Rocky Proposes .... Markets Follow :)

Its with great pride i wish to announce that Markets have once again saluted the meticulous analysis dished out in this blog

In my post titled "Hot Money Frenzy " in October'10 I had raised some pertinent questions about the uproarious rise of stock indices on the back of Hot Money flowing in and as to how the prudent investor must be on the guard and follow Cautious Optimism rather than be wayled by so-called analysts appearing in print n satellite media . The mighty fall our markets have been witnessing since past 2-3 weeks stands testimony to the power that acurate analysis could stand even in times when sanity is the last word on investor's mind .

In my last post on Corporate Bond's I had gone to an entirely non-glamorous area of Bonds in indian markets . But even here markets took cognisance of my analysis and in barely a month of my posting we have had a massive Rs 2000 crore debut of SBI Bonds . I'm happy to state that even in the mundane bond sector in india , Followers of this blog made some good money in barely one weeks time . I'll explain the modus operandi which this blog followers must have opted for . Each Bond had a face value of Rs 1000 . Premium is over Rs 400 in grey market . So for a dummy applicant with a corpus of atleast Rs 5,00,000 brokers would pay upfront Rs between Rs 16,000-20,000 depending on your negotiating power . This is a win-win for both applicant (he gets around 4% return in 7-10 days) and broker(he gets around 1.5% per applicant) . Also note that Retail Category is very attractive as coupon rate here is 9.95% as against 9.3-9.4% for other categories . SBI previous bond issue in oct-nov was subsribed 20 times and premium was Rs 600 . So i have factored in adequate risk factors and worked on conservative estimates only .