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Indian Stock Market

Janaki Jambunathan

Well-known member
Adiyadha Madu Padiyadhu(#59)

Typical "ரெட்ட மாடு" legacy ! Bull should take over the market and should welcome it.
Pigs get slaughtered politically as well !

0_1570252245862490568509.png


Stock market is not அலங்காநல்லூர் ஜல்லிக்கட்டு where bulls are tamed!

நல்ல மாட்டுக்கு ஒரு சூடு !
 

Janaki Jambunathan

Well-known member
Inflation is good when it is mild. There are two situations where this occurs. The first is when inflation makes consumers expect prices to continue rising. When prices are going up, people will buy now rather than pay more later. This increases demand in the short term. As a result, stores sell more and factories produce more now. They are more likely to hire new workers to meet demand. It creates a virtuous cycle, boosting economic growth.
 

krish44

Well-known member
There is no economics at festival time . When wife spends , husband pays obediently.inflation or no inflation.

One can see the rush in saree and jewellery shops .LOL
 

Janaki Jambunathan

Well-known member
Spending is a stimulus to get out of slump - even if it is because of nudging wife! When there is no spending deflation gets in! Wifeக்கு " ஓ போடு".
 

krish44

Well-known member
Which banks are safe for FDs . After PMC muddle all banks have become suspect.

The safe appear to be HDFC bank and axis bank.

SBI though safe is not known for good service.

Best distribute in several banks ignoring interest rates. Safety of capital is more important.

Adhoc changes in interest rates downwards with changes in repo downward is likely to hurt senior citizen who

mostly live

on FD interest.

It required a statement fro RBI to stop the downward spiral of yes bank shares when it went as low as Rs 30

. Now it has returned to 41-42.

Banks like RBL with rural bias got badly hurt after run on PMC .

Banking system is facing a crisis of confidence.

Hopefully sanity will return and bank shares falling on rumours will end.

All established institutions are facing a credibility crisis.
 

Janaki Jambunathan

Well-known member
I have reasons to be concerned about every information on Yes Bank I watch with வெளக்கெண்ணெய் in my eyes especially this one-

Gill said the bank has had "informal conversations on a no-names-basis" with the RBI on the proposed infusion and he expects the central bank to take a "reasonable" decision.
"In future banks will become technology companies with a banking licence," he said, while enlisting the advantages of such a transaction taking place.

These (tech) companies are feeling Yes Bank is digitally savvy, 'platformised' better and is also available for cheap valuation now," Gill said.

"The two things that we need to address is the single ownership for a equity holder and the second thing is, how comfortable would they (RBI) be with an unconventional/non- conventional investor coming into the bank," he said.

What is he hinting?

Reliance is moving away from petro to Jio They have shown interest in Banking even applied for license for Payment bank - could be Mukesh Ambani ?

Possible!
 

krish44

Well-known member
Every time a change takes place in YES bank, the share takes a knock.

When Rana transferred his stake to vijay [Paytm] it crashed to 30rs.

If one more investor gets added gets added, it will be volatile again.

It hardly matters who it is.

I dread even to take a FD in yes bank even though the interest rate might be attractive.

Many of the employees of the company off loaded their shares when the stock went down last time.

Banks like yes bank, IDBI,idea first bank will always remain suspect in the eyes of the small investor.

It is OK for short time speculation and day traders.

My share broker - a traditional south indian brokerage does not allow me to invest in these without

first ensuring my credit worthiness

and my ability to take losses.
 

Janaki Jambunathan

Well-known member
Swaminathan Aiyer wrote in one of his blogs,:

When private sector banks were allowed to open in the 1990s, some economists thought big industrialists were the obvious candidates. But businesses are potential borrowers, and so should not control lending institutions: that creates an obvious conflict of interest.

May be he is right -

But RBI should take a call! RBI has not decided on Lakshmi Vilas Bank yet!
 

Janaki Jambunathan

Well-known member
Banks like yes bank, IDBI,idea first bank will always remain suspect in the eyes of the small investor.
My share broker - a traditional south indian brokerage does not allow me to invest in these(#67)

Rule of Thumb - Don't bank on banks ! 'Scheduled' Banks - wouldn't touch them with bargepole !
 

krish44

Well-known member
I am wondering what is going wrong with indian economy.Macros -inflation under control, Repo rates at all

time low,oil prices moderating downwards, Rupee stable around rs71 to dollar. Yet there is gloom and

economic slowdown is not getting corrected.There may be minor spike in consumer demand due to festival

sales Next month again the slowdown will persist.One may speculate if it is any foreign unknown factor.

What should one do now? Most depositors are losing faith in the banking system and RBI. The mess in rural

banking and difficulties faced by micro finance companies like RBL, failure of PMC bank is making people

believe in rumours and dumping shares. You have india bullhousing finance, lakshmivilas bank facing

difficulties, yes bank looking to foreign houses to raise money DHFL sliding down reinforce the thought that

something is not right.Indusind bank sliding down repeatedly with bank assuring that there is nothing wrong is

puzzling.

After the initial euphoria when FM cut corporate taxes, medium and small entities have lost their gains. Only

large players with high market capitalisation seem to have got some benefit.

Rural economy has not revived. and rural spending is not picking up.Manufacturing companies are still

licking their wounds. Maruti,auto ancillaries are down.No one is going towards housing .

So what next?
 

Janaki Jambunathan

Well-known member
What is he hinting?
Reliance is moving away from petro to Jio They have shown interest in Banking even applied for license for Payment bank - could be Mukesh Ambani ? (#66)
Cat is out of the bag!
It is Microsoft and not Reliance as I speculated !
 

Jaykay767

Well-known member
This is the contagion that many of us talked about which our Bakths and supporters refused to accept.

Demo and GST lead to millions of businesses to shutdown over a 2 yr period, all across the country. And this in turn lead to massive joblessness. Hence the spending reduced dramatically as families began to cut back heavily.

And even those who were still gainfully employed,cut back seeing their neighbours in such trouble.

And the crooks , shut down their existing businesses and completely went underground as full black money business evading all scrutiny from the income tax department. And they also deliberately defaulted on their bank loans, in this process, leading to massive NPAs. Of course scores of businesses closing down also led to legitamte NPAs as the companies could not repay due to business loss.

Hence we are in a deep depression and hence this will take years to rebuild and in the meanwhile, many more companies will go down, and new ones if any will only spring up over many years. That's why I shifted all my money long back to foreign banks, and some know I have one leg here and another across the continent. LoL.

Well, people wanted pakodanomics, and we have got one now !! LoL
 

Jaykay767

Well-known member
Only direction the stocks will go is down, fully short on the market ! And with junk policies of this junk govt, nothing will change. So tread carefully, don't be long in this market, unless the new policies change the ground game dramativally
 

krish44

Well-known member
What Next?

Genuine attempt to revive spending by cutting down on income tax with zero tax upto about Rs 12000

Reducing GST across the board having only two slabs of 5 and 12% for all items and services

These minimal measures will put money in hands of people to spend and increase demand and economy will

pick up.

Stop scrutiny for small tax payers .

There is need to stop stranglehold on these on genuine small businesses and MSME.

Ensure easy credit to SHG in villages

Increase minimum support prices to agricultural products .

Privatise fast PSUs to bring govt share holding to 51%.

All these are easily possible.
 

tbs

Well-known member
What Next?

Genuine attempt to revive spending by cutting down on income tax with zero tax upto about Rs 12000

Reducing GST across the board having only two slabs of 5 and 12% for all items and services

These minimal measures will put money in hands of people to spend and increase demand and economy will

pick up.

Stop scrutiny for small tax payers .

There is need to stop stranglehold on these on genuine small businesses and MSME.

Ensure easy credit to SHG in villages

Increase minimum support prices to agricultural products .

Privatise fast PSUs to bring govt share holding to 51%.

All these are easily possible.
hi

this drama goes on.....cutting/increasing.....in DEMO periods....removing 500 /1000 notes and adding

2000 notes.....no logic at alll......something happened for somebody....
 

krish44

Well-known member
Have you wondered who drives the indian economy?

not surprisingly it is the middle class wage earner.

He pays the taxes.

He consumes also the maximum.

But Govt policies do not cater to this class.

They formulate policies to give doles to the poor and incentives to the industrialists to perform.

Yet these classes do not do much to aid the economy. Industrialists evade/avoid taxes ,the poor just live off

doles.

Middle class should be exempt from taxes on income. They any way are taxed indirectly on what they consume.

Govt can fire off the army of income tax officials who spend time targeting the IT returns of middle class.

Govt can save on their salaries and reduce corruption they indulge in .
 

Janaki Jambunathan

Well-known member
RBI rejects merger of LVB & India bulls
I think RBI is cautious after PMB bank fraud - It is right decision.

I wonder how PMB could open 21000 Acs. No KYC? Aadhar should be made mandatory to open a bank account - to avoid such fraud ! Courts may be approached to review their judgement.


Unlike scheduled banks If cooperative banks go bankrupt 1L insurance cover for all bank deposits of an individual I understand is not available!

What is in store for depositors?

In cash less economy push every transaction is through bank . Will it be possible when banks are not fully reliable!
 

krish44

Well-known member
Credibility of of indian banks/NBFC s has sunk so much that RBI has to repeatedly assure about their viability..

Since there is hardly any reliability of the banking system, better spread assets in gold ,real estate, multiple

banks both public and private besides some sizeable cash home.Preserving capital is more important than

interest rates offered.

India is not fully ready for cashless economy.Cash in hand is more reliable than money in banks.

Also spending money and living it up is an option.

Money today will get you far more than what it will in a year from now.
 

Janaki Jambunathan

Well-known member
.Preserving capital is more important than
interest rates offered.(#78)

We (J & JJ) have almost withdrawn our FD in Banks and reinvested in SCSS (5 yrs.) to the maximum permitted limit in SBI close to my flat in OMR and In PMVVY with 8% (10yrs.)

Our estimated income 2019 - 20 shows about 4 L available for investments after committed contribution to PPF & LIC premia. I am thinking of POMIS but yet to decide - These are available in Post Office only and not in SBI like PPF or SCSS -

Doing business in PO would be a pain I know!
 

krish44

Well-known member
Post offices should be last option for parking money for IT savvy investors.

TCS reported a not too good results for last quarter . Future does not appear rosy for IT biggies like TCS or

infosys. It professionals need to retrain for newer technologies very often and this puts a pressure on them.

They have a short shelf life and most end up burnt out and face retirement before 40 years.

Finance jobs are a better bet.Investing in SBI shares which is at lows around rs 250 is worthwhile. It can go as

high to 300 plus in a short time. For parking money private banks such as HDFC bank or Axis are better
 

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