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Showing posts from September, 2017

Impact Of Company's Quarterly Result On Share Price

Impact Of Company’s Quarter Result on Stock Price Quarter results of all listed companies are released as per SEBI guidelines. Due to which a very rapid fluctuations in stock prices can be seen. Sometimes a minor jump in sales figures drive the stocks in green and several times stocks fall after increasing in sales number also. It’s almost impossible to analyze the quarterly result in one go just after seeing the flash of news on TV. There are certain key things which can be analyzed in quarterly result: ·          Gross Sales: It’s basically a number of total sales figure. ·          Net Sales: From gross sales, one can derive net sales by deducting sales return, sales allowances, and sales discount from gross sales. ·          Operating expenses: To run a business there is a minimum base requirement of capital to operate. Basically this is the cost ...

India: Growth Slow Down (A note on GDP)

Indian economy slowed down significantly in the first quarter of FY2017, which is worst in last three years exactly the same years Modi government is in center. According to recently released data GDP expanded a weak 5.7% annually in Q1 FY 2017, which was sharply below the 6.1% increase in Q4 FY 2016. All those analyst who were forecasting a healthy growth rate now are vanished and our finance minister is accepting that this is a matter of concern. The probable reason of this slow down can be demonetization or implementation of GST. Export growth slowed notably from 10.3% in Q4 FY 2016 to 1.2% in FY 2017, the worst result since Q4 FY 2015. A strong rupee and confusion over the looming implementation of the Goods and Services Tax (GST) likely weighed on the result. There are many evidence in which suggests that firms were not sure of how to price product, with some even providing pre-GST discounts, which likely caused disruption in economic activity. Meanwhile, import growth rose to...

The Buzzing country: North Korea

After every day or two a news comes in related to North Korea and market reacts sharply to it. The latest news came yesterday as North Korea confirmed that it tested a nuclear bomb which created earthquake of magnitude 6.3. US already warned North Korea not to do all these stuffs related to nuclear tests but all the warning has been neglected by the other side. Kim Jong- un is not listening to any one and he continues to do what he want to do. He is also even threatening to US and probably he is ready for a nuclear war. Donald Trump reacted to this test and is trying to find a way how to counter this without getting involved in a war. He asked to stop all trade with any country doing business with North Korea. Probably Trump is hinting towards China which is the lone country who supports North Korea behind the curtains. US along with his allies called for an emergency meeting on Monday to discuss about all options available. The fear of a war cannot be ruled out and if this happens...