Day: April 4, 2012

Categories
Nifty

Nifty in terms of Gold

If I were to ask you, how well did the Nifty do in this century, your answer would be quite well.

Nifty closed at 1528.45 on 31st March, 2000.On 30th March, 2012, it closed at 5295.55.This represents a gain of 246%. A nifty gain by the Nifty you would agree.

But this is only one side of the story.

The performance of the Nifty in terms of a hard currency like Gold takes a different hue all together.

In March, 2000, one Nifty could have bought 3.95 grams of gold.In March 2012, one Nifty can buy only 1.94 grams of gold.(see chart below)

So the gain by Nifty wasn’t so nifty after all !

 

Categories
Signals

Departing Robin indicates winter for Suzlon

In an earlier article, we  had mentioned that the CFO resigning is a good sign that bearish times are ahead for the company.

Now the CFO of Suzlon Energy Robin Banerjee has quit on 30th March, 2012. Since then, the stock has lost around 3.7%. In a recent article in ET, analysts have explained their apprehensions of the company defaulting on its FCCB debts-( $360 million in June 2012 and $209 million in October 2012).

Today the company announced that it was divesting its windfarm assets to the tune of 40 Million $. Despite this favorable news, the stock tanked by 1.76%.

When even favorable news can’t lift a battered stock price, it shows that the underlying technicals of the stock are quite weak indeed.

Arrival of Robins normally indicate signs of spring.Departure of this Robin probably indicates winter for the stock!

Categories
Links

Hot Links: April 4, 2012

Some stuff I am reading this morning:

Ten Things to know about Home Insurance (Moneycontrol)

Hedge funds try new approach in India (WSJ)

The Japanese Professor who is teaching India Inc (ET)

Mutual Funds lose 36,000 Crores worth of assets (Financial Express)

Court frames charges against RIL officials, Mukesh Ambani let off (SuchetaDalal)

The BRICS summit-the Chinese ate all the mutton chops (Bloomberg)

A paradox-Avoid correlation by following all the trends (Allaboutalpha)

Warren Buffett:Hypocrite Extraordinaire? (DailyReckoning)

(Technorati Claim: WEKR4Y4RD7RW )