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 !



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!


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 )


Satta Stocks

The “Satta” Stock

Nagarjuna Oil is part of the Nagarjuna group and has set up a 6 Million Tonne Refinery in Tamil Nadu.

This refinery was supposed to be commissioned in March 2012 but has been delayed.

Now, the funny thing is that the financials of this company are not available on the NSE website nor on the BSE web site nor on the company’s own website.

The only thing we know is that around 42.81 Crores shares are outstanding which gives it a market cap of around 325 Crores.

Despite the lack of details or perhaps because of the lack of details, this stock is up around 37% today.

In many ways, the stock reminds me of RNRL. It has all the ingredients for being- in Dalal Street terms-a “satta” (aka punting/gambling) stock:

1.A low price (around 7.55) allowing even the smallest of punters a chance to speculate

2.Potential of huge profits for the company

3.Impending news (In this case, the commissioning of the refinery)

4.Well known and politically connected promoters

Off to the races then !


FIIwale Disco DIIwale Khisco

In this quarter, FIIs are doing all the disco (buying) and DIIs are doing all the khisco (selling)