4 Biggest Myths of Indian Stock Market These are 4 Common Indian Stock Market Myths you should definitely know about. Myth #1 -There is absolutely no doubt that Warren Buffet is one of the best investors the world has ever seen but there is a common myth that he buys stocks and holds it forever as he himself once said that his favorite holding period is forever. As per Research done by John Hughes (Prof at University of California) of his holdings from 1980-2006 (Twenty six years) he found that the average holding period for Warren Buffet was only 1 year, with approximately ONLY 20% of stocks held for more than two years. About approximately 30% of stocks were sold within six months of purchase. A lot of Investors know that Warren Buffett owns Shares of Coca-Cola but only a few Investors know that the Stock price of Coke was 43$ in 1998 and the Stock price is Same at 43$ today. (20 years later). Conclusion of Myth #1- Warren Buffet only holds 20% of Stocks for more than 2 ye...
Raising hopes for easing curbs on gold imports, India's current account deficit (CAD) for third quarter (December 2013) dipped sharply to 0.9 per cent for gross domestic product ($ 4.2 billion) from 6.5 per cent of GDP ($ 31.9 billion) in Q3 ended December 2012 on pick up in exports and moderation in imports especially of yellow metal.
CAD was even lower than 1.2 per cent (5.2 billion) for the second quarter Q2 ended September 2013.
In tandem with distinct improvement on current account front, the balance of payments moved into positive territory. There was accretion of $ 19.1 billion to foreign exchange reserves in Q3 of 2013-14 as against meager accretion of $ 0.8 billion in Q3 of 2012-13. In July-September 2013, there was a drawdown of $ 10.4 billion.
For nine month period ended December 2013, the CAD was within Reserve Bank of India's comfort level of 2.5 per cent. For April-December 2013, the CAD was 2.3 per cent (31.1 billion) as against 5.2 per cent ($ 69.8 bill...
MUMBAI: The Reserve Bank of India could consider selling government bonds for the first time in four years to minimise the impact of heavy inflow of US dollars that have been pouring in on expectations of a stable regime following the ongoing general elections and could come in with greater intensity after the government is formed.
The RBI on Monday set a limit of 50,000 crore for sale of government securities in 2014-15 under the Market Stabilisation Scheme (MSS), which was introduced in 2004 to facilitate absorption of excess rupee liquidity in the system. "Right now, it is not needed to issue such (market stabilisation) bonds as the situation does not warrant so," said Anindya Das Gupta, managing director of Barclays Bank. "Expectation on OMOs (open market operations for liquidity infusion) and MSS bonds cannot go in tandem. However, for the rest of 2014-15, if required, the RBI can do it depending on the degree of FII inflows."
MSS bonds are special govern...
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