Team-BHP > Around the Corner > Shifting gears


View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 247 32.59%
26 - 50% -- I have a few stocks. 334 44.06%
51 - 75% -- I'm an active trader. 123 16.23%
76 - 100% -- Hey, I'm an i-banker!!! 54 7.12%
Voters: 758. You may not vote on this poll

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Old 14th August 2019, 14:12   #4066
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Default Re: Do you play the stock market

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Originally Posted by SmartCat View Post
Sure, but index constituents keep changing. More index companies now have subsidiaries than in 2000 and 2008. Examples:

- Bajaj Finserv owns Bajaj Finance
- Bharti Airtel ownes Bharti Infratel
- Grasim owns ultratech cement
- ONGC owns HPCL
- Tata motors owns JLR
- M&M owns Tech Mahindra/M&M Fin/Mahindra Lifespace etc

and so on.
I have a question on subsidiaries. What happens to the parent company share when a subsidiary is listed separately? Do the shareholders of the parent company benefit from it in any way? Do they get the shares of the subsidiary in any proportion automatically?

I am interested in Reliance due to the Network/Retail push they are doing. If I invest in Reliance now and they list their retail down the line in a few years will it be beneficial or is it better to hold on and directly get the Retail when it goes for IPO?

Last edited by khan_sultan : 14th August 2019 at 16:18. Reason: formatted for better readability
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Old 14th August 2019, 14:17   #4067
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Default Re: Do you play the stock market

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Originally Posted by praveen_v View Post
I am interested in Reliance due to the Network/Retail push they are doing. If I invest in Reliance now and they list their retail down the line in a few years will it be beneficial or is it better to hold on and directly get the Retail when it goes for IPO?
Depends on what Reliance management decides to do. If they do a demerger, then you will get shares of Reliance Retail and Jio, but Reliance shares will fall. But if they just list the subsidiaries after IPO, then you don't get shares of Retail and Jio. The performance of Reliance stock then depends on how the market values Retail and Jio.
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Old 14th August 2019, 14:25   #4068
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Default Re: Do you play the stock market

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Depends on what Reliance management decides to do. If they do a demerger, then you will get shares of Reliance Retail and Jio, but Reliance shares will fall.
Thanks. Got this part.

Quote:
But if they just list the subsidiaries after IPO, then you don't get shares of Retail and Jio. The performance of Reliance stock then depends on how the market values Retail and Jio.
Does this mean Reliance share still goes higher supposing the market is positive on Retail and Jio? Or will Reliance share still go lower? Is it advisable to buy now if I am interested in Retail part?
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Old 14th August 2019, 15:52   #4069
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Default Re: Do you play the stock market

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Does this mean Reliance share still goes higher supposing the market is positive on Retail and Jio? Or will Reliance share still go lower? Is it advisable to buy now if I am interested in Retail part?
Yes, buy RIL now if you are interested in Reliance Retail. What happens to RIL on Reliance Retail listing date depends on the overall mood of the market. After Reliance Retail listing, perhaps you could sell RIL and buy Reliance Retail.
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Old 17th August 2019, 12:51   #4070
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Default Re: Do you play the stock market

Anyone tracking the below stocks? I am doing my SIP on these

1. IDFC First Bank Ltd.

2. Seya Industries Ltd.

3. Aditya Birla Capital Ltd.

4. MOIL Ltd.

5. National Aluminium Company Ltd.
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Old 22nd August 2019, 18:19   #4071
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Default Re: Do you play the stock market

With the markets going down continuously, is it good time to buy some blue-chip stocks for long term, like SBI, or any other?
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Old 22nd August 2019, 19:26   #4072
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Default Re: Do you play the stock market

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Anyone tracking the below stocks? I am doing my SIP on these

3. Aditya Birla Capital Ltd.

5. National Aluminium Company Ltd.
I hold ABCap, bought quite expensive. I have hope with this one although so far it has royally disappointed.

NALCO is something I was checking earlier today. It is at a terrific value if you consider the dividend yield. Although right now at 15%, but future dividends may not be at the same level, but even a 10% div yield is an awesome deal.

Considering how government is cash strapped, I believe it will again, like last year, want these companies to pay out huge dividends. Its a safe bet and I might put money in this one soon.
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Old 9th September 2019, 13:15   #4073
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Default Re: Do you play the stock market

Need advice

I have been holding a small bit of my equity investment for a while; very few I possess have given me good returns.

Since I am in need of some dough, planning to sell shares of Interglobe Aviation bought in the IPO; the percentage of profit is nearly 120%/

How much Capital Gain Tax - will I have to pay and when?

BTW - Is there an alternative of not selling these and getting a loan at nominal rate? Is that a better option, I really dont like taking or keeping loans except my Home Loan!

Hope to hear from you soon.

S
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Old 9th September 2019, 13:36   #4074
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Default Re: Do you play the stock market

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BTW - Is there an alternative of not selling these and getting a loan at nominal rate? Is that a better option, I really dont like taking or keeping loans except my Home Loan!
Yes you can avail a loan using stocks as collateral. But not all stocks qualify for this, the hair-cut is high (usually 50%) and rates are not that attractive. So not much useful if you dont like paying interest.

Only advantage here will be that you will pay interest on the amount that you will utilize post approval. So if you manage to cover your needs some place else, you will only pay the processing fee and yet have a leverage line available.

Better to sell now, take care of your needs and buy again later. We invest so that we can take care of our needs when the time comes

About taxes, you will have to pay LTCG tax which was introduced recently. You can easily get the info on the internet

-Sunil
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Old 9th September 2019, 14:04   #4075
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Default Re: Do you play the stock market

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Originally Posted by vinit.merchant View Post

NALCO is something I was checking earlier today. It is at a terrific value if you consider the dividend yield. Although right now at 15%, but future dividends may not be at the same level, but even a 10% div yield is an awesome deal.

Considering how government is cash strapped, I believe it will again, like last year, want these companies to pay out huge dividends. Its a safe bet and I might put money in this one soon.
Well they are a commodity company and commodities are cyclical. The thing with cyclicals is you want to catch them on the upswing as that is when they give returns else they teach you a very expensive lesson if you happen to buy when they are in their highs of the cycle.

Be careful putting your money in a company like Nalco. Just check where in their cycle they are before investing.
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Old 16th September 2019, 22:15   #4076
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Default Re: Do you play the stock market

Hi guys.

Anything worth buying these days with 3-5 years horizon?

I would like to buy 5-6 large/mid caps from different segments. I would prefer safe stocks even if the return is less.

Please suggest.
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Old 21st September 2019, 20:32   #4077
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Default Re: Do you play the stock market

Whats your view on the corporate tax cut announced by the FM ? Twitter is all over the moon comparing it with 1991, 1997 kind of reforms. Is this really so big an event ?

Will companies paying taxes in higher 30%+ bracket get re-rated ?
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Old 21st September 2019, 20:39   #4078
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Default Re: Do you play the stock market

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Originally Posted by mukeshgoel View Post
Hi guys.

Anything worth buying these days with 3-5 years horizon?

I would like to buy 5-6 large/mid caps from different segments. I would prefer safe stocks even if the return is less.

Please suggest.
I dont have any recos, but if you are a newbie, go through this amazing thread by SmartCat.

https://www.team-bhp.com/forum/india...ve-sector.html (Guide: Investing in shares of the automotive sector)

It will help you understand how to pick stocks.
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Old 21st September 2019, 20:40   #4079
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Default Re: Do you play the stock market

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Whats your view on the corporate tax cut announced by the FM ? Twitter is all over the moon comparing it with 1991, 1997 kind of reforms. Is this really so big an event ? Will companies paying taxes in higher 30%+ bracket get re-rated ?
It is supposed to give a boost to manufacturing over a very long term. Analysts expect more companies to setup manufacturing bases in India for local consumption and exports. Western countries are already looking at alternatives to China. That's why the comparison with 1991.

The big 5% surge is because overall earnings of all major companies will grow by a similar percentage because of tax cuts. Not 100% sure if the stock markets will continue to rally for a longer duration. It takes time for general bad news about economy to turn.
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Old 25th September 2019, 14:02   #4080
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Default Re: Do you play the stock market

These days in existing environment I feel bank fixed deposits carry similar risk as stocks. Even debt investments seem in the same league.

When FRDI regulations state that each deposit is insured upto a max sum of Rs 1 lakh, I was wondering about this limit Rs 1000/- put in case of PMC bank. This is indicative of collapse of the bank, possibly on account of a failed real estate borrower. I was wondering how many more banks are carrying such skeletons in their cupboards.

Stock markets as riskiest investment option, doesn't seem no more. Would love to hear opinion of experts.
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