Fixed cost is better than variable cost brokerage

Is Fixed cost brokerage (discount brokerage) more cost effective than variable cost brokerage? It’s a myth! Let’s say Dhanibhai charges you 0.01%* on purchase and 0%* on sale, in an intra-day transaction. Then there’s Moneybhai, the discount broker, who charges you Rs 20* on each leg of an intra-day transaction – buy and sell, irrespective…

Why Panic Gripped Indian Markets On Friday

Volatility gripped India’s equity benchmarks today as shares of Yes Bank Ltd. and mortgage lenders Dewan Housing Finance Ltd. and Indiabulls Housing Finance Ltd. tumbled. It began with a 35 percent slide in Yes Bank in morning trading after its co-founder Rana Kapoor was granted only four months extra as its chief executive officer. The Sensex and Nifty, however,…

Why Investors Are Betting On MNCs Over Homegrown Drugmakers

Investors have shown a healthy appetite for shares of multinational pharmaceutical companies, even as stocks of homegrown drugmakers continue to struggle. Stocks such as Sanofi India Ltd. are trading at fresh record highs, while Lupin Ltd. is trading near fresh 52-week lows. Year-to-date returns show that MNC stocks such as Sanofi India, Pfizer Ltd. and Abbott India Ltd. have given positive returns, while…

India may get thrown out of MSCI Indices

MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, announced today that it is closely monitoring developments related to the concerted announcement by three Indian stock exchanges, including the two principal exchanges, of the imposition of anti-competitive measures restricting the accessibility of the Indian equity market. MSCI is evaluating the measures’ potential…

India’s Biggest Dairy Is Betting On Eating-Out Boom

More Indians are eating out as a growing economy boosts incomes. That’s what the No. 1 dairy in the world’s biggest milk-producing nation is betting on to extend its dominance. Amul expects its next wave of growth from institutional sales—supplying everything from milk and curds to butter and cheese to hotels, restaurants and caterers. The…

Risky Business

Most things are going well for most investors. So let’s talk about risk. People are masters at discounting risks that threaten the continuation of their past success. Winning feels good, but winning and then assuming you’ll keep winning indefinitely by doing what you just did is pure heaven and too hard to let go of. Risk hides…

Happy Birthday Jack Bogle, the man Warren Buffett calls a ‘hero’

Everyone knows Warren Buffett and his idea of value investing, but not many have heard of John Clifton “Jack” Bogle, who the Oracle of Omaha himself calls a hero for investors. Bogle, the retired founder and CEO of Vanguard Group, also a creator of first index fund, turns 88 today. During Berkshire Hathaway’s annual shareholder…