Prajna Capital - An Investment Guide

The term bottom fishing is generally applied to the practice of buying what you think is an undervalued stock, especially in a period when the markets are bearish. The logic behind bottom fishing is that the prices of stocks sometimes fall much below their actual value in a dismal market situation which makes them attractive. Investors purchase these stocks at cheap rates with the expectation that when the markets improve, the stocks will bounce back and become a profit-making investment. Bottom fishing is, however, fraught with risk as the markets could always move contrary to expectations. There are two crucial aspects determining the profitability of bottom fishing — Price Time Price - With regard to price, it is largely felt that the market has bottomed out and you may currently get stocks at the cheapest rates. Time - However, there is no guarantee as to when the markets will move up or dip further. So if you’re looking at making quick profits in the near future, bottom fishing ...

AUTOMATIC teller machines ( ATMs ) have revolutionized the personal banking industry, providing unprecedented ease and convenience. But they have also created new opportunities for thieves and fraudsters. Here are some tips to keep you and your money secure while conducting all types of banking transactions. • Never walk away from the teller’s window or an ATM with cash still in hand. If you are going to count your money, do so at the window or the ATM. Then take the time to put your money into your wallet and to put your wallet into an inside pocket or pouch before leaving. • Be aware of your surroundings while making transactions at an ATM. If you feel uneasy, end the transaction as quickly as possible and leave the area. • Look around before entering a secure ATM centre. Never hold the door open for someone else entering an ATM booth. You could be letting in a possible offender. • If someone follows you into an ATM centre and you feel uncomfortable, leave right away. • Fill out depo...

Some sectors that hold promise, with excise cuts in this fiscal budget making them more profitable Post-budget, some sectors look good from an investment perspective. This is by virtue of the exceptional budget allocations and provisions shown towards these sectors. The focus of the budget has been to boost consumption coupled with keeping inflation under control. The reduction in excise duty for several sectors/products will give a boost to consumption. The sectors which will benefit include education, healthcare, hotels and pharma. However, long-term investment decisions need not be a hasty reaction to the budget recommendations. The investment approach should be proactive rather than being reactive. Investors can wait for markets to stabilize before investing. Pharma This will be a sector to watch out for, as it is already a beaten down sector and there is no reason for a further downfall in this sector. Also, the budget is favorable to this sector as the FM has cut the customs duty...