Sound dynamics puts India on solid footing February 9, 2009
Posted by dhirendra1972 in Decoupling, Domestic Consumption, financial market, Financial System, Global Slowdown, Globalization.Tags: Bankers, CEOs, Economy, Equity, Market, Parameters, Production, Slowdown
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Good morning friends. India comes out moderately fine on all parameters”. And it is not that badly placed.
Till January last year, ‘decoupling’ was supposed to be the magic mantra that would insulate India from any possible global slowdown. But that theory has been long forgotten, to the extent that market watchers may even have trouble spelling it.
Deleveraging and deglobalisation is the new buzzword, with painful consequences for India as well. Yet, India appears better poised to recover from the ongoing carnage in financial markets across the world, according to Uday Kotak, vice-chairman and MD, Kotak Mahindra Bank.
While the panelists analysed various aspects of the market in great detail, Mr Kotak provided a big macro picture. It was not a pretty picture. “The world is experiencing a retreat from globalisation in three areas: capital flow, trade and movement of people.” That was the consensus at the World Economic Forum at Davos, the annual jamboree of CEOs and bankers.
“To my mind, there are three criteria for deciding which economy will emerge from the crisis first,” he said in his keynote address at the panel discussion ‘Equity Outlook 2009’ hosted by ET NOW.
India is not that badly placed. “Number one, the country must have a sound banking and financial system, and it should not have been affected in this process. Number two, very significant domestic consumption. And number three, significant and efficient domestic production. India comes out relatively fine on all three parameters”.
According to Mr Kotak, the only worry, would be the efficiency of domestic production as imports get cheaper, especially from countries, including China. “India already has a sound banking system and significant domestic consumption. If you consider China, it has a sound banking system, and significant domestic production. But much of its consumption economy is more export-oriented and less domestic. So, China will have to shift towards more of domestic consumption and less of export dependence”.
Mr Kotak opined that while India would be among the economies to recover early, it will feel the pain arising out of deglobalisation. “The markets will face pain in the short run, but will recover, before the real economy recovers. The hope is that in the real economy, by the end of 2009, India should be on way to a wonderful —maybe, wonderful is an exaggeration — perhaps, to a much better 2010,” he said. Mr Kotak said the market was likely to be range-bound this year, rather than giving a clear direction of a bull market or a bear market at this stage.
“I genuinely believe that the India story is going to get stronger through this period of pain. It is a question of patience. And I firmly remain committed to India story over the long haul, which is significantly superior to almost any of the story of the world,” he said, in his concluding remarks.
Refrence: economictimes
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
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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.”
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
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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
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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.
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
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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.
‘Fresh monetary steps will soften interest rates’ – 1 November 2, 2008
Posted by dhirendra1972 in Commercial Banks, Current Scenario, financial market, Government Securities, Key Rates, Monetary Measures, Uncategorized.Tags: Banking System, Interest Rate, Repo Rate, World Bank
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Good morning to all of you there! As one of my habits, I always make sure that I will be updated with all the news in our country. I want to share with you this article as it was reference to “The Times of India”.
Interest rates will soften in the coming weeks and liquidity will improve in the banking system following sudden cuts in key rates by the
Reserve Bank of India (RBI) Saturday, a leading banking consultant said.
“In the current scenario, maintaining stability of the financial market should be the top priority. In this context, the latest monetary measures can be viewed as the RBI’s big bang strategy to have a positive impact on the banking system and the financial markets,” World Bank consultant and former Corporation Bank chairman B.R. Ramamurthy told said.
In a dramatic weekend decision earlier Saturday, the RBI reduced the repo rate by 50 basis points to 7.5 percent, the cash reserve ratio (CRR) by 100 basis points to 5.5 percent and the statutory liquidity ratio (SLR) by 100 basis points to 24 percent.
Repo rate is the interest charged by the central bank on borrowings by commercial banks, CRR is the minimum cash banks have to keep with the RBI, while SLR is the amount banks have to maintain as government securities.
“The reduction in repo rate, CRR and SLR will generate high level of confidence in the industry, as productive credit will be available at lower rate. The monetary measures will augur well for the growth of the economy, as access to funds at lower interest rate has been made possible,” Ramamurthy added.
