COVER
STORY
Wealth
Management : A Promising Future Ahead
-- NP Tripathy
Increasing disposable income calls for better
management of the same and generating optimum
returns with minimum exposure to risk. All this
is possible under the umbrella of wealth management.
© 2007 IUP . All Rights
Reserved
CAPITAL
MARKET
Day-of-the-Week
Effect in Indian Markets : Empirical Test
-- Harish Kumar Singla
This
article attempts to have a closer look at the
Indian stock markets and tries to find out the
day-of-the-week pattern in selected stocks over
a period of time. Efficient Market Theory (EMT)
states that the prices in the stock market depict
all relevant information, therefore it is impossible
to beat the market as an investor is fully informed.
This is one of the highly controversial and
often disputed theories in the field of finance.
Supporters of EMT believe that it is pointless
to search for undervalued stocks or try to predict
the trends in the market through any technique
from fundamental to technical analysis.
© 2007 IUP . All Rights
Reserved
CAPITAL
MARKET
Volatility
in Indian Stock Market : A Study of Multiple
Factors Affecting Stock Prices in 2006
-- Ravikesh Srivastava
The
article studies the factors such as global markets,
institutional investments and industry that
resulted in the volatility swings in the Indian
capital market in the year 2006. The year 2006
was a rocking one for the stock markets. And
a rocky one too! Not only did the Sensex show
a whopping jump of 47%, it also demonstrated
the greatest volatility in the past five years.
Thus, in recent times no year other than 2006
can provide a better insight to Sensex volatility.
© 2007 IUP . All Rights
Reserved
EMERGING
CAPITAL MARKETS
A
Closer Look at Chinese and Indian Capital Markets
-- Surjit Mohapatra
Despite strong economic fundamentals, the
capital markets of China and India have been
relatively volatile. Though the stock indices
touched the highest levels in their respective
histories, volatility makes these markets vulnerable.
While talking about developing economies, no
analyst can ignore China and India-the fastest
growing economies of the 21st Century with strong
economic fundamentals and reform process. In
many ways, the economies of China and India
are similar. Economic reforms, rapid economic
growth, huge and fast urbanization, a new consumerist
era with high spending and high saving, increased
organized malls and booming housing sector are
some of the similarities that persist in both
the countries.
© 2007 IUP . All Rights
Reserved
INVESTMENT
PHILOSOPHY
Behavioral
Principles of Investment Decisions from Indian
Management Thought : Thirukkural
-- C Chendroyaperumal
The thought - provoking article brings about
the investment philosophy embodied in Thirukkural,
an ancient management text, and seeks to find
its relevance in modern investment management
thought. Prudent investment of capital is essential
for the survival and success of any business
organization. Textbooks prescribe a set of principles
for successful investment decisions and investment
evaluation methods.
© 2007 IUP . All Rights
Reserved
INVESTMENT
STRATEGY
SIP
: Stock Market Entry for the Retail Base
-- D Syamala
Systematic Investment Plan (SIP) of mutual
fund firms provides an excellent opportunity
for the retail investors to invest and step
into the Stock and Securities Market. This article
discusses some of the aspects of SIP in general
perspective. In the recent past, a major group
of the Indian society-the rural and lower middle
class-is entering into the Stock and Securities
market as the minimum investment in Mutual Funds
has come down to as low as Rs. 50. Till now,
to invest through the SIP method, one had to
invest Rs. 500 or 1,000 depending on the period.
© 2007 IUP . All Rights
Reserved
DERIVATIVES
STRATEGY
Trading
in Derivatives : Strangles and Guts
-- Aditya Ladia
Strangles
and Guts are widely-used strategies in the derivative
markets. These are the two option strategies
using a call option and a put option each. This
article explores the differences between these
two strategies and also sees how they can be
used in combination to produce low risk returns.
A Strangle is created, either by buying or selling
a call option and a put option. While buying
the options, we create a Long Strangle and by
selling them, a Short Strangle. The important
thing to note here is that, the put option has
a lower strike price than that of a call option.
© 2007 IUP . All Rights
Reserved
INDUSTRY
ANALYSIS
Indian
Chemical Fertilizer Industry : Retrospect and
Prospects
-- N Kannan
This
article provides a comprehensive picture of
the Indian fertilizer industry and the various
problems and challenges it is likely to face
in the years ahead. The Indian economy is basically
an agriculture- driven economy with 70% of its
population involved in agriculture and allied
fields and contributing 25% of the country's
GDP. The stress on self-sufficiency and self-reliance
in foodgrain production in successive five-year
plans followed by the concerted implementation
of this policy resulted in a substantial increase
in agricultural output and productivity.
© 2007 IUP . All Rights
Reserved
BOOK
REVIEW
Commodities
Rising
-- Editor: Jeffrey M Christian Reviewed by Malathi
Srinivasan
This book provides a blend of unique and
practical perspective of the commodities market
and how portfolio investments in the commodity
market can be made. This book is of great help
to investors who are keen about investing in
commodities anticipating the pitfalls and shielding
against adversities.
© 2007 IUP . All Rights
Reserved