The fiasco over the rail budget has wrecked the market caps of Rail wagon companies.
Consider the performance of the rail stocks post the rail budget till now:
CIMMCO (down 22%)
Kalindee (down 59%)
Texrail (down 22%)
TWL (down 30%)
None of these stocks are in the F&O segment else they would have been butchered even further.
Considering the poor finances of Indian railways, the under performance should continue till the next Rail budget at least.
A sector to avoid.
Came across this research paper on the NSE website (see paper here)
The paper studies the effect of seasonality on Nifty and Nifty Junior.
Their conclusion?
The study found that daily and monthly seasonality are present in Nifty and Nifty Junior returns. The analysis of stock market seasonality using daily data, we found Friday Effect in Nifty returns while Nifty Junior returns were statistically significant on Friday, Monday and Wednesday. In case of monthly analysis of returns, the study found that Nifty returns were statistically significant in July,September, December and January. In case of Nifty Junior, June and December months were statistically significant. The results established that the Indian stock market is not efficient and investors can improve their returns by timing their investment.
Some stuff I am reading this morning:
L&T Finance buys Fidelity’s mutual fund business in India (ET)
Why market shakes every time the taxman shouts GAAR (Moneycontrol)
FII flows a record so far in 2012 (Mint)
A case for investing in MT Educare ( BusinessLine )
A case for not investing in MT Educare (FirstChoiceIPO)
Found this quite funny-Madrid prostitutes declare war on bankers (RT)