Ask Me

1. Rating: +9

   

   Is this the right time to invest in the equity market?

   Sudip says :Trying to time the market is an extremely difficult and near impossible task. However, Indian Equity markets in line with the International markets have significantly come down over the last few months. At present, many blue chip companies are available at lower than their book values. Hence these are extremely attractive long-term investment opportunities for any investor with at least one year time horizon.

2. Rating: +6

   

   sir, what is the lowest expected in the market?..mr singh

   Sudip commented : It is impossible to predict the low and high of any financial markets. However, it is important to note that Indian Capital Markets have come down by almost 60% from its peak in Dec’07 / Jan’08. The broad fundamentals of the economy and most companies haven’t changed significantly during the past few months whereas the sentiment and liquidity has driven the market down.

3. Rating: +6

   

   Dear Sir, I would like to know your views on the following two questions Q1. Why has the government allowed our stock markets to be over dependent on the FII’s? We now understand from newspaper reports that the FII’s have been short selling and hammering down prices over the past few weeks. Many countries had banned short selling in the immediate aftermath of the crisis, why was our Government / SEBI slow to react. Q2. The biggest loser in the meltdown as always has been the small investor. Don’t you think the small investors in India should stop individual stock picking and invest through the Mutual Fund route? Thanks

   Sudip commented :Unfortunately Indian retail investors have not been investing in Indian Financial markets and even today 55% of domestic Indian savings are in Saving Bank Accounts. Even the compulsory savings of Indians through Provident Funds and Pension Funds stay invested in debt securities and are not in Equity markets. Thus historically large investors had a sway over Indian Capital markets. Hopefully things will change in the near future to ensure stability in the Indian Capital markets.

   Banning short sales is not a progressive step. Market forces need to be allowed to play out for healthy development of the financial markets. Banning short sales doesn’t prevent market from coming down, if there are genuine reasons.

   Retail investors loose money as they panic when markets fall. Investment is about remaining invested for a time and not trying to time the market. Retail investors, if not fully aware of the market nuances, should always use experts for investing in the market and the same can be through PMS, Mutual Funds or ULIPS (if the investment horizon is more than 10 years).

4. Rating: +2

   

   Hi, this is purnendu ...when is the market expected to bottom out ?

   Sudip says :It is extremely difficult to predict a specific date or time for the market bottom. However, the Indian markets have significantly fallen due to International financial crisis. With stability returning in the International markets, Indian Capital market should start showing signs of recovery,soon.

5. Rating: +3

   

   Hello Sir, Thanks for your replies to my queries posted on 24th October. Wanted to know your views on the recovery seen in the markets today. Do you think the worst is over? Do you expect the markets to be fairly volatile for some more time? What should a retail investor do now, whether one should buy blue chips from the secondary market or invest in an equity oriented fund with a good track record?

   Sudip replies: In a recent article in the New York Times, Mr. Warren Buffet, the legendary investor, had suggested that now is the time to buy equities despite the current uncertainties. In this article he pointed out that the stock markets starts rising long before economic activity picks up. Equities almost always lead the economy. Thus, in spite of the current uncertainties, for an investor interested in long-term value creation , the time is ideal for acquiring blue chip stocks at attractive valuations.

   Markets would remain volatile for some more time – at least couple of more months. However, the retail investor should start buying blue chip stocks available currently at attractive valuations for medium /long term.

   In case the investor is fully aware of the market nuances, he may buy directly, whereas if he is not fully conversant, he should invest through a diversified equity fund with good track record.

6. Rating: +2

   

   Neeraj : Sir could you please suggest some good stocks to invest in.. .I am a small investor and have terribly lost in the recent turmoil... However the recent prices seems to be very attractive to invest in A group stocks......

   Sudip says :I would like to refrain from specific stock recommendations in my column. However, excellent Blue Chip Company Stocks are available at very attractive valuations and one may consider investing in the same. This is the time to stick to large cap counters.

7. Rating: +1

   

   Hi Sudip... Its nice to see ur blog... Another first to ur cap!! I have been hearlng that markets are gonna bottom out to 6000 level on sensex...I wanted ur expert view on this...... Also by when do u see this to happen if at all..... Chandrashekar.

   I agree with you that there are various reports indicating the fact that markets would come down significantly, even from its present level. This may or may not happen, depending on multiple unpredictable events. Only an astrologer can try and predict the exact market level.

   However, there are many blue chip companies available at very attractive valuations at present. They are currently quoted at prices which are close to or below even their book value. I consider this an excellent opportunity for buying these large caps blue chip stock with 1 year + time horizon. Please do remember that like every other bad dream, the current crisis would also pass and if we have some faith in the Indian economy and India’s growth prospects, we should not refrain from taking exposure in equity, at current levels.

8. Rating: +2

   

   Dear Sudip, What are your views on career prospects in the financial services space over the medium and long term? One can imagine that I-Banking jobs would be few and far between but what about on the sales side in the financial services space? Also, if one wants to be in I-Banking, then should one just drop the idea or look at acquiring different skill-sets? Akhil Kishore

   Sudip says: In the Medium – Long term, the career prospects in the financial services space is excellent. The current crisis may have made the prospects , at present, look unattractive but in the long run financial services do play an extremely important role in the economy of every country and hence this sector will continue to need bright resources.

   Resources would be required both on the Investment Banking and Sales side in the financial services. The way of doing business may undergo changes but the business will remain.

9. Rating: +2

   

   Sudip , As a small time investor , what are the sectors I should focus on ??..Reva Matkar

   Sudip comments: At this stage, instead of focusing on sectors, I would recommend that you look at large cap bluechip stock which are available at significantly discounted values and in some cases even below book value. If you are keen to look at sectors, look at banking & infrastructure.

10. Rating: +3

    

    Hi Sudip, What do you think about current market position.. ? What lesson we should take from recent US's Investment Banking crisis? How much possibility of such crisis in India? Tushar Jog

    Sudip says: Indian capital market continues to remain fundamentally strong and looks good in the medium – long term horizon. However, International financial markets are yet to stabilize and consequently the sentiment and liquidity in Indian market is not too good at present. In the short term, markets would remain volatile and take cues from the events happening both in the International and domestic markets.

    The US “Investment Banking” crisis was primarily due to over leveraging which was unsustainable. There are many reasons for such collapse but excessive borrowing was the primary reason.

    Such crisis in the Investment Banking industry is unlikely in India. Indian Investment Banks generally provide advisory services and work on a fee based model. They are not leveraged at all. In any case, Indian Financial entities are strictly regulated and their borrowings carefully monitored. Such crisis is unlikely in India.

11. Rating: +4

    

    Sir, You have been interacting with investors in various investor camps and also through television channels. What do you think is keeping them away from the markets. Why are investors apprehensive to buy even though there are some excellent bargains available for long term. If the markets were to rebound (all of us wish they would) by say 2000 points on the sensex in the next few trading sessions, the retail space will see a lot of buying interest, but the very same investor will not buy at the current levels. Do investors suffer from "herd mentality"? What are your views

    Sudip says: Couple of things are keeping the retail investors away from the market –
    1. International financial crisis has created a crisis of confidence and there is a stream of negative news flow emanating from the US and European markets on a daily basis. This has significant adverse impact on sentiments.
    Apart from this, continuous selling by the FIIs in India for the last few months have resulted in a liquidity crisis in the Indian market.
    2. Retail Investors who had invested in the market during boom phase are probably sitting on significant losses. They also have no liquidity to again invest in the markets, at this stage.
    To conclude, I would reiterate that since sentiments and liquidity play a large role for financial investments, today Indian retail investors are keeping generally away from the markets. However, we definitely see a encouraging trend whereby a section of the investors have started slowly investing in the markets either directly or through Mutual Fund route over the last couple of weeks.

12. Rating: +3

    

    hi.. when do you expect the stock market to be back to normal.....

    Sudip Says: Indian markets continue to remain fundamentally strong. International Financial crisis however has affected liquidity and sentiments.

    As soon as International markets stabilise (i.e. no more large bankruptcies on a regular basis) the FII selling in Indian markets will stop. When this happens, Indian markets will also start recovering. The exact time for such event is unpredictable. However, investors should not wait for that D'day and start investing slowly with a long term view since many largecap bluechip stocks are available at even below their book values.

13. Rating: +5

    

    Dear sir,i compleated my MBA with specialization of finance and marketing,now i am pursuing my CFA course and i had a 3 yrs of work experiance in financial markets,i am keen for learn Technical analysis;my major draw back is i don't have a proper guidence,so can i have your guidence in career wise? is it right time to start learn technical analysis?when compare to fundamentals how much it's reliable?what type of career oppurtunities is there in markets," now" and "future"?

    Sudip Says: It would be good for you to learn technical analysis. Technical analysis is for day trading or short-term trading. Fundamental analysis is for long-term investments. If you want to become a market participant, you need to learn both.Do remember that for technical analysis factors like sentiments, liquidity, etc.are critical since this tries to predict short-term stock price movement ranges. Fundamental analysis studies the strength of companies and predicts long-term valuations.

    Right now the markets are bad. However, financial markets would continue to remain an attractive career opportunity in the medium / long-term.

14. Rating: +4

    

    Sudip, I run a financial services firm for the retail investor – primarily in the research and tools investments space. Reliance Money is a company we admire and we were wondering if we could explore a strategic partnership with your firm. We can offer the tools and platforms that could be used by your advisers and clients to manage their money better. I am looking forward to your thoughts and guidance - www.imetanoia.com; raj.majumder@imetanoia.com. Regards, Raj Regards,

    Sudip Says: You may contact my Research Team led by Mr. Avinash Gorakshakar (Avinash. Gorakshakar @Relianceada.com ) for taking this forward.

15. Rating: +3

    

    Which share I should invest in right now to recover. Please name one according to your choice. I will invest in it. I have lost a lot of money. Thanks Shishir Gupta, New Delhi.

    Sudip Says: Do look at large cap bluechip stocks which are available at very attractive valuations. In some cases even below book values and in some cases at valuations lower than cash available with the company. You may look at large PSU Banks for safe and good returns over the medium / long-term, if you do invest now.

16. Rating: -1

    

    hello Mr sudip .... seems the fall happen in the last year i start trading .bcz the risk is minimum there campare to investing .we do wont to make huge profit or huge loss .WHAT DO U SUGGEST M I IN THE RIGHT DIRECTION .

    Sudip comments: If you don’t want to take any risk, you should not invest in the stock markets. But as they say “No risk …… no gain” ....so if you can afford, you should look at some exposure in the Equity market either directly or through the Mutual Fund route. However, stick to large cap bluechip stocks or diversified large cap funds.

17. Rating: +0

    

    sir, do we expect market october low

    Sudip says:Unless there are some major International setbacks, the October low may be the lowest for the time-being. However, prediction of exact bottom is fraught with risk and is irrelevant for a long-term investor. Indian markets are very close to their low and an investor with at least 2 years time horizon should look at investing, now slowly.

18. Rating: -1

    

    SIR, I REQUEST YOURGOODSELF TO PL GUIDE ME WHICH IS THE BEST REAL TIME SOFTWARE OFR EQUITY TRADING . THANKS

    Sudip comments:I am not very sure about your question, but you can try the leading online broking companies including Reliance Money.

19. Rating: +0

    

    i have 30 shares of icici bank at the rate of 681 each,but now the prices are nearly half & money is stuck up what do you suggest?

    Sudip says : I will not like to specifically comment on ICICI Bank shares. However, the Indian share market is very close to it's bottom and if you are convinced about the company you have invested (ICICI Bank) don’t exit you position at this stage unless you are in desperate need of cash.

20. Rating: -1

    

    sir, how recession will stop?

    Sudip says : Please note that in India there is no recession. Indian economy was growing at 9% + till last year. This year due to International financial crisis, the growth has slowed down and it is expected that we will grow at around 7%. Thus we have a slowdown & not recession.

    We expect Indian growth to reach 9% + once again in 2010 – 11

21. Rating: -2

    

    sir, I am invester 26 year old Tarun sharma sir i have invest in A grade and in Z grade shares. Total invest in market about 25 lacks. like parwanath real estate share price 300 about 5000 shares and in vishal export 10,000 shares price 4 RS. sir please tell how many years i will hold todays price are least.

    Sudip says: Please don’t invest, in future, in “Z” category shares (!!) Do stick to well known and performing companies.
    For all investments , you should have specific broad return expectation. Let's say, you invest Rs.1000/- and expect 20% return over a 3 years period. Within 1 year the value of the investment becomes Rs1200 (i.e. 20% return is achieved). You should immediately re-evaluate your position and either exit (book profit) or take a fresh call with a fresh return expectation on such investment at Rs. 1200/-.

22. Rating: +0

    

    Sir, from your various interviews, I now know that I should protect myself, then secure childrens and last investment. Also came to know that we should undestand our age, obligations and demand. Regarding demand, I would like to askthe equivalanet amount after 20 years of Rs. present Rs. 20,000/- Second thing I want to know that like Govt. pension schemes, is there any scheme where I have to invest to get the pension which increases with time. thanks, R.Mohan

    Sudip comments :I haven’t understood your first question. Regarding Pension Schemes, there is nothing like Government Pension Scheme which the Government employees are entitled to.

    However, LIC and other Private Sector Life Insurance Companies have pension plans under which you can start investing or make a one time investment . After a specified age, you would start getting regular income,but this income would however depend on the performance of the fund in which you are investing and may vary depending on the market. There is no assured Pension Scheme for non-government employees.

23. Rating: -1

    

    Dear Sudip , this is Sanjib from Kolkata.....I am a new investor in the capital merket.Is it is right time to deploy my cash in SIP large cap MF.

    Sudip says:Yes Mr.Das. You can start deploying your surplus cash through Systematic Investment Plan (SIP) in Large Cap Diversified Mutual Fund. However, please don’t expect extraordinary returns overnight. Keep a 3 year time horizon in mind and a target return (say around 15 – 20%). Do review your investment once you have achieved your target return even if the 3 year period is not complete. Once you achieve the target return do review from scratch such investment and take a fresh call regarding exit or remaining invested.

24. Rating: -1

    

    Dear sir, from your recent smart investor show, I came to know that FD's may not able to meet with the inflamation rate. Please give answer of my two question. I (age 34 years) am spending presently Rs. 20,000/- per month. first What shall be equivalent amount after 21 years? second What is the formula or source of this calculation. thanks, R.Mohan

    Sudip says :I have not understood your question. If you are trying to find out how much investing Rs.20,000 per year would give you after 21 years, you should check annuity tables.

    Please do understand that the calculation is related to the basic principle of compounding and once you decide on the expected yearly interest/return, the relevant calculations would be a simple mathematical formula.

25. Rating: -1

    

    HELLO SIR, I RECENTLY START TO INVEST IN SHARE MARKET. I DO TRADING AN EVENT BASE. I PURCHASE SHARES BEFORE 1-2 DAYS OF ANY EVENT AND SELL IT ON AN AVERAGE RS.10-12 PROFIT . IT IS MY STATEGY RIGHT FOR TRADING PURPOSE IN RECENT MARKET?

    Sudip comments : You are doing short-term trading or day trading. If you know and understand what you are trying to do, you may continue with the same. However, please do understand that your strategy is extremely risky and you may also loose heavily if the market moves against you. Please do exercise utmost caution and don’t expose your capital too much.

26. Rating: -1

    

    HELLO SIR, MY NAME IS PRASHANT RAUL, I AM STUDING COMPANY SECRETARY & I AM ALSO INTERESTED IN SHARE MARKET. I WANT TO MAKE MY CAREER AS A PORTFOLIO MANAGER. SO PLEASE SUGGEST ME WHICH COURSES AND BOOKS I SUPPOSE TO JOIN & READ ?

    Sudip says :You may consider joining relevant courses being offered by ICFAI of India or try and qualify as a CFA/CA to gain more indepth knowledge.

27. Rating: -1

    

    respected sir, i have a question for you.i have read in the yellow newspaper that fii have sold app 40000 crore in this year and mf have bought app 10000 crore.my question is that if market goes up in the future is there any advantage for the mf in this situation?pardon me as my english is not very good but i hope that you will understand my question and answer me as early as posiible.thanks chandan from amritsar.

    Sudip says :Yes. You are right. FIIs have sold significant amount of shares in the Indian markets during the last calender year. The total amount is close to Rs1,00,000 crores. They also have bought some amount of shares but that is insignificant compared to the amount sold. Indian Mutual Funds and Insurance companies have bought huge amount of shares during the last calendar year and hopefully they would reap the rewards, when the market moves up.

28. Rating: +0

    

    Sir i was planning to take loan for higher education in us/uk, but I fear no jobs would be available on my return. What could be the situation by end of 2010?

    Sudip says :Please don’t be so pessimistic. There is no fundamental problem with the Indian economy. We should be registering the growth of around 7% in GDP both during the current year as well as the next year. The present International Financial crisis will blow over in about 6 months time and things will improve even internationally. There would be plenty of opportunities available for you if you work hard.

29. Rating: +0

    

    Dear Sir, I am planning to invest in Satyam shares as people are saying that it will go up with the government intervention and it cannot go down the existing price. Can I do so? please advise

    I am not very sure about investments in Satyam shares, at this stage. There are too many variables and uncertainties surrounding the company. The class action law suits filed in USA against the company, can be very damaging. I would advise caution, for now.

30. Rating: +0

    

    Respected sir, I have 3 avenues to invest: 1. a real estate company of my friend - he has no money and is trying to sell at 50% lower than the value 6 months ago 2. a running hospital 3. mutual funds - my ca says its the right time to invest in the market. It will be great if you have any suggestions that can be useful for me. Mr Ashish.

    Sudip says:The Real Estate Company of your friend and the hospital project , referred by you are likely to be unlisted at this stage. In the absence of more information, it would be difficult for me to comment on these investments. However, your CAs advise regarding investment in Mutual Funds, may be appropriate. Do stick to large cap diversified Equity funds for optimum results. If possible use SIP and invest over the next few months, instead of making all the investments now.

31. Rating: +1

    

    hello sir i m an new invst , my age is 23 and want to invest 1 lakh in equity.....plz suggest some good stock....my time period is unlimited i.e. till i would earn good profit

    Sudip comments: Please invest in large cap, bluechip stocks currently available at attractive valuations. Do look at PSU Bank Stocks (SBI, etc.) and large diversified Infrastructure Companies (L&T etc.).

32. Rating: +0

    

    Sir, I want to invest Rs 8000 very month for ten years at the minimum in gold. Do banks/other organisations offer ETF SIP too??

    Sudip says :You can invest in ETF on a regular basis. Buying ETF is like buying shares. You need to have a demat account and you can regularly, through your broker buy ETF units from the market.

33. Rating: +0

    

    Sir, I keep checking various channels for programs where you share your knowledge with the audience. Is there somebody I can call to ask for DVD's of the various shows that you attend.

    Aditya ,I would like to thank you for writing on my blog and for your kind words.You can get more information on my shows on the site http://www.youtube.com/learntoinvest

    Please keep visiting my blog and keep contributing.

    Regards,

    Sudip

34. Rating: +0

    

    Hello Sudip, How do you see Indian debt Market during next few years? Do you think its a good base for support the corporate credit requirement through corporate debt issues? What are the possible reasons for such an unattractive debt market in India?

    Hello Amol, Indian debt market has huge potential which continues to remain unexploited. Unfortunately, due to multiple reasons this market hasn’t really flourished and continues to remain largely an OTC market where the participants are the Banks, Financial Institutions and Large Corporates. This small participant base has led to significant imperfections and problems for the monetary policy changes to work rapidly in the economy.
    There is an opportunity for meeting corporate credit requirements through debt issues. However, the cost of raising debt is relatively high and thus not very attractive. Had there been a thriving debt market like Equity market, cost of rising debt would have come down and both Issuers & retail investors would have happily participated.However, both the Finance Ministry and Regulators are currently looking at reviving the debt market.

35. Rating: +0

    

    How reliable is credit ratings of Indian ratings agencies in current context. Looking at Highly rated IPO issues by the leading ratings agencie sin India? Why is techincal analysis is playing much important role than fundamental analysis? Why is all that hipe about crucial support levels for major indices? Is it jut a herd belief?

    Sudip comments :Credit rating industry has been blamed for many fiascos in the financial markets. To an extent, the rating agencies have are today struggling to re-establish credibility. More than IPOs, rating of debt paper needs to be appropriate.
    Technical analysis is relevant for day traders whereas fundamental analysis is relevant for long-term investors.

36. Rating: +1

    

    Can you disclose how sensitive R-money's assets to curretn volatility? I meant what the proportion of FII's AUM versus dometic assets? How is this trend sinc elast 3 months? Prospects?

    Amol, Reliance Money is an intermediary & it doesn’t hold any assets. We do mobilise funds on behalf of Mutual Funds, Insurance Companies and others. Our own assets (which are predominantly funded out of our capital and free reserves) are of non-financial nature (i.e. branch fixtures, furnitures, IT assets etc.) & thus are not affected by financial market movements.

37. Rating: +0

    

    sir, which r companies which will be directly benefited or their stock price will go up - if crude oil price goes up plz mention some companiess and sir plz give your view on future of crude oil prices for 2 to 5 yrs

    Sudip says : Vaibhav , Only the companies having access to oil or gas reserves , will benefit if oil prices go up. Companies like Reliance, Gail, ONGC, etc. benefit in such a situation.

    The recent World Bank report on crude oil prices suggest that crude oil may reach $ 75 per barrel in a steady state.

    Keep Writing!

38. Rating: +1

    

    Hi Sudip, I appreciate your committment towards your readers. What according to you would be the biggest fee based small business opportunity in financial services space these days? What would you suggest for a team of highly qualified finance professionals [CAs, CFAs , MBAs with around 5+year of wrokex]? Do you see any opportunity in indian stock market on front of research/ttrading/distribution? Any global opportunity? Thanks

    Thanks for your feedback.
    The biggest fee based small business opportunity in the financial services space, these days, is selling Life Insurance Products.
    However, to ensure that you have a long-term sustainable business & considering that you are a team of highly qualified finance professionals, it may be appropriate for you all to start a complete financial advisory business which would amongst others include Life Insurance selling .

    All the best!!

39. Rating: +1

    

    Hello Sudip, Dont you think that there are flaws in investment startegies of indian insurance companies compared to how Global insurance comapnies are investing mainly US? There is equity linked product concentration in india as well. What hedging techniques reliace money is using while investing funds of ADAG's insurance subsidiary? How is your investment split as long as this money goes? Propotion of equity,bonds,governments sec, gilt sec?

    Sudip says:
    Reliance Money is the Broking and Distribution arm of Reliance ADAG Group. We are the largest broking and distribution company in India ,with 3.12 million customers spread across 5167 locations with 10,000 + outlets. We don’t manage client’s money. Fund Management business is handled by Reliance Mutual Fund. Thus, we are not in a position to comment about the Fund Management strategy of other companies. In Reliance Money we mobilise funds for 21 Mutual Funds (Asset Management Companies) and sell policies for 5 Life Insurance Companies & 4 General Insurance Companies.

40. Rating: +0

    

    What are most of the fund managers in India are not able to beat the indices? Are their actions inter-dependent? Are they following the herd? How can we differentiate between good and bad fund managers in currenct context when everyone is loosing money?

    Sudip says:
    In the current financial environment, every fund manager has lost money. The way to demarcate a fund manager would be to assess him based on long-term performance and not performance over the last 12 months.

41. Rating: +1

    

    How can the company like reliance money pull the rural savings into stocks? Opportunities, challanges ?

    Sudip says:
    As a company, Reliance Money has the largest reach in Semi Urban and Rural areas amongst the private sector players. Our objective is to provide a basket of financial products and services to our customers in these locations. The idea is not to pull savings in the stock market only. There are multiple investment opportunities and we provide our investors with a balanced advice and guidance which goes far beyond stocks. Toady Investors are risk averse and not very comfortable with risky asset classes like equities. We need to provide them with right advise to enable them to construct appropriate portfolio considering their financial goals and risk appetite.

42. Rating: +0

    

    Hi Sudip, Can you throw some light on opportunities in India to manage Shariah money? Rugulations? What are the probable sectors wherein these funds can be deployed? As they are having stringent rules like not investing in the Companies like alcohols, tobacco ..etc. What is the the approximate size of this fund acrosss globe a sof now? How India fund managers are placed to guide this money? Do you think its a long term money and would add stability to Indian market by acting remedy against volatile FII moeny? (Amol Shitole)

    Sudip says: Shariah Compliant Fund Management is an emerging niche. There is some demand for this service. There are no separate regulations for this segment. It would come under either the Mutual Fund regulations or PMS regulations of SEBI depending on the nature of the scheme & the fund manager.

    The Shariah rules would guide the deployment of funds and as rightly pointed out by you, investments in few sectors are not permitted under such rules.

    All retail investments are good for the market. Whether they are Shariah Compliant or not is irrelevant in this context.

43. Rating: +0

    

    I had one question regarding FII regulations in India versus China. Do you thinnk we are not yet very attractive equity markets Compared to China as there are norms in China for FIIs to hold there money for some fixed long period. When would it be possible in India? (Amol S)

    Sudip says: I think you are not correct on this point. Indian Capital markets are much more matured and investor friendly. Chinese markets are not very transparent and not very deep. However, many good Chinese Companies opt for listing in HongKong. In fact FIIs invest in HongKong market for taking exposure in China.

44. Rating: +0

    

    What are your views on offshoring opportunities and challenges for financial services industry in coming years? Do you think there is much more work to come from all across globe or you thin that is it.

    Sudip says :There are significant opportunities in this space. Quality work will continue to come to India.

45. Rating: +0

    

    How reliance and other MF sale life insurance products? What is the life insurance product distribution is done in india? Independent agents, captive agents, bankassuarnce?? Any challenges and opportunities in this segment?

    Amol , Mutual Funds don’t sell Life Insurance Products. Life Insurance companies and their agents, brokers, etc. sell Life Insurance Products. Insurance selling is always a challenge. However, this also provides opportunity for generating excellent commission.

46. Rating: +0

    

    respected sir, Q1.what is global depository recipt?

    Sudip says :When Indian and other Non-European companies wish to list their shares in European Exchanges, they do the same through the GDR route. The Global Deposit Receipt is issued by companies to facilitate trading by International investors in their shares.

47. Rating: +0

    

    Dear Sudipda, i have a LIC endowment polisy one SBI horizon. I want to invest some more money. Where should I invest. Equity/Mutual fund etc???? I want to invest in a child policy. Is this a right idea. please suggest.

    Sudip says:Please do invest in units of any good large cap equity diversified fund. Don’t put all you money at one go. Use the Systematic Investment Plan (SIP) route and invest over a period of time.

48. Rating: +0

    

    Hello Sir, How will the stock markets react to the following scenario(s) post the general election results are declared: a. UPA comes to power b. NDA comes to power c. Neither UPA or NDA but a third (or for that matter a fourth) front forms a government. We are seeing some positive momentum for the past couple of months, do you see the same sustaining in view of the general elections in India? Thanks

    Sudip says : The markets will appreciate if there is a stable government at the centre. It doesn’t matter who forms the government as long as the market sees it as stable. On the other hand, any kind of instability will affect the market sentiments adversely. Markets will witness some amount of volatility in the run up to the election results.

49. Rating: +2

    

    1. sir, is their any direct relation between gold and crude oil..i.e if gold price increases than crude will also go high or vice versa... 2. sir, is this only a political rally that is dragging sensex ?? plz explain thanx u ..

    Sudip says : 1.Gold is a hedge against crisis and calamities. Historically, gold has always been used as contingency reserve. Whenever there is economic turbulence, gold prices move up.
    Rapidly increasing of oil prices causes economic turbulence and results in gold prices moving up. Thus whenever oil prices rise sharply, economic activities suffer and gold prices rise.
    2. This is definitely a short term rally fuelled by short covering etc. There would be corrections going forward.

50. Rating: +0

    

    Sudip, we have been hearing a lot of news about reliance money on TV, online news items. Was very happy to see you clarify the situation yesterday on cnbc tv 18. Infact I had also seen you in the microsoft advertisement and a mention in ET on brands using corporate honchos for their products. You could easily be called the AB of Business channels and I think under your leadership what the organisation has achieved is phenomenal. Sir, is this possible to get dvd's of the shows that you have done with Zee Business somehow. I dont mind paying for the same. can you put me to someone from your team or from the Zee Business team. Does your team plan to put together a combo DVD of the shows that you do?

    
    

51. Rating: -1

    

    Sir, I want to invest Rs.25,000/- per month for the next 10 yrs in SIPs I want to make a crore after 10 years. I propose to invest Rs.10,000 each in Reliance growth fund and HDFC Top 200 and another Rs.5000/- in SBI contra. Am I partical in expecting this kind of a return or I am just building castles in the air. It will be great if you can suggest any other options. I do not mind paying some institution for professional advise.

    Sudip says: It is possible to achieve a good return over a period of 10 years by systematically investing every month. You are surely not building a castles in the air.

    However, please start investing immediately and do have a financial target, like the one indicated by you. As soon as you achieve the target or are close to the same, do exit. Don’t blindly wait for 10 years.

52. Rating: +0

    

    Hi Sudip Good to see your blog What is your say on Real Estate stocks any good news??

    Sudip says : Infrastructure as a sector looks very good if you have a long term view, i.e. at least 3 years horizon in mind. However, in the specific case of Real Estate stocks, I would advise you to exercise caution and to be very careful in selecting the stock as well as the level at which you enter. During the last few weeks most of the Real Estate counters have seen a rally and prices have already appreciated significantly. Taking fresh exposure at this level may not be advisable.

53. Rating: +2

    

    sir do you think ,deflation introduction of another recession? what are the impact on indian economy?

    Sudip says: I don’t think we are anywhere close to deflation. Though the WPI has been negative for couple of weeks, at the CPI (Consumer Price Index) level the inflation is still around 10%. Thus the negative WPI is just a technical statistic having marginal relevance on the real economy. Please don’t get unduly perturbed by that.

    On the other hand, the budget deficit which is around 10-12 per cent of GDP is a factor which we should worry about. This may lead to return of inflation at a later date in the near future.

54. Rating: +1

    

    Sir, My Name is Vishal P.Shejul. It's my greate pleasure to share/ exchange my ideas and thought with you. Sir I done MBA in marketing and I want to make my career in Financial Services Please suggest me what should I do to build strong career. Awaiting for feedback. Thank You!!

    Sudip says: Vishal , Please do the following:-

    1. Do read regularly the latest business news and views.
    2. Try and develop specialisation in any particular area.
    3. Work hard. There is no shortcut to success.
    4. Try to work for a diversified Financial Services company to develop wider knowledge of multiple products and services.