Monday, February 21, 2011

Budgets and Stock Markets

Stock markets react differently to budgets even on an individual sector basis. For instance, the budget is NEVER kind to cigarettes, so there is bound to be some underperformance in ITC. The Tech sector benefits from anything that involves lower direct taxes, and we saw a massive rise in these stocks through the early part of the last decade just after the budget, as taxes were slashed and flattened. Lately, though, there isn't that much to cheer about, and the coming budget will be a very marginal player in the direct tax space (since most of that is being moved into the Direct Tax Code, applicable only from 2012 onwards) On indirect taxes - such as excise, customs and service tax - the idea is to move to GST, which is being discussed separately from the budget; again, expect no major fireworks here.
Government spending impacts infrastructure, so those stocks will react as the government tries to steady FDI in a year that it seems to have slows down. Better financial visibility - even from securitization or through impetus for the corporate bond market - will be a huge positive. Yet the government needs to balance between that and a reasonably large fiscal deficit next year - helping corporate bond means, to an extent, reducing demand for its own bonds, which must be sold to finance the deficit.
3G auctions gave a big fillip to revenues this year, and so did public sector IPOs. But the next year may not yield that much in terms of benefit - most of the IPOs sold are today quoting below their IPO prices, with the extreme example of NHPC being about 30% lesser. With no IPOs and no 3G, there must be either new ways for the government to make money (revenue) or curb spending (expenses); extreme measures to either goal are negative for stocks.
There must also be ways to incentivize investment in the country, be it FDI or private corporate investments. While some of this has to do with taxes, it's more important to create policy that provides more visibility to investors; you can't have a Jairam Ramesh scuttling projects after enormous sums have been invested. (I don't disagree that the projects may be at fault, but there needs to be clarity right at the beginning of these projects)
Overall, this isn't meant to be a great budget in terms of announcements: it's mid-term, there aren't too many elections, the main contenders of income and indirect taxes are being handled separately, and the budget is increasingly unimportant to even policy nowadays. Yet, there will be something or the other that will impact the stock you know, and with the recent drop in markets, it may be useful to position yourself in sectors that the government is likely to favour. For a long term value investor, the budget may throw up juicy opportunities to buy excellent stocks, especially if there is a negative bias. For the traders, the market volatility will go up even further, and if you can handle the butterflies in the stomach, there's never been a better time to be in the markets.

Wednesday, December 22, 2010

Go For Pay Per Click Search Engines

Most of us are using search engines when we are looking for something in the internet. But did you know that there are "Pay per click search engines"? Pay per click search engines offers a company or a business firm to list their websites at the top of every search engine results. The company will then pay for every user that clicks on the listing that connects to your website. Pay per click search engine is an effective way to advertise your products though it is highly expensive. Pay per click search engines works through with pay per click advertising.
But what is Pay per Click? It was popularized by search engines as one form of paid advertising. Pay per Click engines works when a business goes through a bidding process if they want their websites to be on top of every search results. The basis of this bidding is done per click which only means that every time the search engine gives them a visitor, the company will pay for it. If your company is high on budget and is willing to pay any amount, the higher your website will appear in the search results. Selection of good key phrases is one factor considered in pay per click search engines. A company should choose key phrases or keywords that they think the users will most likely search for.
Pay per click search engines does not limit you from choosing how long the keyword is or how many keyword phrases you need for the target. Thus, making the process of keyword selection easier.
One good site which provides Pay per Click advertising is the Google. Though it is not directly a pay per click search engine, Google includes ad boxes below or above each searches that offers pay per click. Google also delivers pay per click ads to other content websites. The advantage of this pay per click search engines is that as long as you are willing to pay, no changes in the top position will occur. Pay per click search engine is also very fast, your target can be reached in just a few minutes, compared to the traditional advertisings that can sometimes last for months. Pay per click is also easy. You do not have to be very good in a certain program or does not require any specific familiarity. But of course, there are still disadvantages laying beneath pay per click advertising. You will need a huge amount of money to satisfy the bidding process in a pay per click search engine. If there are new bids, the tendency is to lower other organizations position, and when this happens, you will now bid higher to retain your previous position in the pay per click search engine. To cut it short, this kind of advertising will cost you high.

Pay per Click also involves several important considerations. Before you start bidding in a certain pay per click search engine, be sure that your choice of pay per click search engine is a highly visited one. Try asking yourself this questions before anything else:

1. Is this pay per click search engine often visited by users? If so, how many times?

2. Does it have major search associates? How many?

3. Does the pay per click search engine partners generate searches in here? How many times?

These are some questions you might want to ask yourself before spending a lot of money. Monitoring your Pay per click search engine is also a must. Your pay per click should be monitored regularly for your positions may change everyday. There are also many pay per click search engines that is why the competition for the spots can be stern. Checking and analyzing also your preferred keywords is needed at least monthly to see how often users use this keywords in searching. This will be of help in improving your Pay per click advertising.

Pay per click search engines is a great help in establishing your business. Target visitors will be brought easier to your websites. Though you this will be needing a massive amount of money to spend. Be sure to look for pay per click search engines that offers a good deal with their search associates and of course, make sure that you are able to watch out for your position to retain your maximum exposure.