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Asian markets open higher ahead US Fed meet : Indian Market likely to advance 2008-03-17 23:50:00 Asian markets opened on a positive note on Tuesday (Mar. 18, 2008). The markets advanced for the first time in four days, led by financial companies, on increased speculation that U.S. Fed will cut interest rates by 1% point.Mitsubishi UFJ Financial Group advanced. Korean Air Lines climbed on speculation crude oil`s decline from the record high will reduce fuel costs.BHP Billiton and Rio Tinto Group declined after copper and aluminum declined.Japanese benchmark index Nikkei advanced 172.05 points, or 1.46%, to trade at 11,959.56.Hong Kong`s index Hang Seng climbed 71.19 points, or 0.34%, to trade at 21,155.80.China`s Shanghai Composite declined 78.35 points, or 2.05%, to trade at 3,741.70.Taiwan`s Taiex index rose 12.22 points, or 0.15%, to trade at 8,017.68.South Korea`s KOSPI advanced 9. Read more:ahead
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What should an investor do now? 2008-03-17 21:51:00 In much the same way that markets go up, they also come down. Therefore, advises a senior fund manager, if you are a long-term investor and can remain invested for at least a year, don't lose too much sleep. And there are a few good reasons why you ought not to.The current bear phase, he explains, has nothing to do with the performance of Indian companies. It is, essentially, a function of the trouble in the US. So long as these problems persist, markets across the world will remain jittery and stock prices will remain low. Theoretically, therefore, it is a great opportunity for investors to reshuffle their portfolios.How you do that, though, depends on what kind of an investor you are. According to a market veteran, if you are a mutual fund investor, staying invested would be a good idea.
Bear Stearns liquidates Rs 900cr Indian equities 2008-03-17 21:50:00 The Indian outfit of US's fifth largest investment bank, Stearns
.htm">Bear Stearns
, on Monday began liquidating its holdings in India, triggering fears of a further plunge in the stock prices of mid-cap companies held by it. Bear Stearns Mauritius Ltd (BSMA), the Indian arm of the beleagured bank, has liquidated Rs 667.47 crore worth of shares, as Indian markets plummetted by 951 points on Monday on the heels of the global meltdown.Even on Friday, BSMA had sold off Rs 265.61 crore worth shares through negotiated deals on the Indian bourses. Majority of the holdings have been liquidated either by transferring of its holdings through P-note accounts or through negotiated deals.JP Morgan said it would acquire Bear Stearns for $236.2 million, a paltry $2 a share in a deal that represents a shocking collaps
The "Final Four" Lessons of a Financial Crisis 2008-03-17 21:26:00 “A forecast is never so useful as when it warns man of a crisis.” ~ Bertrand de Jouvenal, The Art of Conjecture (1977) Falling real estate prices, an unrelenting decline in the U.S. dollar, gasoline prices approaching $4 a gallon, gold hitting $1,000 an ounce, a grinding bear market on Wall Street…. How does one survive and prosper during a financial crisis that just won’t go away? The latest crisis occurred this weekend, when the Federal Reserve engineered a bailout of Bear Stearns, a major U.S. bank that was selling for $70 a share just a week ago, and today is selling for under $4. The Fed also cut a quarter point off the Disco Read more:Crisis
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Orchid Chemicals & Pharmaceuticals falls 40% : Good Buy 2008-03-17 09:38:00 Orchid Chemicals & Pharmaceuticals fell 40% today as one of FII investors (Macquarie Bank which owned 6% of the company shares) offloaded its stake in the company. The company Fundementals remain unaffected and is a good buy at current levels. The stock is expected to recover and bounce back to Rs 200, by April.Global investment banking and equity research firm Macquarie Bank had acquired 6.84% in pharmaceutical company Orchid Chemicals for Rs115.78 crore. Macquarie Bank bought 4,500,000 shares amounting to 6.84% stake in Orchid Chemicals through secondary market purchase route on 27 December, Orchid Chemicals said in a disclosure to the Bombay Stock Exchange. Calculated on the basis of the closing price of Orchid Chemicals on 27 December (Rs257.30), the deal value amounted to about R
Gammon Infrastructure Projects (GIPL), sets issue price at Rs 167 a share 2008-03-17 06:08:00 Mumbai-based GammonInfrastructureProjects
(GIPL), an infrastructure development company, fixed the issueprice
at floor price of Rs 167 a share after receiving moderate response to its initial public offering which subscribed 3.48 times on closing.GIPL intends to deploy the issue proceeds to fund the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar; to contribute to a part of the investment required by GICL, our subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in t
Sita Shree Food Products (IPO) fixes issue price at Rs 30 a share 2008-03-17 06:07:00 Sita Shree
Food Products
, an agri-products producer, fixed issueprice
of shares at cap price of Rs 30. The company received moderate response from investors to its initial public offering (IPO), subscribed 2.44 times.The issue has been graded by CARE as `IPO grade 2` indicating below average fundamentals to the issue. Keynote Corporate Services was the book running lead manager to the issue and Ankit Consultancy was the registrar to the issue. The equity shares are proposed to be listed on BSE and NSE.The company will utilize the IPO proceeds to part finance its Rs 481.2 million expansion plan. The plan includes setting up of a solvent extraction plant having 500 TPD capacity, a oil refinery for solvent extraction plant having 100 TPD capacity, a Lecithin plant for processing the by produ
Sensex crashes over 1000 points 2008-03-17 06:07:00 The 30-share BSE Sensex crashed more than 1000 points on accounts of continuous selling activity seen across board. All sectors are under selling pressure.The Sensex is currently trading lower at 14,755.83, down 1,004.69 points, or 6.3%; while the broad based NSE Nifty is trading 4496.15, down 249.65 points, or 5.26% (4.06 p.m.).Out of the total 2,706 stocks traded, 281 advanced, 2,392 declined, while 33 remained unchanged.
Asian markets close negative 2008-03-17 06:06:00 Asian markets closed on a negative note on Monday (Mar. 17, 2008) even after the Federal Reserve cut its discount interest rate at an emergency meeting.Japanese benchmark index Nikkei lost 454.09 points, or 3.71%, to end at 11,787.51.Hong Kong`s index Hang Seng declined 1,152.50 points, or 5.18%, to finish at 21,084.61.China`s Shanghai Composite went down 142.62 points, or 3.60%, to close at 3,820.05.Taiwan`s Taiex index lost 155.93 points, or 1.91%, to settle at 8,005.46.South Korea`s KOSPI lost 25.82 points, or 1.61%, to finish at 1,574.44.Singapore`s Straits Times declined 46.26 points, or 1.63%, to close at 2,792.75. Read more:Asian
Profit warning from Siemens 2008-03-17 05:28:00 Shares in Siemens
fell by more than 10% in early trading after the German industrial giant unexpectedly issued a profit warning
. After a review of projects, it warned that its three-month earnings would be cut by 900m euros ($1.4bn; £692m). Project delays were blamed, especially at its power station unit, which were due to problems with suppliers and difficulties with recruiting engineers. It also said the British government had cancelled an 85m euro IT project. The project at Siemens IT Solutions and Services was cancelled because the company said it would not be able to meet its timetable. The warning covers the current quarter, which runs to the end of March. It came as a shock to the markets because in January Siemens issued an upbeat statement, predicting that its sales would gr
European mkts decline in early trade 2008-03-17 05:10:00 European shares moved in red in early trade on Monday (Mar. 17, 2008) inspite of cut of 25 basis points by the Fed Reserve on emergency basis.Deutsche Bank AG and BNP Paribas SA, the largest banks in Germany and France respectively, declined.UK`s benchmark index, FTSE 100 declined 106.90 points, or 1.90%, to trade at 5,524.80. French benchmark index, CAC 40 fell 106.44 points, or 2.32%, to trade at 4,485.71. Germany`s benchmark index, DAX declined 190.24 points, or 2.95%, to trade at 6,261.66. Read more:European
Rupee drops 0.79% to 40.77/USD 2008-03-17 05:10:00 The Indian Rupee
dropped 0.79% against the US Dollar on Mar. 17, 2008. The Reserve Bank of India`s (RBI) reference rate for the US Dollar stood at Rs 40.77 on Mar. 17, 2008, as against Rs 40.45 on previous day i.e. Mar. 14, 2008. Similarly, the domestic currency depreciates 2.03% versus the Euro on the same day. The reference rate for Euro stood at Rs 64.48 on Mar. 17, 2008, as against Rs 63.20 on Mar. 14, 2008. As revealed in the table below, the local currency gains 0.18% against the Great Britain Pound (GBP), but weakened 3.92% against the Japanese Yen (taking into account 100 Yen). Date Currency 1 GBP 100 YEN March 14, 2008 82.2551 40.32 March 17, 2008 82.1047 41.90 Source: RBI
Good Value Stocks to pick in the falling market 2008-03-17 00:54:00 ICICI Bank Research: JP Morgan Rating: Overweight CMP: Rs 893 ICICI Bank’s top management has clarified that it does not have any direct exposure to subprime-related assets. The bank’s exposure is mainly in the form of collateralised debt obligations (CDOs) or credit linked notes (CLNs), the underlying assets of both ICICI Bank and its overseas banking subsidiaries. ICICI had already provided for a substantial 72% of this loss up to December 31, ’07. It expects to provide for the balance in this quarter (these values are estimated as on January 31, ’08 and can change depending on how credit spreads behave up to March 31, ’08). The apparent confusion arose from two sources: a) The subsidiary exposure, which was not/under-estimated; and b) The marked-to-market loss on its Read more:falling
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Markets tumble: Sensex breaches 15,000 mark 2008-03-17 00:32:00 The markets are trading deep in red on heavy selling seen in scrips across sectors. Nifty went to 4550, it is down 200 points. Sensex is down over 700 points breaching 15,000. Sensex has crashed below 15,000; it is the lowest level since August 2007. India markets are the worst performers in Asia underperforming all Asian peers.he 30-share BSE Sensex plunged more than 750 points on sustained selling pressure in heavyweights. All sectors are trading in the negative.The Sensex is currently trading lower at 14,999.16, down 761.36 points, or 4.83%, while the broad based NSE Nifty is trading at 4,536.50, down 209.7 points (10.38 a.m.).Out of the total 2,101 stocks traded, 235 advanced, 1,833 declined, while 33 remained unchanged.JP Associates is down nearly 9%, in the BFSI space HDFC and Relian Read more:breaches
, Markets
Sensex plunges 675.87 pts 2008-03-17 00:01:00 The 30-share BSE Sensex opened with a huge negative gap of 528.47 points at 15,326.93 mirroring weak global cues in the early trades.Asian markets declined in the initial session of trading on Monday (Mar. 17, 2008) after the Federal Reserve cut its discount interest rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns Cos. All Asian stock benchmarks opened negatively.The Sensex is currently trading at 15,232.05, down 528.47 points, or 3.35%, while the broad based NSE Nifty is trading at 4,588.25, down 152.55 points (10.00 a.m.). Out of the total 746 stocks traded, 75 advanced, 661 declined, while 10 remained unchanged. Among the sectoral indices BSE Auto and IT declined over 2%, BSE Bankex dropped 4.49%, BSE Metal and Power fell over 3% and BSE Realty plunged 5.83%. Read more:plunges
Gold up 3 percent 2008-03-16 23:49:00 Gold prices shot up more than 3 percent on Monday to hit fresh record highs as investors stepped up buying of the yellow metal, whose luster has increased due to the dollar's weakness and deepening U.S. financial woes. JPMorgan Chase & Co said on Sunday it would acquire stricken rival Bear Stearns for just $2 a share in an all-stock deal that values the U.S. investment bank at about $236 million. The news sent the dollar tumbling to a record low against the euro as investors worried that there would be more casualties in the widening U.S. financial crisis. The Fed cut its discount rate on Sunday and launched a new discount window facility for primary dealers. "This morning's moves by the Fed clearly tells how serious the situation is in the United States. Gold i
Recesssion has its Impact on China: China factory output growth cools 2008-03-16 23:00:00 China's industrial output weakened in January and February as firms were hit by lower exports, official data shows. The measure of factory production grew by 15.4% in the two month period, down from 18.5% in the same period of 2007. Chinese firms are having to deal with higher raw material costs after crude oil prices climbed to record levels. They have also been hit by a stronger yuan, weakening US demand, and poor weather at the start of the year, which hampered transport and distribution. "Exporters are facing big problems and they are unable to make profit," said Andy Xie, an independent economist based in Shanghai. Recent figures showed that Chinese exports increased by 16.8% in the eight weeks to the end of February, less than half the growth rate of 41.5% in the same period a y Read more:China
Asian markets nosedive in early trading : Week Ahead looks Grim 2008-03-16 22:12:00 Asian markets declined in the initial session of trading on Monday (Mar. 17, 2008) after the Federal Reserve cut its discount interest rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns Cos.All Asian stock benchmarks opened negatively. The dollar declined to the lowest against the Swiss franc and a 12-year low against the yen.Japanese benchmark index Nikkei lost 514.61 points, or 4.20%, to trade at 11,726.99.Hong Kong`s index Hang Seng declined 1,029.26 points, or 4.63%, to trade at 21,207.85.China`s Shanghai Composite went down 85.21 points, or 2.15%, to trade at 3,877.47.Taiwan`s Taiex index lost 232.97 points, or 2.85%, to trade at 7,928.42.South Korea`s KOSPI lost 52.30 points, or 3.28%, to trade at 1,547.76.Singapore`s Straits Times declined 86.36 points, or 3. Read more:Asian
Mutual Funds in India,FAQs 2008-03-14 05:12:00 What is a Mutual
Fund? A Mutual Fund is a body corporate that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. The Investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Read more:Funds
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Buy Spice Communications target Rs 70 2008-03-14 04:22:00 Investment Rationale M&A Prospects Add Flavor to Wireless Growth Target Rs70 Spice
’s leverage to Indian wireless has, to a large extent, been restored. Moreover, we believe its suitability as an M&A target provides icing on the cake. Ramping up coverage in Punjab and on its weaker Karnataka circle should yield robust EBITDA growth (approx 45% CAGR over CY06-09E). We rate the stock a Buy (1M) with a target of Rs70 based on a 15% M&A premium to DCF. Coverage increase key Presence in fast growing markets – Punjab (33% penetration) and Karnataka (22%) – offers potential, especially as Spice moves to augment its market share in the latter (approx 9%). The recent pick-up in share of net adds in Karnataka bodes well. Reducing capital constraints will help further. Tower out Read more:Communications
Sita Shree IPO subscribed 80% before 4 hrs to close 2008-03-14 04:06:00 The initial public offering (IPO) of agri-products producer, Sita Shree
Food Products received 80% subscription before 4 hours to close. The company is offering shares worth Rs 315 million at a price band of Rs 27 to Rs 30. The issue is open till Mar. 14, 2008.The issue has been graded by CARE as `IPO grade 2` indicating below average fundamentals to the issue. Keynote Corporate Services is the book running lead manager to the issue and Ankit Consultancy is the registrar to the issue. The equity shares are proposed to be listed on BSE and NSE.The company will utilize the IPO proceeds to part finance its Rs 481.2 million expansion plan. The plan includes setting up of a solvent extraction plant having 500 TPD capacity, a oil refinery for solvent extraction plant having 100 TPD capacity, a L
European shares climb in early trade 2008-03-14 04:04:00 European shares
climbed in an early trade on Friday, erasing earlier losses. However, French benchmark index, CAC 40 fell marginally.UK`s benchmark index, FTSE 100 rose 17.50 points, or 0.31%, to trade at 5,709.90. French benchmark index, CAC 40 fell marginally 6.21 points, or 0.13%, to trade at 4,623.98.Germany`s benchmark index, DAX went up 8.37 points, or 0.13%, to trade at 6,508.93. Read more:European
Bajaj Holdings & Investment plunges over 60% 2008-03-14 02:43:00 Bajaj Holdings
& Investment, erstwhile Bajaj Auto, got listed at Rs 1,100 at the Bombay Stock Exchange (BSE).The scrip touched a high of Rs 1,143.80. However, within minutes of trading the scrip plummeted 64.47% to trade at Rs 739 on volumes of 54,277. The scrip has touched a low of Rs 720. (10.05 a.m.)Following the scheme of demerger of Bajaj Auto, three new companies are formed instead of single earlier.Under the scheme of demerger, Bajaj Holdings & Investment (the new name of Bajaj Auto) will function as an investment company and focus on new business opportunities.Two more companies - the new Bajaj Auto and Bajaj Finserv are expected to get listed by April end.The new Bajaj Auto will on the automotive business, while Bajaj Finserv will focus on wind energy generation, insurance and fin Read more:plunges
Bang Overseas trading at less than half of its IPO price 2008-03-14 02:42:00 Comparing the IPO price
of Bang Overseas and its current price would encapsulate the current market scenario or at least that of companies that have listed on the bourses recently.Textile firm Bang Overseas is currently trading at about Rs 97, which is less than half of its IPO price.The Mumbai-based apparel maker had got listed at decent premium of 20% at Rs 250 as against its issue price of Rs 207 on Feb. 20, 2008. But in less than a month, the scrip has been hammered to shape.The scrip was last trading almost flat at Rs 96.70 on volumes of 15,986. (10.54 a.m., Friday)And Bang Overseas is not an anomaly. It has been a norm.Whether it will come close to its issue price even in near future? Many would shudder to answer this question.
Market Dipping Again 2008-03-20 04:57:00 Asian markets tankAsian markets plunged on Thursday on renewed concern that the US recession will lower demand for commodities.The decline was led by mining and energy companies as gold and oil prices pulled back sharply.Hong Kong`s index Hang Seng slumped 777.58 points, or 3.56%, to trade at 21,089.36.China`s Shanghai Composite plunged 191.50 points, or 5.09%, to trade at 3,570.11.Taiwan`s Taiex index fell 46.59 points, or 0.57%, to trade at 8,132.76.South Korea`s KOSPI declined 21.84 points, or 1.35%, to trade at 1,600.39.Singapore`s Straits Times pared 46.02 points, or 1.62%, to trade at 2,787.19. (8.20 a.m., IST)Japanese and Indian markets are closed today.European markets open weak European shares declined in an early trade on Thursday (Mar. 20, 2008) on concerns that the credit loss Read more:Again
, Market
Fed Dispenses the Wrong Medicine 2008-03-20 00:39:00 Watching the Federal Reserve intervene repeatedly in the free market to prevent the bankruptcy of firms “deemed too large to fail,” I am plagued with questions about what future problems they may be creating.Failure Can Speed Up Recovery I think he would say that the Federal Reserve is largely responsible for the current deflation in home prices. By keeping interest rates artificially low in the period of 2001 to 2004, the Fed spurred over investment in real estate and housing. This over investment is now being eliminated through the pain of a market bust. Had the Fed promoted price stability and a stable currency, instead of promoting economic growth, this bust wouldn’t have been the inevitable result of the earlier boom. Political int Read more:Medicine
, Wrong
US economist calls financial crisis worst since 1930s 2008-03-19 23:02:00 The current financial crisis is the worst the world has seen since the Great Depression of the 1930s and the US Federal Reserve move to cut interest rates will not make much difference, the Nobel Prize winning economist Joseph Stiglitz said on Wednesday. "It will have some impact - it will do a little bit to stem the blood - but it's not addressing the fundamental problems underlying the collapse of the financial sector," Joseph said. Stiglitz, who won the Nobel Prize in economics in 2001, is a former chief of the World Bank and chaired former US president Bill Clinton's council of economic advisers. He is in New Zealand on a lecture tour. He said the Federal Reserve's move to cut its funds rate by three-quarters of a percentage point was "just trying to ease the economy down rather Read more:calls
Is Now the right time to invest in gold ? 2008-03-19 23:02:00 Gold has always been considered as a defensive asset class and a hedge against inflation. Besides, gold can be liquified and easily converted into hard currency.It is good to invest
when there is a slowdown in the global economy. But it is also not advisable to invest a major part of savings in gold. A 5% allocation is sufficient.One must also remember that gold does not offer any tax advantages. Besides, the high price of gold has begun to scare buyers, and traders are waiting for a correction to buy gold.
India may lose 2 million jobs as exports decline 2008-03-19 21:28:00 India may lose two million
jobs as overseas shipments of products including clothes and shoes declined due to the strengthening of the rupee against the US dollar, Jairam Ramesh, minister of state for commerce, said.Minister of state for commerce Jairam Ramesh says unless remedial steps are taken, job losses would mount“In certain sectors like textiles, leather, marine products and handicrafts, there is a net decline in exports
which has led to job losses,” the minister said. “It was estimated that unless remedial measures are taken, the total job losses could be as high as two million,” the minister said in the Rajya Sabha on Wednesday.The rupee gained 12% in 2007, the sharpest rally in more than three decades, eroding the value of manufactured exports that make up about 15% of th Read more:India
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