BSE Bulk Deals to Watch - Aug 8 2011

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/8/2011 533412 Aanjaneya Lifecare A K G SECURITIES AND CONSULTANCY LTD B 81648 442.08
8/8/2011 533412 Aanjaneya Lifecare BMD EXPORTS PRIVATE LIMITED B 112504 451.98
8/8/2011 533412 Aanjaneya Lifecare BMD EXPORTS PRIVATE LIMITED S 74504 458.96

NSE Bulk Deals to Watch - Aug 8 2011

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-AUG-2011,AANJANEYA,Aanjaneya Lifecare Ltd,AMBER ENCLAVE PRIVATE LIMITED,BUY,196984,444.15,-
08-AUG-2011,AANJANEYA,Aanjaneya Lifecare Ltd,PANTHER FINVEST PVT. LTD.,BUY,67468,451.91,-
08-AUG-2011,AMRUTANJAN,Amrutajan Health Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,21365,842.82,-

Manic Monday; Sensex plunges 316 points on US blues

The mood on the Dalal Street soured further after the US lost its top-notch credit rating due to mounting debts. The Sensex down 316 points and the Nifty down 93 points

Major headlines

L&T Q1 net profit up 12%

M&M net profit rises 8% in Q1

Tata Chemicals Q1 net profit down 27%

Mega slump for Asian stocks

Historic downgrade of US government debt rattles investors; markets extend last week's deep losses

Asian stocks slipped sharply today, witnessing a massive sell off as the investors came to the grip of the historic downgrade of US government debt. The global ratings agency Standard & Poor's cut the US rating to AA+ from the top-notch triple-A for the first time and unleashed a fresh wave of fear about the global economic recovery. The moderation in economic activity around the world in last few months and a persistent flight to safety have also taken sheen off equities.

Sensex tumbles 10% in ten trading sessions

Key benchmark indices fell for the fifth straight day to hit 14-month closing lows as an unprecedented downgrade of the US credit rating by Standard & Poor's on Friday, 5 August 2011, led investors to reduce exposure to assets perceived as risky and escalated worries about global economic outlook. The barometer index, BSE Sensex, fell below the psychological 17,000 level. The Sensex lost 315.69 points or 1.82%, up close to 230 points from the day's low and off close to 255 points from the day's high. Intraday volatility was quite high.

The Sensex has tumbled 1,881.11 points or 9.97% in ten trading sessions from a recent high of 18,871.29 on 25 July 2011. Since the beginning of the year, the Sensex has lost 17.15%, making it the worst-performing among major Asian markets.

Warren Buffet - S&P made a mistake !

Billionaire Warren Buffett said Standard & Poor’s (S&P) erred when it lowered the US credit rating and reiterated his view that the economy will avoid its second recession in three years.

The US, which was cut August 5 to AA+ from AAA at S&P, merits a “quadruple A” rating, Buffett, 80, said yesterday in an interview with Betty Liu at Bloomberg Television. The downgrade followed the biggest weekly selloff in US stocks in 32 months, with the S&P 500 slumping 7.2 per cent to its lowest level since November.

“Financial markets create their own dynamics, but I don’t think we’re facing a double dip recession,” said Buffett, chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. “Clearly what stock markets do have is an effect on confidence, and this selloff can create a lack of confidence.”

Stocks plunged last week amid signs the US economy is slowing and speculation that Europe will fail to contain its sovereign-debt crisis. Reports on manufacturing and consumer spending trailed economists’ forecasts. Euro region central bank governors are planning emergency talks aimed at limiting the market fallout from the first US rating downgrade in history.

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Asian markets open down

Tokyo's Nikkei stock market opened down 1.4 percent and then made slight gains, but Japan's finance minister reportedly said the country has not lost faith in the dollar or U.S. Treasury bonds even after the U.S. credit rating was downgraded for the first time in history.

The news in other Asian markets was not so promising. Australia's S&P/ASX-200 index lost almost 2 percent in early trading and indexes in New Zealand fell more than 3 percent.

The mixed reports likely won't do much to quell growing concerns that Standard & Poor's downgrade of the U.S. credit rating from AAA to AA+ could rock global financial markets.

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SGX Nifty Live Update - Aug 8 2011

5,137.00 -83.00

US at risk of recession - Goldman Sachs

Goldman Sachs, in a bearish forecast, expects 2 percent growth in the U.S. for the next few quarters and a "significant risk, one in three, that we will go back into recession," senior economist Jan Hatzius told CNBC Friday.

"We have seen enough over the last two months to come to the conclusion that in the first half the underlying pace of growth was pretty disappointing, even if you adjust for [the disruptions in] Japan and adjust for fiscal policy," he said.

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US Crisis - all that you need to know

Rumors were swirling all day, and then it finally hit: Standard & Poor's downgraded the nation's credit rating Friday evening, the first time the U.S. Treasury has lost its pristine AAA rating since ratings began nearly a century ago.

S&P now rates the United States at AA+. The rating agency didn't beat around the bush when describing why it made the cuts:

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World might dump dollar - China's top rating agency

The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.

In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”

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The amazing story of US Downgrade

On Friday night, when news broke that S&P had made a $2 trillion error in its analysis of the US debt situation, we kind of didn't believe it.

Basically we figured there might have been some issue, but that mostly the Treasury was trying to throw up a smokescreen to distract from the bad news.

But this WSJ tick-tock on the interactions between the ratings agency and Treasury over the last week really is kind of unbelievable.

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Investors could diversify out of US bonds

Foreign exchange markets are bracing for heightened volatility on Monday morning as the reaction to Standard and Poor's lowering of US long-term sovereign credit rating to AA+ from AAA sets in.

It is obvious that global investors would consider diversifying their assets out of US treasuries. This move can apply pressure on the dollar. There is also fear that some funds which are not allowed to hold any asset without AAA rating might be forced to sell treasuries in the near term.

However, it is hard to envisage a total collapse of the greenback as no investor can claim that he was unaware of the state of the US economy or the risks associated with investing in dollar-denominated assets.

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Reason why US rating was downgraded

What is a downgrade?

Standard & Poor's, one of the three major credit rating agencies that assign scores to debt issued by institutions, municipalities, and governments, said there is a heightened degree of risk in holding debt issued by the United States. So it lowered its rating from the AAA, the highest possible level, by one notch to AA+. It also said the outlook is negative.

Why did it lower the rating?

The credit rating agency believes the outstanding debt of $14.3 trillion and projected deficits for coming years in the United States no longer warrant the top-tier rating that it had assigned to the United States since 1941. It also said that the political environment does not build confidence that the United States can agree on how to lower the deficit in a meaningful way any time soon.

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US Crisis to hamper growth

The downgrading of US sovereign rating will negatively impact exports and moderate capital flows into the country but overall economic growth will remain robust at 8.2%, said Prime Minister’s economic advisory council chairman (PMEAC) C. Rangarajan.

“More than the downgrade what will be the impact for India and the rest of the world will be the slow pace of recovery of the US. It will have implication for trade flow and capital flow,” Rangarajan told PTI.

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