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Market Outlook - Short Term
Tracked by: 1 Boarder
Royal Bank of Scotland shares battered again
Royal Bank of Scotland was the biggest victim on another day of turmoil for banks today amid mounting speculation that the Government is set to spend billions on a taxpayer-funded rescue of the ailing sector.
RBS was down 40 per cent at one point - with big falls for HBOS, Barclays and Lloyds TSB - following crisis talks with Chancellor Alistair Darling last night.
But in an attempt to calm market nerves, RBS said: "Contrary to press speculation, RBS did not make a request to Government for capital."
And by early afternoon the fall RBS shares had eased to a 20 per cent decline on the day. HBOS shares were down 13 per cent.
Meanwhile, Iceland nationalised its second-biggest bank Landsbanki - leaving UK savers in limbo as its Icesave online website was frozen.
The wider FTSE 100 Index was nearly three per cent higher after yesterday`s 7.8 per cent slump - the biggest since Black Monday in October 1987 - as commodities bounced back slightly from the fall and oil prices rose.
The RBS stock slumped after Sir Fred Goodwin and his rival bosses at Barclays and Lloyds TSB met Chancellor Alistair Darling last night - with a possible capital injection for the sector reportedly on the agenda.
The concerns caused a fresh spike in money markets as fearful banks refused to lend to each other.
The overnight lending rate, which should be virtually the same as the official 5 per cent base rate in normal conditions, jumped more than 0.75 per cent to 5.84 per cent. Three month rates - used to price mortgages - widened to 6.28 per cent.
Alongside RBS`s falls, HBOS was down 14 per cent and Lloyds TSB 7 per cent lower. Barclays also registered big losses but recovered slightly to 4 per cent down after denying it had called for fresh capital.
The BBC reported RBS, Barclays and Lloyds TSB needed around £15bn of extra capital each.
A spokeswoman for Lloyds TSB refused to comment on whether any discussions were taking place with the Government.
"We never comment on any discussions that may or may not have taken place with the Government," she said.
The banks at the meeting called for the Chancellor to act quickly but Mr Darling did not have a fully-prepared rescue plan, the BBC said.
Bank of England Governor Mervyn King and the new chairman of the Financial Services Authority, Lord Turner, were also at the meeting, although the Treasury declined to comment.
There has been speculation that Mr Darling is considering moves to shore up UK banks with taxpayers` cash, but he did not give any firm commitments when he addressed MPs yesterday.
He said "all practical options must remain open" for dealing with the crisis, but added that it would be "irresponsible" to give a running commentary on plans.
London`s leading shares started today`s trading with some solid gains, but the Footsie lost its momentum amid the banking sector woes.
They deepened in Iceland today, where the Government stepped in to save another of the country`s major banks, Landsbanki under sweeping new powers which came into force yesterday - amid warnings that the entire country could go bankrupt.
It is the second nationalisation in little more than a week after ministers were involved in a rescue of rival Glitnir.
The wider Footsie made modest gains - mostly driven by a recovering oil price which bounced back slightly after hitting an eight-month low yesterday. Oil giants BP and Royal Dutch Shell both advanced around 4 per cent.
...
In reply to:
No one is too big not to fall
Posted by :
sambala
Bank of America profits plunge 68%
Banking giant reports - more than a week in advance - worse-than-expected earnings. Dividend halved and $10B stock sale announced
NEW YORK -- Bank of America on Monday reported a steep decline in earnings and slashed its dividend in half and revealed plans to raise $10 billion through a stock sale.
The Charlotte, N.C.-based bank said its third-quarter net income fell to $1.18 billion, or 15 cents a share, down 68% from $3.7 billion, or 82 cents a share, a year ago.
That was far worse than what Wall Street`s consensus forecasts of a net profit of $3.22 billion, or 62 cents a share.
Bank of America (BAC, Fortune 500) shares, which fell 6.5% during regular trading Monday, tumbled an additional 8% after the closing bell.
Fresh off its recent acquisition of Merrill Lynch, Bank of America also said it planned to raise $10 billion in capital through a common stock sale and that it will cut its dividend to 32 cents from 64 cents in recent quarters.
Kenneth Lewis, Bank of America`s chairman and chief executive officer, called the move "prudent" given the current market climate, which has resulted in the disappearance of several major financial institutions in recent weeks.
"These are the most difficult times for financial institutions that I have experienced in my 39 years in banking," Lewis said in a statement.
In addition to Bank of America`s purchase of Merrill Lynch, Lehman Brothers has filed for bankruptcy, JPMorgan Chase (JPM, Fortune 500) acquired failed savings and loan Washington Mutual and Wachovia (WB, Fortune 500) is in the process of being bought by either Citigroup (C, Fortune 500) or Wells Fargo (WFC, Fortune 500). Those two banks are battling in court over the rights to buy Wachovia.
Lewis blamed the dismal quarterly results on higher credit costs in such areas as its mortgage and credit businesses as more consumers found it difficult to repay their loans.
Bank of America said it set aside $6.45 billion for credit-related losses, more than triple during the same period just a year ago.
The results, which was originally slated to be released on Oct. 20, come just as the company announced a massive $8.4 billion foreclosure prevention effort.
As part of a legal settlement with 11 state attorneys general who had sued the troubled mortgage lender Countrywide Financial, Bank of America said it would cut monthly housing payments, a move that is expected to keep as many as 400,000 borrowers across the country.
In January, Bank of America announced plans to acquire Countrywide and completed its purchase in June.
Tracked by: 108 Boarders
:)
Reading your views sounds like BEARS have given a good HUG to you! :) :)
Quote
i had friend who was a dealer, he always said, when they buy even if the whole markets sits out to sell, they absorb it and when they sell, its the same, it bleeds every DII, HNI and every other person,
UnQuote
Sounds like Horror Lines from that gafla movie! :) :)
Quote
FII`s only look for fundamentals,
Unquote
If FIIs REALLY care about FUNDAMENTALS, then nothing to worry! :)
Btw, Those FIIs themselves do not have any fudnamentals. Strange that they look for fundamentals! :) :)
FIIs only look for making Money ! Those FIIs hardly care what is the name of counter! For them, that is just a counter to make money! :)
90% of traders in that losers list also include many FIIs! :) :)
Anyway, FIIs are just MONEY Hungry. :)
Just for information: Even an NRI or politicians kins can OPEN an account in the name of FIIs! :) So you will never get to know who those FIIs actually are! :)
FIIs is just some loose term given to those who are using the money from outside to bring into India! : ) :)
If that drop from Relianace from 2500 to 1700 is called capitualtion due to some FUNDAMENTAL changes, then I am surprise at the very meaning of that capitulation! :)
Probably, you have not understood REAL capitulation! Real capitulation happened when Lehman went BURST along with other financial companies! :) :)
Indian companies as of now appear to be exist! I hope in the name of those Bears HUGS, you would not start saying that all Indian companies in the market are going for a TOSS! :)
Btw, here is the official definition
--
In the stock market, capitulation is associated with `giving up` any previous gains in stock price as investors sell equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling.
Investopedia Says... After capitulation selling, it is thought that there are great bargains to be had. The belief is that everyone who wants to get out of a stock, for any reason (including forced selling due to margin calls), has sold. The price should then, theoretically, reverse or bounce off the lows. In other words, some investors believe that true capitulation is the sign of a bottom.
--
Even those FIIs suffer from that capitulation phase and make losses in the GAME! :) Let us use their billions of dollars to make Money! They want to DISTRIBUTE that for free! :) :)
Have fun!
Gud luk & happy investing! :)...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by :
inves_t_rader
dear BSR,
What you said is absolutely right, well, FII`s are just waiting in for a right time to gush in, i dont think any experienced ones can match the might of FII`s buying, i had friend who was a dealer, he always said, when they buy even if the whole markets sits out to sell, they absorb it and when they sell, its the same, it bleeds every DII, HNI and every other person, And FII`s are prudent investors, they dont think for 50-100 rupees, they think long term of 5-10-15 years and get into equity, they have been left not with many choices, They have had alot of pain in other markets, also to tell you my friend, FII`s only look for fundamentals, they are least concerened of markets moving in 6 months time or so, well capitulation as said is not what happens when analyst say, it has already happened, the big boy reliance saw its capitulation from 2500 to sub 1700 levels, These analyst scare poor investors stating that it is gonna take place, it already took place... And as you say all indian stocks for these FII`s is like a penny stock now, may be they will start their show very soon,
SEBI also brought the Revoke of ban on P-notes into force this evening
Regards
Tracked by: 108 Boarders
Hahaha lol.....tks for suggestions but it don`t needs a treatment... not what you are thinking... I took some time off because of wedding from Indian mkt and got caught on the wrong foot. a bit.......
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : sp.palo
dear pkjattking,
Lovely message.
Just wanted to know why that delicate part has become red ? were you not aware of the dirty games of big players or you always wanted the markets to go up to 30-40K giving you sweat-less money always.
Rub some aloe Vera gel there and it will cool down and become green. Ho Ho Ho Ho Ho...
Wish happy markets ahead. But still i feel a possibility of 10% correction.
regards
shakti
Tracked by: 108 Boarders
DOW will end in green today.............
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : pkjattking
Dow will open above 10000 n lets hope it holds ...
Tracked by: 108 Boarders
dear pkjattking,
Lovely message.
Just wanted to know why that delicate part has become red ? were you not aware of the dirty games of big players or you always wanted the markets to go up to 30-40K giving you sweat-less money always.
Rub some aloe Vera gel there and it will cool down and become green. Ho Ho Ho Ho Ho...
Wish happy markets ahead. But still i feel a possibility of 10% correction.
regards
shakti
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : pkjattking
I pay taxes rite now I have to find a way to get my ass back in green....lol
Tracked by: 108 Boarders
dear BSR,
What you said is absolutely right, well, FII`s are just waiting in for a right time to gush in, i dont think any experienced ones can match the might of FII`s buying, i had friend who was a dealer, he always said, when they buy even if the whole markets sits out to sell, they absorb it and when they sell, its the same, it bleeds every DII, HNI and every other person, And FII`s are prudent investors, they dont think for 50-100 rupees, they think long term of 5-10-15 years and get into equity, they have been left not with many choices, They have had alot of pain in other markets, also to tell you my friend, FII`s only look for fundamentals, they are least concerened of markets moving in 6 months time or so, well capitulation as said is not what happens when analyst say, it has already happened, the big boy reliance saw its capitulation from 2500 to sub 1700 levels, These analyst scare poor investors stating that it is gonna take place, it already took place... And as you say all indian stocks for these FII`s is like a penny stock now, may be they will start their show very soon,
SEBI also brought the Revoke of ban on P-notes into force this evening
Regards...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : BullSheetRules
Dear inves_t_rader,
While I was reading your msg, I remember those BS FIIs talking about caputalation in Indian markets when we are so close to the bottom or who knows, we may have already tasted that bottom! :)
Those same BS FIIs are not talking about caputalation in other markets where they have used that PUMP and DUMP methods to make exit now.
Those FIIs are OVERWEIGHT on B R C and look at the news related to HALT on trading in such environments!
Those FIIs are UNDERWEIGHT on I and there is no news yet of any HALF on trading! :)
Strange are the GAME PLAYed by those BS FIIs! :)
Anyway, everyone knows that those FIIs are also just waiting with piles of money to buy Indian stocks at dirt cheap prices as most of them seems like PENNY stocks when one does the USD conversions taking Future growth into accounts! :) :)
Probably, those BS FIIs do not know that there are many Long Term, expereinced Investors in India waiting for that Capitulation on the part of those FIIs so that those LT investors can do that BUY and Build Long term Portfolio for themselves! :) :)
Anyway, one need to do self research instead of relying on those BS experts! :)
Gud luk & happy investing! :)
Tracked by: 6 Boarders
Dear Observr,
I am an individual and not some fake id of kalidasji.
If you want to know who i am just write awargaonkar in the search engine you will immediately know who i am.
I hope then you will understand.
I have no nick names and no aliases.
That is my real name.
Please post some informative posts dont write this crap ok.
regards,
amarawargaonkar....
In reply to:
SENSEX to rally by 2400 pts in 7 days
Posted by :
Observr
Dear Goldchest
An id of the great person KaliD ji= amarasgaonkar
Now this is the third group formed(on this forum) on the anvil of multiple ids by one person viz.:
First: J
Second: K
And now third another K
Keep it up
- Keen Observer...
Tracked by: 108 Boarders
Dow will open above 10000 n lets hope it holds ......
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : BullSheetRules
yep look good so far...
Good to see some value in red at the moment on account of LOW Volume Game in spite of sensible GAME played by those BIG PLAYers! :)
Gud luk & happy investing! :)
Tracked by: 108 Boarders
I pay taxes rite now I have to find a way to get my ass back in green....lol...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : Atheist
Sir,
Are you classified as a FDI or a FII?
Do you invest in India on an individual capacity? And do you pay
taxes on your profits from your Indian portfolio to the Government
of India or to the US govt?
Just curious.
...Singh...
Tracked by: 108 Boarders
Hello BSR,
Thanks for your concern regarding my investments. Yes I am being quite careful with it because it involves huge amount of money. I had been waiting with funds since nine months for these times, in fact I did not even make a fixed deposit lest I need my money at immediate notice because sometimes market desicions require quick thinking and immediate liquidity. I am entering in a staggered manner and if sugar sector sinks further for which I am well prepared, I shall average my purchases on further downfalls. I do need to start entering at 3600 levels otherwise one never knows SEBI might do something immensely popular with which we might start rallying and I dont want to miss the bus.
thanks
lovemeall26...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : BullSheetRules
Dear lovemeall26,
Just a BS advise as a precauiton: Be careful with Renuka or Triveni! Unlike BajajHind, Balramchin, There are still lot of HAMMERING left in those two stocks if those two stocks go for complete BEARish corrections!! I understand you will manage those onslaughts well!:)
Gud luk & happy investing! :)
Tracked by: 0 Boarder
Bear markets can be classified in two terms broadly one is time based correction (sustains more than 18 months) and the other one is value based correction (slips nearly 50% from its peak). We are almost reached the value based correction at this point of time but we are just 9 months old that’s key point we should have to consider.
Of course we can get some cues from the history but I will not rely on them for to evaluate as ideal examples because we should evaluate the current conditions (like micro and macros) then only we can come to the right decision.
So, our micro and macro picture is not good. Still we are trading at high price multiples when compared to the global emerging markets,
We are facing the so many problems right now like
1. Global financial crisis
2. Huge liquidity crunch globally
3. Huge unwinding by FIIs, selling on every opportunity.
4. We are at higher inflation levels
5. We are at higher interest rate regime
6. Recent cuts in GDP growth rates
7. Poor IIP numbers
8. Margins shrinking in Q1FY09 and will slip further in Q2
9. Still our nifty trading at 18 PE
10. We are in an election year
11. Huge current fiscal deficit due to various subsidies
12. DIIs (MFs) are net sellers in the recent month
In my view, it is more than a BEAR MARKET it is the CRISIS. So, we can’t compare it with the bear markets of the past we have to compare it with the Previous CRISES.
So and so many, all will indicate us that ‘we are not out of wounds’ and ‘worst is behind us’. BE CAUTIOUS.
With thanks
Be and make
...
In reply to:
Where do you see the Nifty bottoming out?
Posted by : MMB Messenger
Dear Boarders,Do let us know your views and opinions on the poll.-MMB Messenger
Tracked by: 108 Boarders
Posted by: nightowl on (07-Oct-08 17:57 )
Guest,
listen and listen carefully... YOU DONT SCARE ME..I KNOW WHO YOU ARE... I WILL INTERACT WITH WHOMSOEVER I WISH..its not your business.. if i sink its my problem.. not yours..and please refrain from posting messages to me.. i dislike obstrusive men AND womenmaking uncalled for suggestions.. do you understand thyat you are perhaps the most disliked person on mmb board..get AWAY AND KEEP YOUSELF PARKED THERE
Nightowl
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : Guest
Seems that Mr. HLN is the captain of the Ship with Many innocent investors onboard. His ship will sink to the bottom of blue see, even when there is no storm, just because of his wierd so called techincal analysis, and will take full toll on the innocent investors listening and subscribing to his paid services. He is always seem beating his own drum for predicting levels correct, which actually he predicts to be in month of January and gradually keeps moving the timeframe as the market progresses. Somewhere in no mans land, his levels are reached in last quarter of year ( which are anyways supposed to come ), he will come out with his drum. God save those who are doomed by this person.
Tracked by: 108 Boarders
No Probs, pradesh! Thank you for your appreciation for that short capsule course!! :)
Gud luk & happy investing! :)
...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : pradesh
Excuse me BSR for intrusion..
Excellent capsule course!!
Tracked by: 0 Boarder
3250 is Very Stong base level...beyond this 2550...That most probably is the end to the Bear ...
In reply to:
Where do you see the Nifty bottoming out?
Posted by : MMB Messenger
Dear Boarders,Do let us know your views and opinions on the poll.-MMB Messenger
Tracked by: 108 Boarders
NIFTY HIT and Crack 3600 ...next... 3250 is Very Stong base level...beyond this 2550...That most probably is the end to the Bear Market...
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : vtycoon
all guys n dupes hre..
listen
NIFTY HIT 3600 & SENSEX TOUCH 12000 i will shave my BALD k...if u think dat NIFTY HIT 3600 & SENSEX TOUCH 12000 den u guys sux...btta leave share market..u have no right 2 stay hre..
other indices r on dre 1 year low n india is outperformin its peer + uS MARkets...n again nifty will go 2 15000...n if it starts fallin frm dat level it ont touch NIFTY HIT 3600 & SENSEX TOUCH 12000 .dis k,...so guys i sugest u betta don reply dese DUpe msg's n njoy..
JAI HINd !
