NRI alert: Is Indian Stock Market Bottoming out for global & domestic investors?

NriInvestIndia.com’s technical & fundamental analysts ( a global leader in NRI investing) states that the Asian markets would definitely see a surge in buying with context to this U.S. government proposed: US$700 billion plan to provide as a solution to the world financial & stock market crisis by aiming to rescue the big banks from billions of dollars in risky mortgage debt.

Analysts believe that the Fed would not let the whole financial system to breakdown the way it melted in the great depression on 1920s. At that point the system was not pro active and there were not sound measures that were taken due to which the whole world got into the hands of severe vicious circle of financial breakdown. Markets are well insulated now and there is no way that the fed and other big government banks of many countries would let the history to be repeated. As anticipated many major banks of the world have got together to save the global economy to go into the terrible recession. Witnessing such news coming from the federal bank, the Global markets rallied on Friday with the news tat Washington was likely to announce a bailout plan, calming investors worried that losses from bad bets on mortgages could bring about the collapse of more companies, straining an already weakened financial system and global economy.

As a rough outline of the plan took shape over the weekend, the Bush administration continued to lobby lawmakers Sunday for authority to use US$700 billion to buy up a mountain of bad debt at the heart of the crisis. While the proposed bailout lifted sentiment for the time being, there were still a number of uncertainties about the plan and the general health of financial firms that could further unsettle markets in the coming days, an analyst said.

NRI services head at NriInvestIndia.com – Mr. Akash Kumar states that: “This should block the bleeding wound, but the patient is still very fragile. We cannot comment much right now, but these levels could be considered as good points to invest into emerging markets like India, china, etc. Especially investing into Indian mutual funds could be of great return in the long term. Markets are certainly bottoming out and we may expect a huge inflow of FDI & FII cash coming into the Indian stocks”.

Present Indian Stock Market Condition: Tips & Strategies to Invest

Research group at NriInvestIndia.com anticipates the markets too stay choppy in the coming weeks due to the whole nuclear deal skepticism, assuming the outcome to be in India’s favour. The markets are in a very tight range and there is not much selling or buying on any of the blue chip stock counters says the equity analyst Mr. Gaurav Sharma at NriInvestIndia.com. He adds, we are betting on the fact that the outcome would be in India’s favor, thus most of the clients are adding good power sector stocks in both Indian mutual funds and derivatives market.

The Indian stock market is definitely not in one direction, and building positions on both buy or short sides is not a fairly good idea to make money in such a tight market. Analysts believe that the market is definitely going to see some action as soon some breaking news come out, but the effect of such news on the Indian stock market would not be lasting long, and there could be a major pull back leading the market to touch the 13000 levels.

Having said that, economists believe that the inflation would inch down to 10% in the coming quarter that would become visible in retail and consumer durable products soon, which would in turn boost consumer confidence. This would definitely push the markets to bounce back from the 13000 levels, and we might see some fresh buying, and both sensex and nifty might witness some rally.

These levels could be of great importance for those domestic as well as NRI clients who did not get a chance to make investments into top Indian mutual funds when the market was trading at 18000 levels. A prudent idea would be to invest 25% of your savings at these levels, and when the market drops down 20% from here, another 40% of the savings can be invested.

Current market conditions are as such that its very hard to predict the direction of the market, thus it is vital important for both resident as well as non resident investors to act wisely and invest with a proper game plan. The whole idea is to do investing wisely and with common sense, and not forcing one self into rush and landing into unnecessarily diversification of funds into some unwanted financial instruments. For more ideas as to how to go about drafting a portfolio, one should consult a good investment adviser and leave the job of asset allocation to professionals.

Is Indian Stock Market the right place for Investing?

India is perhaps one of the strongest, emerging economies of the world. With a 9% GDP, ever-increasing market, classy financial sector, improving infrastructure and a strong economic outlook has made India the latest “pin-up” destination for almost all the countries.

Indian economy was synonymous with ‘license-raj’ and ‘socialism’ post-independence. But dire economic reforms in the nineties have reformed the look of the Indian economy completely today. Simple, transparent, liberal and following the concept of laissez-fairre, the Indian economy is today at the centre stage of global economy.

The strategic location of India in South Asia also goes in her favour. A peninsula geographically, it helps trade relations. Also the effervescent capital market specialising in allocation of capital in diverse economic activities is a typical characteristic of Indian economy.

The domestic credit market encompasses active rate of interest, credit imitative and government bond market inducing foreign investments in India. On the other hand, India has become a hub of entrepreneurship. Obvious as there is a huge profit to be earned by entrepreneurs.

Lastly, India does not depend on exports. A meagre ten percent of her economy is export driven. India is self-reliant. Vast resources, excellent trade prospects, and a favourite stop among potent investors, India is likely to grow fastest among the BRIC (Brazil, Russia, India, China).

Having umpteen numbers of sectors where investments could be made, investing in India is surely profitable. So happy investing.!!

Why should Investors start Investing in Indian Financial Markets – Cover Story..!!

India’s population is her biggest asset. And the fact that Indian population is growing young day by day adds to the joy. India has a huge number of youths and teenagers. In fact India has about 115.3 million teenagers! This also implies that India has more teenagers than the combined teen population of the G7 countries!

Having a huge teen populace means investment opportunities for companies dealing in fashion, fast foods, soft drinks, clothes, music, electronics, sports goods etc. While the Indian market is flooded with brands like Coca-Cola, Pepsi, Levi’s, Domino’s, Pizza Hut, McDonalds, Nike, Adidas, Reebok, Disney etc. there is scope for a lot more to enter the market. After all, India does have the largest teen population in the world!

To give you an overview of the market and it’s potential:

  • 74% urban teens posses cell phones
  • 81% urban youth are computer users
  • 89% watch TV daily
  • 73% listen to the radio
  • 91% watch movies regularly

Now with such a market, who wouldn’t want to invest in India?

Having a GDP of 9% and the third largest economy of Asia (after Japan and China) and the twelfth in the world, India, it is assumed, will have the third largest economy (leaving behind Japan!) by 2012. According to a survey by Business Today, Indian youths spend $42 billion per annum!

According to some of the big brand managers, the Indian youth is willing to spend more for a brand name provided they get a rational argument regarding its utility. To add to this, 18% of LVMH sales in India come from teenage customers!

As stated before, the Indian market, unlike its American and European counterparts, is growing young everyday. Hence companies dealing with teen products have to look for markets having considerable teen inhabitants like India. The question is while Starbucks is opening its joint in India, will its foils like Dunkin Donuts, Café Nero and Costa Coffee sit back and watch Indian market being captured by its competitor, or will they too land in India soon?

Why should one Invest in the Indian Stock Markets?

The third largest Asian economy (after Japan and China) and the twelfth largest in the world, the Indian economy is virtually a success story. A mixed economy with more of socialist features to begin with in 1947, India, today, has become home to many MNCs. Since the nineties, when India first associated herself with concepts of Liberalisation, Privatisation and Globalisation (LPG), our economy has never looked back. Having a GDP touching almost 9%, the Indian economy, in terms of growth, is perhaps one of the fastest growing. This can also be attributed to the enormous growth of the services and manufacturing industry.

Huge spurges in call centres, software industry and back-office outsourcing, combined with India’s ability to produce world-class products and goods that are available in the market for a fraction of the amount of its foreign contemporaries has favoured India and has made her a major exporter of such produces.

Due to all these factors, our booming economy, is receiving an unparalleled flow of foreign investments and robust corporate profits. Since five years, the 30-stock SENSEX has been furnishing an annual return of 40% (in Rupees), and the sectors of real estate, banking and information technology (IT) have been at the vanguard of this explosion.

But, as the saying goes, all that glitters is not gold. While the economy, as a whole, is growing, the condition of the stocks is a bit misty. However, this stands true for all the share markets of the world due to the concept of volatility. The capriciousness has increased amid rupee’s strength against the dollar and the global credit crunch hampering Indian exporters. Till date the SENSEX has lost 13%!

Nonetheless, the fund industry has meted out various options for potent US investors to invest in India. The first of the two exchange-traded funds focussing on India has been launched, with the second one in the pipeline.

The Indian Share market also has provision for Exchange Traded Funds (ETF) that holds securities and follows a specific index, and can be traded just like stocks. In addition, ETF has been designed such that its share prices are close to its underlying asset value. This entire market is now open for both PIOs – person of India origin and NRIs – non resident Indians and they can very well invest in India using properly designated NRI Accounts through various financial brokers. These financial firms offer quality NRI Services like: Demat Account, NRI Bank Account, Online Stock Trading, Indian Mutual Funds, Futures Trading and mutual fund SIPs.

Top Brokers offering such investment solutions through their NRI Services are: http://www.NriInvestIndia.com, http://www.NriInvestmentsIndia.com to name a few.

NRI Share Trading in Indian Stock Market

The Indian Stock Market is as dynamic as any other market – the difference perhaps being that the Indian market is also accredited as being the emerging economic superpower. This perhaps is the reason why many Non-resident Indians (NRI) including Persons of Indian Origin (PIO) and Overseas Citizen of India (OCI) are investing in the Indian Share Market.

Many non-residents today look towards the Indian Market for investing their money. There are many brokerage houses that help non-residents in doing so. Timesofmoney.com, nriinvestindia.com, nricapital.com etc. are just some of the better brokerage houses. These brokerage houses will carry out all the paper work on your behalf with the broker acting as your representative in India.

Investments in India can be done in a number of sectors. The first among them is the real estate sector that has emerged as the hot spot for potent investors. This is perhaps because this sector is fast growing and non-residents have the option of buying, selling and/or even renting out their property.

Next to real estate, the investors have the option of investing in Bank deposits, better known as Fixed Deposits. They can open FCNR or NRE/NRO Account for the same.

In addition, many investors, today, prefer investing in Mutual Funds, as they can diversify their interests and Mutual Funds have the least amount of susceptibility. Investments in Mutual Funds can be done on a ‘repatriable’ as well as ‘non-repatriable’ basis. You can invest as per your convenience.

Investment is also allowed in PSU Bonds and/or proprietary or partnership concern in India. Non-residents may also invest in air taxi operation and Commercial Paper issued by Indian Companies.

Also, thanks to technology, investors can now trade shares online! But before you start with your investment spree, please note that you need to have three kinds of accounts so as to make investment permissible. The first is a bank account with a Portfolio Investment Scheme (PIS) with a Designated Bank (DB). Then you need to have DMAT Account followed by a Broking/Trading Account with a broker. You need not handle all the paperwork involved. You can give a power of attorney to your broker stating him to be your representative, and voila! All your work would be done in a jiffy.

In fact, you don’t even have to come over to get your Permanent Account Number (PAN). Your broker, on your behalf, as your agent, will do that for you. PAN is required, according to Government of India rule, for any financial transaction. A typical PAN would look like ABCDE1234F. For further details on how to get a PAN Card without coming over, please contact PAN Card Assistance Brokers at:

www.nripan.com

www.pancardonline.com

Thus, thanks to the boom in technology and Indian economy emerging as an economy to reckon with, non-residents are increasingly looking towards this eastern share market to invest their hard-earned money.

Is it the Right time to Invest in the Indian Stock Market & Mutual Funds?

There is a lot going in the Indian capital markets, especially in the equity segment where the volitilty is not settling down. Online trading has not been easy as per a couple of brokers who trade in BSE – Bombay stock exchange & the market has seen some real ups and downs in the gone 2 months, where we have seen the NSE index – NIFTY stuck between a tight range of 4500 to 3600 levels. Where does the Indian stock market go from here?? This is one big question in front of retail investors as well as NRIs – Non Resident Indians, including PIOs – person of India origin.

“Money is definitely there, sitting right on the table” – says Sr. Investment Adviser: Mr. K. Girish at NriInvestIndia.com. He adds, “the share market is definitely acting strange by showing signs of positivity, but it seems the recent rally of 1000 points is just a pullback and some selling is yet to come. He says the Indian boom story is not over yet, and India has still plenty of gas left when it comes to excelling in the financial markets, but the recent worries of commodities, inflationary worries in India and the global slowdown is not helping the Indian Mutual Funds & share market to do any well”.

Investors who did not get a chance to invest at the 20k levels can certainly invest at these low ranges, if not the lowest market level. NRIs can invest into IPOs – Initial Public Offers that are round the corner and for this they would need a Dmat Account, they can also invest into top mutual funds of India that have given some high returns in the past and if one needs to hedge itself from inflation then he may decide to invest into Gold using the ETFs – exchange traded funds (you would need a Demat Account for this).

Incase the investors are scared to put their investment in one go, then they should opt for SIPs – systematic investment plans and invest in Indian mutual funds on a regular interval of time, say every month. Many mutual funds in India offer such SIP facility; to name a few: ICICI Prudential, HDFC Mutual Fund, Kotak Mahindra, Citi NRI, etc. One other avenue for investment in India for NRIs could be retirement saving plans offered by various top banks, but for that they need NRI accounts to be opened with them, and besides this, such banks offer some great interest rates on savings if you open up a NRI Bank Account with them.

The idea is to analyze the current market scenario, later and look for best investment option in India and lastly invest systematically. One can take some professional advise from legal or financial consultants in India or avail portfolio management services in India.

One of the best firms offering such investing services to NRIs is: www.NriInvestIndia.com

Is Indian Stock Market Still good for NRIs to Invest?

Oil surpasses $140 per barrel, gold slowly heading towards a promising upward move, and to add fire – inflation in India hitting all time highs. So you as an NRI are confused whether to invest in India at these levels or not?

Well this is the reality of the world we are currently living in. While most people are struggling to make ends meet. NriInvestIndia.com is capitalizing this golden opportunity (current low market levels) to make its non resident clients to make investments in stocks that are trading way low, almost 60% to 70% from where they were trading 6 months back. We assume that the markets are definitely acting pretty volatile with no buying coming in from either the hedge fund or the
Indian mutual funds side, but still we believe that these levels are pretty attractive but only for those investors who want to get into the Indian share market with a long term view.This long term view should be of a minimum of 3-4 years, and one can expect a return of 20-30% on their capital invested. This basically boils down to prudent investing with a long term approach if the investor wants to generate huge profits over a period of 3-4 years in this bearish Indian market, which is totally being dictated by the global slowdown and the US recession (USA – recession).If you have ever wondered what it would be like to be a good NRI investor or stock investors in the stock markets of India (both BSE & NSE) and how you in fact could make some good money or a living by trading such markets, NriInvestIndia.com will not only tell you how you can open an NRI Account and invest using FMPs – fixed income maturity plans or SIPs – systematic investment plans but also assist you in investing in the best and top Indian mutual funds that could yield you high returns when the markets start bottoming out. We ate NriInvestIndia.com pledge to provide the most comprehensive investment advisory services and options to NRIs, PIOs and OCIs that would benefit person of India origin in a long run.Whether you tend to be conservative or aggressive, NriInvestIndia.com can work hand in hand with your by giving you professional investment advising and financial consultancy to build a solid portfoilio that can give you good returns when you retire.Please visit www.nriinvestindia.com to learn more about the NRI services like: Demat Account, NRI Trading Account, NRI Banking Services, PAN Card Assistance in India, Portfolio Management Services, Derivative Trading & Indian Mutual Funds assistance.

Can NRIs invest in Indian Stocks/Share and Mutual funds schemes?

Non Resident Indians including PIO (person of India origin) holding PIO card and OCI (overseas citizens of India) can make investments in Indian Capital Market by opening up an online NRI Account.Under NRE [Non Resident (External) Rupee Account] accounts, funds can be repatriated here as funds under NRO [Ordinary Non Resident Rupee Account] accounts are non repatriable.
1. NRO Bank Account: Non-Resident (Ordinary): NRIs can also use this account to invest into Mutual Funds of India and IPOs on non-repatriable basis.2. NRE Bank Account: Non-Resident (External) Rupee Account: Can also be used by NRIs to invest in Indian Mutual Funds on repatriable basis.

NRIs can invest in both Primary Market and Secondary Market through a registered broker. These brokers offer wide range of services to ensure that NRIs feel at home while they take their investment decisions.

Things that NRIs can do:Online Trading (stocks & derivatives): Various brokers give you the access to tools that institutions and professionals use for trading in Capital Markets. Many of them provide an Online Trading platform that enables NRI’s to transact paperless trading in Equity and Derivatives segments. Such Online Trading System provides the most distinct utilities like Streaming Market Watch, Technical Analysis, AMO (After Market Order), Online Funds Transfer and NRI Online Helpdesk to enable you have a pleasant trading experience.

Offline Trading: Most of the brokers offer Online NRI Trading facility wherein the orders can be placed through telephone, Email, Chat or Fax communication.

Mutual Fund Investment:NRIs can invest in Indian mutual funds through registered mutual fund distributors and brokers. Some distributors also have to offer simplified process which is free of all paperwork. These distributors also provide its clients with the latest updates on the top Funds, NAV’s, New Fund Offers. They also provide performance report of various funds to ensure smart investments are made in Mutual Fund segment. 

Investment in Initial Public Offer (IPO): Paperless investment can be done by NRIs through selected Indian brokers, in the Primary Market – Initial Public Offering (IPO) Details of current IPO’s & forthcoming IPO’s, Performance of Past IPO’s, basis of allotment, etc are provided by them to enable clients make hassle free IPO investments. 

ESOP Trading: Few of the good brokerage houses offers unique value added service in the form of ESOP trading whereby NRIs can liquidate the Stock Option given by their Employers and remit abroad the sale proceeds or reinvest the same in the Secondary Market.

Dematerialization of shares bought in Primary Market

Most of the brokers would also assist the NRI clients in converting the physical share certificates to electronic form (Dmat form). The Holder of the shares has to just open a NRI Account and submit the Demat Request along with the certificates, and broker’s efficient and customer friendly NRI Desks takes care of all the other formalities.

Indian Stocks & Mutual Funds still best Investment options:

Indian Stock markets still look good. Not only Indian stock markets but all global markets have been real range bound lately. Many analysts believe that this is co because a lot of hedge funds and banks are still skeptical about the financial well being of the world and quite scared of playing a gamble in the equity markets where the momentum is not picking up. However top mutual funds in India are doing some buying but that’s not just enough to bring the momentum in the heavy indices like the NSEs NIFTY or the BSEs Sensex.Research analysts strongly believe that this inflation that is pressing the markets downwards should settle down or go below 6%, if we have to see some rally in the top Indian shares. The markets are definitely waiting for some buying to happen, but that is not going to happen unless we some slide in the commodity prices (or inflation in other words). The NRI investing in the Indian stock market has also gone low in the gone 2 weeks says a couple of NRI brokers who are financial firms dedicated to nri investment in India, opening dmat accounts and offer NRI services. 

The Indian stock market bull story is not over, as we are definitely witnessing a correction, propagated due to the US recession worries and gas prices in general. We can certainly see a rally come into the stock markets of India and see good buying in Indian mutual funds in the coming 2-3 months, thus it is advised to select proper stocks in advance just to delay last minute rush, that give your wrong prices when you buy shares. It is clearly advised to get into the markets with full view and caution to make money in this highly volatile times. 

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.