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
Bank business sparkles this Diwali November 15, 2008
Posted by dhirendra1972 in Bank Securities, Equity Market, Global Market, Loans, Marginal Growth, Raised Deposits, Savings and Current Account, Term Deposit.Tags: Banks, Bonds, Growth
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The flight to safety has resulted in term deposits rising Rs 94,811 crore to Rs 30,40,276 crore during the month of October alone. The growth is largely on account of special schemes launched by most banks where they offered returns of around 10.5%. In fact, term deposits have been rising since September, following the collapse of Lehman Brothers which triggered a sharp fall in the equities market globally. As a result, investors were seen withdrawing money from mutual funds and equities market and depositing it with banks.
Also, several depositors may have shifted deposits from savings and current account to term deposits. This is indicated in RBI data, which shows that demand deposits (saving and current account) have dipped in October by Rs 21,509 crore.
But even as banks were offering higher rates, deposits are growing at a slower pace than loans. October saw non-food credit — loan to the manufacturing sector, individuals and industry — rise Rs 1,02,760 crore while deposits grew Rs 73,302 crore. Till October end, on a year-on-year basis, credit rose 28.5% whereas deposits increased 20.7%.
RBI data also shows that bank loans to corporates have doubled to Rs 2,82,37 crore between April and October 2008 compared with Rs 1,41,837 crore in the corresponding period last year. However, the same period has seen a marginal growth in deposits. For instance, between April and October 2008, deposits stood at Rs 3,18,500 crore as against Rs 3,01,563 crore in the corresponding period last year. Meanwhile, investments in government bonds stood at Rs 18,717 crore in October 2008.
