Reliance Industries: A Report to Read for a Year

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I accept openly that I have lost money in Reliance Industries. I have not made money on this counter. Both the brothers do not suit my style of gaming in stock market.
However, there is 870 factor for one year. I hope to use this opportunity. The given report HERE has very nicely discussed all the factors. The report is written in such a manner that anyone can understand it. That is other thing, it is suggesting against my enthusiasm. Well, my only argument is that if the right kind of business is done, the things then come out, would be different. If Reliance allocates money to buy back shares, and this is not liked by some management experts, it is right. But somewhere, you are asking for miracle from Mukesh and business is not done like that. Somewhere you have to wait for some opportunities and in the meantime, you have to put money to some use. At least for me, it makes sense to put money in your own stock as that gives me a message that there are some iron in the fire.

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Portfolio Making Expertise

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You can not overlook the activities of LIC of India in share market. No doubt, there are people who raise finger at the actual financial structure of the corporation as it is accepted among the experts that no one really knows the actual size of LIC of India. Well this is a general corridor talk which do not carry much weight.
The important issue is the recent structuring of LIC in its portfolio which had been studied by another private bank researcher and report in Economic Times HERE.
It is my observation over a period of time, then when market falls, the FIIs sell and move out. It is the DIIs which then come in and buy and keep the market floating at a particular rate. When Fiis offload, then it is only Diis who have that kind of money to make the purchases. Otherwise, the market would bust. When the fiis reenter, it is diis which sells and fiis buy and then the market runs. This is how the merchants in share market had been working as per my observation.
However, this report attracted my attention because, it is showing some different pattern in case of LIC. It is buying public sector banks and selling such shares which if accumulated by an individual over a period of time, that they can easily take care of his old age.
Just read the list of shares which it has sold. One does not need a certification from an expert to pick them in ones portfolio.

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GAAR ki VAAT: Really

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Hai, Market has fallen. It will go down further. Too bad. In my last post, I pointed out to the reports of the impact of GAAR. I underplayed it. Now market has fallen. Every report is making GAAR a culprit. However, I will like to read the view of Nicholas de Boursac on Economic Times again and again. I am more interested in the comment of Ravi, which happens to be the first comment in this section. I am keeping it for record because, the view incorporates some figures in it which I believe, if they are true, very vital to remember. As for me, I am sure a deal will be struck. Chandarkant Sampant had last year warned government about the current account deficit. The danger is there. But, if the Indian economy is strong, if the right quantity of business is done, these finance management issues will turn out to be boggy. I may sound novice, but I am Bullish. Yes, I accept that the market will go down. There are dangers. India will suffer if it will not take right steps to curtail current account deficit. But still, I am bullish and believe that FIIs are here to stay. If they stay, then it is upside and more money would come in. Indian need their money and they see an opportunity to make. There is possibility of Business. You got it.

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