Investing in India? See Blackstone losses first January 24, 2009
Posted by dhirendra1972 in Blackstone Croups, Capital Market, Equity Firm, Foreign Capital, Indian Investment, Private Equity, Stock Market Plundge, Weakening Economy.Tags: Assets, Economy, Equity, Firm, Groups, Investment, Stock Market
add a comment
Good morning friends. In spite of a slowdown of economy, India is still growing considerably. There are companies and projects are in need for foreign capital.
Blackstone Group has invested more than $730 million in India since arriving three years ago, only to see much of it wiped out by the country’s weakening economy and stock market plunge.
Blackstone’s tough start in India is a cautionary tale to other Western private equity firms such as Kohlberg Kravis Roberts & Co. and Permira that are opening offices in Mumbai. If newcomers weren’t already wary of India’s foreign investing rules, which forbid borrowing and set a purchase price range, certainly Blackstone’s performance so far may give them pause. Entrenched firms, too, are likely to wait before pouncing.
Blackstone is not the only private equity firm watching its Indian investments take a hit, as Warburg Pincus can attest. But unlike Warburg and other private equity players, Blackstone is relatively new to India. It hasn’t been there long enough to sell stakes to balance losses with gains. What’s worse, it appears to have done most of its eight Indian deals at the very top of the market. Blackstone says it remains a long term investor in India.
“Short-term capital market volatility does not alter our investment thesis nor does it impact our commitment to an investee company,” Blackstone India head Akhil Gupta said in an email reply to questions about the portfolio. “We are long term investors who are focused on adding value to portfolio companies over long periods of time.”
New York-based Blackstone, one of the largest private equity firms in the world, launched plans to expand in Asia in 2005, choosing India as its first destination after hiring Gupta from Reliance Industries to run the Mumbai-based team.
India’s economy, despite a slowdown, is still growing significantly. Companies and infrastructure projects are hungry for foreign capital. Foreign money is attracted to future growth prospects and the ability to buy into assets on the cheap. The broader Indian market fell 52 percent last year, its sharpest annual fall after a five-year bull run that saw the benchmark rise six fold.
How quickly the economic climate stabilizes is up for debate.
Ref: The Economic Times
Satyam scandal highlights emerging market risks January 8, 2009
Posted by dhirendra1972 in Asian Markets, Business, Capital Market, Finance, financial market, Indian IT Company, Marketing Talk, Online Marketing, Raju, Ramalinga, Ramalinga Raju, satyam computers, Stock Market Talk.Tags: Indian Software Company, IT Company, IT news, Ramalinga Raju, Satyam, satyam computers, Satyam News, Software News
add a comment
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.”
Fed rate cut fails to lift markets December 17, 2008
Posted by dhirendra1972 in BSE, Bse news, Business, Capital Market, Commercial Banks, Commodity Market, Domestic Brand, Equity markets, Finance, Financial Capital, financial market, Financial Security, Global Equity Market, Global Market.Tags: BSE Sensex, Federal Reserve, Indian Stock Makret, money market, Sensex, Stock Market, Wall Stree
add a comment
Good Morning Friends, Market won’t lift even after Federal Reserve cut the rate. Word recession is going to remain. I was reading this news on yahoo site. The markets are weak in early trade despite an overnight rally on Wall Street after a drastic interest rate cut by the Federal Reserve to near zero.
After opening in the green above 10K levels, the Sensex is down 0.8 per cent to 9897 levels. The Nifty has also shed 0.7 per cent.
“The markets have gained 15-17 per cent in the last 8-9 trading sessions. The rate cut by Fed is a good signal though markets may see bouts of profit booking at higher levels,” said Alok Agarwal, Head of Research, K R Choksey Securities.
The Fed reduced the target for the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent in effect since the last meeting in October.
On Wall Street, the Dow Jones industrial average spiked 359.61 points, or 4.20 percent, to close at 8,924.14. It had been up about 100 in subdued trading ahead of the Fed’s announcement.
The Standard & Poor’s 500 index advanced 44.61, or 5.14 percent, to 913.18, and the Nasdaq composite index rose 81.55, or 5.41 percent, to 1,589.89.
In the Indian markets, buying is seen in consumer durables, banking and capital goods stocks while selling pressure is seen in technology counters. Blinds and Roller shades blinds companies are also working under pressure. Term Life Insurance companies and
Among the Sensex stocks, ICICI Bank leads gainers. It has jumped more than 2.5 per cent.
Satyam Computers is down 23 per cent after the company called off its proposed $1.6-billion acquisition of Maytas Properties and Maytas Infrastructure. more
PM narrows down on small sector December 9, 2008
Posted by dhirendra1972 in Business, Capital Market, Domestic Brand, Domestic Equity Market, Equity, Equity Market, Finance, Financial Capital, financial market, Indian Business, Online Marketing, Working Capital.Tags: Indian Business, Marketing, money market, small sector, small sector in indian market
add a comment
Good Evening friends, PM of Indian Dr. Manmohan Singh is takeing care of small and medium enterprises. I read following news at yahoo site. In a move aimed at further boosting the micro, small and medium enterprises (MSME) sector, Prime Minister Manmohan Singh is understood to have asked a high-level committee headed by the cabinet secretary K M Chandrasekhar to look into the issues plaguing the sector and submit its report within a fortnight.
The move comes a day after the government announced a package to stimulate the economy. The package, however, has failed to enthuse its entrepreneurs. All India Confederation of Small & Micro Industries Association president Sudarshan Sareen said, “The RBI’s Rs 7,000-crore credit refinancing is too less. At least Rs 10,000 crore should be made available for rehabilitation of sick industries and another Rs 10,000 crore for marketing development fund.” A delegation of the association, which met the Prime Minister today, sought adequate support from the government.
MSME secretary Dinesh Rai told The Indian Express that the memorandum submitted to the PM included speedy formation of a special fund for enterprises in the unorganised sector and an enhancement of cash-credit limits/ over draft facilities by at least 15 per cent. Besides seeking extension of time period for reckoning MSE accounts as NPAs from 90 to 180 days.
Stock Exchanges told to ensure security deposit compliance December 6, 2008
Posted by dhirendra1972 in Bank Guarantee, Capital Market, Security Deposit.Tags: Deposit, Market, Stocks
add a comment
Good morning friends. There will be always a change for every company, for the goodness of it. I know some companies don’t like it and some will agree. But I’m sure that it is for the better. This has reference to The Times of India which I want to tell relay to you.
Capital market regulator the Securities and Exchange Board of India (SEBI) has directed stock exchanges to ensure that companies comply with Clause 42 of the listing agreement that calls for maintaining 1% security deposit with bourses. Clause 42 requires every company to deposit 1% of the amount of money raised with the designated stock exchanges.
While 50% of the security deposits can be paid in cash, the balance amount can be provided by way of a bank guarantee. According to a SEBI release, bank guarantees, in many cases, have expired and the exchanges have neither taken any step to prevent such eventuality nor to revive the bank guarantees so expired.
“By allowing such bank guarantees to expire, the stock exchanges have compromised with an important mechanism available for redressal of investor grievances,” the SEBI release said.
The market regulator has directed exchanges to “recoup immediately any shortfall in the deposit that has been caused due to the expiry of such bank guarantees by taking either cash or fresh/revalidated bank guarantees from the concerned issuer companies.”
The regulator also wants the bourses to “put in place a system to keep track of the bank guarantees furnished to it by the issuer companies”. Further, some stock exchanges had sought advice as to whether they can adjust the 1% security deposit against the dues payable to them by issuer companies.
SEBI has clarified that exchanges have to maintain the said 1% security deposit at all times and no adjustment against any dues of the company can be permitted. According to SEBI guidelines, the security deposit can be released by the concerned stock exchange only after obtaining an ‘NOC’ from the market regulator.
Indian stock markets remain closed today November 27, 2008
Posted by dhirendra1972 in Asian Markets, Bombay Stock Exchange, BSE, Bse news, Business, Capital Market, Finance, financial market, indian stockmarket, Insurance, Marketing Talk, NSE News, Online Marketing, Stock Market, Stock Market Talk.Tags: BSE, Financial Capital, Indian Stock, Indian Stock Market, Mumbai, NSE
add a comment
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.
