Copy of Share Market Seminar

8/2/2019 Copy of Share Market Seminar

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STOCK MARKETHow to make

money without

losing money


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AnswerRight Mind

&

Right path


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Why should you

investin Stock Market


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Beat Inflation

Grow Wealth :

- Money works for you

Equities outgrow other Assets


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ADDUCINGS


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Amazing Growth of INFOSYSInfosys was founded by Narayana Murthy in 1981.

It came with an IPO in 1993 at the price of Rs. 95.

Investment for 100 Shares would cost Rs. 9500.

Infosys has announced five bonus shares and one stock split since its

domestic listing and each share in 1994 had become 64 shares till 2004.

Again in 2006 it issued 1:1 bonus taking the number to 128 till date.

No. of shares as per our example is 12800 MP in July 2010 is 2900

12800 x 2900 = 3,71,20,000.

Three crores seventy-one lakhs and twenty thousand.

Remember, apart from this, the investor would have got the dividend

amount more than his investment.


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Infosys


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Wipro =10 k becomes 400+ cr

100 shares of Wipro with a face value of Rs. 100 in 1980 :

In 1981 company declared 1:1 bonus = 200 shares

In 1985 company declared 1:1 bonus = 400 shares

In 1986 company split the share to Rs. 10 = 4,000 shares

In 1987 company declared 1:1 bonus = 8,000 shares


In 1992 company declared 1:1 bonus = 32,000 shares In 1995 company declared 1:1 bonus = 64,000 shares


In 1999 company split the share to Rs. 2 = 960,000 shares

In 2004 company declared 1:2 bonus = 2,880,000 shares

In 2005 company declared 1:1 bonus = 5,760,000 shares

In 2010 company Declared 2:3 bonus = 8,640,000 shares

In October 2010 about 86,40,000 x Rs. 463 = Rs. 400+ Cr

Total : 2,451,995,801 SH: 222764 % : 0.3524


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Wipro


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Unitech

This is another multi-bagger stock which rose

from Rs. 44 in June 2003 to 14849 in June 2006:

exactly 3 years. So, if anyone who had invested

just Rs. 4400 (100 shares), one would havebagged nearly Rs. 14, 80,000. An appreciation of

337 times in just 3 years.


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Reliance Industrial Infrastructure Limited


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Very Recently

Post Recession(after October 2008 )


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Polyplex Corporation Ltd

S ll C M l ib


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Small-Cap Multibagger


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Points to Ponder

That was the Technology boom and theRealty boom. (Industry)

Polyplex, RIIL and other Small Caps Growthpertaining to a particular Company

Identifying such potentiality is an intrinsicelement of Investing.

Invest in blue chip companies such as Reliance,

SBI, NTPC, TATA group, etc. Now among the EMs, India, as such, is more

likely to be the multi-bagger


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DO YOU THINKINDIA IS BECOMING

ECONOMIC SUPER

POWER


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1Trillion Loan Story


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Super Cycles

1875 ?-1919 ? US

1945 -1980 ? Japan

2000-2030 China and India

Presently World GDP is 62 trillion

By 2030, world GDP will be >300 trillion

Presently, Indias GDP is only 1/60 of world GDP

By 2030 Indias GDP will be 1/10 of world GDP

G D ti P d t (GDP)


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Gross Domestic Product (GDP)RATES of Some Countries

Rank Country Rate Year4 China 8.7 2009 est.

12 India 6.5 2009 est.

113 Brazil -0.2 2009 est.

122 World -0.8 2009 est.147 France -2.2 2009 est.

151 United States -2.4 2009 est.

178 European Union -4 2009 est.

188 United Kingdom -4.8 2009 est.

190 Germany -5 2009 est.

193 Japan -5.3 2009 est.

206 Russia -7.9 2009 est.


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WHO ARE THE MAJOR

BENEFICIARIES OF OURSTOCK MARKET?

FII INFLOW


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FII INFLOW


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We contribute to the corporate world as

employees, consumers, suppliers etc and ForeignInstitutional Investors (FIIs) are aware of ourcountrys potential and they are the beneficiaries- they invest and reap the benefits. So, it is time

we make wealth out of our own expenses.

HENCE PARTICIPATION OF EVERY

INDIAN IN STOCK MARKET IS AMUST


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Myth about the

other asset classesdispelled


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GOLD AND SILVER

ALWAYS HAVE ONLYUPWARD MARKET :

IS IT TRUE?


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PETROLEUM PRICES

ALWAYS SOAR IS AMYTH


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Real Estate Mumbai


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Real Estate - Mumbai

Nifty in the last 10 years


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Nifty in the last 10 years

Bull Market


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Bull Market

Bear Market


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Bear Market

Bear Phase in Bull Market


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Nifty Now


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y


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Why shares are

bought and soldmuch higher than

its face value?


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Intrinsic Value / Book Value

Potential (future Earnings)

Demand and supply

Price Determining Factors


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Price Determining Factors

Demand and supply rule plays the major part in price determination

of a share

Fundamental :This factor involves analyzing a companies financialstatements and health, its management and competitiveadvantages, and its competitors and markets

Technical : The process of analyzing a security's historical prices inan effort to determine probable future prices.

Emotional : There is a common saying that Fear and Greed

Drives the market. People buy and sell based on their psychologicalInfluences.

d l l i


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Fundamental analysis serves to answer

questions, such as:

Is it actually making a profit?

Is the companys revenue growing?

Is it in a strong-enough position to beat out itscompetitors in the future?

Is it able to repay its debts?

Is management trying to "cook the books"?

Technical Analysis


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Technical Analysis

If we were all totally logical and could separate

our emotions from our investment decisions,

then, fundamental analysis the determination of

price based on future earnings, would work

magnificently. Then prices would only changewhen quarterly reports or relevant news was

released.

But the Reality is different


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Stock market is

gamblingdemystified.


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P/E PB


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Efficient Market Hypothesis (EMH )


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An investment theory that states it is impossible to

"beat the market" -Stock markets incorporate andreflect all relevant information.

According to the EMH, stocks always trade at their

fair value, making it impossible for investors to

either purchase undervalued stocks or sell stocks for

inflated prices.

As such, it should be impossible to outperform the

overall market through expert stock selection ormarket timing,

the only way an investor can possibly obtain higher returns

is by purchasing riskier investments


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MARKET IS FOR

EVERYONE

Investing and/or Trading


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g g

1. Investor

A) Low ProfileB) High Net worth

2.Trader

A) Day TraderB) Swing TraderC) Position Trader

Exchange Traded Fund (ETF)


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Exchange Traded Fund (ETF)

A security that tracks an index, a commodity or a

basket of assets like an index fund, but trades like astock on an exchange. ETFs experience price changes

throughout the day as they are bought and sold.

Most Popularly Traded ETFs

NiftyBees for Nifty

BankBees for BankNifty

GoldBees for Gold


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Benchmark Asset Management Company Pvt.

Ltd. (BAMC) is a SEBI registered AssetManagement Company launched in June 2001.

BAMC is the first and only asset management

company in India with a primary focus onindexing and using quantitative techniques in

creating innovative products.

Benchmark is run and co-promoted by

professionals with a long experience in the Indianand International Financial Markets.
http://etfs%20-%20i.flv/


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Derivatives are for

Hardcore Traders

Derivatives


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Derivatives A security whose price is dependent upon or derived

from one or more underlying assets.

The derivative itself is merely a contract between twoor more parties.

Its value is determined by fluctuations in theunderlying asset.

Most derivatives are characterized by high leverage.

Purpose of Derivatives


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Purpose of Derivatives

Hedge

Arbitrage (RAR)

Speculation

*RAR : Risk Adjusted Returns


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Special focus on Options

as most versatile tradinginstrument

Options are Versatile


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pOptions are such an excellent and versatile tool to

make profit in all type of markets.

Bull Market : Shares / Futures /Options

Bear Market : Sell Futures /Buy Puts /Sell Calls.Selling shares is restricted only for intraday trading.

Flat Market / Sideways: So, making profit in suchmarkets is only possible thru Option writing.


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Trading as a

Career

1) I don't want to work under anyone. I want to be my own boss.

2) So, I have to be either self-employed (Labour Investment) or a businessman (MoneyInvestment)


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3) Being a Self-employed, I will be at my clients' mercy if I am not a specialist or most-sought Doctor, Lawyer, Chartered Accountant, Soft Skills Trainer etc. Let me put thisoption in a parking lot.

4) If I have money to invest I can become a Businessman.5) what are the factors involved in a Business:

a) Type of industry, business. (once chosen switching is difficult)

b) Place of business. (Can't relocate easily)

c) Business viability. (will have to be assessed periodically after the launch)

d) Material and Man management (labor problem inevitable).

e) Competition threat. (it is always there as a threat)

f) Uninterrupted supply of sources.(Law of demand and supply determines)

g) Customer satisfaction. (Very unpredictable)

h) Healthy accounts receivables thereby matching the Accounts payable. (woe)

I) Legal formalities.(God help me please)

j) Out-of-pocket expenses.(same as above)

k) Accounting (though it is simple, many consider it as complicated. So, will I.)

l) Taxation (Am I toiling for someone else)

Am I the Master or Slave?

Is there a business where

) h i d / b i di i h


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a) I can choose any industry / any business according to my wish.

b) I can do business from anywhere, even when I am on a holiday trip.

c) I will be able to look into viability before I launch. Also I will be able toswitch and move on when once done with the current one.

d) I need not worry about Man and Material management.

e) Competition is an opportunity rather than a threat.

f) I deal with the product whose supply is not an issue.

g) I don't want to meet my "customers", let alone convincing them, butthey still buy from me.

h) My "customers" pay me immediately.

I) Legal formalities are hassle free.

j) Out-of-pocket expense is irrelevant.

k) Accounting is done by someone promptly and properly.l) Paying tax is a matter of pride.

I am the Real Boss !!!

Yes it is : TRADING IN STOCK MARKET.


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Life Cant be this

Simple.There must be some

catch

Being ambitious is good, but notwithout "requisite" effort


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Copy of Share Market Seminar