BSE tech glitch triggers panic, 300 stocks breach circuit limit July 3, 2009
Posted by dhirendra08 in Considerable Panic, Moderate Abnormal Price, More Confusion, Permissible Intra-day Price, Wrong Foot.Tags: Abnormal Price, Ackruti City, Ahmedabad Steelcraft, Arbitrageurs, Asian Oilfield, Bloomber, BSE BOLT System, Circuit Filter Limits, Day-traders, Gremach, Intra-day Circuit Filter Levels, ITI, Mid-cap Stocks, NFL, Panic, Prakash Industries, Price Movement Trends, Reuters, Sunil Hitech, Technical Glitch, Traders, Trading Terminal, Transcorp International, Vishnu Chemicals
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Good morning friends. Brokers and investors in many mid-cap stocks on the Bombay Stock Exchange (BSE) were caught on the wrong foot on Thursday, as a technical glitch in the bourse’s software altered intra-day circuit filter levels. There was more confusion, as the exchange tried to rectify the snag mid-way through the session.
According to an ET analysis of the BSE trade log, the problem was witnessed in over 300 stocks. “There was a technical glitch on the BSE BOLT system in the morning, which is rectified to prevent reoccurrence,” the BSE said in an email response to ET’s queries.
The BSE and NSE have different intra-day circuit filter levels — 2%, 5%, 10% and 20% — for stocks that are not part of the F&O segment. These filters are applied by stock exchanges in consultation with each other, to moderate abnormal price moves in stocks. These filter levels are revised from time to time, depending on the price movement trends.
Suppose a stock closed at Rs 100 on Monday, and is subject to a 10% intra-day circuit filter, a buyer cannot bid on Tuesday for the stock at a price exceeding Rs 110, while a seller cannot offer shares at a price less than Rs 90. In fact, the trading terminal will not accept orders that are placed above or below the circuit filter limits.
On Thursday, many stocks that were subject to a 5% intra-day limit over their previous closing price, rose/fell more than 5%.
This caused considerable panic among day-traders, and arbitrageurs (traders who try to cash in on the price difference between the BSE and NSE). Take the case of Ahluwalia Contracts. The stock hit a high of Rs 102.80 during the day, which was about 18% higher than its previous close. The BSE later revised the circuit filter to 5%, which meant that no buyer could bid above Rs 91.20. As a result, day traders who had purchased the share above Rs 91.20 were forced to square off their positions at a loss, because the system would not accept a buy order above Rs 91.20.
Similar chaos prevailed at counters like Sunil Hitech, Ahmedabad Steelcraft, ITI, Prakash Industries, Ackruti City, Asian Oilfield, Vishnu Chemicals, Gremach, NFL, among others. In the case of Transcorp International, the stock closed at Rs 33.15, down 30% over its previous close, which is unusual considering that the exchanges do not have a intra-day circuit limit of more than 20%.
But what took the market by surprise was a deal for 1.38 crore shares in Assam Company at Rs 77.20 per share, when the permissible intra-day price for the stock was Rs 16.25. The BSE denies that such a trade ever took place. However, the trade log on Bloomberg and Reuters shows that the deal did take place. Market talk is that the deal was nullified by the exchange later on. – The Economic Times
You can soon spend more time on D-street June 29, 2009
Posted by dhirendra08 in Increase Participation, Longer Trading Hours, Phase Manner.Tags: American Markets, Capital market Regulator, Cash, Currency Derivatives Market, D-street, Derivatives Segments, Equity, Equity Market, European Markets, Future Market, Global Market, Indian Markets, International Market, Investor Groups, Market Hours, Market Participants, Secondary Market Advisory Committee (SMAC), Stock Exchange Trading Hours, Stock Exchanges, Stock Market Intermediaries, Time Constraints, Time Infrastructure, Trading Interest, Trading Plands
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Good morning friends. For those people who enjoyed staying on the street a lot will take more pleasure, as they can soon spend more time on D-Street. Lengthen of market hours would allow many market participants to carry out trading plans in Indian markets.
Longer trading hours may become the norm for stock market intermediaries sooner than later. The capital markets regulator, Sebi, is learnt to be thinking of increasing stock exchange trading hours so that market participants in India are better placed to react to developments in global markets. If the proposal is approved, the equity market will be open for trading from 9:00 am to 5:00 pm.
At present, the cash & derivatives segments are open from 9:55 am to 3:30 pm, currency derivatives market operates from 9:00 am to 5:00 pm, while the commodity futures market operates from 10:00 am till 11:30 pm. The proposal, based on the feedback received on a discussion paper floated by Sebi for longer trading hours in equity, is likely to be taken up with the Secondary Market Advisory Committee (SMAC), according to a person close to the development who requested anonymity.
The SMAC, which consists of representatives from Sebi, investor groups, stock exchanges and other market participants, will debate the proposal, and send it to the Sebi board, which will take the final decision. “The SMAC will take into account the views of all categories of market participants. The regulator is keen not to penalise anybody in terms of time or infrastructure constraints. As such, the extension of trading hours will be done in a phased manner. A final decision could be taken reasonably soon, possibly in a month,” said a person familiar with the issue.
Trading on major Asia Pacific bourses — Japan, Hong Kong and Shanghai — commences a little ahead of the Indian markets, while the European and American markets open much later. Sebi had, in March this year, proposed an extension of trading hours of stock exchanges to align the domestic bourses with international markets. “In a world where different exchanges are competing with each other to increase participation, it is imperative that the Indian markets align themselves to global markets to attract such trading interest.
Extension of market hours would enable market participants to execute trading strategies in Indian markets based on information flowing in, which otherwise would have been executed outside India,” Sebi had said in its discussion paper floated for public comments. -The Economic Times
Traders work out math for budget rally June 26, 2009
Posted by dhirendra08 in Extreme Movements, Handful Success, Low Risk, More Wealthy Traders.Tags: Derivatives Analysts, Foreign Institutions, Market Direction, Premium Rise, Retail Investors, Stock price, Stock Traders, Trading Strategies, Wealthy Traders
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Good morning friends. Wealthy stock traders — those who missed out the post-election result rally as well as the handful who tasted success — are trying to ensure that they have a winning formula ready to cash in on the post-Budget swing in stock prices. These players are creating trading combinations in equity options that will help them capture extreme movements on either side.
Two of the most commonly used options trading strategies by these traders are strangles and straddles, which have been put to good use by foreign institutions. Tempted by the low risk associated with these strategies, more and more wealthy traders are taking to them.
The participation of retail investors in such strategies is minuscule, as they seek trading strategies to bet on the market direction rather than implied volatilities (IVs) — the expected volatility in an index or share price — a key aspect of pricing of options premium (when IVs rise, premiums rise, and the converse also holds true).Derivatives analysts have been divided over the use of these options trading strategies to bet on IVs.
Some, including brokerage Sharekhan, are recommending buying straddles, which means a trader would bet on a jump in IV ahead of the Budget. In a straddle, the trader buys a call and put option each of same strike and expiry. Abhinay Jain, a derivatives analyst at Sharekhan, recommends buying one Nifty 4300 call and put option each of July expiry, prior to the Budget. – The Economic Times
Indian shares on US bourses gain over $3 bn June 14, 2009
Posted by dhirendra08 in Major Gainer, Recorded Profit, Respective Market Capitalizations.Tags: American Bourses, American Depository Receipts (ADRs), HDFC Bacnk Accounting, HDFC Bank and Sterlite Industries, Indian Entities, Indian Shares, Indian Stocks Trading, Infosys Technologies, Market Balue, Market Capitalization, Market Capitalizations, New York Stock Exchange, Private Sector, Profit, Satyam Computer Services, Standalone Profit, Sterlite Industries
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Good morning friends. It’s always good to know that Indian shares on US bourses gain over $3 bn. It means that there will be a profit in the end. And that’s a good one.
Indian stocks trading on American bourses gained more than USD 3 billion in a week, with private sector lender HDFC Bank accounting half of it.
For the week ended June 12, Indian entities listed on the New York Stock Exchange and Nasdaq added USD 3.21 billion to their market capitalization, with the valuation of HDFC Bank alone climbing USD 1.16 billion.
Among the 16 companies trading as American Depository Receipts (ADRs), another major gainer was copper producer Sterlite Industries whose market value shot up by USD 850 million.
Apart from HDFC Bank and Sterlite Industries, IT bellwether Infosys Technologies and scam-hit Satyam Computer Services too witnessed a significant rise in their respective market capitalizations.
While the valuation of Infosys grew by USD 619 million , that of Satyam Computer rose by USD 361 million.
Shares of Satyam Computer climbed higher on the NYSE last week after the entity reported a standalone profit of Rs 181 crore for the October-December quarter.
For January and February, the company recorded profit to the tune of Rs four crore and Rs 52 crore, respectively. The Economic Time
Nifty takes support at 4600; BPCL, Infosys down June 11, 2009
Posted by dhirendra08 in Broader Market, Btight Start, Lowest Level, Negative Market bredth, Smart Gains.Tags: ACC (-4.14%), Ambuja Cement (-5.54%), Bond Market, BPCL (-5.19%), BSE Capital goods Index (declined 1.48 per cent), BSE IT Index (down 3.07 per cent), BSE Midcap Index (down 0.72 per cent), BSE Oil&gas Index (dipped 1.68 per cent), BSE Smallcap Index (slipped 1.54 %), Capital Goods, Commodity Shares, Estimated Borrowings, European Markets, Fiscal Deficit, Frontline Stocks, Fundamentals of India Inc, Gain, Global Market, HCL Technologies (-3.58%), Hindalco (4.04%) and Ranbaxy (3.38%), IDEA (7.50%), Inflation, Infosys Technologies (-4.27%), IT, M&M (4.47%), National Stock Exchange’s Nifty, Negative Bias, Oil and Gas, ombay Stock Exchange’s Sensex, Tata Communications (7.18%), Volatile
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Good morning friends. Key indices were volatile with negative bias Thursday as it lacked support from global markets and profit booking also seen post rally in previous session. IT, oil&gas and capital goods space was under pressure while metals bucked the trend.
“After bright starts and finishes for two days, the bulls may find the heat and light a little glaring to handle. Despite smart gains in the main indices the broader market has cooled off. While time seems overripe for frontline stocks to also ease a little, the spotlight will remain on select counters. While US indices fell, European markets did manage some gains, largely owing to strength in commodity shares. We expect a flat opening and a choppy day.
Spurt in crude and other commodities has once again brought inflation into the spotlight, which could dip to its lowest levels. Concerns have also grown over hardening of interest rates in bond markets. Govt may overshoot its estimated borrowings and fiscal deficit could widen. Fundamentals of India Inc. are yet to catch up with the surge in stocks.
Subdued credit growth is another worry. Monsoon could be lower than expected. Budget may disappoint. Exports are sliding. Considering these headwinds, one may argue that the recent run-up has gone too far, too fast. On the bright side, the downside may not be scary,” said India Infoline report.
At 1:20 pm, National Stock Exchange’s Nifty was at 4620.55, down 34.7 points or 0.59 per cent. The index touched an intra-day low of 4586.15 and high of 4679.55.
Bombay Stock Exchange’s Sensex was at 15338.53, down 128.28 points or 0.83 per cent. The index touched an intra-day low of 15240.73 and high of 15568.74.
Selling pressure was seen in broader markets. BSE Midcap Index was down 0.72 per cent and BSE Smallcap Index slipped 1.54 per cent.
BSE IT Index was down 3.07 per cent, BSE Oil&gas Index dipped 1.68 per cent and BSE Capital goods Index declined 1.48 per cent.
Ambuja Cement (-5.54%), BPCL (-5.19%), Infosys Technologies (-4.27%), ACC (-4.14%) and HCL Technologies (-3.58%) were amongst the Nfity losers.
IDEA (7.50%), Tata Communications (7.18%), M&M (4.47%), Hindalco (4.04%) and Ranbaxy (3.38%) were amongst the index gainers.
Market breadth was negative on the BSE with 1838 declines and 777 advances. – The Economic Times
3000 points gain in 14 sessions June 5, 2009
Posted by dhirendra08 in Best Performers, Bull Run, Large Caps, Overseas Operation.Tags: Cash Levels, DLF, Economic Data, Gain, Indian Markets, Investors, Jaiprakash Associates, L&T, Marginal Improvement, Reliance Communications, Reliance Infra, Tata Steel
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Good morning friends. I wake up early to do my routine in the morning. After, I tried to read newspaper. I want to know what is happening to our business. With reference to The Economic Times there is 3000 points gain in 14 session. Let me share it.
While sensex has offered a gain of 23% postelection results, its main players such as Tata Steel, Jaiprakash Associates, DLF, Reliance Infra, L&T and Reliance Communications have provided investors with two to three times the gain offered by the benchmark itself.
Around 19 stocks outperformed sensex during this bull run which saw index moving from 12,000 levels to 15,000 levels in just 14 trading sessions. Investors, who were worried about Tata Steel’s overseas operations, shrugged off their fears and the steel major gained from Rs 270 to Rs 470, delivering 73% gains within a short time.
Jaiprakash Associates is the second in the gainers list, having notched up 65% returns, as its stock moved up from Rs 141 to Rs 232 in the same period.
DLF occupies 3rd position with over 60% gain as its promoters’ move to sell stakes to institutions improved investors’ sentiment. Anil Ambani’s Reliance Infra with 56% gains and Larsen & Toubro with nearly 48% returns followed as 4th and 5th best performers in the sensex pack.
“Driven by decline in cost of capital, Indian markets got re-rated and surged from the bottom with marginal improvement in economic data. Investors, sceptical of the sustenance of the rally, waited on the sidelines and cash levels in the system rose to astonishingly high levels of 15-20%. As visible in headline indices (sensex and Nifty), large caps led this rally from the front,” said Pathik Gandotra , head, research, IDFC SSKI Securities.
Market momentum intact; oil&gas stocks soar May 29, 2009
Posted by dhirendra08 in Biggest SEnsex Gainers, Edged Lower, Extremely Strong, Index Touch, Previous Session.Tags: 's Sensex, Bombay Stock Exchange, BSE Capital Goods, BSE Midcap Index, BSE Realty, BSE Smallcap Index, Gas, Healthcare Stocks, Inflation, Interest rates, National Stock Exchange, Oil, Oil Price Deregulation, Realty Stocks
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Good morning friends. The market mood remained upbeat in afternoon trade spurred by advances in the oil & gas space amid reports that oil price deregulation may be on the cards. Realty stocks were in demand as well on hopes that interest rates may soften given sub-1% inflation. Healthcare stocks, however, edged lower.
At 1:25 pm, Bombay Stock Exchange’s Sensex was trading at 14,650.01, higher by 2.48 per cent or 354 points from the previous session. The index touched a high of 14,692.82 and low of 14,319.87 in trade so far.
National Stock Exchange’s Nifty rose 2.75 per cent or 119.45 points to 4456.55. The index climbed a high of 4471.80 after opening at 4340.75.
The BSE Midcap Index climbed 2.44 per cent and BSE Smallcap Index rose 2.88 per cent.
Sectorwise, BSE Oil & Gas surged 4.19 per cent, BSE Realty climbed 4.04 per cent and BSE Capital Goods rose 3.42 per cent.
Biggest Sensex gainers comprised Mahindra & Mahindra (8.2%), ACC (7.04%), Jaiprakash Associates (6.02%), ONGC (5.77%), Tata Steel (5.03%) and Tata Consultancy Services (4.4%).
Sun Pharmaceuticals (-7.91%), Grasim Industries (-1.2%) and Tata Power (-1.09%) were the only losers in the 30-share index.
Market breadth on BSE was extremely strong with 2213 advances against 487 declines. – The Economic Times
