Saturday, 30 June 2012

BMA Wealth Creators Ek Paisa Offer

Freeze Your Demat Account When Not Using It

A depository account holder (beneficiary account) may freeze securities lying in the account for as long the holder wants to. By freezing, the account holder can prevent unexpected debits or credits, or both, creeping into the account.

i. Freeze for debits only:
A demat account holder may freeze the account only for debits by submitting a freeze instruction to its Depository Participant (DP). On execution of the freeze instruction by the DP, the status of the account will change to `Suspended for Debit'.

ii. Freeze for debits/credits:
An account holder may freeze the account for debits as well as credits. If such instruction is issued, the status of the account will change to `Suspended for All' after the execution of the instruction.

iii. Freeze a particular ISIN:
ISIN stands for International Security Identification Number. An account holder may freeze a particular ISIN (security of a specific company) from being debited from the account, without freezing the whole account.

iv. Freezing a specific number of securities:
An account holder may freeze a specific quantity of a specific security in an account. Thus, this facility will enable the account holder to earmark some quantity of securities as "not for trade" within a specific security, without disturbing the movement of other securities in the account.

News Hour- Business confidence improves after PM Manmohan Singh takes charge of Finance Ministry: Survey

NEW DELHI: The business confidence is turning for better within days of Prime Minister Manmohan Singh assuming charge of the Finance Ministry, an Assocham CEOs survey has said. 

In a quick survey of 150 chief executive officers (CEOs), there was a sense of renewed energy infusion in the economy among the industry and investors. 

"Over 80 per cent of the CEOs polled felt that the Prime Minister, with the Finance Ministry under his charge, will now act without further loss of time, as he realises that the economy cannot afford any more indecisiveness," it said. 

Business environment in the country was damaged because of global conditions and perception of slow domestic policy actions which was exacerbated by global credit rating agencies, it said. 

It said the draft guidelines on the General Anti- Avoidance Rules (GAAR), would give a platform for the issue to be debated threadbare. 

"We would urge the government not to rush in. Instead, let the stakeholders- government, tax-payers, stock market, industry and even foreign players get into informed debates, before we get an acceptable view, win-win for all," said Assocham president Rajkumar N Dhoot. 

However, allowing foreign direct investment in multi- brand retail will not lead to flood of foreign funds, it will send positive signal among investors, it said. 

The industry expects definite action in power sector, particularly with regard to fixing problems of fuel supply. 

An immediate action can be expected by taking a review of the GAAR provision and also push to the Direct Tax Code Bill ( DTC) in the Monsoon session of Parliament. 

About 72 per cent of the executives expects the PM has great to set things right in the economy and areas like roads, power, coal and environment. 

Real estate, housing, automobile and banking need urgent attention of the government and the Reserve Bank, it said. 

"We need immediate reversal in the interest rates. Ultra high rates of interest are causing a big imbalance in the economy and killing demand in several labour-intensive sectors," Dhoot said. 

The initial few moves in the Finance Ministry, supported by the Planning Commission Deputy Chairman Montek Singh Ahluwalia, send a clear signal of course correction, which is urgently required, it said.


Market Heatmap- 29 June 2012

The key Indian equity indices zoomed-up today after the Government sought to ease concerns over controversial GAAR provisions and the EU leaders in Brussels proposed a common financial supervisor. Another positive development was that petrol prices were scaled down by nearly Rs 3 per litre. However, problems confronting the eurozone remains the biggest risk along with the slow progress of southwest monsoon. The Sensex closed at the level of 17429.98 i.e., up by 439.22 points and the Nifty closed at the level of 5278.9 i.e., up by 129.75 points. This led the midcap and the small-cap counters to close positive with gains of nearly one and a half percentage points each. On the sectoral front, all the indices closed in green. Capital Goods, Power, Bank and Metal indices closed as the major gainers with gains of nearly three and a half percentage points each. Further, the market breadth closed positive as eight stocks were seen advancing for every three declines. Find out more at :

Commodity Market Update

Precious Metals are likely to remain lower today with added support from the appreciated rupee. Gold has strong support at $1550 while Silver finds support at $26.25. Base Metals may move higher internationally but upsides are likely to be capped due to the rupee. Energy Prices are holding steady with Crude trading in a narrow range with a negative bias.

Key Data to watch : European Economic Summit, Core PCE Price Index MoM, Personal Spending and Income MoM, Chicago PMI

BMA Gyaan- An Explanation of Growth Fund.

BMA Words of Wisdom by Mother Teresa

Friday, 29 June 2012

Morning Summary- Market Synopsis- 29 June, 2012

Good Morning Everyone,
The key Indian equity benchmarks rallied in the opening minutes of trade, with the Nifty surpassing 5200 and the Sensex accelerating above 17,200. This sudden spark is seen as the Government sought to ease concerns over GAAR and as the EU leaders in Brussels proposed a common financial supervisor. At the moment, the Large-Caps are spearheading the advance with the broader indices lagging slightly. However, the overall undercurrent remains upbeat. The Sensex is currently trading near the level of 17340 i.e., up by nearly 350 points and the Nifty is trading near the level of 5250 i.e., up by nearly 100 points. This has led the midcap and the small-cap counters to trade positive by nearly a percentage point each. On the sectoral front, all the indices are trading in green. Capital Goods, Power, Bank and FMCG indices are leading the list of gainers with gains of over two percentage points each. Further, the market breadth is positive as four stocks are seen advancing for every one decline.

(Pic. Source-

Don’t Panic In A Bearish Market

Stock market investing in a bear market can be tricky because the entire market seems to be on the decline. One should not panic in such a situation.

1. Find Undervalued Stocks:
Look for undervalued stocks which have a price lower than the anticipated stock value in the near future. If the company is fundamentally strong and shows promise but has a very low stock price it may be a good choice, especially in a bear market.

2. Engage In Short Selling:
This investment method involves a complicated process which utilizes the loaning of stock shares. The investor borrows the shares with an agreement to deliver the exact same number of shares at a later date. The investor makes profit by selling the stock at the current price and then repurchasing when the price of the stock drops. However, this must be practised only by experienced investors.

3. Watch For Signs of A Bull Market Approaching:
Both bull and bear markets are cyclical, and eventually a bear market will turn bullish. Smart investors watch the market carefully so that the first signs of the market turning can be detected and acted on quickly.

4. Invest For The Long Term:
Successful stock market investing will usually look at the long-term prospects of a stock, and this is true in a bear market as well as a bull market.

5. Avoid Margin Positions:
A bear market is not usually the best time to take margin positions because of the high probability of a market decline. Most professionals and experienced investors advise that margin positions should be closed and avoided until the market conditions turn more favourable.

6. Don't Hold a Losing Position Out of False Hope:
Some investors refuse to sell even when the losses continue to pile up, either from emotions like fear or out of false hope that the market may turn around soon. Be realistic about the stock prospects, and sell if this step seems like the best choice.

7. Don't Panic and Start Selling Everything:
A big mistake made by many investors is to start selling stocks indiscriminately when a bear market hits. This is done in an effort to minimize the investment losses. However, the prudent strategy would be to keep the fundamentally strong stocks and sell the weak stocks in the portfolio. Once the market revives, the good stocks will rebound strongly and fetch good returns.

8. Only Choose Stocks from fundamentally strong Companies:
Successful stock market investing means performing extensive research on each stock considered. Only including quality stocks from fundamentally strong companies in the investment portfolio will help protect the investment value over time regardless of any short-term market changes.

News Hour- Nokia CEO Stephen Elop admits failure to foresee fast-changing industry

HELSINKI: Nokia chief executive Stephen Elopadmitted on Thursday that his company had failed to foresee rapid changes in the mobile phone industry and this was partly behind the firm's problems. 

"We had moments in the past year and a half when we could have done some things differently had we known that the industry was changing so rapidly," Elop told Finnish national daily Aamulehti. One example of Nokia's misreading of the markets "was the steep price decrease of Android phones in China," he said. 

"It happened so fast that Nokia's situation has now become difficult, but we keep honing our strategy." 

Nokia recently lost the world number one ranking it had held for 14 years as it attempts to survive on the rapidly changing landscape, with stiff competition from RIM's Blackberry, Apple's iPhone and handsets running Google's Android platform. 

The company has been undergoing a major restructuring in the past 18 months, phasing out its Symbian line of smartphones in favour of a partnership with Microsoft. 

It recently announced that massive new spending cuts and 10,000 more layoffs would be needed, in addition to the some 12,000 layoffs already announced in the past year and a half. 

Adding to Nokia's problems was an anouncement by Microsoft late last week that its Windows 8 upgrade would not work on Nokia's new flagship smartphone, the Lumia 900 model which it launched earlier this year. 

That caused Nokia's share price to shed 10 percent on Monday to 1.73 euros, its lowest point since August 1996 when it hit 1.71 euros, and down from 4.00 euros at the beginning of the year.


Market Heatmap- 28 June 2012

The frontiline Indian stock indices were stuck in a narrow trading range for most part of the session before witnessing some action in the closing hours of trade as traders adjusted their positions on F&O expiry today. Sensex ended at 16991, up 23 points while Nifty pulled down shutters at 5149, up 7 points from the previous close. Sectorally, the indices closed mixed. While Oil & Gas, Banking and Consumer durables closed with minor losses, FMCG was the biggest gainer. The market breadth was neutral as one stock was seen advancing against every single decline. Find out more at :

Commodity Market Update

Precious Metals are trading near crucial support levels breaking which prices may move lower further. Support for Gold at $1560 and Silver at $26.50. Base Metals are trading with a negative bias and may fall further during the day. Energy prices are holding steady with support coming into play at $78.

Key Data to watch : US Jobless Claims at 6.00 pm and US Natural Gas storage report at 8.00 pm today.

BMA Gyaan- Understanding A Company's Corporate Structure

BMA Words of Wisdom by Mahatma Gandhi

Thursday, 28 June 2012

Morning Summary- Market Synopsis- 28 June, 2012

Good Morning Everyone,
The Sensex and Nifty opened almost flat as investors remain cautious ahead of F&O expiry today. The two-day EU summit also begins today in Brussels. Investors are hoping that EU leaders will set aside their differences and announce credible measures to tackle the debt crisis. Nifty was seen hovering around 5150 levels while Sensex was seen trading just above the 17,000 mark. Sectorally, except Banking & Auto, all the other sectoral indices are seen trading in the green with Power and PSU leading the list. The market breadth is positive and two stocks are seen advancing against every single decline.

(Pic. Source-

Do Your Research Before Investing

Stock market research is essential to good financial and investment decision making. It is important to heed expertise advice in matters of investing but you should not blindly follow the advices of your financial advisor. You should also conduct your own research before putting your hard earned money into a stock.

i. Understand The Market:
The importance of this research means that it should be a priority before you consider putting your money into a stock. You wouldn't likely buy a product that you did not understand. Your stock investments should be looked at in the same way. Stock market research can reveal a lot about a stock and its company.

ii. Know The Company:
By doing research you will be able to determine the market price and trading volume for the stock, the strengths and weaknesses of the underlying company, the high and low prices for the stock over both short and extended time frames, the profits and earnings for the company, and so much more.

Market Heatmap- 27 June 2012

The frontline Indian equity indices ended with modest gains after yet another listless session, as investors awaited positive policy action from the Government. Market players also seemed cautious ahead of a two-day EU summit. The Sensex closed at the level of 16967.76 i.e., up by 61.18 points and the Nifty closed at the level of 5141.9 i.e., up by 21.10 points. This led the midcap and the small-cap counters to close positive. On the sectoral front, except for Auto, Consumer Durables and Oil&Gas indices, all the other indices closed in green. Metal & Power indices closed as the major gainers with gains of over a percentage point each. Further, the market breadth closed positive as four stocks were seen advancing for every three declines. Find out more at :

News Hour- Prime Minister's Office asks Coal Ministry to give de-allocated mines to CIL

NEW DELHI: The Prime Minister's Office (PMO) has asked the Coal Ministry to fast-track the process of taking back the coal blocks from private firms which have not developed them and giving the deallocated coal mines to Coal India (CIL). 

"Recently, the PMO has asked to expedite the process of coal blocks deallocation and give the deallocated blocks to Coal India," an official with the Coal Ministry privy to the development told PTI. 

Also, the PMO has said the CIL should appoint mine developer and operators (MDOs) to begin production from these deallocated coal blocks without delay, the official said. 

The Coal Ministry had recently allotted 116 mines to CIL for expansion to help it boost production capacity amid the PSU drawing flak for coal shortage across the country. 

Though the CIL had asked for 138 mines, the Coal Ministry asked the coal major to recast its plans. 

Since CIL is a government-owned company, the Coal Ministry under the government dispensation route has the right to allocate mines to the CIL, an official in the Ministry had said earlier. 

Coming down heavily on the private companies delaying the development of coal blocks allocated to them for captive use, the government had recently issued show-cause notices to 58 coal block allottees which have delayed the production from the mines. 

The notices were issued to firms such as Reliance Power's Sasan, Tata PowerHindalco, Grasim Industries, JSW, Bhushan Steel, TVNL, Jharkhand State Mineral Development Corporation and Chhattisgarh Mineral Development Corporation, among others. 

The notices sought reasons for delay in developing blocks and warned them of cancellation of mines if no explanation was given in 20 days. 

In May last year, the government had cancelled allotment of 14 coal blocks and one lignite block of companies like NTPC, DVC and Andhra Pradesh Power Generation Corporation.


BMA Gyaan- A Simple Explanation of Index Shares

BMA Words of Wisdom by Swami Vivekananda

Wednesday, 27 June 2012

Morning Summary- Market Synopsis- 27 June, 2012

Good Morning Everyone,
The key Indian stock indices spurted in early minutes of trade, with the Sensex surpassing the 17,000 milestone and the Nifty crossing the 5,150 mark. The broader market benchmarks too have extended their recent ascent. The Sensex is currently trading near the level of 17000 i.e., up by nearly 95 points and the Nifty is trading near the level of 5150 i.e., up by nearly 30 points. This has led the midcap and the small-cap counters to trade positive by over half a percentage point each. On the sectoral front, except for Auto and Oil&Gas indices, all the other indices are trading in green. Power index is leading the list of gainers with gains of over a percentage point. Further, the market breadth is positive as three stocks are seen advancing for every one decline.

(Pic. Source-

Beware of 'Freebies'

Mortgage lenders are prepared to lend first time buyers much higher amounts and offer lots of headline grabbing 'freebies' - free valuations, free legal fees, cashback, free insurance…
But beware – some nice 'freebies' doesn't necessarily make it a good deal.

i. Very low interest rates:
If you see a mortgage rate of 2% or 3%, be a bit cautious. To get this, you may have to pay a higher than normal standard variable rate of interest for a number of years afterwards, which could cost you thousands of pounds more in interest in the long run.

ii. Extended tie-in:
If you wanted to change your mortgage to a better deal in a few years time, you could face penalty fees running in to thousands of pounds if you try to get out of your mortgage deal early.

iii. High lending charges:
You need to check whether the mortgage provider charges a 'higher lending fee', which they may charge for mortgages that exceed a certain level of loan to value ("LTV").

Equity Research- Currency Corner

Market Heatmap- 26 June 2012

The benchmark indices witnessed a dull session today. After swinging on the either side of equator with marginal gains and losses, the key indices ended the day on a positive note. Sesnex closed at 16907, adding 24 points while Nifty advanced 6 points to close at 5121. Sectorally, Oil & Gas was the biggest gainer and closed with gains of over two percent. On the other hand, Consumer Durables and FMCG registered close to one percent losses. The market breadth was neutral and one stock was seen advancing against every single decline. Find out more at :

News Hour- Coca Cola to invest about Rs 28,000 crore in India by 2020

NEW DELHI: Beverages giant Coca-Cola today said it, along with its partners, will invest $5 billion (about Rs 28,000 crore) in India by 2020 on various activities, including setting up of new bottling plants.

This investment is higher by $3 billion from the previous announcement made in November 2011 for a period of five years to enhance its operations in India.

"Coca Cola will invest $5 billion in India between now and 2020. This investment in India is a part of $30 billion globally planned by the company. India aims to be among top five countries in Coca Cola's markets. It is at present number seven," Chairman and CEO Muhtar Kent told reporters here.

The investment, along with its partners, will go on increasing bottling lines, adding new bottling plants, enhancing back-end chain infrastructure as well as marketing by the company, he added.

Kent said the current announcement by the company is $3 billion more than previous figure.

"We have robust investment plans as we have examined our business here. Why are we increasing it? Because we are absolutely confident this is the right decision considering the vast opportunities in India," he added.

In line with its plan to double revenue globally by 2020, Coca Cola along with its partners had announced last year investments of $2 billion in India over the next five years to enhance its business operations, including setting up a new plant in the country.


BMA Gyaan- Introduction to Deficit

BMA Wealth Creators join the nation in remembering Bankim Chandra Chattopadhyay on his 174th Birth Anniversary.

BMA Words of Wisdom by J.P. Morgan

Tuesday, 26 June 2012

Morning Summary- Market Synopsis- 26 June, 2012

Good Morning Everyone,
The main Indian equity benchmarks appeared directionless in early minutes of trade, with the global markets trading deep in the red. Nifty was seen trading above the 5100 mark, while Sensex was trading below 17000 levels. Sectorally, the indices were trading mixed. Realty, Healthcare and Oil & Gas were the top gainers with close to half a percentage point gains while Metal and FMCG were seen trading with over half percent losses. The market breadth was positive and nine stocks were seen advancing against every seven declines.

(Pic. Source-

Be Technology Literate

In the current time people can't imagine their life without technology. We are surrounded by technologies which have made our life easy and comfortable. It is imperative in the present time to be technology literate.

i. Saves Time:
Today, with the advent of information technology, information is shared at an astounding rate. This saves time, offering the ability to make decisions faster.

ii. Easier Storage:
Technology eliminates the need for double or triple entry systems and reduces the need to file large amount of paperwork. Now, contracts and customer information can be stored in virtual data warehouses and accessed in minutes, which cuts down on the need to purchase or rent storage space.

iii. Improved Sharing of Information:
Technology allows information, whether written or broadcast, to be shared more quickly and with fewer resources. Marketing can be accomplished by placing ads that reach millions of ready buyers on the Internet or through social networking sites.

Equity Research- Currency Corner

You left us this day three years ago. Remembering King of Pop Michael Jackson.

Market Heatmap- 25 June 2012

The bourses today kick-started trade on a strong note, and traded range-bound in green on expectations of key policy reform announcements by the government. However the indices slipped in the red as investors were not impressed with the measures announced by the Reserve Bank of India to boost the Rupee. The central bank disappointed the markets as it hiked the FII investment cap in government bonds to $20 billion from $15 billion. The ECB limit for new manufacturing and infrastructure projects were raised by $10 billion. The Indian currency pared gains versus the US dollar but was still managed to stay in the green post the RBI announcement. Nifty closed at 5115 with a loss of 31 points while Sensex ended at 16882 losing 90 points. Sectorally, except, Consumer Durables, all the sectoral indices pared their early gains and closed in the negative. Banking and Power were the biggest losers with close to one percent loss. The market breadth was neutral and one stock was seen advancing against every single decline. Find out more at :

BMA Gyaan- A Simple Explanation of Direct Tax.

BMA Words of Wisdom by Thomas Edison

Monday, 25 June 2012

Morning Summary- Market Synopsis- 25 June, 2012

Good Morning Everyone,
The Indian equity markets opened in the green today and are showing some strength. This was after the Government assured on Saturday that it will soon announce policy measures to restore investor confidence in the Indian economy and check the steep fall in the rupee. The Rupee, too regained some of the lost ground on hopes that the RBI may also unveil fresh measures to strengthen the rupee. Sensex is trading at 17096 with a gain of 123 points while the Nifty is trading at 5183 mark with a gain of 37 points. All the sectoral indices are seen trading in the green with Banking and Realty leading the list. The market breadth is positive and nine stocks are seen advancing against every two declines.

(Pic. Source-

Advantage of Location

Most people cannot afford to buy a property on a prime locality like South Mumbai or South Delhi but when you are house-hunting in the suburbs, look for the development activities in the surrounding areas. If there are metros, malls, highways, office or commercial and residential building being constructed in the vicinity, such properties have the potential.

i. Choosing a right property in a right location is like picking up a good stock.

ii.Buy when prices are low but has a potential to go up in the medium to long-term.

Sunday, 24 June 2012

Build Your Portfolio With Systematic Investment Plan(SIP)

SIP is a way of investing specifically designed for those who are interested in building wealth over a long-term and plan out a better future for themselves and their family. It is useful for those who want to get their investments going, but don't have a large sum of money to invest.

i. Power of compounding:
Investment gurus always recommend that one must start investing early in life. One of the main reasons for doing that is the benefit of compounding. The longer the compounding period, the better for you.

ii. Rupee cost averaging:
This is especially true for investments in equities. When you invest the same amount in a fund at regular intervals over time, you buy more units when the price is lower. Thus, you would reduce your average cost per share or per unit over time. This strategy is called 'rupee cost averaging'. With a sensible and long-term investment approach, rupee cost averaging can smooth out the market's ups and downs and reduce the risks of investing in volatile markets.

News Hour- Government to announce steps on Monday to improve economy: Pranab Mukherjee

KOLKATA: Expressing concern over signs of weakness in the Indian economy, Finance Minister Pranab Mukherjee on Saturday said the government is set to announce certain measures on Monday to improve market conditions in consultations with the Reserve Bank. 

He said the Department of Economic Affairs had consulted with RBI Governor D Subbarao about the measures to be taken in this regard. 

"We will be able to take certain measures to be announced on Monday which will improve the market condition," Pranab Mukherjee said. 

"GDP is at 6.5. There is inflationary pressure, there is depreciation of rupee. There are no doubt signs of weakness in Indian economy," the minister said, adding, "I am concerned but not depressed". 

"When the world is in turmoil, then a large economy like India cannot stay immune", Mukherjee told reporters. 

Basic fundamentals are strong in Indian economy, the Minister said, adding that the period from January to June 2012 saw an inflow of FII money to the tune of 8 billion US dollars. 

The FII inflow for the corresponding period in 2011 was negative, he said. 

"This year FDI stood at 46 billion to 48 billion US dollars," Mukherjee said, adding that this was possibly his last visit to the city as Finance Minister. 


Charles Darwin: A Gentleman Naturalist

Charles Robert Darwin was born on the 12th of February, 1809 in Shrewsbury, England. He was the fifth child of successful doctor Robert Waring Darwin and Susannah Wedgewood. Darwin had an ordinary life as a child. He was a slow learner, and he did not enjoy going to school. He had a natural passion for botany, and he spent a lot of time exploring his father's land, collecting any interesting creature he could find. He also enjoyed doing chemical and mineralogical experiments with his elder brother Erasmus. The two of them had a laboratory in their garden shed.
Darwin attended the Shrewsbury School when he was eight years old. After he graduated, he tried to follow his father's wishes by studying medicine at the University of Edinburgh. However, he had little interest in medicine, and he decided to pursue a different career. In 1828, Darwin went to the University of Cambridge to prepare for a career as a clergyman. It was in Cambridge that he met two very influential figures who would set him on the path of becoming a naturalist. They were geologist Adam Sedgwick and naturalist John Stevens Henslow. Henslow advised him to travel with the HMS Beaglea survey ship, so that he would have the opportunity to study nature in different parts of the world.
When he was traveling with the HMS Beagle, Darwin compared his observations with the theories of Sir Charles Lyell, an English geologist. He found that Lyell's idea that all species were uniquely created was doubtable, because he noted that animals and fossils in the same geographical region were closely related, even though they had different structures and feeding habits.
Darwin returned to England in the year 1836, and he started recording his observations and ideas in a notebook. In 1839, he got married to his cousin Emma Wedgewood, and the couple moved to Down House, which was a small estate in London. Emma gave birth to 10 children, but 3 of them passed away during infancy. In 1859, Darwin's "On the Origin of Species" was published, and it was sold out shortly after it was released. Five more editions of the theory were published. Despite its popularity, many scientists said that Darwin was not able to provide evidence for his hypothesis. It was only after the advent of modern genetics that scientists began to see that Darwin's theory was correct. The strongest opposition, however, came from religious people who believed that life on earth was created by a divine being.
Darwin continued to expand on different aspects of his theory in "The Variation of Animals" and "Plants Under Domestication" in 1868, "The Descent of Man" in 1871, and "The Expression of Emotion in Man and Animals" in 1872. He was initiated into the Royal Society in 1839 and the French Academy of Sciences in 1878. Darwin suffered a heart attack and passed away on the 19th of April, 1882.

Investment Plan with BMA Wealth Creators

Saturday, 23 June 2012

Be Honest with Your Insurance Agent

When purchasing an insurance policy, you need to be absolutely honest with the agent or company when providing information about yourself or your family. An insurance policy is an agreement made in good faith and is a contract between you and the insurance company.

i. Inaccurate information may lead to invalidation of your policy:
If you provide inaccurate information to your agent when they are writing the policy, there’s a chance that the policy will not be valid. Not telling the truth about violations, the description of the car or anything else could void the policy or cause a claim to be denied.

ii. Accuracy of information determine the best price or policy:
Without accurate information, an insurance company cannot determine the best price or policy for an individual. It is in the individual’s best interest that all information provided is truthful and accurate so that the proposal and pricing that comes back is also accurate.

Being honest with insurance agents saves everyone time and frustration in the long run. Pricing is accurate and any claims filed will go through smoothly without issues.

News Hour- India's forex reserves rose by $2 billion in the week to June 15: RBI

KOLKATA: India's foreign exchange reserves rose by $2 billion to 289.396 billion in the week to June 15 amid intense pressure on rupee vis-a-vis dollar on strong import demand for the greenback. 

Forex reserves however dipped by $5 billion since April as Reserve Bank of India had to sell dollars to curb volatility in the forex market. The rupee fell nearly 13% since March 31 as risk averse foreign portfolio investors withdrew their money from local capital markets while inflows remained low. 

Although Indians working abroad are bringing in dollars for investing in local bank deposits to take advantage of the weakening rupee and high interest rates, the net inflow proved to be inadequate to stem rupee's weakness. 

Foreign currency assets rose by $1.933 billion to $256.527 billion for the week, the central bank said in its weekly statistical report released Friday. 

RBI said foreign currency assets expressed in US dollar terms include the effect of depreciation of non-US currencies such as euro, sterling and yen held in reserves. 

Official data revealed that the country's reserve position in the International Monetary Fund rose $58.3 million to $2.899 billion and special drawing rights (SDR) rose $25.7 million to $4.386 billion while valuation of gold reserves remained unchanged at $25,585 billion.


Market Heatmap- 22 June 2012

The recovery in select index heavyweights and pull-back in some European indices led the Indian equity benchmarks to escape deeper losses. The main indices closed marginally lower, snapping a three-day winning streak after the Rupee tumbled to a new record low versus the US dollar. The fall came amid weakness in Asian and European markets following sharp losses in the US markets overnight. The Sensex closed at the level of 16972.51 i.e., down by 60.05 points and the Nifty closed at the level of 5146.05 i.e., down by 18.95 points. This led the midcap and the small-cap counters to close flat. On the sectoral front, except for Realty, Auto and Power indices, all the other indices closed in red. Metal index closed as the major loser with losses of nearly one and a half percentage point. Further, the market breadth too closed flat. Find out more at :

BMA Gyaan- Do you know what is Objectivity Principle?

BMA Words of Wisdom by A. P. J. Abdul Kalam

Friday, 22 June 2012

Morning Summary- Market Synopsis- 22 June, 2012

Good Morning Everyone,
The benchmark Indian equity indices lost ground in the early morning session, tracking weakness in risky assets globally. Investors are fretting over slow progress of monsoon and the rupee's relentless slide against the US dollar. The rupee's fall to a new record low versus the greenback has offset the steep decline in crude oil prices. The Sensex is currently trading near the level of 16930 i.e., down by nearly 105 points and the Nifty is trading near the level of 5130 i.e., down by nearly 35 points. This has led the midcap and the small-cap counters to trade flat. On the sectoral front, the indices are trading mixed. Metal index is leading the list of losers with losses of nearly a percentage point. Further, the market breadth is flat.

(Pic. Source-

Have Adequate Insurance Coverage

Insurance should cover those things that would cause you financial hardship if they were destroyed. It is a necessary and valuable financial service. After you take care of your basic needs of food, clothing, shelter and transportation, next consider your insurance needs. Insurance protection should come before investing or putting money in a retirement account.

Insurance coverage you may need:
i. Health
ii. Disability
iii. Life
iv. Homeowners or renters
v . Automobile
vi. Liability

Market Heatmap- 21 June 2012

The benchmark Indian stock indices ended the day with smart gains, extending its winning streak to a third straight trading session. After consolidating in the first half, the markets galloped in the mid-afternoon trades on the back of short-covering and fresh buying in Banking and Real Estate shares. The Sensex closed at the level of 17032.56 i.e., up by 135.993 points and the Nifty closed at the level of 5165 i.e., up by 44.45 points. This led the midcap and the small-cap counters to close positive by over half a percentage point each. On the sectoral front, the indices closed mixed. Realty, Capital Goods and Bank indices closed as the major gainers with gains of over two percentage points each, while Oil&Gas index closed as the major loser with losses of over half a percentage point. Further, the market breadth closed positive as seven stocks were seen advancing for every four declines. Find out more at :

News Hour- Rupee hits record low against dollar; RBI steps in 'mildly'

MUMBAI: The rupee fell to a record low against the dollar on Thursday, as the euro and other risk assets were hit by disappointment about the size of bond purchases announced by the Federal Reserve and by weak economic data in China and Germany.

The Reserve Bank of India made what traders described as a "mild" attempt at defending the currency early in the session, and some traders said it may have acted again after the currency briefly surpassed the previous record low hit on May 31.

Just like in May, when the rupee tumbled to a string of record lows, renewed global risk aversion has been the spark for the falls in the rupee, but the decline has been sustained by the deep uncertainty about country's fiscal and economic outlooks.

"The RBI's intervention and policies to mitigate the weakness is not the silver bullet to what really is a structural weakness for the currency; i.e. the twin deficits," said Nizam Idris, head of Asian fixed income and currencies at Macquarie Bank.

Idris expects the rupee to gradually weaken to 57.5 to the dollar over the next month, though adds a sharp weakening will be prevented as importers and oil companies may have covered most of their hedging needs for the months ahead.

At 2:41 p.m., the rupee was at 56.40/42 to the dollar versus its 56.15/16 close on Wednesday.

Global markets weakened on Thursday after the Fed extended its current bond-buying programme by less than some investors had hoped, while weak factory data from China and a contraction in Germany's private sector contributed to the falls.

The rupee will remain vulnerable to any flare-ups of global risk aversion, while also subject to domestic challenges.

The RBI disappointed domestic markets by keeping interest rates on hold on Monday, the same day when Fitch Ratings cut the country's outlook to "negative", becoming the second credit agency to threaten India's investment grade rating.

Fitch and S&P have highlighted the growing unease from investors about the lack of visible reform moves by the government despite a toxic macroeconomic cocktail of slowing growth and high inflation.

The focus has shifted to the government, which faces a daunting task of reviving faltering economic growth while ensuring its current account and budget deficits do not widen any further.

Reserve Bank of India Governor Duvvuri Subbarao this week said the central bank will continue to intervene in the currency markets to curb volatility, blaming the rupee's falls on both global and domestic factors.


BMA Gyaan- Introduction to Impairment Charge

BMA Words of Wisdom by Napoleon Bonaparte

Thursday, 21 June 2012

Morning Summary- Market Synopsis- 21 June, 2012

Good Morning Everyone,
The key Indian equity benchmarks began the new trading day on a rather lackluster note. The central bank’s cutting of US economic growth forecasts for 2012, 2013 and 2014 has offset the US Federal Reserve's plan to extend its bond-purchase programme of $267 bln. As result of this, the Asian market is seen trading flat and a similar kind of mood is observed in the Indian market. The Sensex is currently trading near the level of 16860 i.e., down by nearly 30 points and the Nifty is trading near the level of 5110 i.e., down by nearly 10 points. This has led the midcap and the small-cap counters to trade flat. On the sectoral front, the indices are trading mixed. Capital Goods index is leading the list of gainers with gains of over a percentage point while IT index is leading the list of losers with losses of over nearly a percentage point. Further, the market breadth is slightly positive as five stocks are seen advancing for every four declines.

(Pic. Source-

Determine your Affordability for Buying a House

Home buying is quite a complex process. The most important thing that you are supposed to consider amongst the various complexities is your affordability. It is extremely important for you to calculate the value that you could afford for a house.

i. Know the overall Market conditions:
Investigate what comparable properties have sold for over the past three to six months.

ii. Search and buy within your means:
You should search for a house which falls in your estimated price range to avoid any future financial crisis. The amount you can afford to pay for a house depends on your income, the amount you must continue to pay on other debts, the amount of cash you have for the down payment and closing costs, and the interest rates available to you.

iii. If you're waiting for prices to go lower, think again:
Real estate is a bit like the stock market, i.e. it's unpredictable. Though some people might be waiting on the sidelines for housing prices to dip lower, but its very rare to find a property price going down in the present Indian context.

News Hour- BHEL & L&T to benefit: India plans import duty of 20% plus on imported equipment for power

Government owned BHEL and L&T who have developed over 30,000 mw capacity to produce boilers and turbines are in for good times ahead as the government prepares to impose duties of around 21% on imported power equipment. The matter will be given a formal nod in another two weeks time, a senior government official told ET. 

The move has been taken in view of the capacity build up by the domestic equipment manufacturers who have been lobbying for some protection against imported equipment from China and Korea that come with special advantages of a soft loan. 

Given the estimates drawn out by the planning commission, India will need to add almost 30,000 mw generating capacity annually if growth is maintained at 8% plus. Giving a push to domestic manufacturers becomes important, given the requirement in the long term, the senior government official said. 

The protective duty, may give the domestic equipment suppliers a double benefit if the rupee continues to remain depreciated at the current levels. Analysts, however, believe that the rupee would stabilise by the time the duty comes to play for prospective projects. "Most of the current generation capacities including the mega and ultra mega power plants have already placed orders and this duty will not be applicable on them" the senior government official said. 

It is estimated that foreign equipment makers account for almost 30% of the total power equipment market in India. The leading foreign equipment makers who have eaten into the domestic market are those from China, Korea and Japan. 

Chinese equipment makers have bagged large projects like that of Reliance Power, while the Tatas, builders of another power mega power plant have opted for Korean power equipment maker over domestic companies. In most of these cases, these countries have offered soft loans to buy the equipment that come as an added incentive to the power companies. 

According to the Association of power producers, the depreciation of the Rupee against both the US Dollar and the Chinese Yuan (CNY) in the past few months have been significant and may play a spoiler if duties are imposed. For example the average INR/CNY exchange rate for February 2010 was 6.79 while it was 8.70 on 15th June 2012, a depreciation of 28.16%, Mr Ashok Khurana of APPAI says in a letter to the power secretary written recently.

"Imposition of further import duties would only increase the capital costs which would have to be passed on through tariffs to the already overburdened State Electricity Boards (SEBs)," Khurana says representing the private power producers in the country. 

Market Heatmap- 20 June 2012

Triggered by strong Asian cues and ahead of Federal Reserve’s important meeting today, the benchmark indices started on a positive note. However the indices witnessed a volatile session thereafter, and closed in the positive after slipping in the red in intraday trading. Sensex ended with a gain of 37 points at 16897 while Nifty closed at 5121 adding 17 points. Sectorally, Realty, FMCG, Teck and IT had a dull session and closed with losses. On the other hand, Metal, Capital Goods and Healthcare managed to register gains of over one percent. The market breadth was positive and nine stocks were seen advancing against every five declines. Find out more at :

BMA Gyaan- Introduction To Bonds

BMA Words of Wisdom by Michael Dell

Wednesday, 20 June 2012

Morning Summary- Market Synopsis- 20 June, 2012

Good Morning Everyone,
The key Indian stock indices were trading with marginal gains in early minutes of trade, on the back of a healthy trend in other global indices. The Nifty was hovering around the 5100 mark while the Sensex was seen heading towards the 17000 mark. The sentiment was seen marginally positive on hope of fresh monetary easing by the Federal Reserve and other top central banks in a bid to give a fillip to the global economy. Most of the BSE sectoral indices were trading in the positive with IT and Teck being the sole losers. Shares of cement companies were under pressure after the Competition Commission of India (CCI) imposed a combined penalty of Rs. 30 bn on the industry for alleged price cartelisation. The market breadth was positive and two stocks were seen advancing against every single decline.

(Pic. Source-

Make sure you get what you paid for while buying a house

Your home means a lot of things to you, most of them good. Your home gives comfort and protection to you and your family, and it could well embody all your material hopes and dreams. Your home is probably your biggest asset. While buying a house make sure you get the right value for your money.

i. Don't get too sucked in by appearances:
Buyers should keep in mind that many sellers will try to present their homes in the best possible light. If the house has been staged, what potential buyers forget is that all that stuff is going out when the sellers leave. Sometimes you're better off buying something that needs a little decorating, because it's going to take on your own look anyway.

ii. Have questions prepared:
Sellers and their agents should be prepared to answer questions including how old the roof, heating system, hot water heater, and windows are; if the basement has taken water in the time the seller has been there, and if there's a sump pump; and what utilities and homeowner insurance generally cost. If there's been recent renovation work, buyers should find out of all building permits have been signed off and if all of the contractors and sub-contractors have been paid in full. If there's a pool, buyers should ask if the seller has a permit from the city or town.