Blog Article 26-12-2018

A warm Welcome to the website!!
Being the first blog on the website, I am pleased to share some important issues for those interested in stock markets.

Without entering into an amusement park, all the investors are purely facing a ROLLER-COASTER ride in the Indian stock market as of now. Recently, the Dow, which is part of US stock market fell to a low of 22,442 on friday. The same seemed to have come due to hike in interest rates by the central bank of the USA. This was expected to worsen as the President has been discussing the firing of the Federal Reserve Chairman Jerome Powell and as expected the dow further fell to a low of 21,792 falling by 653 points.

The Indian market has been reacting to the global situation and has been going down showing a bearish trend. However, the economic scenario, globally and particularly in USA do not seem to be weak enough for bringing again the 2008 as some people are thinking of it. US President Donald Trump has made a statement, out of which it may be construed that the firing the federal chairman issue has come to a stable stage and has stopped making further flames.

As stated above, in both the situations, (1) the economic data of the US economy is good throughout the year, and (2) the issue of federal chairman has stopped getting more serious, investors may now expect the markets to stop bleeding further.

Accordingly, Indian market could also stop bleeding which had a tremendous impact of global markets. Investors may take this situation as an opportunity for buying stocks at cheap prices. Also, the coming month is a month of financial results of companies. The only thing to be watched will be the impact of trade wars on companies in the 3 rd quarter.

As said, the smart investors may take up fundamentally strong companies for investment and thereby making the optimum utilization of opportunity.

Knowledge enhancer:
Precision Wires India, a company based in Gujarat and listed in indian stock market, is a largest producer of winding wires in India. It is also a largest in South Asia in terms of production of its product with a capacity more than 33,000/- tonnes per annum. It has manufacturing facilities in Silvassa, Dadra Nagar Haveli and third at Palej, all three in Gujarat. Its products are mainly consumed in Electrical and Electronics Industry. A brief analysis of current scenario of the company is : 
Net sales gained a upward of 52% in six months ended September 2018. This resulted in 23% increase in its operating profit (Rs. 49 crores) and 29% increase in Profit after tax (at Rs. 22.04 crores).

 

More blog articles to be followed on the website relating to issues on Audit, Incometax, Corporate laws, GST etc. Comments, suggestions on the website as well as the blog are always welcome.

 

-By Dharit Mehta, FCA

 

Disclaimer:
This information is for educational purposes and is not an investment recommendation nor to be representative of professional expertise, but to be used as a forum for opening discussions around trading. All examples and analysis used her-in are for illustration purposes only, and of the personal opinions of the Original Posts author. All examples and analysis are intended for these purposes and should not be considered as specific investment advice.  The risk of loss in trading securities, options, futures, and forex can be substantial. Readers must consider all relevant risk factors including their own

personal financial situation before trading. We are not responsible for any trades readers post with their brokers, claiming us as an authority on their decisions. Individuals are solely responsible for any live trades placed in their own personal accounts.  The author is in no way responsible for individual loss due to poor trading decisions, poorly executed trades, or any other individual actions which may lead to loss of funds.  The author is not an investment advisory service, nor a registered investment adviser or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Factual statements on this blog are made as of the date stated and are subject to change without notice.  It should not be assumed that the methods, techniques, or indicators presented in these products will be
profitable or that they will not result in losses. In addition, the indicators, strategies, columns, articles and all other features of Traders Club’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments.