contract research services are picking up pace, it is also well placed to benefit from the Biosimilar opportunity in key regulated markets with products going off-patent in 2014-2018E. However, higher R&D costs (as the product pipeline advances) are expected to act as a margin dampener for the next few years. Considering this, should you invest in Biocon Ltd.?

However, higher R&D costs (as the product pipeline advances) are expected to act as a margin dampener for the next few years. Considering this, should you invest in Biocon Ltd.?

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All you need to know about ‘The Great Greek Tragedy’

All you need to know about ‘The Great Greek Tragedy’

The global economy is tottering and all eyes are on Greece – which could prove to be the trigger of a domino effect having repercussions all over the world. This year has truly been a season of Greek Tragedies. How this tragedy unfolds will depend not just on the European Central Bank (ECB) or US Federal Bank but on some other ‘actors’ as well, who have their work cut out for them.

So, what is the plot of this great Greek tragedy? Who are these ‘actors’ who could determine the fate of the global economy? And what is India’s role in this plot?

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Category:In the News
Falling Rupee: How does it hurt you?

Falling Rupee: How does it hurt you?

‘It never rains but it pours’ – This could not have been more true, especially in the current situation for the stock markets. Even as the markets have been spooked by the global uncertainties, domestic concerns like inflation, high interest rates etc have added to the concerns. And as if this was not enough, we have another concern to add to the ever-growing list: the falling value of rupee. The Indian rupee has depreciated by about 12% since July and touched the psychological mark of Rs. 50 recently.

So, how does this falling rupee hurt you as an investor?

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Category:In the News
Investing in PPF: Is it really a good option??

Investing in PPF: Is it really a good option??

PPF is perceived as an investment option with the lowest possible risk. Most of us plan it as a part of our long-term investment strategy, owing to its certainty and safety – its backed by the Government after all; to add to this, the money is also exempted from tax!
But is it as good as it sounds? Though this investment is ‘Government-backed’ one needs to think about whether this investment is actually very safe and also whether it provides returns commensurate with the risk and rising inflation. In this article, we become the Devil’s advocate and question whether it is still a good investment option.

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Stock Shastra # 33 : Fluctuating Exchange Rate and its impact on your Stocks

Stock Shastra # 33 : Fluctuating Exchange Rate and its impact on your Stocks

Exchange rate is something that we are bothered about only if we are going for a trip abroad or shopping online for something which is priced in dollars! We rarely think about how it affects the stocks we hold. In 2006-07 many people were invested in the ever-popular IT sector stocks. But even as they saw the stock market surging to 21000, they were baffled to see that the IT stocks that they held did not move. Experts pondered over it, discussed it and attributed this to the exchange rate and the appreciation of the rupee.
This was confusing. After all exchange rate is a mere number. How could it be the reason for IT stocks not doing well? However, the fact is that exchange rate is very important for many sectors and is infact a very good tool to analyze an economy and sectors like IT, Textiles etc.
So, what exactly does rupee appreciation or depreciation exactly mean? Why does the exchange rate keep fluctuating? And most importantly what impact does it have on the stock market?

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