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Sunday, July 25, 2010

DG - Success Mantra

 

SUCCESS MANTRA

 

Ten lessons from life

 

Excerpts from the convocation address by Azim Premji, Chairman, Wipro at the 37th Convocation of IIT Delhi on August 12, 2006

 

 

The funny thing about life is that you realize the value of something only when it begins to leave you. As my hair turned from black, to salt and pepper and finally salt without the pepper, I have begun to realize the enthusiasm and excitement of youth. At the same time, I have begun to truly appreciate some of the lessons I have learnt along the way. As you embark on your careers, I would like to share them with you. I am hoping that you will find them as useful as I have. Economically India is among the two large economies (above $700 billion), growing above seven per cent. Also, India is possibly the only country in the world where those aged less than 25 years are more than half the population. Both these represent tremendous opportunities. Yet there are fundamental challenges in the country including education, basic infrastructure, water, health and hygiene which need to be addressed. But then, challenges as much as opportunities, bring out the best from talent and youth. 

 

Take charge

 

This was the first thought that came to me, when over four decades ago, I stepped into Wipro factory at Amalner. I was 21 and had spent the last few years in Stanford University Engineering School at California. Many people advised me to take up a nice, cushy job rather than face the challenges of running a hydrogenated oil business. Looking back, I am glad I decided to take charge instead. Essentially, leadership begins from within. It is a small voice that tells you where to go when you feel lost. If you believe in that voice, you believe in yourself. You can either amplify the voice to make it the purpose of your life or you can discount it and turn if off. Similarly, when you face a great challenge, you can run away from it, push it on to someone else, or just plain roll up your sleeves and face it head on. I have always chosen to take charge. In the long run, I have found it the easiest option of all. Similarly, when it comes to choosing your careers, you have to take charge of your own destiny. I believe that at the end of the day, our destiny is too precious to leave the choice to someone else. 

 

Earn your happiness

 

I have learnt that a Rupee earned is of far more value than five found. In our interviews, when people are asked to narrate their most memorable achievements, they usually recount those which needed maximum effort from their part. It is almost as if the pain they faced is now an integral part of their pleasure. In my own life, I have found that nothing gives as much satisfaction as earning our rewards. In fact, what is gifted or inherited follows the old rule of come easy, go easy. I guess we only know the value of what we have if we have struggled to earn it.

 

 Success from failure 

 

Next lesson I have learnt is no one bats a hundred every time. Life has many challenges. You win some and lose some. You must enjoy winning. But do not let it

go to your head. The moment it does, you are already on your way to failure. And if you do encounter failure along the way, treat it as an equally natural phenomenon. Don’t beat yourself for it or any one else for that matter! Accept it, look at your own share in the problem, learn from it and move on. The important thing is, when you lose, do not lose the lesson. 

 

Willingness to learn

 

Humility is important. There is a thin line of difference between confidence and arrogance. Confident people are always open to learn. A recent survey of executives in Europe showed that the single most important quality needed for leadership success was the willingness to learn from any situation. Arrogance on the other hand stops learning. It comes with a feeling that one knows all that needs to be known and has done all that needs to be done. In a dynamic world, the rules of the game are always changing. Complacency can dull the senses and prevent us from knowing what is happening around us. That is the first step towards failure.

 

Always a better way

 

 Partly as a corollary to what I have just said, we must remember that no matter how well we do something there has to be a better way! Excellence is not a destination but a journey. Continuous improvement happens when we believe it is possible and when we are willing to work for it. Sometimes, we reach a plateau in our climb for perfection. That is when we need to look sideways. Creativity and Innovation sometimes need inspiration from other disciplines. It is probably not a chance that Einstein’s interest in music was as much as his interest in Physics. Bertrand Russell was as much a mathematician as a philosopher. Excellence and creativity go hand in hand. 

 

Respond, not react

 

There is a world of difference between the two and in terms of success and failure. The difference is that the mind comes in between responding and reacting. When we respond, we evaluate with a calm mind and do whatever is most appropriate. We are in control of our actions. When we react, we are still doing what the other person wants us to do. In youth, rebellion is a fashion. I remember myself being a rebel without a cause many times. But rebellion as a reaction is conformity to something else. Disagreement and bringing about change as a response has led to challenging the status quo and useful, sustainable social reforms. 

 

Stay physically fit

 

It is easy to take health for granted when you are young. But when you enter the 24 by 7 schedule of your work, it is important not to succumb to time pressure and sacrifice the time needed for physical fitness. I have found that exercise not only improves the quality of time but also reduces the time you need for sleep. The truth is that stress will only increase in a global world. You must have your own mechanism to deal with it. There is enough literature to support the finding that exercise effectively reduces stress. That is another benefit of remaining physically active. 

 

Do not compromise

 

Mahatma Gandhiji often said that you must open the windows of your mind, but you must not be swept off your feet by the breeze. One must define what you stand for. This is not difficult. But Values lie, not in the words used to describe them, as much as in the simple acts. And that is the hard part. Like someone said, “I could not hear what you said because what you did was coming out far too loud”. Play to win Playing to win does not mean playing dirty. 

 

Playing to win

 

brings out the best in us and in our teams. It brings out the desire to stretch, to achieve that which seems beyond our grasp. It is about aiming for the maximum, a passion to do our best and having the hunger to be the best. However, it is not about winning at any cost. It is not about winning every time. It is not about winning at the expense of others. It is about innovating all the time. It is a continuous endeavour to do better than last time. It is the Spirit of fortitude, the Spirit of never letting go - ever.

 

Give back to society

 

I mentioned in the beginning that while India has made tremendous progress, we also have significant challenges. All of us have a collective social responsibility towards doing our bit to address them. Of all the challenges, the key to me is education. We have a paradoxical situation, where on the one hand we have jobs chasing scarce talent and on the other, rampant unemployment and poverty. The only way to bridge these two ends of the pole is by providing Quality education that is accessible by all. At Azim Premji Foundation, we work towards universalisation of Primary Education. We are convinced that the only way to create a just and equitable society is by addressing it at the grass roots. Without education, it will not be possible to correct the past and prepare the society for the future. We also believe that no matter what, every child has a right to childhood. I wish you all the best in your life and career. I hope you achieve success in whatever way you define success to be.

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BigGains !!
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**[investwise]** Real Estate: Demand Will Fall If Builders Continue To Rig Retail Price

 

Real Estate: Be Conscious Of The Price Rigging
Price rigging is rampant in the Real Estate sector. Builders use brokers for under-taking fictitious bookings at pre-launches, then announce higher price to dump the same property on retail consumers. On unsold properties, the same nexus works-anounce one or two bogus transactions in say, a gated community and viola everyone has become rich in a matter of months. But the fact remains, no new apartments are getting sold, only existing properties are being sold to unsuspecting customers at much too higher prices. The thing is some wish to see the charade, some chose to ignore-at their own peril.
 
Bombay
 

Apartment registrations in Mumbai fell to 5,337 in May 2010, down 25% MoM, after 11 straight months of 6,000+registrations.

 

The island city witnessed a 13% MoM fall in transactions, but the

number remained robust at 1,000. Suburbs (Rest of Mumbai), on the other hand, witnessed a steep 26% MoM fall in transactions to 4,300.

 

We believe this fall is largely attributable to the high property prices (prices in many areas are up 20-40% since October 2009), which have adversely affected affordability.

 

We believe that given the strong launch pipeline across Mumbai,

the rate of increase in property prices would abate.

 

Mumbai registrations lowest since May 2009: After 11 straight

months of 6,000+ transactions, Mumbai demand showed the first signs

of faltering in May 2010. Apartment registrations fell 25% MoM to 5,337

in May 2010.

 

While sharp increases (20-40% since October 2009 levels) in prices

across the suburbs resulted in a 26% MoM fall in transactions in the

suburbs to 4,300, apartment registrations in the island city remained

healthy at 1,000 apartments (down 13% MoM).

 

However, suburban registrations continue to outpace registrations in the island city. The entire YoY growth in Mumbai registrations in CY2009 was driven by growth in the suburbs. The same trend continues in YTD CY2010.

 

Registrations data is a lagged indicator of demand (as properties are

registered 2-3 months after the actual purchase), and hence we expect

registrations to remain subdued over the next few months.


 
Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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**[investwise]** Sugar Industry: Living On Hope And Prayer

 

Sugar
Can Hope & Prayer Become Business Strategy?
In India this possible, especially when you Buy cane at Rs 30 per kg and Sell Sugar at Rs 27 a kg.
 

Brazilian production and Indian monsoon are near-term drivers

Brazilian sugar production is expected to increase by 5.5m tonnes due to dry weather during the crushing season and 'Bisada' (previous years uncrushed) cane. The Indian Sugar Mills Association expects sugar production to increase by 6.5m tonnes, from 18.5m tonnes, to 25m tonnes.

 

Due to strong production increase in the top two producers, global sugar supply is set to exceed demand after two deficit years. Our analysis of sugar futures indicates that though there is some tightness in the white-sugar market the same will get resolved by end of Brazilian crushing season. We maintain a negative view on global sugar prices.

 

Weak 2HF10; FY11 to be driven by volume and by-products

 

We expect sugar companies to breakeven or report losses in sugar segment due to high inventory value and low sugar prices. Companies had acquired sugar cane at high prices, as they were eyeing 28-year high sugar prices. Sugar prices have since declined sharply. In FY11 we expect 30% increase in India sugar production. We expect profitability to be driven by higher volume and sugar byproducts, such as power.

 

If Monsoons are good, then pray for a Crop failure in Brazil or a industrial deregulation in India

 

The Indian sugar industry is highly regulated. In view of the high sugar cane production, the Indian government is considering deregulating the sugar sector. It may consider measures such as removing the levy quota, sugar release mechanism, bulk holding restriction, and reserve area as well as freeing up sugar cane pricing.

 

We expect FY11 profits to be driven by by-products rather than sugar prices alone.

Positive catalyst for the stocks could be from a negative production surprise from Brazil or India, deregulation of the sector or a lower-than-expected sugar cane price.

 


 
Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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**[investwise]** Martin Weiss: EU Fudges Stress Tests, Makes The Ugliest Look Pretty

 

Join me on my time machine for a short trip to the past ... and then into the future.
We begin two and a half years ago, in early 2008 ...
 
We see the U.S. economy beginning to hit the skids. The housing market is plunging — the worst declines in home sales and the most foreclosures of all time. Consumer confidence and retail sales are cratering; manufacturing, biting the dust. Despite sharp intermediate rallies, the stock market begins to sink.
 
Next, we return to July 25, 2010, and take a quick look around ...
 
Once again, the economy is hitting the skids, the housing market in trouble. Home sales are falling, foreclosures mounting. Consumer confidence and retail sales are cratering. And despite mini-rallies, the stock market is wobbly, more vulnerable to a decline than at any time since the debt crisis.
 
There is, however, one significant difference between today and 2008: Thanks to President Bush's massive bank bailouts (at least $700 billion), President Obama's giant stimulus program (nearly $800 billion) and the Fed's money printing (about $2 trillion), we are now trillions of dollars deeper in debt!
All told, this bailout-stimulus-money-printing enterprise has cost America an outrageously expensive $3.5 trillion ... and all we've bought is a roundtrip back to square one!
Last, we fast-forward to the future to consider this scenario ...
The economy is back down to where it was in March of 2009, before the latest so-called recovery.
The stock market is also near its March 2009 levels.
The credit markets are freezing up again, just like they were during that period.
Our entire nation is again teetering at the edge of the same cliff as it was back then.
In this situation, will the U.S. government try to do the very same crazy things it did last time, while expecting different results? Yes.
Isn't that a classic symptom of insanity? Yes.
 
But in this scenario of the future, there are also some critical differences ...
 
Two massive forces — forces that dwarf Washington in terms of sheer economic power — tie our leaders' hands well before they have the chance to blow another $3.5 trillion in another doomed attempt to fight this crisis.
 
The first force is THE PEOPLE. The power of the popular rebellion in the United States — from virtually all parties and movements — is a phenomenon unparalleled in recent history. No seat in Congress is safe. No incumbent in either party is immune from voter anger over Washington's gross mismanagement of the economy.
 
For the first time in generations, the American people are ready, willing and able to "throw the bums out" — to replace them with lawmakers who steadfastly refuse to throw good money after bad in a desperate attempt to spend our way out of the crisis.
 
The second force is GLOBAL INVESTORS. They are fed up with Washington's massive borrowings to fund its deficits. They are even more fed up with Bernanke, who has already flooded the world with new paper dollars to buy government bonds, government agency bonds and even mortgage bonds.
 
When they hear that the U.S. government intends to run even BIGGER deficits and trash the currency even further, it's the last straw.
 
They turn stark, raving mad, and suddenly, they attack — by refusing to buy, or by actually selling, U.S. bonds.
 
This force alone instantly kills the U.S. government's ability to borrow cheaply — just like they did in Greece, Portugal and Spain in 2010.
 
This scenario is ultimately an even bigger threat to your wealth than what we experienced in 2008.
 
 


Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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[Ways-2gain] UTV Software: Value Proposition [4 Attachments]

 
[Attachment(s) from samir shah included below]






--
The finest steel has to go through the hottest fire...!!!

Samir Kumar Shah.
9830405060

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Attachment(s) from samir shah

4 of 4 File(s)

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[Ways-2gain] Pincfresh [1 Attachment]

 
[Attachment(s) from samir shah included below]




--
The finest steel has to go through the hottest fire...!!!

Samir Kumar Shah.
9830405060

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Attachment(s) from samir shah

1 of 1 File(s)

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[Ways-2gain] Sterlite Industries - UBS [1 Attachment]

 
[Attachment(s) from samir shah included below]







--
The finest steel has to go through the hottest fire...!!!

Samir Kumar Shah.
9830405060

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Attachment(s) from samir shah

1 of 1 File(s)

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[Ways-2gain] Sector Update - Banking - Nomura [1 Attachment]

 
[Attachment(s) from samir shah included below]




--
The finest steel has to go through the hottest fire...!!!

Samir Kumar Shah.
9830405060

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Attachment(s) from samir shah

1 of 1 File(s)

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[Ways-2gain] Magma Fincorp - Company Report - ENAM Direct [1 Attachment]

 
[Attachment(s) from samir shah included below]



-


--
The finest steel has to go through the hottest fire...!!!

Samir Kumar Shah.
9830405060

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Attachment(s) from samir shah

1 of 1 File(s)

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**[investwise]** UTV Software-Value Proposition; Trading At 9X FY12e Earnings

 

Morgan Stanley India Research

UTV Software: Emerging Media And Entertainment Giant

Bull Case scenario-Target Price Rs 750

Moderate Success Scenario-Target Price Rs 540

 

Investment Thesis

 

UTV is trying to create a niche in some of the fastest growing media

businesses – movies and gaming.

 

Launch of three IPs over the next two years should result in the gaming

division accounting for 32% of total F13e EBITDA.

 

Attractive slate of 12 movies expected to be released over F11-F12 should result in earnings growth of 31% for the films division over F10-F12e.

 

Broadcasting ventures should turn profitable in F11 and TV content

should continue to grow steadily

 

EV/EBITDA of 9.2x based on F12E indicates good upside from here.

 

Key Value Drivers

 

Timing of launches, pricing and number of console games sold.

 

Success of films measured through average gross collections per film,

slope of improvement in non-theatrical revenues.

 

Television ad market growth, rate of improvement in pay TV subscribers.

 

Pace of growth in new media businesses.

 

Catalysts

 

Success in release of films like Gujarish and Saat Khoon Maaf in F11

 

Release of own IP EI Shaddai should be another trigger for the stock.

 

Any announcement related to pre-sales of own IP should also act as

a catalyst

 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

__._,_.___
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*****************************************
http://in.groups.yahoo.com/group/investwise/

INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

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**[investwise]** Credit Suisse: Will ECB Issuances Cut Into Lending By Indian Banks?

 

Credit Suisse
Banking: Making Out With A Bear Case
Indian Banks could lose 30 to 40 per cent of their market cap over the next few months, as ECBs undercut domestic lenders and their NIMs.

In our report, ECBs – a threat to pricing power, published on 21 July 2010, we highlight how the rising differential in domestic and international rates is driving a surge in external borrowings and this is likely to limit the pricing power on corporate loans for banks
as domestic rates rise.

● The widening spread between domestic and international rates, and step-up in overseas activities of Indian corporates pushed up ECBs by 3x in 1H10. We estimate corporates are already meeting 35% of their credit needs externally. The interest rate differential (400-500 bp) should expand further, with rising domestic rates and our conversations with CFOs confirms their growing preference for ECBs.

● While ECBs' share in corporate credit is likely to continue rising, we do not expect it to derail the overall credit growth momentum, as large corporates account for only 31% of system credit.

● However, potential substitution risk from ECBs will depress banks' pricing power on domestic corp. loans. Banks like SBI with a larger share of top corporate lending may face margin headwinds.

External borrowings up 3x

The widening spread between domestic and international interest rates, and step-up in overseas activities of Indian corporates have pushed up external commercial borrowings (ECBs) by 3x, aggregating more than US$12 bn in the first six months of 2010.

ECB outstanding is now more than US$75 bn, accounting for about 28% of India's total
external debt (19% of GDP). We estimate 35% of corporate (large and mid) credit needs are now being met from external markets. Demand for external debt from the corporate segment has seen a 31% CAGR in the past four years, compared with 18% growth in their domestic borrowings over the same period.

Rising domestic rates will further raise ECBs' attraction

The growing preference for ECBs by corporate India is not surprising, given the wide interest rate differential. The spread between domestic and external rates is already 400-500 bp, and is likely to expand further.

Our conversations with CFOs of some large corporates across a spectrum of industries confirm the growing preference for ECBs. They are finding ECBs cheaper than domestically available funds of similar tenors, particularly where they can match it to their foreign currency revenues. 

It is also noteworthy that some infrastructure companies are also keen on ECBs, despite the long tenor of ECBs and difficulty in getting the approvals. Corporates are willing to keep their currency exposures open, as they expect the INR  to appreciate or as their forex revenue streams provide a natural hedge domestic rates to move up. 

This will further whet the appetite for ECBs. A large part of the rate differential though is
offset by hedging costs on forex loans. 

Can ECBs derail the loan growth story?

Access to the ECB market owing to the RBI's cap on borrowing costs is primarily limited to large corporates that account for only 31% of total bank lending in India. Thus, while the share of ECBs in corporate credit is expected to continue rising, we do not expect this to derail the overall credit growth momentum in the economy. 

Even the previous peaks of the ECB cycle had coincided with the peak in domestic credit
cycle, and in those years it is estimated that corporates were meeting 35-40% of their credit needs from the external market.

Corporate loan profitability to come under pressure

Even though the ECB market activity is unlikely to impact 70% of the domestic credit market, potential substitution risk by ECBs will depress banks' pricing power on domestic corporate loans. Banks such as SBI where top corporate lending forms a larger share of loan book may thus face stronger margin headwinds relative to SME, infrastructure and retail focussed financiers. 

Many large Indian banks are also active lenders in the ECB market, given the growing
preference of corporate customers for forex debt. However, as banks have to fund these through wholesale funds, margins on these loans are wafer thin (0.5-1.5%) versus 3%+ margins they enjoy on domestic loans. 

Our top picks in the sector remain Axis Bank, HDFC Bank, PNB, BOB, and IDFC, and we have an UNDERPERFORM rating on SBI and Yes Bank.

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

__._,_.___
Recent Activity:
*****************************************
http://in.groups.yahoo.com/group/investwise/

INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

****************************************************************

NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.

****************************************************************
.

__,_._,___