A Portrait of my Industrial Visit to Verka Milk Plant,Ludhiana

With my Lovely Professional University friends

International youth Forum,New delhi 2012

With my delegate members

International Youth Forum,New Delhi 2012

Winners of President and Vice president for IYF

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Welcome to my Blog.

I am still Developing this page so you may find some problems in it..I "ll try to fix this as soon as possible.Sorry for Inconvenience-Abdul Zelani

Monday, 28 April 2014

Know your Polling Station before casting vote! #getinked

Dear Friends,
In 2009 Elections, Hyderabad saw only 53% polling. The main Reason for the low voting is half of the people didn’t know their pooling Booth/Station and they didn’t verified if their name exists in that station/booth and it happens mostly in Urban areas.
So friends, Please Pledge to vote, but before Know your pooling booth/Station prior to casting vote.
Follow any of the below step to Know/verify your Pooling Booth:
  • SMS: Send VOTE [SPACE] Voter Id to 9246280027
Send SMS
SMS Result for Pooling booth
Online result with all details
Search your name
For any escalations on Elections: Dail 1950
Sri Bhanwar Lal
Chief Electoral Officer
Phone: 040-23457317
Fax: 040-23455781.
#getinked #pledgetovote

Thursday, 28 February 2013

Full Budget analysis of 2013-2014 Budget Explained

Budget analysis of FY13-14 (draft)

As the Policy, Every year last working day of February the budget will be announced for succeeding year by FM(finance minister)
Every Budget has some thing to do and will effect every one Including children,Women,Old people,Rikshavalas,Billionares bla bla.. so we have to understand and interpret what ‘ll be the effect on us..As a MBA student it is mandatory to Analyse the Budget

Highlights: and Interpretation
As an Employed Individual of India

As a Tax Paying Individual,There are no changes in Slab rates
.But FM has given 2,000 Rs Credit whose Income will dosen’t increase 5,00,000 i.e Suppose your final taxable Income is 3,80,000 as a rule 2 lakh is exempted and the you are liable to 10 % on 1,80,000 only(3,80,000-2,00,000) i.e you need not to pay 18,000.your total tax is 18,000-2,000=16,000.

If your Anuual Taxable Income is above 1 crore then you have to pay 10% of now it was 5% only.There are only 42,800 people who will be affected with this

Education Cess remains same at 3%

A person taking a loan for his first home below `25,00,000 during the period 1.4.2013 to 31.3.2014 will be entitled to an additional deduction of interest of upto `100, of now the deduction was 1,50,000 so totally we will get 2,50,000 tax deduction fot intrest paid This will promote home ownership real estate and to a number of industries like steel, cement, brick, wood, glass etc. besides jobs to thousands of construction workers.

Rajiv Gandhi Equity Savings Scheme will be liberalised to enable the first time investor to invest in mutual funds as well as listed shares The incom limit will be raised from 10,00,000 to 12,00,000

There will be Women bank for Women,By women it’s PSU Bank

Macro Economics:
At present the revised fiscal budget target was set to 5.2%.anf for the Next year the target was set to 4.8%
By 2025 India will become  5Trilion dollor present we are 2 trillion dollor(100 lakh crore Rs) economy.

In 2011-12, the tax GDP ratio was 5.5 percent for direct taxes and 4.4 percent for indirect taxes. These ratios are one of the lowest for any large developing country but in 2007-08, the tax GDP ratio was 11.9 percent.

Diff between FDI and FII where an investor has a stake of 10 percent or less in a company, it will be treated as FII and, where an investor has a stake of more than 10 percent, it will be treated as FDI

FIIs will be allowed to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India. FIIs will also be permitted to use their investment in corporate bonds and Government securities as collateral to meet their margin

About Budget:- Total Budget’s Expenditure is 16,65,966 in which 33.33% is Planned Expenditure(Allocations to every ministry).and remaining Non planned Expenditure(Subsidies to food grains,fertilizers,salaries to govt employees,interest on loans taken).

FM said that,We were Imported a 100 million tonnes of coal during April to dec,2012.though India is having a huge capacity to produce coal.This is also dragging the Fiscal fulfil the needs of power generating companies, india needs huge coal so In 2015 India ‘ll go for PPP with CIL for the coal production in large amount.

For National and International Financial Market Updates in Basic layman language Like A Failed Investor Facebook Page

Banks and Capital Markets: As an Investor
STT has decreased to 0.001 % for equity cash segement from 0.1%(only when we sell).and for Equity futures 0.01% from 0.017%.but where as Newly Commodity Transaction Tax too has imposed and the rate will be same as equity futeres i.e 0.01%.

GAAR will come effect from April 1st,2016.

Agricultural Credit has been increased by 1.25 trillion rupees to 7 trillion.(1 lak crore=1 trillion)

The interest subvention scheme for short-term crop loans which is @4% will be continuec and extends to private banks too.... very negative news due to these two points bankex has fell 2.5% all mjor banks were down by average 7%

Banks will be permitted to act as insurance brokers so that the entire network of bank branches will be utilised to increase penetration

atleast one ATM is mandatory for every branch.

To provide greater support to MSMEs, FM has enhanced the refinancing capability of SIDBI from the current level of  5,000 crore to 10,000 crore per year

Fm made a proposal to amend the SEBI Act to strengten the regulator is under Consideration

About Corporate Companies: As a Industrialist and Analyst.
Increase in the surcharge from 5 percent to 10 percent on domestic companies whose taxable income exceeds 10 crore per year. In the case of foreign companies will be increased from 2 percent to 5 percent.(only for one year)

dividend distribution tax or tax on distributed income increases the current surcharge of 5 percent to 10 percent..(only for one year)

Educations cess same with  3%

Excise duty on cigarettes has  increased 18 percent  so it will become costly and effect ITC profits.
SUV service tax increased by 3% from 27% to 30%.
FM said,one half of property transactions are not having PAN to control this Every Immovable property of above 50 lakhs ‘ll claim 1% TDS.... i.e 1% of your transaction will be given to income tax at the time of property transfer but we can claim that amount through TDS.if you want to file TDS we need PAN card.
Direct Tax Code(DTC) Which is going to replace Income Tax Act,1961 is work in Progress..
GST Which is going to reshape all indirect taxes like VAT,Service Tax,duty,customes etc... in single form of GST(Goods and service Tax).but state govt are showing less interest because they will lose revenues from VAT etc...but FM assures some compensation for this.if it happens then it will be very good for india.
There is no change in  basic customs duty of 10 percent for non-agricultural products.
There is also no change in the normal rate of excise duty of 12 percent and the normal rate of service tax of 12 percent.

On motorcycles with engine capacity of 800cc or more duty from 60 percent to 75 percent; and on yachts(luxury private boats) and similar vessels from 10 percent to 25 percent

mobile phones priced at more than 2000, duty raised to the 6 percent.

To encourage domestic production of set top boxes as well as value addition, duty raised from 5 percent to 10 percent.
Small and medium enterprises, including start-up companies, will be permitted to list on the SME exchange without being required to make an initial public offer (IPO), but the issue will be restricted to informed investors. This will be in addition to the existing SME
platform in which listing can be done through an IPO and with wider investor participation.
A company investing `100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment.

At present, service tax does not apply to air conditioned restaurants that do not serve liquor. The distinction is artificial, and I propose to levy service tax on all air conditioned restaurants.

For National and International Financial Market Updates in Basic layman language Like A Failed Investor Facebook Page 

Over all the budget was good.As a Student,As a employee of 10 % bracket,and as a Investor.the  Budget was satisfactory.But when we come to the Industry it was worrying.Due to the heavy Corporate surcharge(10%),DDT,Mandatory spending of 2% income in CSR etc....these will definetly effect the Net profit of companies. Atleat all corporate net income will be decreased by 10%(approximately) and even companies will don’t distribute dividend for next year because FM said for next only there will be DDT,so every company will skip this year dividends and pay next year.

Direct Tax Code and Goods and Service Tax was not yet declared.. if this Implemented it will be Global structure of taxation and tax evasion will be decreased.
DTH settop box,AC restrents,Cigarates,Silk clothes,SUV,Private ships(yothe)  price will be increased
Vocational cources,Education material,Venture Capitalist loans these are some positives of Budget.
“Robin Hood budget by targeting Premium Class and Luxury goods and life style was targeted”

Thank you,

                                                                                                                        Abdul Zelani,

For National and International Financial Market Updates in Basic layman language Like A Failed Investor Facebook Page

Lovely Professional University.

Wednesday, 7 November 2012

My Short selling Experience by Abdul zelani

Another horrible experience....BAD.. Bad...... muhhhhhhhhhhhh!

Rather than seeing it as a loss i ‘ll say good experience with small loss

Today  I shorted 8 shares of INFY @2401 at around 11 am. And with in two hours it went down to 2390 and then i bought(Short cover)  4 shares at this price..and i was thought it will go to lower than this so at 2.40 pm I made bid of 2385 for remaining 2 and I thougt it will definetly touch this prices and will be traded and then I attended 3-4 and 4-5 classes.. I got a SMS that 4 shares were traded and i thought 8 shares were coverd ...but not,I have was the previous trade SMS
And here comes..I got a horrible mail from Mumbai head office that 6 shares were bought  in auction at 2400 and a penalty of 2% i.e  200 rs + 0.2% intrest very day for 4 days (because i bought it on margin)and some other unknown charges... so totally i lost Rs 242 due to my memory power and 3-4 PEP Class.and next i have called to My broker and shouted and regret for my mistake and then he talked for 20 min and here is what he said in brief..

When you sold short (seller shortage) those shares there was someone on the other side who bought them. He won't get delivery. So your broker will try to purchase them in a buy-in auction market on T+2 day and the settlement of the auction shall be done on T+3 day (where T is the transaction day, holidays are not included).

If the auction is successful the defaulting client (you) will have to pay the actual auction price + interest + a penalty of 2%.

What will be the auction price - That depends on the price of the stock on auction day. The lowest or minimum offer price in auction can be 20% below the closing price on a day prior to the day of auction. If it's lower then you might gain but this difference is not given to you it goes to Investor Protection Fund, if it's higher you will have to pay the difference. Your broker will send you an email at the end of day with the detailed information.

If the auction is not successful, no one is ready to sell in the auction (generally happens when the stock hits upper circuit), the sell transaction is cancelled by the exchange and the defaulting member has to pay the highest price prevailing from the day of trading up to a day prior to the auction day or 20% above the official closing price on the day prior to auction day, whichever is higher. The buyer of those shares gets a full refund. Auction is carried out in case of Short deliveries and Bad deliveries.

My recommendations..

1)      If you are utilising or buying Scrips on Margin then be very carefulll.don’t utilise your full margin limit it’s very danger if you are amateur in Capital Market
2)      Check your order status at 3.15 pm be sure that it was not still open and sell it at current market price don’t try to bargain or don’t Use Bid Ask spread techniques
3)     REMEMBER! While you are Short selling you have to Sell and Buy on the same Exchange if You accidently buy them on BSE while you sold them on NSE it will not be covered because there were no depository in this situation
Ignore Spelling and Grammar mistakes...
Indeed it was technical to understand,it took me 2 days to understand this whole concept.if you have any dought Please give me feedback or any extra information about this topic ....please feel free to say any thing will help me to improve my skills in In upcoming blogs...
you can mail me personally

Abdul Zelani,
Lovely Professional University.

Friday, 26 October 2012

Costs Involved in In stock market investments

Costs Involved in In stock market: As per Oct,2012

My first shocking Experience,
It was my first day in MBA IIIrd  Semester , the faculty  polished our Brain By saying to achieve something. I still remember that class when My SAPM Proff Atin Garg asked “what do you want to become” I just replied Portfolio manager and I don’t know much about that and then he said, do some thing extra in life …. Gain practical knowledge,“Kal subah Janta puchegi,Maa Baap Puchenge, dost puchengy” kya bhai Placement huui yani? What will you say?. On that day I decided to open a real account so that I can become temporary Portfolio manager.

I went to kotak Securities and asked to open a account and then he asked
1) PAN(Permanent Account Number)
2)Savings Bank Account With Cheque Book
3)Adress Proof

It was Aug 18 when I received My trading Account KIT,then I started  to Trade with 5,000 Rs At that time I was just Knowing the Commision of 0.25% over total turnover for Delivery and 0.025% Intraday.

By the blessings of God,The Economic Reforms Part II was releasd, KFA rose from 8 rs per share to 17 rs within 16 days and SAIL,GVKPIL,GMR,SUZLON,BHARTIARTL,RENUKA almost every SCRIP was Up and I made more than  20% return over 5000 in just 45 days…

And then came October, on that day I really realized my real profit by deducting the hidden charges

1)STT(Security Transaction Tax) mandatory_ 0.1% for Buying and 0.1% for selling(it changed to 0.001% in FY13-14 BUDGET)
2)Brokerage:0.25% on Buying and 0.25% on selling(depends on Broker)
3)Service tax on brokerage 12.36% for buying and  12.36 % on selling
4)Stamp Duty : According to scrip but ‘ll be in Rupees only(very less)
5)Depository charges:There is no charge if any scrip is credited in your DEMAT account but they will charge 30Rs + 0.1% total value of  debiting Scrips
6)Annual Maintenance Charges(AMC):600 Rs per Annum.
7)Short term Capital Gain Tax if sold with profit with in 365 days 15% of total Profit...
8)No Long Term Capital Gain Tax if you hold more than 365 days.

In India There are Two depositories NSDL(NAtinal Securities Depository Ltd) and (CDSL) Central Depository Of secutities Ltd…… NSDL is for NSE and CDSL is for BSE Trades…. The charges are subject to Kotak brokerage and NSE,CDSL…it will differ if you trade from others  

If problem with Viewing the image go to

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i.e if you bought a share of 80rs then you have to sell it above 81 rs then only you will get may gain 10% on you share from buying ..but when the real profit comes to your account you 'll be shocked to see These deductions.

What is Margin?
Margin is the liquidity which your broker will provide.

Suppose You thought ITC share Price will Rise by 10 rs to 310 rs tomorrow.and you have 3000 rs in your trading Account.but you have balance to buy 10 shares only.Then what you do is Utilize the Margin Provided by your broker.(Margin utilization for Every stock is different if it is good stock then you may utilse 80% levarage .if it is volatile and Bad stock then you will get 0% levarage to buy that share) ITC is a good and less volatile share so you will get 80% leverage to buy this stock.So finally you can buy 50 shares(50*300=15000).This is because you have balance of 3000 rs which is 20% of 15,000 rs.But you have obligation to Pay that 80% margin with in 2 days..else intrest will be charged.Suppose the ITC gone down by 10% then you will get a margin calll to clear the balance else they will sell the shares and reedem the amount.

If you are learner, start trading with not less than or more than Rs 5000/- and when you gain knowledge trade with a minimum of 50,000
2) Utilize the margin Given by your trader in Intraday transactions....why i am saying Intraday becz The brokerage 
'll be 90 times less and there will be no DP(Depository Charges) because there is no delivery.....

I am poor at english so if any gramatic error or spelling mistake found Please let me know by commenting on this blog

if you don't feel comfort please mail your comment here:(;

For National and International Financial Market Updates in Basic layman language Like A Failed Investor Facebook Page

Syed Abdul Zelani,

MBA 2nd year,

Lovely Professional University.

Wednesday, 15 August 2012

Global Stock Markets Timings- by Zelani

Indian Capital Markets

Trading on the Indian Capital Markets segment takes place on all weekdays
There will be No trading on Saturday, Sunday and Published Indian Stock Market Holidays declared by the Indian Stock Exchange in advance.
The Market Opens at: 09:15 hours and Closes at: 15:30 hours
Pre open session will be from 09:00 to 09:15 hours
Pre-open trade session is a 15 minute trade session from 9:00AM to 9:15AM on the 50 stocks of NIFTY index .
Only 50 stocks of the NIFTY index can be traded during this time on both NSE and BSE. Normal trading for all other stocks will start at 9:15AM till 3:30PM.
In stock Markets News Plays a major  role ..sorry not major role it fully depended on it .


In LPU only officia UMS News will effect you but where as in Stock Markets even a foolish Roomer also Effect adversely in stock market.

In case of a major event or announcement comes before market opens like other country news and some news which is declared on holidays etcc. IIP industrial Production Index will comes every third Friday of month if it’s holiday then this give major impact on BSE/NSE. Special events include merger and acquisition announcements, open offers, delistings, debt-restructurings, credit-rating downgrades etc which may have a deep impact on investors wealth. In order to stabilize this, pre open call auction is conducted to discover the right price and to reduce volatility.

The 15 minutes of pre open session is broken into 8 + 4 + 3.
The first 8 minutes:  During this session investors can place/ modify /cancel orders on the basis of which the exchanges would determine the rates at which trading would happen. Orders are not accepted after this initial 8 minutes.
In the next four minutes, orders are matched, executable price is discovered and trades are confirmed. The next 3 minutes ls for hmmmmm for ringing bell? Just kidding lol I don’t know about that 3 minutes.(There is lot more about Pre Market session But I know only this much)

Apart from the BSE and NSE, there are 21 regional exchanges which open at normal hours 9:15  to 15:30 hrs.

As I said above some times announcements comes before market opens like other country  stock exchange performances
Apart from this, global trends in stocks also affect the Indian market when it opens.
WORLD STOCK MARKET TIME ACCORDING TO India (Up to know I have just anlysed opening session ,In two or three days I will update it with closing sessions also)
Shanghai stock exchange  – Opens at 7.30 Am
·         Hong Kong stock exchange -  Opens at 7.55 Am
·         Tokyo stock exchange  - Opens at 5.50 Am
·         South Korea – Opens at 5.50 Am
·         NYSE, New York  – Opens at 8.30 Pm
·         NASDAQ  – Opens at 8.30 Pm
·         BOVESPA , Brazil – Opens at 7 Pm
·         Bogota,  Columbia – Opens at 7 Pm
·         Dow Jones – Opens at 7.30 Pm
·         Bye for now .. presently i am busy with Ramazan month Prayers so  i'll add some more exchanges timings.......... stay updated
…have a nice day !
And also Happy 66th Independence Day Jai hind!

Copy rights at Abdul Zelani,Lovely Proff University.

Monday, 13 August 2012

What happens if your bank goes bankrupt_Abdul Zelani

What happens if your bank goes belly up:
Most banks today agreed to follow the Banking Codes and Standards Board of India’s (BCSBI), code of bank’s commitments to customers. This code, works for fair treatment of customers. However, this code does not do much for you, in case your bank goes belly up. Narayanan Raja, Chief Executive Officer, BCSBI, says, “The code looks into the commitments from banks side to its customers, but does not cover issues which the customer might have to face in case the bank goes belly up. This issue is looked into by DICGC.”
As a depositor you don’t really need to be worried about your bank going belly up, well almost. Reason being, the deposits which you make with your bank come with some sort of a safety net. This safety net, in banking parlance is an insurance provided on your deposits by Deposit Insurance and Credit Guarantee Corporation (DICGC).  This corporation comes under the wings of the Reserve Bank of India (RBI) and as its name suggest, offers an insurance cover on the deposits you make and also guarantee credit. Says, a senior officer, who did not want to be named, from the DICGC, “All commercial banks are covered by DICGC. ” All foreign banks which are currently functioning in India, as well as co-operative banks and rural regional banks are also covered.
So, if you hold Rs 97,000 as principal and Rs 2000 as interest, you will be able to recover Rs 99,000 and not Rs 1 lakh. But, if you hold Rs 2 lakh, you will still get only Rs1 lakh, in case your bank goes belly up.What’s the amount: You get this cover for your funds in the savings account, as well as current accounts. Fixed Deposits and recurring deposits also enjoy this cover. The DICGC official says, “Your deposits are insured up to a maximum of Rs 1 lakh.” So, if you hold a deposit of Rs 20,000 you will only get Rs 20,000. Keep in mind, that this Rs 1 lakh amount includes both the principal as well as interest amount.
Multiple accounts –same bank: If you have multiple accounts in the same bank, DICGC will total the amount while taking into account the insurance cover and you will get a maximum of Rs 1 lakh.
Different Banks: Here the insurance ceiling will apply separately for different banks. So, from insurance point of view, it would make sense to divide your funds in few separate banks, instead of parking it all in the same bank.
Joint Accounts: If you hold a joint account, the insurance limit will be applicable to each holder of the joint account and accounts held in different names of the member of the family.
How are you paid: If the bank fails, DICGC will pay you the amount within two months from the date of liquidation of the bank. If the failed bank undergoes a merger and acquisition, the failed banks’ business is transferred to the healthier bank.
On loans: If you owe any dues to the bank, they have the right to set off such dues, and the remaining amount will be given to you by DICGC. If you have borrowed (loan) from the bank and if your bank goes bust, that does not mean you won’t be liable to pay the debt. Says, a senior, RBI officer, “The apex bank will then appoint an administrator to look into the matters of the bank. As far as loans go, they will be recovered from the borrower as per rules.”
Don’t kill your bank: Banking is all about trust. And while the banking system does seem to provide a safety net, you also have to ensure that you do your bit. Says, RBI officer, “Of course customers have to be cautious while choosing a bank, but they also have to ensure they don’t become the reason for the death of the bank. Never rush to withdraw deposits based on rumors.” Of course, it does not look like any bank is going belly up in the near future, (we hope not) but surely it does not harm to be aware and educated, were the need to arise.
                       Syed Abdul Zelani,Lovely Professional University.

Thursday, 22 March 2012

How currency Fluctuates,Syed Abdul Zelani,Lovely Professional University

Rupee fluctuates.Know how it fluctues ,what is cause for it,measures for controling it etc....................

Do we even care if the rupee falls against a dollar? We leave such news to NRIs to worry about the exchange rate. For domestic investors, does rupee fluctuation hardly make any difference? Most investors do not read between the lines regarding how rupee fluctuation impacts their investments. Moreover, the exchange rate phenomenon seems esoteric for most of the common investors. Here are some aspects of rupee fluctuation and its impact on our investments:

"Like stock market it's also a game of demand and supply.when we have a supply more than the demand then the rupee will appreciate (decreases) against dollar, valuae depriciates (increases) when supply is less and demand is more.RBI plays a major role in this to stop the heavy if the value of rupee is appreciating very high (rs.40 hypothetical figure) then RBI will buy much Dolars to create shortage of dollar.. and vise versa..i.e supplies much dollars into market to when the rupee is depreciating(increasing)"--Abhishaik chowdary,Asst proff of Finance,Lovely Professional University.

In dec 2011.india has faced heavy depreciation of rupee nearly 55.then RBI has brought this to around 47 in one month by doing these 
1.Increasing NRI deposit intrest rates(attracted large number of dollars from US)
2.Increasing Gold Import duty by 2%
3.other RBI regulations

Currency fluctuation
There are mainly two ways by which currency rates are managed. Firstly, countries fix their currency against dollar. Hence the exchange rate doesn’t change. Government takes action to manage any fluctuation that may happen. Secondly, countries leave it to the market to decide their exchange rate. In such a system, countries follow policy of non-interference.

India doesn’t have a fixed value of rupee against dollar but it also doesn’t keep its currency completely floating against dollar. We have a system where the central bank allows rupee to fluctuate within a specified range.

Usually, rupee appreciation is taken as economy gaining strength while depreciation is taken as Indian economy losing strength.

How it impacts investors
Let’s look at how rupee fluctuation impacts investors’ decisions. Let’s look at appreciation first.

Rupee appreciation 
Rupee appreciation is considered bad for companies where major part of their revenue comes from export. Appreciation of rupee makes products more expensive for export. When the products become expensive, importing nations either reduce the import or look out for other nations that can produce the same product at cheaper prices. Hence, any appreciation in rupee is often accompanied with clamour by export companies to devalue the currency.

Rupee appreciation is good for companies that depend on import from other countries. For example, oil companies, Pharma, Engineering, and medical device companies will be fine with rupee appreciation. The machinery, oil, and engine used in such industries will be cheaper to buy. Investors can consider investing in such companies when rupees appreciate.

Let’s take an example. Suppose the rupee dollar exchange rate is 50 (i.e. Rs 50 - $1). A company in export sector earns a profit margin of 15% from export. If the rupee appreciates and the new exchange rate is Rs 40 = $1. In this case, the company has lost 20% of the income.

This impacts investors in sectors that depend on export for their income. The typical examples are software industry and textile. Their dependence on export is heavy. Any rupee appreciation will hit software and textile industries hard. We have seen what happened in 2008 when America went into recession, dollar lost value and rupee appreciated against dollar. There were lay-offs, increased hours, flat revenues, and reducing profit. Investors in export oriented sector will be hit by any appreciation in rupee.

Rupee depreciation 
Rupee depreciation is when it loses value against dollar. For a nation like India where import is more than export, rupee depreciation makes things worse because imports get expensive. This increases the deficit. Rupee depreciation is not a good signal except for export driven companies.

For Indian economy, which depends on oil import, any fall in rupee will impact its oil bill. This will increase inflation because of increased oil bill. Increased inflation eats into the returns of investors. Moreover, a high inflation reduces the economic activity and consumption.

Software companies, textile companies, and many other export driven sectors such as tourism are the ones where investors can think of investing. Their export becomes cheaper and hence they can sell more to the overseas clients. These companies will do well.

Important points to keep in mind
Since the global crisis is yet to stabilize, there will be extreme fluctuation of currency or rupee. Greek crisis, Eurozone, America’s growth, and many other factors will impact the currency rate. Investors are advised to trade based on currency fluctuation only when they have some expertise in this. There will be times when rupee fluctuation may not impact individual companies or sectors because of other factors present. For example, if rupee depreciates against dollar further, there is not much chance that software industry will improve its income as they did in the past. They have become quite matured and going from here to the next level will require different ways to develop software.

Finally, the rupee dollar exchange rate will remain volatile till the crisis persists. Hence investors should practice caution when investing in exchange rate sensitive sectors.