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Economy
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In a bid to inject liquidity in the cash-starved market, the Federal Reserve offered to provide USD 900 billion in cash loans to the squeezed banks. The Fed tried to ease Wall Street’s pain by saying that the 28-day and 84-day cash loans being made available to banks will be boosted to USD 150 billion apiece, effective Monday....
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CRR Cut & P-Notes Cap removal:
The twin measures of the banking and market regulators could be aimed at infusing liquidity in the banking and capital market segments. Today, Reserve Bank of India cut banks\` cash reserve ratio 50 basis points to 8.50% effective Oct 11, which will release 200 bln rupees into the system. In another move, Securities and Exchange Board of India removed restrictions on the issue of participatory notes by foreign institutional investors, and also permitted their issuance with derivatives as underlying assets.
Market participants believe that prospects of any gain from this move Tuesday will be nipped in the bud by the overwhelming tide of disastrous news overseas. The decline of the Dow Jones Industrial Average below the psychologically important 10,000 mark and the scurrying to safety displayed by the sharp rise in overseas gilts suggest migration to safer havens. The tepid welcome to SEBI\`s move to permit foreign institutional investors to issue participatory notes; once a key driver of Indian markets, is a testimony to the frazzled state of the market. International markets would continue to wield influence on domestic sentiment, and local funds are not seen buying at higher levels. SEBI\`s move would not have a big impact in the short term as most serious players are already registered and may not require the P-note route.
The CRR cut may marginally enthuse rate-sensitive sectors, with a relatively heavier bias for banking shares. RBI\`s caveat to the rate cut is not lost on the market. The central bank said the cut is an ad hoc move to address temporary liquidity tightness and that it remains firmly committed to anchoring inflationary expectations. With earnings season round the corner and consensus veering to a slowing down in earnings growth and margins; the horizon appears to be hazier. Morgan Stanley expects Jul-Sep earnings growth of Sensex companies to slow to 10% compared with 20% in the previous quarter. HSBC encapsulates the situation aptly in its fourth quarter assessment of the global economy. \"...Whereas the developed world is facing a credit crunch with a medium term Japan-style deflationary threat, the emerging world is being buffeted by slower growth, associated with weaker exports and softer domestic asset prices, combined with persistently high inflationary pressures: in other words, stagflation.\"
-courtesy stox and more...
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RAMGE,
Can you post singlke message without ROFL ??...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by :
RAMGE
WoWji,
The adernalin rush caused by the WoW factor spreads from the head to the toes like lightning and causes the feet to swell up (ROFL)
I like it. Now the battle of the WoW vs Mama`s of MMB is in full bloom. You have my full support luv. Give em a bashing! Let those Biceps (A40) speak (hahahahaha)
Beware, WBB , Accolade, Mamasree, Warburg Pincus are all formidable tentacles of the same Kotak Octopus.
cheers
ramji 
Tracked by: 0 Boarder
WoWji,
The adernalin rush caused by the WoW factor spreads from the head to the toes like lightning and causes the feet to swell up (ROFL)
I like it. Now the battle of the WoW vs Mama`s of MMB is in full bloom. You have my full support luv. Give em a bashing! Let those Biceps (A40) speak (hahahahaha)
Beware, WBB , Accolade, Mamasree, Warburg Pincus are all formidable tentacles of the same Kotak Octopus.
cheers
ramji...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : radhika_nandlal
RAMGE,
Why swollen feet?
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The Reserve Bank of India, or RBI, has cut the cash reserve ratio, or CRR, by 50 bps to 8.5% with effect October 11. The cut will infuse Rs 20,000 crore into the system....
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The Reserve Bank of India (RBI) on Monday said it was cutting the cash reserve ratio (CRR) for banks by half a percentage point to 8.5 percent, effective from Oct. 11, to alleviate pressures caused by the global financial crisis.
The measure would release 200 billion rupees ($4.2 billion) into the banking system, RBI in a statement released after market hours.
The CRR is the proportion of deposits banks need to keep with the RBI.
The measure was ad-hoc and temporary in nature, and would be reviewed on a continuous basis and liquidity management would continue to receive priority in the monetary policy, the RBI said.
($1 = 47.8 Indian rupees)
...
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Oops warren believes
Quote
if things don`t improve, he`ll "have to go back to delivering newspapers.
Unquote
Gosh then what happens to us.. i am not going to be fooled though, i will redeem all my insurance money and invest in stocks. LOL
...
In reply to:
Warren Baffet Worried!
Posted by :
m_i_khilji
Article in VR by Dhirendra Kumar:-
Finally, Warren Buffett is scared. Perhaps you should be too. Fifteen months after start of the global credit crisis (which we innocently used to call the US sub-prime crisis in the olden days), the legendary investor has declared that he has never seen so much economic fear in his life. He has likened the crisis to an economic Pearl Harbour and said that if things don`t improve, he`ll "have to go back to delivering newspapers."
Just last week I`d mentioned how the crisis had left Buffett as a sort of a last man standing on Wall Street and how the crisis had proven the wisdom of what he used to say about financial derivatives and the kind of behaviour they presented. `Financial weapons of mass destruction,` was his description. Interestingly, while Buffett`s words sound more alarming, his actions have indicated hope. He has put down a large amount of cash (about eight billion dollars) to buy major stakes in Goldman Sachs and General Electric.
During this past few weeks, the scale of this crisis has become quite clear. As I`d written two weeks ago, the world has seen easy credit being available for many years, and now the cycle is threatening to reverse itself. Till a few days ago there was a naïve hope that the problem was caused by major global institutions not trusting the quality of assets on each others books. All that was needed was someone like the US government to underwrite the bad assets on these institutions` books and all would be fine.
These simple hopes have now disappeared. It is clear that the great unwinding is upon us. In many ways, what follows will just reset a balance that has been disturbed by the surfeit of money that the world`s economy has seen for about five or six years. The easy and cheap money has been used in all sorts of ways from setting up new factories and infrastructure to buying over-priced stocks and real estate. A cycle of asset price inflation came into being in which the only logic for prices to go up further was that they were going up and there was cheap money available to drive them up. That money is gone now.
What exactly do I mean by `the great unwinding`? Take the example of share prices in India. Almost all the foreign funds that have been driving up the markets are heavily leveraged. Someone has 10 million dollars and they borrow 10 or 20 times on that basis and then bring in the hundred or two hundred million dollars to invest. This could be happening in the hands of the actual fund that invests on Dalal Street or in the hands of that funds` investor but that doesn`t matter now. The 10 or 20 times will now be brought down to a much lower ratio. In a different way, the story of the Indian real estate market is also the same. Unfortunately, the story is also the same on many people`s credit card statements. Debt fuelled a buying binge, and now debt is suddenly a four-letter word.
But that`s the bad news. The good news lies in the actions (not the words) of people like Buffett. The time to buy assets at bargain prices are coming. In the long run, the fortunes will be made not by those who invested in the recent past, but those who will invest in the times to come.
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Article in VR by Dhirendra Kumar:-
Finally, Warren Buffett is scared. Perhaps you should be too. Fifteen months after start of the global credit crisis (which we innocently used to call the US sub-prime crisis in the olden days), the legendary investor has declared that he has never seen so much economic fear in his life. He has likened the crisis to an economic Pearl Harbour and said that if things don`t improve, he`ll "have to go back to delivering newspapers."
Just last week I`d mentioned how the crisis had left Buffett as a sort of a last man standing on Wall Street and how the crisis had proven the wisdom of what he used to say about financial derivatives and the kind of behaviour they presented. `Financial weapons of mass destruction,` was his description. Interestingly, while Buffett`s words sound more alarming, his actions have indicated hope. He has put down a large amount of cash (about eight billion dollars) to buy major stakes in Goldman Sachs and General Electric.
During this past few weeks, the scale of this crisis has become quite clear. As I`d written two weeks ago, the world has seen easy credit being available for many years, and now the cycle is threatening to reverse itself. Till a few days ago there was a naïve hope that the problem was caused by major global institutions not trusting the quality of assets on each others books. All that was needed was someone like the US government to underwrite the bad assets on these institutions` books and all would be fine.
These simple hopes have now disappeared. It is clear that the great unwinding is upon us. In many ways, what follows will just reset a balance that has been disturbed by the surfeit of money that the world`s economy has seen for about five or six years. The easy and cheap money has been used in all sorts of ways from setting up new factories and infrastructure to buying over-priced stocks and real estate. A cycle of asset price inflation came into being in which the only logic for prices to go up further was that they were going up and there was cheap money available to drive them up. That money is gone now.
What exactly do I mean by `the great unwinding`? Take the example of share prices in India. Almost all the foreign funds that have been driving up the markets are heavily leveraged. Someone has 10 million dollars and they borrow 10 or 20 times on that basis and then bring in the hundred or two hundred million dollars to invest. This could be happening in the hands of the actual fund that invests on Dalal Street or in the hands of that funds` investor but that doesn`t matter now. The 10 or 20 times will now be brought down to a much lower ratio. In a different way, the story of the Indian real estate market is also the same. Unfortunately, the story is also the same on many people`s credit card statements. Debt fuelled a buying binge, and now debt is suddenly a four-letter word.
But that`s the bad news. The good news lies in the actions (not the words) of people like Buffett. The time to buy assets at bargain prices are coming. In the long run, the fortunes will be made not by those who invested in the recent past, but those who will invest in the times to come....
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The board of market regulator Sebi is expected to meet today in the backdrop of the global financial turbulence. The meeting is expected to take stock of the impact of the turbulence on the Indian capital markets and evolve suitable policy responses. ...
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Inflation under control is good sign as far as markets are concerned, it would be ease on growth front. I think we could see lower & lower inflation from now onwards.
Gold, Crude, Food commodities has just begun corrective mode & equity correction almost overdone....
In reply to:
Inflation at 11.99% vs 12.14%
Posted by : MMB Messenger
Inflation numbers came in at 11.99% for the week ended September 20. Earlier, inflation was seen inching lower. A CNBC-TV18 poll saw inflation for the week ended September 20 at 12.12 % against 12.14% a week ago.
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Sir,
Government was happy to show inflation data as it went down by some 0.12 %
So government want to compliment himself that inflation is down and we are doing some thing. All election and political drama.
Government will do any thing to improve their image.
Regards...
In reply to:
Inflation
Posted by :
mohanji
Sir,
if I am not wrong From first Oct inflation was to be annouced on monthly basis.So how come inflation has been declared this thursday? regards
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Europe and USA are not going to lead the world markets in the near future. They may take the global markets down with them. But is that justified ?? USA and Europe have themselves to blame for their fall and Asia is a zone which has very strong fundamentals and should not be treated in the same way as the bankrupt USA market or the weak Europe market. Even the Europe market can revive itself if it focuses more on Asia rather than on the America`s. Fundamentally speaking Asia alone has the leadership qualities as of today and it can alone bring the markets world over out of this bear quicksand. It could be China & Hongkong or India or Japan. But it has to be Asia and it will have to learn from the mistakes the USA has made in the name of capitalism. USA has proved once again that its form of model is not meant for global gain but it is a gain for a specific location but the loss is meant for all. The mess the global markets are in is just because of the USA. It is high time the wise men of the stock market and the financial family thought about the decoupling theory and Asia needs to decouple from the USA and Europe to move ahead with life ...
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Dos and don’ts
• Economic crisis. market meltdown. rising interest rates. rising inflation... times are, indeed, tough. Here are 10 recommendations on what you should and shouldn`t do to keep your financial health on track.
What you should do
• Follow the news. Swinging markets and new regulatory initiatives... things are changing quickly. Each development affects different sectors differently. Follow the financial media-and Business Today`s Money section, for instance-to keep abreast of the latest developments in India Inc. and for advice on how to profit from them.
• Get your finances in order. There has never been a better time to make a budget and start paying off your debt and credit cards, personal loans, etc. If possible, transfer your loans from a bank that`s charging a higher rate of interest to one that promises a cheaper rate.
• Rethink your plans to retire. If you`re expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans.
• Call your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser, no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.
What you shouldn`t do
• Bail out. Dumping your stocks or equity mutual funds now, when values are especially low, will guarantee that you turn paper losses into real ones. Even if there`s more downside to come, staying on course often pays off during times of economic uncertainty.
• Stop saving. Those regular contributions you`ve been making to your savings or retirement accounts are an important part of good financial discipline, and there`s no reason to stop them now. We`ve long recommended the virtue of making regular, monthly savings. Continue this habit, even if it means cutting down on other things. like the weekly family outing, or that after-office drink with friends.
• Speculate. While lower prices of shares, create opportunities, speculation can get you into big financial trouble. Avoid it.
• Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment incomes, making it difficult to determine how much debt you can handle. If you must borrow, say, to put a child through college or to buy a house, be doubly sure that you`ve examined all the options and risks.
• Stop living. Although these times demand extra caution, there`s such a thing as over-reacting. So, don`t overreact. Reflect carefully and, where necessary, adjust. But don`t stop enjoying the little things of life. You`ll only make yourself sad.
Business Today.............
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This is just another way to lose money. Pumping money into high risk avenues, such as equities, without understanding can prove dangerous. A Warren Buffet saying sums it all up -- To finish first, you have to first finish!
...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : radhika_nandlal
RAMGE,
Why swollen feet?
Tracked by: 0 Boarder
RAMGE,
Why swollen feet?...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : RAMGE
WoWji,
If its freudian desires, I disagree. Swollen feet (possible) ROFL
cheers
ramji
Poll
Udayan's Market Outlook
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Difficult to predict market direction | |
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| Udayan Mukherjee, Stocks Editor, TV18 | ||
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Popular Boarders 7days| 271 | |
| 178 | |
| 108 | |
| 106 | |
| 101 | |
Top Tracked 7days| 702 | |
| 694 | |
| 458 | |
| 434 | |
| 351 | |
Prolific Boarders 7days| 458 | |
| 332 | |
| 313 | |
| 250 | |