IPO – Role of Underwriter

When a company wants to raise funds through initial public offering (IPO) it appoints an investment bank for underwriting the issue. An Investment bank is also called as merchant bank. There is no regulatory restriction to use the services of a merchant bank for IPO. Since in an IPO a company participates for the first time, it doesn’t have complete understanding of the rules and documentation, required to be submitted, to get a clearance from the regulator. Read more

December 21, 2008 | Filed Under Stocks | Leave a Comment

What Is Inflation?

Inflation is an increase in the average level of prices for goods and services. In other way, we can say it is an index, which shows how prices of goods and services that is representative of the economy as a whole are growing.

The immediate effect of inflation is the value of rupee/dollar (based on the country you are staying) decreases at par with inflation. That means the purchasing power of your ‘money’ decreases. If you want to understand it better, consider the below example.

Date : 31st December 2008
Price of 1KG rice : Rs 20

If the inflation raises 10% annually(i.e. if inflation throughout the year is 10% - just assume this) Read more

December 20, 2008 | Filed Under Economy | Leave a Comment

List of NIFTY stocks

NIFTY consists of 50 top stocks from different sectors of NSE. Below is the list by 20th December 2008.

1. ABB Ltd : ELECTRICAL EQUIPMENT
2. ACC Ltd : CEMENT AND CEMENT PRODUCTS
3. Ambuja Cements Ltd : CEMENT AND CEMENT PRODUCTS
4. BHEL : ELECTRICAL EQUIPMENT
5. Bharat Petroleum Corporation Ltd(BPCL) : REFINERIES
6. Bharti Airtel Ltd : TELECOMMUNICATION - SERVICES
7. Cairn India Ltd : OIL EXPLORATION/PRODUCTION
8. Cipla Ltd : PHARMACEUTICALS
9. DLF Ltd : CONSTRUCTION Read more

December 20, 2008 | Filed Under Fundamental Analysis | Comments Off

What is NIFTY?

NIFTY is an Index computed from performance of top stocks from different sectors listed in NSE (National stock exchange). NIFTY consists of 50 companies from 24 different sectors. NIFTY stands for National Stock Exchange’s Fifty. The companies which form index of NIFTY may vary from time to time based on many factors considered by NSE. NIFTY is for NSE as similar to SENSEX is for BSE