We live in this age of information overload or rather a deluge. Here are some interesting statistics of what one deals with on a daily basis:
- 90% of all the data in the world has been generated over the last two years
- Indians spend 5 hours a day consuming content in one form or other (National Book Trust)
- “Between the dawn of civilization through 2003 about 5 exabytes of information was created. Now, that much information created every 2 days” (Eric Schmidt – former Google CEO)
- 28% of office workers time is spent dealing with emails
- The typical Internet user is exposed to 1,707 banner ads per month
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StockArchitect is a platform that works. It helps investors take an informed decision based on the collective views of others.
Here are some of the winners of the week that just went by.
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The Honourable Finance Minister presented the Annual Budget 2016 today (February 29, 2016) in the parliament. While he touched upon a lot of points, here is a brief on what the budget holds for the different sectors in the stock market and some specific scrips that would be affected.
Food
- 4 new schemes to enhance dairy-farming in India at Rs. 850 crores. A positive for Prabhat Dairy
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Stock Architect is a startup, waking up again after a hiatus. We are happy to be a place where leaders from the stock market come together using the power of the internet to serve each other through sharing, networking and collective learning. Our aim is to become a place for traders and investors to get up to speed on market-moving information and insights which drive real-time changes in the investor mood and sentiment.
When we discuss the concept, people often ask us – How do I make money? Does it work? All the doubting Thomases and nay sayers have a field day. We, therefore, culled information from the tweets on the website and looked at different recommendations. The result was astounding. We just looked at Ceat Ltd. & BF Utilities, stocks recommended as buys. Given below is the summary:
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The Railway Budget is the Annual Financial Statement of the state Indian Railways, which handles rail transport in India. The Railway Budget for the year 2016 was presented yesterday, February 25, 2016, by the Honourable Minister, Suresh Prabhu. The Indian Railways is the world’s seventh largest commercial or utility employer, by number of employees, with over 1.376 million employees at last count.
While it is too early to comment on what the Railway Budget holds for the stock market, we have listed down 9 railway-related companies and a brief about each one of them:
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The Union Budget of India – a financial exercise in the largest democracy of the world! It is the day when the Finance Minister of India cracks the whip as he presents the Annual Financial Statement. The Indian hoi polloi are so used to increase (well sometimes decrease too) in taxes, duties etc. It is that day of the year that holds so much of hope and despair too. 11 am IST and the markets watch with bated breath as stocks either soar high or come hurtling down.
As we approach the budget day of 2016, the question on top of everyone’s mind then always is how will the stock market behave this year? At Stock Architect, we are always gleaning through information trying to bring you something interesting. We found this post which we are sure you will love to read and understand. May this Budget Day ring in prosperity for all investors.
How Stock market behaves during budget?
Panic in the stock market? Historical budget data says NO
Market is going to go down substantially!!
Government is going to give this time a very good budget !!
This budget is very very unique and a game changer !!!
Above three are most running rumors or humors that move around stock market, but they are present for all budgets. The following table indicates data of returns by Sensex in pre and post budget sessions for recent four budgets.
| Pre-Post |
2012 |
2013 |
2014 |
2015 |
| 1st day |
-1.55% |
0.17% |
1.25% |
0.63% |
| 2nd day |
-1.09% |
0.69% |
0.40% |
0.48% |
| 3rd day |
-0.16% |
0.04% |
1.27% |
-0.78% |
| 4th day |
2.09% |
-1.62% |
-0.07% |
-0.88% |
| 5th day |
0.48% |
-0.04% |
0.54% |
0.10% |
| 6th day |
1.28% |
0.08% |
0.53% |
0.01% |
| 7th day |
0.59% |
-1.64% |
-1.98% |
-0.90% |
| 8th day |
-1.36% |
0.72% |
-0.54% |
1.65% |
| Budget |
-1.19% |
-1.52% |
-0.28% |
0.48% |
| 10th day |
-1.10% |
0.30% |
-1.37% |
0.33% |
| 11th day |
0.25% |
-0.21% |
-0.07% |
0.46% |
| 12th day |
1.65% |
1.40% |
0.89% |
-0.72% |
| 13th day |
-2.30% |
0.57% |
1.27% |
0.23% |
| 14th day |
0.96% |
0.84% |
0.04% |
-2.05% |
| 15th day |
-1.78% |
1.39% |
0.31% |
-0.47% |
| 16th day |
1.20% |
-0.19% |
0.29% |
-0.18% |
| 17th day |
-0.79% |
-0.41% |
1.21% |
0.95% |
| Average 17 days |
-0.17% |
0.03% |
0.22% |
-0.04% |
| Change(1st day till 17th day) |
-3.28% |
-0.54% |
4.17% |
-2.17% |
| Pre Budget – Market Performance
(Expectation )
(1st to 8th day) |
Market was neutral |
Market was down |
Market was
up |
Market was
Neutral |
| Post Budget-Market performance
(Reaction)
(9th to 17th day) |
Market
went
down |
Market went
up |
Market
went
up |
Market
went
down |
Data for sensex pre budget 8 sessions and post budget 8 sessions as shown in the table provides following takeaways,
- Highest closing loss was 2.30% viz previous day closing in last four years data during budget period
- Highest closing Gain was 2.09% viz previous day closing in last four years data during budget period
- 1st day to 17th day keeping the budget session in centre; Gain was maximum 4.17% during 2014 and loss was maximum -3.28% in year 2012
- Market expectation and market reaction over 17 trading sessions as shown in table clearly show that market did factor in plus and minus viz pre and post but it was not huge number
What should be done in pre budget and post budget rally??
- Data indicates it is better to be patient nothing big is going to happen in pre or post budget sessions, if you think long-term (it is important event but over long-term)
- Data suggests stay away from intraday positions and sector specific calls as it is very difficult to time market especially during Budget days
- In case of trading don’t get exposed to single sector, have diversified calls
- Even after budget declaration, you can buy from the market. The market is not going to close immediately after.
- Even if looking to invest in the hope that budget will be good, go and buy Nifty or Nifty ETF to play safe.
Although, there is a risk reward relationship, it is better to keep away from short-term greed for gains and if at all trade be initiated, it should be under the guidance of your expert, who can guide you for the long-term. As Trading / calls / investment decisions will be sole responsibility of readers, readers are advised to consult their expert before taking any action / decision.
The original article appears here – https://expertmile.com/arti.php?article_id=1016&title=How-Stock-market-behaves-during-budget#sthash.hbdGUH4d.dpuf
Recently, a team member came across this article in Forbes Magazine which talked about leveraging the collective wisdom of people in the organisation. Extending that same thought process, can’t we do something similar when investing. We have investors, analysts etc. discussing their ideas and stock picks on social media. Why can’t we leverage their collective wisdom to make the right pick? Think on it.
Do you have a solution in place that can help you achieve this? Yes help is at hand.
www.stockarchitect.com is the URL for getting the answers to the questions you seek. Do visit the website and give us your valued feedback.
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Reblogged from stocktwits.com
Here is a page by page detailed view of how Stock Architect works and what each menu / sub-menu on the page means.
Home Page
Popular counters
Popular counters suggest the Top 10 discussed stocks during the past 24 hours by investors and traders on social networks like Twitter.
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Welcome to our blog. We are pleased to announce the launch of our website.
StockArchitect.com is an online stock market portal for people who trade in Indian stocks.
We at Stock Architect try to capture views of thousands of users, posting their opinions on social websites like twitter. We then try to aggregate all their views to give a consolidated output to the visitors of website.
The idea is to help people take an informed decision before buying a stock.
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