ITC - Jan 21 2008
Tuesday, January 22, 2008
NSE Bulk Deal Watch - Jan 22 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JAN-2008,ABGSHIP,ABG Shipyard Limited,ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.,BUY,288120,792.95,-
22-JAN-2008,APTECHT,Aptech Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,228900,189.76,-
22-JAN-2008,BANKRAJAS,Bank Of Rajasthan Ltd,ABN AMRO BANK N.V. LONDON BRANCH,BUY,1106407,98.94,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,P M AIR PRODUCTS PRIVATE LIMITED,BUY,1220000,27.69,-
22-JAN-2008,ERACONS,Era Constructions (India),MONEY MATTERS ADVISORY SERVICES LIMITED,BUY,140000,710.91,-
22-JAN-2008,GANGOTRI,Gangotri Textiles Limited,RAMNIWA BAJAJ & CO. HUF,BUY,200000,14.55,-
22-JAN-2008,GEOMETRIC,Geometric Limited,BILL & MELINDA GATES FOUNDATION,BUY,342200,72.00,-
22-JAN-2008,GITANJALI,Gitanjali Gems Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,591210,250.98,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,JAI SIYARAM COMMODITY TRADING PVT. LTD.,BUY,395488,264.00,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,Vinamra Universal Traders Pvt.Ltd.,BUY,325939,266.47,-
22-JAN-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,SOMEREST EMERGING OPPRTUNITI FUN,BUY,450000,129.40,-
22-JAN-2008,INDIAINFO,India Infoline Limited,ORIENT GLOBAL TAMARIND(MAURITIUS)LIMITED,BUY,354737,1131.00,-
22-JAN-2008,KOTHARIPRO,Kothari Products Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,58904,700.00,-
22-JAN-2008,LAXMIMACH,Lakshmi Mach Works,ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.,BUY,91491,2044.05,-
22-JAN-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,LB INDIA HOLDINGS CAYMAN II LTD,BUY,334000,228.73,-
22-JAN-2008,PIONEEREMB,Pioneer Embroideries Limi,LALIT KUMAR LOHIA,BUY,57207,196.90,-
22-JAN-2008,SKUMARSYNF,S. Kumars Nationwide Ltd,SHEEN PEARL INVESTMENTS LIMITED,BUY,1025000,109.27,-
22-JAN-2008,VENUSREM,Venus Remedies Limited,RAKHI PROPERTIES AND LEASING P,BUY,60000,414.00,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,LB INDIA HOLDINGS CAYMAN II LTD,SELL,1173150,26.86,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,SIMPLICITY AB,SELL,1850000,28.01,-
22-JAN-2008,DRREDDY,Dr. Reddys Lab Ltd,HSBC GLOBAL INVESTMENT FUNDS A/C HSBC GLOBAL INVE,SELL,965578,595.30,-
22-JAN-2008,EMCO,Emco Limited,HSBC GLOBAL INVESTMENT FUNDS A/C HSBC GLOBAL INVESTMENT FUND,SELL,59391,1074.88,-
22-JAN-2008,ERACONS,Era Constructions (India),MONEY MATTERS ADVISORY SERVICES LTD ,SELL,140000,710.88,-
22-JAN-2008,GANGOTRI,Gangotri Textiles Limited,VINODKUMAR BAJAJ & CO. HUF,SELL,200000,14.55,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,ICICI BANK,SELL,308240,264.00,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,JAI SIYARAM COMMODITY TRADING PVT. LTD.,SELL,395488,266.50,-
22-JAN-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,KARAN G MEHTA,SELL,450000,129.40,-
22-JAN-2008,IFCI,IFCI Ltd.,ABN AMRO BANK NV LONDON BRANCH,SELL,7920250,44.57,-
22-JAN-2008,JKLAKSHMI,JK Lakshmi Cement Limited,VIJAY KUMAR,SELL,293755,111.32,-
22-JAN-2008,KOTHARIPRO,Kothari Products Ltd.,PEGASUS STOCKS AND SHARES PVT LTD,SELL,35696,700.00,-
22-JAN-2008,MANGLMCEM,Mangalam Cement Ltd,DELHI IRON & STEEL COMPANY PVT LTD,SELL,147867,110.18,-
22-JAN-2008,TATAMETALI,Tata Metaliks Ltd,VIJAY KUMAR,SELL,148946,110.43,-
22-JAN-2008,VENUSREM,Venus Remedies Limited,BRICS SECURITIES LTD.,SELL,60000,414.00,-
BSE Bulk Deals to Watch - Jan 22 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
22/1/2008 532828 AMD METPLAST JUPITOR BUSINESSES LTD S 115000 37.96
22/1/2008 532828 AMD METPLAST ELDORADO BIOTECH PVT LTD S 115000 37.98
22/1/2008 505506 AXON INFOTEC T RAJESH S 3351 51.05
22/1/2008 530843 CUPID LTD SHILPA R SIDHWANI S 150000 19.45
22/1/2008 530843 CUPID LTD MAHENDRAPAL R BAHL S 50000 19.53
22/1/2008 500147 FLAP PROD EQ ESDOTCOM SUPPORT AND SOFTWARE SERV PVT LTD B 69999 440.85
22/1/2008 530343 GENUS POWER LATA BHANSHALI B 240000 564.20
22/1/2008 532764 GWALIOR CHEM M.DEBOO B 183763 61.65
22/1/2008 501295 IND INV TRUS DHANANJAYA MONEY MANAGEMENT SER P LTD B 250869 100.00
22/1/2008 501295 IND INV TRUS BHAMRIBAI BHAVARLAL JAIN S 249844 100.00
22/1/2008 515093 MADHAV MAR G LRS PORTFOLIO AND ADV SER P LTD B 52071 58.86
22/1/2008 515093 MADHAV MAR G ELDORADO BIOTECH PVT LTD S 49828 59.06
22/1/2008 532408 MEGASOFT LTD COPTHALL MAURITIUS B 275000 93.14
22/1/2008 532408 MEGASOFT LTD PRATIBHUTI SHARE VINIMAY PVT LTD S 250000 88.58
22/1/2008 513446 MONNE ISPAT DEUTSCHE SECURITIES MAURITIUS LIMITED B 375626 372.00
22/1/2008 513446 MONNE ISPAT DEUTSCHE BANK AG LONDON GDR ACCOUNT S 375633 372.00
22/1/2008 590057 NORTHGATE TE MACQUARIE BANK LIMITED B 142996 495.06
22/1/2008 531092 OM MET INFRA BSMA LTD B 500000 65.49
22/1/2008 500357 RAMA PAPER GEOMETRIC SEC AND ADV SER P LTD B 67990 20.69
22/1/2008 500357 RAMA PAPER CAMPHAR SEC AND ADV SERV P LTD S 40000 20.85
22/1/2008 500357 RAMA PAPER MAHENDRAPAL R BAHL S 158670 20.46
21/1/2008 504629 ANIL SP STEL GUNVANTI GOSAR S 24000 30.90
21/1/2008 505506 AXON INFOTEC ABSOLUTE LEASING AND FINVEST PVT B 4000 63.97
21/1/2008 505506 AXON INFOTEC KUSHAL SOFTWARE LTD S 7000 68.57
21/1/2008 512493 GARNET INTL NEWTREE TRADING CO PVT LTD S 40000 91.00
21/1/2008 523710 SAYAJ HOTELS XITIJ INVESTMENTS S 112850 124.57
21/1/2008 500389 SILVERLINE T BSMA LIMITED DR S 218525 86.67
21/1/2008 532765 USHER AGRO CHITRA JITENDRA MAYKAR B 152085 220.38
21/1/2008 532765 USHER AGRO CHITRA JITENDRA MAYKAR S 281330 219.01
18/1/2008 530835 ELTROL LTD TRANSGLOBAL SECURITIES LTD B 275000 2.00
22/1/2007 532764 GWALIOR CHEM TRADE PARTNERS INTERNATIONAL S 183763 61.65
Fed Statement
The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 3.5 percent.
The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.
The committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.
Appreciable downside risks to growth remain. The committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.
In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis
BREAKING - FED CUTS RATES by 75 bps
The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday, the biggest one-day move by the central bank in recent memory.
The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent.
The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory.
The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.
Post Market Commentary - Jan 22 2008
The Indian bourses closed in deep red but considering the initial set back, it has managed to recover some ground. The market opened with circuit down and was shut for an hour. However, during the last trading hour, the market has some buying support mainly on account of positive cues of recovery in European market.
The BSE Sensex touched an intraday high of 17,068.57 and low of 15,332.42. Finally, the BSE Sensex ended the day with a decline of 875.41 points to close at 16,729.94. The NSE Nifty reached an intra day high and low of 5,203.35 and 4,448.50 respectively and finally ended with a decline of 309.5 points to close at 4,899.30. The BSE Mid Cap and Small Cap closed with a decline of 679.74 points and 883.27 points at 7,202.25 and 10,028.39 respectively.
Among BSE sectoral indices, Oil & Gas and Reality witnessed the most significant decline and reported 10.05% or 1,114.55 points and 9.15% or 959.03 points downfall to close at 9,974.78 and 9,520.84 respectively. In oil & gas index, RNRL and Essar Oil were the main losers with a significant loss of 26.87% and 21.67% respectively. In Reality Index, Omaxe and Peninsula Land reported the hefty decline of 30.22% and 28.51% respectively.
BSE Consumer Durables and FMCG ended with a reduction of 7.99% or 427.60 points and 7.96% or 173.04 points to close at 4,924.03 and 2,000.17 respectively. In BSE CD index, Rajesh Export and Gitanjali fell by a staggering 15.62% and 15.35% respectively. In FMCG index, Tata Tea and GlaxoSmithKline Consumer Healthcare were the main losers.
BSE Auto and Bank indices moved in a similar fashion as both the indices fell by nearly 4%. In auto index, Escorts and MRF fell by 15.87% and 14.20% respectively.
BSE Teck and IT indices were witnessed the lowest decline of 3.58% or 115.13 points and 3.63% or 129.66 points respectively. In BSE IT index, GTL Ltd ended the day with a gain of 1.67%.
Sensex drops 5% amidst high drama
The market witnessed the biggest carnage today with the trading coming to a halt within minutes of the opening bell following a sharp drop of over 10% on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Last time the market was suspended from trading was on October 17, 2007. Against the backdrop of weak Asian indices and yesterday's crash of over 1,400 points, the Sensex witnessed a free-fall and plunged below the 15,500 level to touch an intra-day low of 15,332, down 2,273 points. Following the resumption of trading in mid-morning, the Sensex and the Nifty recovered substantially from their earlier losses. The Sensex and Nifty traded above the 16,500 mark and the 4,800 level respectively after the finance minister issued a statement that there was no problem with the fundamentals of the economy and banks would provide enough liquidity. Finally, the Sensex ended 4.97% lower or 875 points down at 16,730, whereas the Nifty was down 5.94% or 394 points at 4,899.
The market breadth was overwhelmingly weak, with losers outnumbering gainers by 15:1 on the BSE. Of the 2,454 stocks traded on the BSE 2,273 stocks declined, 152 stocks advanced and 29 stocks ended unchanged. All the BSE sectoral indices continued to trade weak and dropped around 3-10% each. The BSE Oil & Gas Index was the major loser and lost 10% while the BSE Realty Index shed 9%.
Majority of the 30-Sensex stocks ended in the red. Among the major losers ONGC shed 13.62% at Rs962, ITC plunged 9.54% at Rs184, Hindalco crumbled 9.37% at Rs150, M&M crashed 9.14% at Rs611, Ambuja Cement slipped by 8.57% at Rs116, Cipla tumbled 8.14% at Rs175, HDFC lost 8.10% at Rs2,480, Reliance Industries dropped 7.32% at Rs2,358, Tata Steel slumped 7.11% at Rs671 and HLL fell by 6.78% at Rs186. Select front-line counters rebounded from their intra-day lows and ended in the green. Bharti Airtel rose 2.54% at Rs849 while Tata Motors gained marginally at Rs658.
Over 3.74 crore RNRL shares changed hands on the BSE followed by Reliance Petroleum (3.08 crore shares), Ispat Industries (2.32 crore shares), IFCI (2.20 crore shares) and Tata Teleservices (1.44 crore shares).
Valuewise, Reliance Industries registered a turnover of Rs440 crore followed by Reliance Petroleum (Rs413 crore), RNRL (Rs404 crore), Reliance Energy (Rs367 crore) and ICICI Bank (Rs175 crore).
Sensex down nearly 20% in seven trading sessions
The market tumbled for the second day in a row today as margin calls created havoc on the bourses. Though the market ended sharply down, it came off lower level after a huge intra-day fall. With today’s fall the market has now been declining for seventh consecutive session.
Earlier today, market wide circuit filters were applied after an intra-day 10% fall occurred in key benchmark indices in minutes of commencement of trade. Trading on the bourses was halted for one hour as the 10% market wide circuit filters were applied after the sharp fall. Trading resumed at 10:55 IST.
The market came off lower level in mid-afternoon trade as European markets recovered with major markets regaining positive zone. However stocks tumbled across Asia today as panic gripped markets that a US recession could derail global economic growth, sending investors fleeing to safe-haven government bonds.
The BSE Sensex lost 875.41 points or 4.97% to 16,729.94. Sensex hit a low of 15,332.42 in mid-morning trade. At the day's low, Sensex had lost 2273.93 points. It oscillated in a wide range of 1736.15 points for the day amid intense volatility. Sensex hit a high of 17068.57 in the day.
With today’s fall, the BSE Sensex has lost 4,097.51 points or 19.67% in just seven consecutive sessions from a recent high of 20,827.45 on 11 January 2008. The S&P CNX Nifty has lost 1300.80 points or 20.98% from 6200.10 on 11 January 2008.
Sensex is now down 4476.83 points or 21.11% from its record high of 21,206.77 hit on 10 January 2008. The S&P CNX Nifty is down 1457.80 points or 22.93% from all-time high of 6,357.10 hit on 8 January 2008.
The fall has been even steeper in small-cap and mid-cap indices. The BSE Mid-Cap index has shed 3043.56 points or 29.70% from a record high of 10245.81 hit on 8 January 2008. The BSE Small-Cap index has lost 4210.85 points or 29.57% from a record high of 14239.24 hit on 8 January 2008.
Nifty lost 309.50 points or 5.94% today to settle at 4,899.30. At the day’s low of 4,448.50, the Nifty lost 760.30 points for the day. Nifty January 2008 futures were at 4,920, a premium of 20.70 points as compared to spot closing.
Turnover in National Stock Exchange’s futures & options segment slumped 46.12% to Rs 44307.58 crore from yesterday’s turnover of Rs 82241.65 crore
The BSE Mid-Cap index lost 8.62% to 7,202.25 and the BSE Small-Cap index slipped 8.09% to 10,028.39. Both these indices underperformed the Sensex
All the sectoral indices on BSE registered steep losses today. BSE FMCG Index (down 7.96% at 2,000.17), BSE Power Index (down 6.22% at 3,590.83), BSE Realty (down 9.15% to 9,520.84), BSE Metal index (down 5.68% at 14,114.03), BSE PSU index (down 7.74% to 7,961.77), BSE Health Care index (down 6.09% at 3,476.31), BSE Oil and Gas index (down 10.05% at 9,974.78), BSE Consumer Durables index (down 7.99% to 4,924.03), underperformed the Sensex
BSE TecK index (down 3.58% to 3,099.41), BSE Auto index (down 4.05% at 4,475.56), Bankex (down 4% to 10,158.35), BSE Capital Goods index (down 3.72% at 16,452.73), BSE IT index (down 3.63% to 3,443.59), outperformed the Sensex
Margin calls, both by brokers to investors and by exchanges to brokers, added to the selling pressure after a two-day carnage in share prices. Brokers would not let clients make new purchases until margins were topped up on existing trades, and the exchanges also called margins due from brokers.
Margin trading is where investors trade shares without paying the full cost of the share. Instead a margin or percentage is paid as collateral, and when the market moves against the investor, the margin needs to be topped up. If the investor does not make payment, the shares can be sold by the broker. A margin call is also triggered when shares that an investor had bought with borrowed money decrease in value. If the investor is not able to put up additional margin, the broker/financer will resort to sale of shares.
Sensex had tumbled 1408.35 points or 7.41% to 17,605.35 on Monday, 21 January 2008, hit by setback in Asian stocks, FII selling and margin calls.
Finance Minister P Chidambaram today said the fundamentals of the economy are strong and liquidity will not be a problem. Chidambaram said there was no reason at all to allow the worries of the Western world to overwhelm us. Our economy is very different from some developed economies which are facing some stress, he said.
The finance minister further stated that Reserve Bank of India as well as banks will provide enough liquidity to brokers and other market players, adding that liquidity will not be an issue.
The total turnover on BSE was quite low today probably as many brokers were unable to trade in the morning as their terminals were shut due to non-payment of margins to the exchange. BSE clocked a turnover of Rs 6846 crore as compared to Rs 9336 crore yesterday, 21 January 2008.
The market breadth was extremely weak on BSE. On BSE, 2264 declined as compared to just 162 that rose. 26 shares remained unchanged.
Among the 30-member Sensex pack, 26 declined while the rest gained. In opening trade, all the 30-members of Sensex pack were in red.
India’s largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation plunged 12.48% to Rs 975 on 7.48 lakh shares. It was the top loser from Sensex pack. The stock recovered sharply from day’s low of Rs 850.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries was down 7.62% to Rs 2350.35, off sharply from day’s low of Rs 2120. 18.89 lakh shares were traded on the counter
ICICI Bank, the country’s largest private sector bank in terms of net profit, was down 3.68% to Rs 1130, off session's low of Rs 1005.55.
HDFC Bank slumped 3.13% to Rs 1470. It registered 45.2% rise in net profit to Rs 429.36 on on 59.70% rise in total income to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Monday, 21 January 2008.
ITC (down 10.50% to Rs 182), Ambuja Cements (down 10.22% to Rs 114.15), and Hindalco Industries (down 11.42% to Rs 147), were the other losers from Sensex pack
Grasim Industries fell 6.11% to Rs 2840 despite reporting 34.55% rise in net profit to Rs 553.79 crore on 15.93% rise in total income to Rs 2694.96 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours today, 22 January 2008.
Bharti Airtel surged 3.24% to Rs 855.10 and was the top gainer from Sensex pack. The stock recovered sharply from day’s low of Rs 700.
Infosys Technologies (up 2.14% to Rs 1420), Reliance Energy (up 1.35% to Rs 1800), and Bajaj Auto (up 0.75% to Rs 2080), were the other gainers from Sensex pack.
Reliance Industries was the most active counter on BSE with turnover of Rs 440.50 crore followed by Reliance Petroleum (Rs 413.50 crore), Reliance Natural Resources (Rs 404 crore), Reliance Energy (Rs 368 crore) and ICICI Bank (Rs 175 crore) in that order
Reliance Natural Resources led the volume chart on BSE clocking total volume of 3.73 crore shares followed by Reliance Petroleum (3.09 crore shares), Ispat Industries (2.33 crore shares), IFCI (2.20 crore shares) and Tata Teleservices (Maharashtra) (1.45 crore shares) in that order
Select side counters managed to outperform the falling markets. They were, Yuken India (up 20% at Rs 324.10), Amara Raja Batteries (up 20% at Rs 223.65), EIH Associated Hotels (up 20% at Rs 177), Milkfood (up 10% at Rs 361.40), and Greenply Industries (up 19.58% at Rs 390), surged
However, Info Edge Solutions (down 29.88% to Rs 880), Omaxe (down 28.89% to Rs 229.05), Peninsula Land (down 28.11% to Rs 72.50), Reliance Natural Resources (down 26.58% to Rs 116), and Kalyani Steel (down 24.50% to Rs 300), slumped
The SpiceJet counter saw hypervolatility today. It was down a whopping 43.48% at one point of time to day’s low of Rs 44. However it settled 0.39% higher at Rs 78.15 on total volumes of 39.94 lakh shares
Lupin declined 6.92% to Rs 500. It reported 203.90% jump in net profit to Rs 170.28 crore on 46.14% rise in total income to Rs 747.05 crore in Q3 December 2007 over Q3 December 2006.
Sterlite Technologies tumbled 30.42% to Rs 160. It reported 105.1% rise in net profit to Rs 26.40 in on 59.70% rise in net sales to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006.
Godrej Consumer Products declined 9.46% to Rs 101.50. The company said it has entered into an agreement for acquiring the Kinky hair brand business, one of the leading brands in the South African hair business, which is a 36-year-old business set up by a family of entrepreneurs in South Africa.
i-flex Solutions declined 17.53% to Rs 925 even as it reported 1346.59% rise in net profit to Rs 110.78 crore on 949.57% spurt in total income to Rs 456.74 crore in Q3 December 2007 over Q2 September 2007.
Corporation Bank declined 1.38% to Rs 375 despite reporting 30.38% rise in net profit to Rs 190.9 crore on 23.18% rise in total income to Rs 1265.83 crore in Q3 December 2007 over Q3 December 2006.
Among the BSE ‘A’ group stocks on BSE, public sector lender Indian Bank soared 8.07% to Rs 201.50 and topped gainers in the BSE’s A group shares. Kotak Mahindra Bank (up 4.17% to Rs 1,009.55), Finolex Cables (up 3.13% to Rs 92.40), Nirma (up 2.82% to Rs 197) and Pfizer moved (up 2.77% to Rs 659.95) were the other gainers in that order.
Buying from insurance firms and mutual funds has supported the market at declines in recent months. But the recent carnage on the street may, in fact, cause redemption pressure for mutual funds. This may accentuate fall on the bourses.
Insurance firms have been raising lots of funds through unit-linked insurance plans with high weightage for equity. The money is being pumped in the secondary market. It now remains to be seen whether the investors in a unit-liked insurance plan (ULIP) stick to a plan with high exposure to equity if the market continues to remain weak. Insurance companies provide ULIP investors an option to switch over to debt funds from equity funds with certain restrictions.
Some of the foreign institutional investors (FIIs) recently registered with the market regulator Securities & Exchange Board of India (Sebi) may start buying at declines. Since Sebi’s restrictions on participatory notes in October 2007, 134 new FIIs have been registered with Sebi, taking their total tally to 1,259.
European markets staged a solid intra-day recovery today on rumors of a concerted rate cut by the US Federal Reserve, the European Central Bank and Bank of England. The FTSE 100 index of United Kingdom was up 0.44% to 5,603 after a sharp early fall. France’s CAC 40 index was up 0.19% to 4,753.31. However Germany's DAX index declined 2.27% to 6,636.11
Meanwhile, the Bank of Japan (BoJ) voted unanimously to keep interest rates on hold at 0.5% on Tuesday, 22 January 2008 saying the economy was weaker than it had forecast in October owing to a sharp drop off in housing investment.
Hong Kong's Hang Seng (down 8.65% at 21,757.73), Japan's Nikkei (down 5.65% at 12,573.07), Taiwan's Taiwan Weighted (down 6.51% at 7,581.95), China's Shanghai Composite (down 7.22% to 4,559.71) and South Korea's Seoul Composite (down 4.43% at 1,609.02), declined.
US stock markets were closed on Monday, 21 January 2008 in observance of Martin Luther King Day.
The US economy has been hit hard by rising defaults in the sub-prime mortgage sector in which Americans with bad credit records are struggling to pay back housing loans given to them during the housing boom.
US president George Bush on Friday, 18 January 2008, called for a package of tax cuts and other measures totaling around 1% of US gross domestic product, or up to $150 billion, after weak recent reports on employment, retail sales, factory activity, and housing construction this month suggested the United States -- the world's largest economy --may be heading into recession. Under consideration in the package announced by Bush are ideas like tax rebates, incentives for businesses, and extensions of unemployment insurance.
Crude oil prices fell on Tuesday, 22 January 2008 on mounting concerns that the U.S. economy may be heading into a recession that would likely dampen crude demand. Light, sweet crude for February delivery fell $2.22 to $88.35 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. In London, Brent crude futures for March delivery fell 16 cents to $87.35 a barrel
Avoid midcaps, and especially smallcaps
We would recommend avoiding midcaps and smallcaps
Just buy large caps and potential largecaps (not largecaps which don't have any revenue !!)
Cascading effects
Hang Seng drops to nearly 2000 pts
Asia might have a cascading effect
IF market doesn't recover today, you can declare to be a bear market
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