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View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 219 32.02%
26 - 50% -- I have a few stocks. 302 44.15%
51 - 75% -- I'm an active trader. 113 16.52%
76 - 100% -- Hey, I'm an i-banker!!! 50 7.31%
Voters: 684. You may not vote on this poll

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Old 11th April 2017, 01:47   #3556
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Default Re: Do you play the stock market

How do you apply for an allotment for an IPO? I was thinking SBICAP sec for ease of use. Is there anyone here using SBICAP sec, if so, I would like to get some insight on whether I should start a 3 in 1 account with them.

PS: I already have a savings account and loan account with SBI if that matters.
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Old 11th April 2017, 08:56   #3557
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Smile Re: Do you play the stock market

Quote:
Originally Posted by govigov View Post
How do you apply for an allotment for an IPO? I was thinking SBICAP sec for ease of use. Is there anyone here using SBICAP sec, if so, I would like to get some insight on whether I should start a 3 in 1 account with them.

PS: I already have a savings account and loan account with SBI if that matters.
If you have a savings account with SBI, there is an option to apply for IPO through ASBA. You need to ensure that your Demat account is linked to the savings account so that in case of any allotment, the Demat account will be updated accordingly
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Old 11th April 2017, 10:18   #3558
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Default Re: Do you play the stock market

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Originally Posted by govigov View Post
How do you apply for an allotment for an IPO? I was thinking SBICAP sec for ease of use. Is there anyone here using SBICAP sec, if so, I would like to get some insight on whether I should start a 3 in 1 account with them.

PS: I already have a savings account and loan account with SBI if that matters.
Never ever go for SBI CAP. It is all crap.

They don't have any facility to apply for IPO. You have to make it through your SBI savings account as Ghodlur suggested, even after having SBI CAP account.

Moreover their interface is so bad, that you will end up hating it.

Best is ICICI direct. Their charges are little more but their service is impeccable.

I have both SBI and ICICI direct.
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Old 11th April 2017, 16:56   #3559
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Default Re: Do you play the stock market

Quote:
Originally Posted by J.Ravi View Post
Today, I booked profit in 50 PVR @ ₹ 1,365 each. I had bought these shares in 2006 with an average cost of ₹ 187.72. I still have 200 shares, which I will sell in phases in the coming months.
My sell order of 10 PVR @ ₹ 1,566 got executed successfully at 10:51 am today. I have been trying to sell this lot at this price since last few trading sessions.
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Old 13th April 2017, 18:05   #3560
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Default Re: Do you play the stock market

Hi All,

Currently I have a portfolio of 70000 INR in stocks. Those are majorly in Tata motors (purchased @ 290), SBI (purchased @ 199, 230), Avanti feeds (@ 500) and Ajantha pharma (@ 1200).

Since markets are at peak, Should I sell these or retain them. Any suggestions?

All the stocks above are purchased based on recommendations from my friends and knowledge from this thread.

Now I want to improve my knowledge on Stock market investing. I completed Rich Dad Poor Dad. I am planning to read following books in below order

1) Intelligent investor - Completed couple of chapters but finding it hard to comprehend.
2) One up on Wall street
3) Security Analysis - by Graham - Should I read this?

Any other sources to understand how to interpret Annual/Quarterly reports and how to do Analysis and arrive at stocks.

Thanks for your help.
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Old 17th April 2017, 20:03   #3561
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Default Re: Do you play the stock market

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Originally Posted by fordday View Post
Never ever go for SBI CAP. It is all crap.

They don't have any facility to apply for IPO. You have to make it through your SBI savings account as Ghodlur suggested, even after having SBI CAP account.

Moreover their interface is so bad, that you will end up hating it.

Best is ICICI direct. Their charges are little more but their service is impeccable.

I have both SBI and ICICI direct.
Thank you. If all goes well, I should be opening an account with iDirect. I have received good feeback for their trading platform, but also, know that they have high charges. I may switch to discount broker in the future, but for now it is going to be a 3 in 1 account.
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Old 18th April 2017, 16:14   #3562
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Default Re: Do you play the stock market

Any intraday traders here? Is there any tax slab for the same? Couldn't find much detailed specifics online. How to declare (profit/loss) while filing IT return?
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Old 18th April 2017, 16:39   #3563
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Default Re: Do you play the stock market

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Originally Posted by SoumenD View Post
Any intraday traders here? Is there any tax slab for the same? Couldn't find much detailed specifics online. How to declare (profit/loss) while filing IT return?
I am certainly no expert, still trying to learn the nuances of Stock market. But IIRC, any profit made from short term trading (less than one year) will attract a flat tax rate of 15%

Consider this example where a person buys two stocks and sells them in short term -

Share A - bought 100 shares at Rs. 50 each, and sold at Rs. 75 each...
Profit made in this case is 25x100 = Rs. 2500

Share B - bought 200 shares at Rs. 100 each and sold at Rs. 90 reach...
Loss made in this case is 10x200 = Rs. 2000

So the overall profit you have made this year would be Rs.500, and this is taxable at a rate of 15% - Rs. 75 for this example.

PS: No tax for dividends, up to a limit of 10 lakhs in a particular calendar year.

You will have to download the statement of your demat account and get the overall P/L made in that year, and file it while filing for IT I believe.

Experts, please correct me if I am wrong.
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Old 18th April 2017, 22:53   #3564
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Default Re: Do you play the stock market

Quote:
Originally Posted by SoumenD View Post
Any intraday traders here? Is there any tax slab for the same? Couldn't find much detailed specifics online. How to declare (profit/loss) while filing IT return?
Quote:
Originally Posted by aravind.anand View Post
I am certainly no expert, still trying to learn the nuances of Stock market. But IIRC, any profit made from short term trading (less than one year) will attract a flat tax rate of 15%
Not true. Intraday(day trading/non delivery trading) is considered as speculative activity, so profit earned from this would be added to your salary/business income, and you would be taxed according to the applicable tax slab.

Delivery based trading(held for less than a year) would be considered as short term capital gain and will be taxed 15%.
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Old 19th April 2017, 09:37   #3565
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Default Re: Do you play the stock market

How does it work if we do intra-day trade with in the exchanges? Sometimes there is price difference between NSE and BSE. Can I buy from NSE and sell it on BSE as a intra-day trade?
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Old 19th April 2017, 17:10   #3566
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Default Re: Do you play the stock market

Quote:
Originally Posted by arun_kun View Post
How does it work if we do intra-day trade with in the exchanges? Sometimes there is price difference between NSE and BSE. Can I buy from NSE and sell it on BSE as a intra-day trade?
I doubt thats possible. Atleast in ICICI-Direct I cant see that option. Again, I just started trading intraday after a decade plus gap so maybe its too early to comment if this feature is available.

Thanks @shetty_rohan for the clarification on taxation.

Last edited by SoumenD : 19th April 2017 at 17:11.
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Old 24th April 2017, 22:10   #3567
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Default Re: Do you play the stock market

What is the processing time for icici direct to open an account? They told me it was gonna take 2 weeks. Does it really take 2 weeks to open a demat and a trading account?
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Old 24th April 2017, 22:41   #3568
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Default Re: Do you play the stock market

recently, South Indian Bank has been moving well and was in the medium term recommendations list,
whats the outlook on this stock?
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Old 25th April 2017, 14:12   #3569
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Default Re: Do you play the stock market

Quote:
Originally Posted by J.Ravi View Post
My sell order of 10 PVR @ ₹ 1,566 got executed successfully at 10:51 am today.
Quote:
Originally Posted by J.Ravi View Post
Today, I booked profit in 50 PVR @ ₹ 1,365 each. I had bought these shares in 2006 with an average cost of ₹ 187.72.
Today, I sold another lot of 10 PVR @ ₹ 1,610 at 12:07 pm.
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Old 25th April 2017, 15:17   #3570
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Default Re: Do you play the stock market

Hi all, I am facing a peculiar problem in calculating returns of a particular investment. So calling all investors/mathematicians here to help me out. I will try to explain the issue with an example below.

Example

A has entered into an agreement to purchase some asset from B for a fixed spread on current price. So the profit from the deal is known before hand. B has to deposit the said asset in a warehouse and get it certified for quality and then transfer the same to A's account. The payment terms are 90% on deposit in warehouse and balance 10% once the asset is transferred to A's account.

Lets assume one such deal, initiated on 01-01-2017 and to be held till 31-04-2017, entailed investment of 10 lakhs. The profit from the deal which will be realised at the end of deal is 1 lakh. B has deposited the asset in the warehouse on 31-01-2017 so 9 lakhs was paid by A. The asset finally was transferred to A's account on 25-02-2017 so the balance 1 lakh was paid on that date.

To calculate returns we have to either find out effective investment or effective investment period as our investment isn't being deployed at one go. I found a way to find effective investment after consultation with some other peers and online search. The method is to calculate the number of days from partial payment to the end of deal(Lets call it expiry) and number of days from final payment to end of deal and then give them weights accordingly.

Effective Investment = (Partial payment*No of days till end of deal+Final Payment*No of days till end of deal)/Total number of days


Partial payment date - End of deal will give us the number of days we are investing the said amount. In this case 9 lakhs. Same with Final payment

Total number of days have to be calculated from the time we have invested till end of deal. This is nothing but calculating from partial payment date since that is when we have started investing.

So effective investment for the above example would be

Effective Investment = (9,00,000*59 (31 Jan - 31 Mar)+1,00,000*34(25 Feb - 31 Mar))/59

=9,57,627 (Rounded of decimals)

So our actual returns would be

(1,00,000/9,57,627)*59/365*100

=64.60

The Problem

If everything went as per plan there would have been no problem. The major issue is there are times when the seller deposits the asset after the deal date

In the above example instead of depositing on 31 Jan 2017 what if the seller deposited the asset on 5 April 2017?

Of course there is an option to extend the deal date wherein we would earn additional profit. Generally we do so by rolling over the positions from one expiry to another (Those who are into derivative contracts would understand). We generally club multiple deals and rollover them to another expiry in a single go. So how do I account for this while calculating the returns.

I know there will be many doubts and clarifications so I am attaching and actual sheet with actual data.

PS: I tried deducting the opportunity cost or Internal rate of return from the payment made as every day delayed would give me some return from the funds utilised elsewhere. I have included that formula also in the excel sheet.
Attached Files
File Type: xlsx Return Calculator.xlsx (15.2 KB, 26 views)

Last edited by vamsi.kona : 25th April 2017 at 15:19. Reason: Additional info
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