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Satyam scandal highlights emerging market risks January 8, 2009

Posted by dhirendra08 in Asian Markets, Business, Capital Market, Finance, Indian IT Company, Marketing Talk, Online Marketing, Raju, Ramalinga, Ramalinga Raju, Stock Market Talk, financial market, satyam computers.
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Good Morning friends, something alarming and shocking for Indian inverters. I am also a small inverter in Indian stock market. My feeling is how is this possible? And if this is possible than we should not trust any one. I know others are not like this and I not mean to raise any finger on others too. But I just try to feel feelings of investors and employee of the company who are looking at the management with high respect and values. I read following news at the economic times.

 

A vast accounting scandal at Satyam Computer Services may increase investor nervousness about weak corporate governance and oversight in

 emerging markets.

 

Satyam founder and chairman Ramalinga Raju admitted on Wednesday to inflating Satyam’s reported cash and bank balances by over 50 billion rupees ($1 billion), but little is known about how widespread the problem is and things could get worse if other frauds are uncovered.

 

The scandal, which is being dubbed by some analysts as “India’s Enron” and compared to Bernard Madoff’s alleged $50 billion Ponzi scheme in the United States, comes at a bad time for emerging markets.

 

Benchmark emerging equities are down 52 per cent since the beginning of 2008 as investors fled risk and hopes of a “decoupling” from a slowdown in developed markets proved mostly unfounded.

 

“It’s got to shake confidence. And it is compounded in my mind by what I already call the fear complex that exists around all global markets,” said Lesley Hand, a partner in accounting firm KPMG LLP’s forensic practice.

 

“The thing you don’t know here is how far reaching this is,” Hand said. “I don’t know if it will be long, long-term. But you let another shoe or two drop and I would say it would be way worse.”

Anil announces GSM foray, promises exciting tariff December 31, 2008

Posted by dhirendra08 in Asian Markets, Asin Share markets, Equity, Equity Investment, Equity Market, Equity markets, Finance, Financial Capital, Loans, Local Equity Market, Local Market, Online Marketing, Open Market, financial market.
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Good Evening friends,

I think Anil Ambani is going to give some extra ordinary surprise to people of india. He just announce that his headed company Reliance Communications is going to come up with GSM mobile service in first week of January 2009.

 

Anil Ambani, head of Reliance Anil Dhirubhai Ambani Group (ADAG), on Tuesday announced the launch of Reliance Communications GSM mobile phone services in the first week of January 2009.

 

He did not announce the tariff plan details but promised “GSM (tariff) rates that will make people forget the Rs-501 CDMA offer of 2003.” Reliance currently has 60 million customers, including over 1.7 million individual overseas retail customers.

 

The tailored bouquet of GSM and CDMA mobility platforms gives Reliance customers the option to choose the service. Around seven out of 10 people opt for GSM service while churn out of CDMA users is less than 2 per cent.

 

“We will cover 11,000 cities, 24,000 towns and more than 60,000 villages. We will be covering all railway routes and national highway to give the best and cost affective service to our customers,” said Ambani. Rs 10,000 crore has already been invested in the GSM venture, Ambani said. “Reliance Communication will participate in 3G spectrum auction on both CDMA and GSM platforms, and it will be on the national level,” Ambani said.

Satyam scrip falls again, regulator to probe acquisition bid December 19, 2008

Posted by dhirendra08 in Asian Markets, Asin Share markets, BSE, Bombay Stock Exchange, Bse news, Bull Market, Business, Capital Market, Cellphone, Stock Market, Stock Market Talk, Stock price, Stock value, Working Capital.
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Good Evening, Satyam computers, one time very good script is showing something unusual. Satyam Computers, which is planning to buy back shares to regain investor confidence, saw its scrip slide again in Friday morning trade, while the market regulator said the IT major’s unpopular and thwarted bid to acquire two promoter companies would be examined.

 

‘We do not want to react quickly to the incident (the acquisition bid that triggered investor outrage), but we will study issues involved and then take a decision,’ Securities and Exchange Board of India (SEBI) chairman C.B. Bhave told reporters here.

 

The Satyam scrip fell about 3 percent since its previous close and was trading around Rs.166, while Maytas Infra – one of the companies Satyam was planning to acquire – saw the free fall of its share value continuing, the scrip losing another 20 percent since Thursday’s close.

 

The Maytas stock was trading at around Rs.248 during morning trade Friday, down Rs.62.10 since its previous close of Rs.310.65.

 

Satyam Thursday said its board would meet Dec 29 to buy back shares, a declaration that is being widely perceived as a move to regain investor confidence that was eroded after the cash-rich company said it would acquire two promoter firms at $1.6 billion despite widespread liquidity squeeze.

 

Both firms are owned by the sons of Satyam’s chief promoter B. Ramalinga Raju.

Rupee falls by 25 paise to hit fresh low of 50.53 December 2, 2008

Posted by dhirendra08 in Asian Markets, Capital Outflow, Domestic Equity Market, Interbank Foreign Exchange, Trade, Us Currency.
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Good morning friends.  The rupee today fell by 25 paise against the US dollar to a fresh low of 50.53/54 in the opening trade at the Interbank Foreign Exchange market on increased demand for the greenback amid melting stock markets.

Dealers said increased demand for the US currency and expectation of further fall in domestic equity markets after the overnight heavy losses in the US stocks weighed on the rupee sentiments. 

 

In New York, the Dow Jones Industrial Average plunged 7.70 per cent to close at 8,149.09 points.

 

Asian markets, following the US  stocks, fell in range of 2-5 per cent in the early trade today, raising fears of capital outflows from the domestic market, dealers added.

 

Yesterday, the rupee had closed lower by 21 paise at 50.28/29 against the US dollar.

Indian stock markets remain closed today November 27, 2008

Posted by dhirendra08 in Asian Markets, BSE, Bombay Stock Exchange, Bse news, Business, Capital Market, Finance, Insurance, Marketing Talk, NSE News, Online Marketing, Stock Market, Stock Market Talk, financial market, indian stockmarket.
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Indian government has decided to keep the Mumbai Stock Exchange (MSE) closed today (Thursday) due to the horrific night that saw the most deadly terror strike in Mumbai, the financial capital of India, which left over 100 people killed and 900 injured.

 

Trading on India’s Bombay Stock Exchange and National Stock Exchange markets will remain closed on Thursday, a spokesman for India’s capital markets regulator said, after a series of attacks in the financial capital Mumbai.

 

Government had already announced for the schools and colleges to remain closed as the situation in the city was tensed and sensitive due to terrorists who have been holding innocent people under captive as hostages in two five star hotels in Mumbai and army and commandoes had been called in to take the situation under control.

Stocks open higher; metals in demand November 19, 2008

Posted by dhirendra08 in Asian Markets, Banking Stocks.
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Stock opened higher Wednesday propped up by gains in metals and banking stocks.

 

National Stock Exchange’s benchmark Nifty rose 12.75 points or 0.39 per cent to 2695. Bombay Stock Exchange’s 30-share Sensex climbed 33.47 points or 0.49 per cent to 8980.70 from Tuesday’s close.

 

 

“Intraday, crucial support in declines is at 2630 points which if broken can test 2555-2585 points. On the other hand, if 2630 points hold then a small pullback is on cards which may attempt 2750-70 points. A sustained move above 2770 can lead to further bear covering. The responsibility rests on the shoulders of index heavyweights; hope they oblige,” said Religare Securities.

 

 

 

US stocks staged a late fight back on Tuesday after stronger-than-expected results and the outlook from computer maker Hewlett-Packard offset fears of more losses at Citigroup and other banks.

 

The Dow Jones industrial average rose 151.17 points, or 1.83 per cent, to end at 8,424.75, Standard & Poor’s 500 Index gained 8.36 points, or 0.98 per cent, to finish at 859.11 and the Nasdaq Composite Index inched up 1.22 points, or 0.08 per cent, to close at 1,483.27.

Asian markets, however, dropped for the third straight day as the recessionary concerns outweighed the positive impact from overnight gains in US shares. The Nikkei was down 1.5 per cent, Topix lost 1.59 per cent, Hang Seng fell 0.35 per cent and Straits Times shed 0.8 per cent.