HONG KONG - AUSTRALIAN and South Korean shares bounced on Monday after policymakers around the world took increasingly bold steps to staunch the bleeding in financial markets, including guarantees on bank desposits and directly injecting capital into banks.
v.krishnamoorthy...

HONG KONG - AUSTRALIAN and South Korean shares bounced on Monday after policymakers around the world took increasingly bold steps to staunch the bleeding in financial markets, including guarantees on bank desposits and directly injecting capital into banks. Nikkie is closed today,
v.krishnamoorthy...

There are also jokes online like "Black Mondays used to be a once-in-a-lifetime event. Now they are coming along more regularly than Delhi Metro trains."

Another SMS doing the rounds says: "Respected Sensex Sir passed away on October 10, 2008 after not keeping well for nine months. The last rituals would be conducted at Lehman Brothers` place."

Another talks about the companies` balance sheets:"Assets are written on the left and liabilities on the right side. But, there is nothing left on the right and nothing is right on the left."

The market value of all the listed companies in India has nearly halved to about Rs 36.5 trillion from the level seen about nine months ago on January 10, the date when Sensex had scaled its record high of 21,206.77 points.

Another joke doing the rounds says that Raj Thackeray is ready to allow non-Mumbaikars to stay in the city, but it would be mandatory for them to invest in the stock market.

There are also some other jokes with political flavour: "Bankrupt allowed to return to their native place without ticket, says railway minister Lalu Prasad; Bankrupt to be given imported wheat free on ration: agriculture minister Sharad Pawar; Stock market losses to be treated as tax deducted at source: finance minister P Chidambaram."

There are also SMSs like "blockbuster Saare Zameen Par (everyone bites dust) enters into 10th straight month at BSE and NSE multiplexes."

Another one says: "When the Sensex was at 21,000, the stock of a single real estate company was ruling close to Rs 1,500. Today, you can get entire sector for the same price and with Lehman Brothers having invested in the sector, further bargain is expected." About global developments also, humour abounds about the crisis and one such joke has gone to the extent of Iceland being auctioned on eBay at a starting price of 99 pence.Some British papers have reported even British Prime Minister Gordon Brown trying his hand at such humours. While giving a speech in London, he quipped on hearing a mobile phone ring,"I don`t know if another bank has fallen."

Taking a dig at government`s rescue packages, one says: "All sports stadiums in USA currently named for banks, insurance companies, or financial institutions will have to be renamed"Federal Reserve Park."

—PTI

v.krishnamoorty...

FE Editorial : Monday mantra

Mon, Oct 13 02:38 AM

No Monday market will be watched as closely as today`s. India`spolicymakers will be watched too. They have done well so far. But volatile times induce error. So let`s note that one of the most remarkable facts this crisis has shown is that the global stock market can absorb a trillion dollar loss in one day while the global banking system cannot absorb the same loss over two years. This is demonstration of the importance of a market-dominated financial system. A large banking system is a strategic vulnerability, particularly after taking into account the toxic interplay between banking and politics which can lead to loan waivers, loans to cronies, bailouts, resource pre-emption by the government, directed credit and PSU banks. A market dominated financial system is safer in that the worlds of finance and politics are much more likely to be kept apart.

In Russia, Indonesia, Ukraine, Hungary, Pakistan, etc., the stock markets have closed down for some period of time in this crisis. Regulators in the US and the UK lost their nerve, and did some silly things on short selling, which were reversed in a few days. In India, the fundamental attributes of a sound market have been satisfied. In the worst of pain—on Friday evening—there were both buyers and sellers on the screen. On Friday, the top three derivatives at NSE were Nifty (Rs 34,000 crore), rupee-dollar (Rs 976 crore) and ICICI Bank (Rs 947 crore). At closing time on Friday, on the near month ICICI Bank futures, there were buyers at the top five prices for 6,825 shares and sellers at the top five prices for exactly the same amount. There was no payments crisis, despite substantial price fluctuations. The market was working as it should: providing a venue for both positive and negative views to be expressed, and solving out for an equilibrium price. The policy establishment in India has fared well in this crisis. Knee jerk proposals for banning short selling have been rejected; RBI responded with alacrity by cutting CRR; Sebi plodded onwards with structural reforms by rescinding the mistakes about PNs made in October 2007. Last week was a trial by fire, and India`s exchanges, and the economic policy leadership, has come out looking good by international standards. Now the immediate task lies in rapidly solving the liquidity squeeze by setting up a proper operating framework for monetary policy, and undertaking fundamental reforms of the FII framework.
v.krishnamoorthy
Folsom/USA...

FE Editorial : Monday mantraMon, Oct 13 02:38 AM

No Monday market will be watched as closely as today`s. India`spolicymakers will be watched too. They have done well so far. But volatile times induce error. So let`s note that one of the most remarkable facts this crisis has shown is that the global stock market can absorb a trillion dollar loss in one day while the global banking system cannot absorb the same loss over two years. This is demonstration of the importance of a market-dominated financial system. A large banking system is a strategic vulnerability, particularly after taking into account the toxic interplay between banking and politics which can lead to loan waivers, loans to cronies, bailouts, resource pre-emption by the government, directed credit and PSU banks. A market dominated financial system is safer in that the worlds of finance and politics are much more likely to be kept apart.

In Russia, Indonesia, Ukraine, Hungary, Pakistan, etc., the stock markets have closed down for some period of time in this crisis. Regulators in the US and the UK lost their nerve, and did some silly things on short selling, which were reversed in a few days. In India, the fundamental attributes of a sound market have been satisfied. In the worst of pain—on Friday evening—there were both buyers and sellers on the screen. On Friday, the top three derivatives at NSE were Nifty (Rs 34,000 crore), rupee-dollar (Rs 976 crore) and ICICI Bank (Rs 947 crore). At closing time on Friday, on the near month ICICI Bank futures, there were buyers at the top five prices for 6,825 shares and sellers at the top five prices for exactly the same amount. There was no payments crisis, despite substantial price fluctuations. The market was working as it should: providing a venue for both positive and negative views to be expressed, and solving out for an equilibrium price. The policy establishment in India has fared well in this crisis. Knee jerk proposals for banning short selling have been rejected; RBI responded with alacrity by cutting CRR; Sebi plodded onwards with structural reforms by rescinding the mistakes about PNs made in October 2007. Last week was a trial by fire, and India`s exchanges, and the economic policy leadership, has come out looking good by international standards. Now the immediate task lies in rapidly solving the liquidity squeeze by setting up a proper operating framework for monetary policy, and undertaking fundamental reforms of the FII framework.
v.krishnamoorthy
Folsom/USA...

FE Editorial : Monday mantraMon, Oct 13 02:38 AM

No Monday market will be watched as closely as today`s. India`spolicymakers will be watched too. They have done well so far. But volatile times induce error. So let`s note that one of the most remarkable facts this crisis has shown is that the global stock market can absorb a trillion dollar loss in one day while the global banking system cannot absorb the same loss over two years. This is demonstration of the importance of a market-dominated financial system. A large banking system is a strategic vulnerability, particularly after taking into account the toxic interplay between banking and politics which can lead to loan waivers, loans to cronies, bailouts, resource pre-emption by the government, directed credit and PSU banks. A market dominated financial system is safer in that the worlds of finance and politics are much more likely to be kept apart.

In Russia, Indonesia, Ukraine, Hungary, Pakistan, etc., the stock markets have closed down for some period of time in this crisis. Regulators in the US and the UK lost their nerve, and did some silly things on short selling, which were reversed in a few days. In India, the fundamental attributes of a sound market have been satisfied. In the worst of pain—on Friday evening—there were both buyers and sellers on the screen. On Friday, the top three derivatives at NSE were Nifty (Rs 34,000 crore), rupee-dollar (Rs 976 crore) and ICICI Bank (Rs 947 crore). At closing time on Friday, on the near month ICICI Bank futures, there were buyers at the top five prices for 6,825 shares and sellers at the top five prices for exactly the same amount. There was no payments crisis, despite substantial price fluctuations. The market was working as it should: providing a venue for both positive and negative views to be expressed, and solving out for an equilibrium price. The policy establishment in India has fared well in this crisis. Knee jerk proposals for banning short selling have been rejected; RBI responded with alacrity by cutting CRR; Sebi plodded onwards with structural reforms by rescinding the mistakes about PNs made in October 2007. Last week was a trial by fire, and India`s exchanges, and the economic policy leadership, has come out looking good by international standards. Now the immediate task lies in rapidly solving the liquidity squeeze by setting up a proper operating framework for monetary policy, and undertaking fundamental reforms of the FII framework.
v.krishnamoorthy...

Markets to crash furtherMon, Oct 13 02:38 AM

Indian equity indices, which observed its worst weekly performance in the recent past, last week are likely to hammer down further on the back of carnage in the global markets. If the dealers in the market are to be believed then there are no positive indications in the market which may boost the sentiments of the market.

Weak closing of the US markets might also mirror in the domestic markets for the first two days of the next week, say traders. Absence of any major trigger on the home front, the domestic markets is expected to look west and at its Asian counterparts for the direction next week.

Amitabh Chakraborthy, president equities at Religare Securities said, "At this juncture, I don`t see any positive triggers in the markets which can make a positive rally. Foreign Institutional Investors (FII) is continuously selling and they would continue doing it for some more time. In the coming days, we might witness further selling pressure in the markets, which may take Sensex further down and we might see the downside correction of other 20% in the coming days."

On Friday, last trading day of previous week, we saw Sensex down by 800.51 points or 7.07% and had ended the day at 10,527.85 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) lost 233.70 points or 6.65% and had closed the day at 3,279.95 points.

However, dealers in the markets say that, Cash Reserve Ratio (CRR) cut by the Reserve Bank of India (RBI) by 150 basis point will infuse over Rs 60,000 crore in to the banking system, which might boost the sentiments of the investors in the coming days.

"Global markets are playing havoc and no one is sure how much more pain is left in the market. Apart from that intense selling pressure in the last couple of days in the domestic market is worrisome. Investor confidence has been shattered after the massive crack that the market witnessed last week," said an analyst from the leading broking house.

Analysts will also be watching out for more results, prime amongst them would be the HDFC Bank results this week
v.krishnamoorthy...

Hey thanks for taking time to look at what i said. I see the divident to be about 2 to 4 rs. for the year. book value of abt 55-60 end of year. Obviously since hte senitment and market pricing power are out we can expect to see a fall. But i am slob when it comes to buying and worse when it comes to selling..so i am holding with a three to five year perspective and expect a book value of 125 then and a pric of about 180-200 for sure by then - i guess the yield should keep me happy would be compelled to buy at 50 all other things remaining same. We are in a hihgly dynamic world now so cant say. ...

Equity prices are driven by sentiment. The Govt drove away the setiment in banking sector by mindless CRR hikes & interest rate hikes not to mention farmers` loan waiver & fertilizer subsidies suvked out from banks. Even during normal times one good way to look at banking scripts is to check its balance sheet. Karnataka Banks FY 08 balance sheet indicates a huge contingent liability of Rs 600.00 crores which severely impacted the bottom line for that year. For Q2 FY 09 street inteliigence has it that with a 20 % expected growth in interest income YOY , the expected PAT will see a meagre 0.4% growth YOY. So there are areas of concern in the loans dept of the bank turning into NPAs S, Datta ...

Global crisis may spread to India through equity, forex mkts: RBI Press Trust of India / Washington October 12, 2008 The Reserve Bank has warned that the global financial crisis can spread to India through equity and forex markets, while money, debt and credit markets could be impacted indirectly due to the continuing onslaught. However, the country may escape the worst consequences of the crisis, even as "the equity and the forex markets provide the channels through which the global crisis can spread to the Indian system," RBI Governor D Subbarao said here on Saturday. Speaking at the International Monetary and Financial Committee Meeting of the Fund, he said the other three segments of the financial markets which could get affected indirectly are money, debt and capital markets. He added that the cost of borrowings have increased for India Inc because of factors like risk aversions, deleveraging and frozen money markets, which is also affecting the availability of funds in the international markets. Subbarao, who took charge as RBI Governor last month when the financial crisis was unfolding, said that the unavailability of funds in the international markets will mean additional demand for domestic bank credit in the near term. Referring to capital flows, he said reduced interest of investors in emerging economies could impact capital flows "significantly" and the looming recession will impact Indian exports. India`s exports during the first five months of the current fiscal registered a growth of 35.1 per cent to $81.2 billion as against $60.1 billion in the same period a year ago. In the capital market, FIIs have net pulled out $10.05 billion in 2008 so far, while they have net pumped in $2.15 billion in the debt market, according to Sebi figures. ...

Leave it, I doubt,if most of our parliamentarians understand, the anomolies you have narrated. They are repeating like a `parrot`our banks are safe`. If some thing happens, they will find a scapegoat or a escuse as usual & the matter will be closed without taking a remidial action. Relity will never dawn on them. Regarding trade unions, U think they are any better.. they will haggle for their genuine or frivolous demands, & customer safety ? ?? of course they are safe in banks. Actually they are used to dictionary meaning of banks. Banks means safe automatically . regds nodi...k ...

The message was as usual, not fully printed. The rest of the main report is as under. RBI Bovernor said "In the capital market, FIIs have pulled out 10.05 billion dollars net in 2008 so far, while they have net pumped in 2.15 billion dollars in the debt market, according to SEBI figures. Subbarao said emerging economies, which do not have direct or significant exposure to stressed financial instruments and troubled financial institutions are experiencing the indirect impact of the crisis. He said that the impact is "by no means insignificant or trivial. Indeed, it could intensify in the months ahead." full report will be available in Indian Press in a few hours. v.krishnamoorthy...

They did not reply to me either....

hold on it will b all rite.........