Inflation holds at 12.14 per cent
NEW DELHI: Inflation was reported at 12.14 per cent for the week ended September 13, at the same level recorded a week earlier. While food articles rose by 0.2 per cent, chemical & chemical products were up by 0.1 per cent, and fruit & vegetables by 0.6 per cent. Manufacturing products, however, were down by 0.5 per cent, while fuel, power and light remained unchanged. Economists see inflation stabilising around this level before it starts to fall. However, they expect the RBI to raise interest rates by 25-50 basis point in its October review. Earlier, a Reuters poll on Wednesday estimated the annual inflation rate to head upwards for a second consecutive week with the rise mainly seen in food and vegetables. The wholesale price index was forecast to have risen 12.23 per cent in the 12 months to September 13, above the previous week’s rise of 12.14 per cent, according to the median estimate.
Shubhada Rao, chief economist with Yes Bank, said there was upward pressure on prices of primary articles, especially those of food and vegetables. In early August, the inflation rate was 12.63 per cent, the highest reading since annual numbers in the current data series became available in April 1995. RBI governor Duvvuri Subbarao said early this month that inflation was showing signs of moderating but it was too early to conclude whether this was a trend, signalling he would wait and see before taking any fresh steps. This is the 25th consecutive week that inflation is above the RBI’s 7.0 per cent target by the end of March. The government had earlier said inflation would hit 13 per cent and thereafter start moderating from December, before settling at 8.0-9.0 percent by the end of the fiscal year in March.
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Source:ET
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25 September 2008
24 September 2008
Intraday Stories
Tata Motors begins exit from Singur
Bailout debate rages as Buffett bets on Goldman
Exec pay limits gain support as bailout questioned
US MARKET: Dow slips as bailout worry persists
Anil files Rs 10,000 cr defamation suit against Mukesh
Top 10 Global Brands Richest people of USA
Intervention in case between Ambanis to ensure gas supply: Govt
$13 bn a year needed to achieve gender equality: WB
Women investing in real estate 15 highest paid corporate women
Ben's testimony to Jt Eco Committee
Rupee falls by 20 paise
ECB offers more dollars to EU banks
Fed sets up currency swap facility
BoE offers $40 bn worth of loans
Vedanta halts group restructuring exercise
Reliance shifts focus, eyes producing assets
Simplex Infra bags Rs 630-cr order in Middle-East
Larsen & Toubro gets orders worth $1.1 billion
Shriram EPC gets orders worth Rs 3.15 bn
Ranbaxy drugs in US AIDS programme under scanner
Annual inflation seen at 12.23 pc on Sept 13
Source:ET
Bailout debate rages as Buffett bets on Goldman
Exec pay limits gain support as bailout questioned
US MARKET: Dow slips as bailout worry persists
Anil files Rs 10,000 cr defamation suit against Mukesh
Top 10 Global Brands Richest people of USA
Intervention in case between Ambanis to ensure gas supply: Govt
$13 bn a year needed to achieve gender equality: WB
Women investing in real estate 15 highest paid corporate women
Ben's testimony to Jt Eco Committee
Rupee falls by 20 paise
ECB offers more dollars to EU banks
Fed sets up currency swap facility
BoE offers $40 bn worth of loans
Vedanta halts group restructuring exercise
Reliance shifts focus, eyes producing assets
Simplex Infra bags Rs 630-cr order in Middle-East
Larsen & Toubro gets orders worth $1.1 billion
Shriram EPC gets orders worth Rs 3.15 bn
Ranbaxy drugs in US AIDS programme under scanner
Annual inflation seen at 12.23 pc on Sept 13
Source:ET
Mkts end higher +122 pts; metal, oil, banks, CG stks gain
Mkts end higher; metal, oil, banks, CG stks gain
Short covering ahead of F&O expiry props mkt
Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September.
Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks remained under pressure throughout the day.
The Sensex rose 122.21 points or 0.9%, to settle at 13,692.52. The Nifty had managed to cross 4200 during the session but failed to sustain above that level. It closed at 4161.25, down 34.35 points or 0.83%. Both indices lost 148.29 points and 46.7 points from day's high of 13,840.81 and 4207.95, respectively.
In the F&O segment, rollovers were low; short rollovers failed to pick up. Nifty rollover was at 43.2% versus 56% and marketwide rollover stood at 50.4% versus 56%. Nifty October futures ended at a 31-point premium and September Futures ended at 28.75-point premium. Fresh long build up was seen in metals stocks; Sterlite October futures added 17 lakh shares in Open Interest. Fresh long build up was also seen in banks.
Among the frontliners, Sterlite Inds rose 8.26%, HDFC Bank 3.18%, Tata Steel 2.77%, Reliance Infra 2.22%, M&M 2.17% and NALCO 5.61%.
BSE Metal Index outperformed other indices, it rose 2.19% or 217.75 points to 10,142.29, led by Sterlite Industries, NALCO, Tata Steel, JindalStainless, Jindal Saw and Hindalco.
Sterlite Industries surged over 15% in an intraday trade, as Vedanta decided to drop its restructuring plan given the changes in global financial markets and investor feedback. However, the company said that it will remain committed to streamlining corporate structure.
Sterlite Industries closed at Rs 487.10, up Rs 37.15 or 8.26%. It traded with volumes of 2,769,125 shares, higher by 135.14% as compared to its 5-day average of 1,177,637 shares.
Madras Aluminium Company (MALCO) locked at 5% upper circuit. There were pending buy orders of 26,889 shares. The stock traded with volumes of 120,694 shares, higher by 137.91% as compared to its 5-day average of 50,730 shares.
Meanwhile, Macquarie feels the announcement on Vedanta’s dropping its restructuring plans is a welcome relief to the shareholders of Sterlite. It maintains a buy on Sterlite. It also believes that the holding structure was not conducive for future growth of the company.
Oil & Gas Index jumped up by 113.87 points or 1.22% to 9,435.85. Reliance Inds, HPCL, IOC, Cairn India, ONGC and BPCL gained 1-1.5%. Crude was hovering around USD 107-108 to a barrel on the NYMEX.
Bankex gained 82.23 points or 1.21%, to close at 6,886.65. IndusInd Bank rose 5%. HDFC Bank, Axis Bank and Allahabad Bank were up 2-3%. Kotak Mahindra, Karnataka Bank and IDBI Bank were up 1-1.7%. Andhra Bank, SBI and ICICI Bank rose around 0.5%.
Power stocks also charged up. Reliance Infrastructure, Torrent Power, GMR Infra, Power Grid Corp, CESC and Tata Power were gainers. Index rose by 26.92 points or 1.1% to 2,473.39.
Capital Goods stocks like BHEL, Alstom Projects, Siemens, BEML, Havells India, Praj Industries and L&T rose 1-1.9%. Index went up by 122 points or 1.09% to 11,340.80. L&T has bagged the order worth Rs 5,000 crore. The stock rose nearly 1%.
FMCG Index was up by 0.35%, to settle at 2,189.68. Britannia, United Spirits, HUL, Dabur India and Marico were gainers.
Realty Index rose marginally by 0.34% to 3,916.98. Akruti City was up nearly 4% as the stock was in F&O curb. Anant Raj Inds, Ansal Properties, Omaxe, Peninsula Land, Mahindra Life, DLF and Parsvnath gained 1-2%.
Healthcare Index closed up by 0.13% at 3,876.11. Auto Index ended flat at 3,849.27. Aventis Pharma, Piramal Health, Fortis Health, Ranbaxy Labs, Cipla and Sun Pharma were up 1.5-2.5%.
However, technology stocks were caught in selling pressure. IT Index plunged 37.94 points or 1.10%, to settle at 3,417.11; it lost nearly 3% during an intraday trade. Wipro lost over 5%. TCS, Infosys and Satyam fell 2-3%.
BSE Midcap was up by 0.26% to 5,126.78 and Small Cap Index gained just 0.14%, to close at 6,101.51.
Market breadth was slightly in favour of advances; about 1481 shares have advanced while 1430 shares declined. Nearly 267 shares remained unchanged.
Total turnover has seen improvement due to F&O segment, stood at Rs 83,171.33 crore. This includes Rs 11,812.96 crore from NSE Cash segment, Rs 67,051.71 crore from NSE F&O and balance Rs 4,306.66 crore from BSE Cash segment.
On the global front, Asian markets ended marginally higher. Shanghai rose 0.70%, Hang Seng 0.47%, Jakarta Composite 0.56%, Nikkei 0.2%, Straits Times 0.04% and Kospi 0.99%. However, Taiwan Weighted 0.8%.
European markets were trading lower. FTSE was down 0.3%, CAC -0.36% and DAX -0.13%, at 4:30 pm. Global concerns are not yet over even after bailout package announced. There are news that bailout package might be limited and may take longer than expected time to pass. FBI is likely to probe Fannie, Freddie, AIG, Lehman Brothers for possible accounting misstatements. Henry Paulson, the US Treasury Secretary, and Ben Bernanke, the Chairman of the Federal Reserve will be appearing before the House Financial Services Committee.
Dow Jones Futures was up 80 points and Nasdaq Futures rose 25 points.
Portfolio Manager PN Vijay feels that if the American system does not start working with the USD 700 billion bailout then there could bee shocks coming in from the credit markets. Global cues will set the trend for India through flows, he said.
F&O Snapshot
Rollovers Low; Short rollovers fail to pick up
Rollovers At D-1 Expiry: Nifty Rolovers at 43.2% Vs 56%, Marketwide Rollovers at 50.4 % Vs 56%
Nifty Oct futures end at a 31pt premium; Sept Futures at a 28.75 pt premium
Fresh Long build up in Metals stocks, Sterlite Oct futures add 17 lakh shares in OI
Fresh long build up seen in banks; IT stocks continue too witness selling pressure
NSE F&O Turnover at Rs 67051.71 Vs 68368.65 on Tuesday
Rollovers
Market Wide: 50.40%
Nifty: 43.20%
Index Heavyweight Rollovers
Reliance Ind 42% SBI 45%
ICICI Bank 46% DLF 46%
Sterlite 46%Infosys 41%
Momemtum stocks
JP Associates 50% Renuka 38%
IFCI 54% TTML 52%
Ispat 50%
Fresh Longs
Sterlite, Tata Steeel, Nalco, HDFC Bank, IDBI Bank
Short Covering
Chambal Fert...
Source:MC
Short covering ahead of F&O expiry props mkt
Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September.
Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks remained under pressure throughout the day.
The Sensex rose 122.21 points or 0.9%, to settle at 13,692.52. The Nifty had managed to cross 4200 during the session but failed to sustain above that level. It closed at 4161.25, down 34.35 points or 0.83%. Both indices lost 148.29 points and 46.7 points from day's high of 13,840.81 and 4207.95, respectively.
In the F&O segment, rollovers were low; short rollovers failed to pick up. Nifty rollover was at 43.2% versus 56% and marketwide rollover stood at 50.4% versus 56%. Nifty October futures ended at a 31-point premium and September Futures ended at 28.75-point premium. Fresh long build up was seen in metals stocks; Sterlite October futures added 17 lakh shares in Open Interest. Fresh long build up was also seen in banks.
Among the frontliners, Sterlite Inds rose 8.26%, HDFC Bank 3.18%, Tata Steel 2.77%, Reliance Infra 2.22%, M&M 2.17% and NALCO 5.61%.
BSE Metal Index outperformed other indices, it rose 2.19% or 217.75 points to 10,142.29, led by Sterlite Industries, NALCO, Tata Steel, JindalStainless, Jindal Saw and Hindalco.
Sterlite Industries surged over 15% in an intraday trade, as Vedanta decided to drop its restructuring plan given the changes in global financial markets and investor feedback. However, the company said that it will remain committed to streamlining corporate structure.
Sterlite Industries closed at Rs 487.10, up Rs 37.15 or 8.26%. It traded with volumes of 2,769,125 shares, higher by 135.14% as compared to its 5-day average of 1,177,637 shares.
Madras Aluminium Company (MALCO) locked at 5% upper circuit. There were pending buy orders of 26,889 shares. The stock traded with volumes of 120,694 shares, higher by 137.91% as compared to its 5-day average of 50,730 shares.
Meanwhile, Macquarie feels the announcement on Vedanta’s dropping its restructuring plans is a welcome relief to the shareholders of Sterlite. It maintains a buy on Sterlite. It also believes that the holding structure was not conducive for future growth of the company.
Oil & Gas Index jumped up by 113.87 points or 1.22% to 9,435.85. Reliance Inds, HPCL, IOC, Cairn India, ONGC and BPCL gained 1-1.5%. Crude was hovering around USD 107-108 to a barrel on the NYMEX.
Bankex gained 82.23 points or 1.21%, to close at 6,886.65. IndusInd Bank rose 5%. HDFC Bank, Axis Bank and Allahabad Bank were up 2-3%. Kotak Mahindra, Karnataka Bank and IDBI Bank were up 1-1.7%. Andhra Bank, SBI and ICICI Bank rose around 0.5%.
Power stocks also charged up. Reliance Infrastructure, Torrent Power, GMR Infra, Power Grid Corp, CESC and Tata Power were gainers. Index rose by 26.92 points or 1.1% to 2,473.39.
Capital Goods stocks like BHEL, Alstom Projects, Siemens, BEML, Havells India, Praj Industries and L&T rose 1-1.9%. Index went up by 122 points or 1.09% to 11,340.80. L&T has bagged the order worth Rs 5,000 crore. The stock rose nearly 1%.
FMCG Index was up by 0.35%, to settle at 2,189.68. Britannia, United Spirits, HUL, Dabur India and Marico were gainers.
Realty Index rose marginally by 0.34% to 3,916.98. Akruti City was up nearly 4% as the stock was in F&O curb. Anant Raj Inds, Ansal Properties, Omaxe, Peninsula Land, Mahindra Life, DLF and Parsvnath gained 1-2%.
Healthcare Index closed up by 0.13% at 3,876.11. Auto Index ended flat at 3,849.27. Aventis Pharma, Piramal Health, Fortis Health, Ranbaxy Labs, Cipla and Sun Pharma were up 1.5-2.5%.
However, technology stocks were caught in selling pressure. IT Index plunged 37.94 points or 1.10%, to settle at 3,417.11; it lost nearly 3% during an intraday trade. Wipro lost over 5%. TCS, Infosys and Satyam fell 2-3%.
BSE Midcap was up by 0.26% to 5,126.78 and Small Cap Index gained just 0.14%, to close at 6,101.51.
Market breadth was slightly in favour of advances; about 1481 shares have advanced while 1430 shares declined. Nearly 267 shares remained unchanged.
Total turnover has seen improvement due to F&O segment, stood at Rs 83,171.33 crore. This includes Rs 11,812.96 crore from NSE Cash segment, Rs 67,051.71 crore from NSE F&O and balance Rs 4,306.66 crore from BSE Cash segment.
On the global front, Asian markets ended marginally higher. Shanghai rose 0.70%, Hang Seng 0.47%, Jakarta Composite 0.56%, Nikkei 0.2%, Straits Times 0.04% and Kospi 0.99%. However, Taiwan Weighted 0.8%.
European markets were trading lower. FTSE was down 0.3%, CAC -0.36% and DAX -0.13%, at 4:30 pm. Global concerns are not yet over even after bailout package announced. There are news that bailout package might be limited and may take longer than expected time to pass. FBI is likely to probe Fannie, Freddie, AIG, Lehman Brothers for possible accounting misstatements. Henry Paulson, the US Treasury Secretary, and Ben Bernanke, the Chairman of the Federal Reserve will be appearing before the House Financial Services Committee.
Dow Jones Futures was up 80 points and Nasdaq Futures rose 25 points.
Portfolio Manager PN Vijay feels that if the American system does not start working with the USD 700 billion bailout then there could bee shocks coming in from the credit markets. Global cues will set the trend for India through flows, he said.
F&O Snapshot
Rollovers Low; Short rollovers fail to pick up
Rollovers At D-1 Expiry: Nifty Rolovers at 43.2% Vs 56%, Marketwide Rollovers at 50.4 % Vs 56%
Nifty Oct futures end at a 31pt premium; Sept Futures at a 28.75 pt premium
Fresh Long build up in Metals stocks, Sterlite Oct futures add 17 lakh shares in OI
Fresh long build up seen in banks; IT stocks continue too witness selling pressure
NSE F&O Turnover at Rs 67051.71 Vs 68368.65 on Tuesday
Rollovers
Market Wide: 50.40%
Nifty: 43.20%
Index Heavyweight Rollovers
Reliance Ind 42% SBI 45%
ICICI Bank 46% DLF 46%
Sterlite 46%Infosys 41%
Momemtum stocks
JP Associates 50% Renuka 38%
IFCI 54% TTML 52%
Ispat 50%
Fresh Longs
Sterlite, Tata Steeel, Nalco, HDFC Bank, IDBI Bank
Short Covering
Chambal Fert...
Source:MC
Labels:
banks,
CG stks gain,
Mkts end higher +122 pts; metal,
oil
How much adv tax have cos paid for Q2?
How much adv tax have cos paid for Q2?
Grasim’s July-September advance tax is at Rs 75 crore versus Rs 230 crore, reports CNBC-TV18, quoting NewsWire18. Ambuja Cement’s July to September advance tax is at Rs 200 crore versus Rs 175 crore. Tata Power’s July to September advance tax is at Rs 14 crore versus Rs 30.2 crore. Tata Steel’s July to September advance tax is at Rs 1000 crore versus Rs 450 crore. Zee Entertainment’s July to September advance tax is at Rs 32 crore versus Rs 25 crore. Bajaj Auto’s July-September advance tax is at Rs 90 crore versus Rs 125 crore.
Sources said Tata Steel has paid Rs 300 crore as compared to Rs 350 crore, year-on-year. Tata Motors paid Rs 75 crore as against Rs 190 crore YoY, while Tata Consultancy Services paid Rs 115 crore versus Rs 20 crore YoY.
Among banking companies, Bank of India paid Rs 191 crore as compared to Rs 150 crore YoY, sources said. Union Bank paid Rs 130 crore as against Rs 100 crore YoY, while ICICI Bank paid Rs 250 crore versus Rs 185 crore YoY.
Mahindra & Mahindra paid Rs 116 crore as compared to Rs 83 crore YoY, while L&T paid Rs 170 crore versus Rs 80 crore YoY, sources added.
State Bank of India, or SBI, has paid Rs 1,560 crore as advance tax for the September quarter as against Rs 1,060 crore year-on-year, reports CNBC-TV18, quoting sources. Videocon paid Rs 25 crore as against Rs 20 crore YoY. HDFC and Reliance Industries paid Rs 290 crore and Rs 680 crore respectively for the September quarter. RIL had paid Rs 650 crore in the same period last year.
CNBC-TV18 Disclaimer:This information is source-based and has not been provided to the stock exchanges.
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Vedanta committed to simplify structure: Anil Agarwal
Tatas to rollout Nano by Oct, Singur exit likely
US faces grave threat to fin systems: Bernanke
Total order book at $2.5bn: Simplex Infra
Sebi board to meet on Oct 6; may tweak FII norms
US Senate Committee okays Indo-US nuclear deal
Source:MC
Grasim’s July-September advance tax is at Rs 75 crore versus Rs 230 crore, reports CNBC-TV18, quoting NewsWire18. Ambuja Cement’s July to September advance tax is at Rs 200 crore versus Rs 175 crore. Tata Power’s July to September advance tax is at Rs 14 crore versus Rs 30.2 crore. Tata Steel’s July to September advance tax is at Rs 1000 crore versus Rs 450 crore. Zee Entertainment’s July to September advance tax is at Rs 32 crore versus Rs 25 crore. Bajaj Auto’s July-September advance tax is at Rs 90 crore versus Rs 125 crore.
Sources said Tata Steel has paid Rs 300 crore as compared to Rs 350 crore, year-on-year. Tata Motors paid Rs 75 crore as against Rs 190 crore YoY, while Tata Consultancy Services paid Rs 115 crore versus Rs 20 crore YoY.
Among banking companies, Bank of India paid Rs 191 crore as compared to Rs 150 crore YoY, sources said. Union Bank paid Rs 130 crore as against Rs 100 crore YoY, while ICICI Bank paid Rs 250 crore versus Rs 185 crore YoY.
Mahindra & Mahindra paid Rs 116 crore as compared to Rs 83 crore YoY, while L&T paid Rs 170 crore versus Rs 80 crore YoY, sources added.
State Bank of India, or SBI, has paid Rs 1,560 crore as advance tax for the September quarter as against Rs 1,060 crore year-on-year, reports CNBC-TV18, quoting sources. Videocon paid Rs 25 crore as against Rs 20 crore YoY. HDFC and Reliance Industries paid Rs 290 crore and Rs 680 crore respectively for the September quarter. RIL had paid Rs 650 crore in the same period last year.
CNBC-TV18 Disclaimer:This information is source-based and has not been provided to the stock exchanges.
-------------------------------------
Vedanta committed to simplify structure: Anil Agarwal
Tatas to rollout Nano by Oct, Singur exit likely
US faces grave threat to fin systems: Bernanke
Total order book at $2.5bn: Simplex Infra
Sebi board to meet on Oct 6; may tweak FII norms
US Senate Committee okays Indo-US nuclear deal
Source:MC
History's greatest financial fall: How it began
History's greatest financial fall: How it began
"The United States is so broke, its people at every level -- from the Federal Reserve on down -- don't know whether to shit or go blind," wrote James Howard Kunstler an American author and social critic - in one of his blogs.
But what unprecedented events led to this great financial catastrophe? As an op-ed in The Wall Street Journal puts it, "With the benefit of hindsight, everyone can see that the US economy built up an enormous credit bubble that has now popped. . . this bubble was created principally by a Federal Reserve that kept real interest rates too low for too long. In doing so the Fed created a subsidy for debt and a commodity price spike."
The Fed's 'cheap money' policy created artificial demand for housing which drove prices to unsustainable levels. As greed took over, dubious sub-prime liabilities were sold to hedge funds, insurance companies and foreign banks. And then the American financial markets were hit by a severe liquidity and credit crunch. High oil tags, lower spending by the corporate sector, rising unemployment, etc added to the woes of not just the Americans, but the entire world.
"Fastening your seat belts may not be enough for this ride. Better superglue yourselves to the floorboards and pray for God's mercy," concludes Kunstler. So when did the fall really begin? Click here to find out. . .
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August 9, 2007 is the official date when the crisis is said to have hit global finances. But the rot had started much earlier.
In 2006, the US housing market started to feel the pain of high interest rates -- which, between 2004 and 2006, had risen from one per cent to 5.35 per cent -- resulting in default rates on *sub-prime loans rising to record level.(*High risk loans to customers with poor or no credit histories).
February 22, 2007: HSBC fires head of its US mortgage lending business as losses reach $10.5 billion. On February 23, the Bombay Stock Exchange's sensitive index -- the Sensex -- ended down 356 points at 13,656. (Because of the time difference between India and the US, the market figures are of those a day later)
March 8, 2007: Biggest US house builder DR Horton warns of huge losses from sub-prime fall-out.
March 12, 2007: Shares in New Century Financial, one of the biggest sub-prime lenders in the US, were suspended amid fears it might be heading for bankruptcy.
Sensex gained 80 points to close at 12,983 on March 13.
March 13, 2007: Wall Street hit by sub-prime fears and on March 14, the sell-off on US and Asian markets saw the Sensex close with a loss of 453 points at 12,530. The NSE Nifty closed at 3,641, down 130 points.
Also read: America's largest bankruptcies
----------------------------------------------------
March 16: US-based sub-prime firm Accredited Home Lenders Holding said it would sell $2.7 billion of its sub-prime loan book -- at a heavy discount -- in order to generate some cash. On March 19, the Indian market closed at 12,645, up 215 points.
April 2 2007: New Century Financial, which was once the second-largest originator of subprime mortgages in United States files for Chapter 11 bankruptcy and lays off 3,299 people. Sensex gained 169 points to close at 12,625 on April 3, 2007.
May 3, 2007: GM finance unit loses heavily on sub-prime mortgages, and UBS closes its US sub-prime lending arm, Dillon Read Capital Management. Sensex ends down 144 points at 13,934, on May 4.
June 22, 2007: Investment bank Bear Stearns revealed it had spent $3.2 billion bailing out two of its funds exposed to the sub-prime market. The bailout of the fund was the largest by a bank in almost a decade. The Index ended with a gain of 21 points at 14,488.
July 18, 2007: Bear Stearns rings the warning bell. It tells investors that they will get little, if any, of the money invested in two of its hedge funds after rival banks refuse to help it bail them out. The India market was unrattled by the news, and it closed with a gain of 249 points at 15,550, on July 19.
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July 20, 2007: US Federal Reserve chairman Ben Bernanke warns that the US sub-prime crisis could cost up to $100 billion.
The Sensex continued with its march and ended up 167 points at 15,732 on July 23.
July 27, 2007: Worries about the sub-prime crisis hammered global stock markets and the main US Dow Jones stock index slipped.
The Sensex was no exception as it ended down 542 points on that day.
July 31, 2007: Bear Stearns stopped clients from withdrawing cash from a third fund, saying it has been overwhelmed by redemption requests. The lender also filed for bankruptcy protection for the two funds it had to bail out earlier.
Next day, that is, August 1, the Sensex ended with a hefty loss of 645 points at 14,936. The NSE Nifty ended at 4,346, down 183 points. Elsewhere in Asia, Hong Kong's Hang Seng slumped 730 points to 22,455. Japan's Nikkei plunged 378 points to 16,871. Taiwan's Taiwan Weighted index crashed 395 points to 8892, and China's Shanghai Composite index shed 170 points at 4,301.
August 6, 2007: American Home Mortgage, one of the largest US independent home loan providers, filed for bankruptcy after laying off the majority of its staff. And Sensex ended down 235 points on that day and on August 7 it gained 30 points at close.
August 9, 2007 French banking major, BNP Paribas announced that it could not fairly value the underlying assets in three funds -- Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia -- as a result of exposure to US subprime mortgage lending markets.
Faced with potentially massive exposure, the European Central Bank immediately stepped in to ease market worries by opening lines of euro 96.8 billion (then $130 billion) in low-interest credit. The Federal Reserve, the Bank of Canada and the Bank of Japan also intervened. On August 10, 2007, the Sensex marginally shrugged off the US subprime woes and closed with a loss of 232 points at 14,868.
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August 16, 2007: Largest mortgage lender Countrywide draws on its entire $11.5 billion credit line as liquidity crisis looms. Australian mortgage lender Rams also admits liquidity problems. And on August 17, the Sensex tanks 217 points at 14,142
August 17, 2007: The Fed cut the rate at which it lends to banks by half of a percentage point to 5.75 per cent, and once more warns of credit crunch. Taking cues from the global markets following the surprise 50bps rate cut by the US Fed on Friday (Aug 17), the Sensex closed with a gain of 286 points at 14,427 on Monday. The NSE Nifty ended at 4,209, up 101 points.
August 21, 2007: UK sub-prime lenders begin to withdraw mortgages. On August 22, the Sensex ended with a gain of 260 points at 14,249.
August 28, 2007: Leipzig, Germany based Sachsen LB Landesbank faced collapse after investing in the sub-prime market. Landesbank Baden-Wuerttemberg buys it for euro 250m. It was one of Europe's biggest victims of the credit crisis. But the ripple effect had not touched the Indian markets and the Sensex ended with a gain of 74 points at 14,993. NSE Nift closed up 39 points at 4,359 on August 29.
September 3, 2007 German corporate lender IKB announces a a loss of $1bn on investments linked to the US sub-prime market. Sensex gained 43 points on September 4 to close at 15,465.
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September 4, 2007: London Interbank Offered Rate or *Libor rate rises to 6.7975%, highest since December 1998. (*It is the rate of interest at which banks offer to lend money to one another).
Bank of China reveals $9bn in sub-prime losses but Chinese government said its foreign exchange reserves will not be affected
The Sensex ended September 5 with a marginal loss of 19 points at 15,446. The NSE Nifty ended at 4,476, down 3 points.
September 14, 2007: British bank, Northern Rock, which relied heavily on the markets, rather than savers' deposits to fund its mortgage lending asked for and was granted emergency financial support from the Bank of England. The bank is now owned by the UK government. On September 17 the Index closed with a loss of 99 points at 15,504.
September 18, 2007: The US Federal Reserve cut its main interest rate by half a percentage point for the first time in four years, to 4.75 per cent, a move that resulted in a strong rally across the globe. On September 19, the Sensex ended with its biggest-ever single-day gain of 654 points at 16,323. The Nifty gained 186 points to close at 4,732.
September 19, 2007: The Bank of England announces that it will auction pound 10 billion. The Sensex gained 25 points at 16,348 on September 20. The Nifty gained 15 points to close at 4,748.
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October 1, 2007: Swiss bank UBS world's biggest bank announced losses of $3.4 billion from sub-prime related investments. Later investment bank chairman and chief executive officer Huw Jenkins stepped down.
Citigroup unveils a sub-prime related loss of $3.1 billion. Two weeks later Citigroup is forced to write down a further $5.9 billion. Within six months, its losses stand at a whopping $40 billion. On November 5, its chief executive and chairman Charles Prince resigned.
On October 3, Sensex nears 18K, ends up 561 points. The NSE Nifty ended at 5211, up 142 points
October 5, 2007: Investment bank Merrill Lynch reveals $5.6 billion sub-prime losses. On October 30, Merrill Lynch chief Stan O'Neal resigned. Next day, the Sensex ended with a loss of 282 points at 17,491.
November 9, 2007: US's fourth largest lender Wachovia revealed a $1.1 billion loss due to decline in value of its mortgage debt plus $600m to cover loan losses (total $1.7 billion). Sensex ends down 171 points.
November 12, 2007: The three biggest US banking groups -- Citigroup, Bank of America and JPMorganChase -- agree to a $75 billion superfund to restore confidence to credit markets.
November 13, 2007: Bank of America writes off $3 billion in sub-prime losses. Sensex bounced back and ended up nearly 300 points.
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November 14, 2007: Mizuho, Japan's second largest banking group, saw a 17 per cent drop in first-half net profits and cut its full-year operating profit forecast by 13 per cent, largely as a result of sub-prime-related losses at its securities arm. On November 14, in one of the biggest ever rally, the Sensex zoomed 894 points, but the next day it ended down 144 points at 19,785.
November 15, 2007: British banking major Barclays said it had written down $2.6 billion in sub-prime losses. Sensex ended down 87 points at 19,698 on November 16.
November 20, 2007: US mortgage guarantor Freddie Mac sets aside $1.2bn to cover bad loans and reports a $2bn loss. Sensex ended with a loss of 678 points at 18,603 on November 21, one of the biggest single-day loss in absolute terms. The Nifty lost 220 points to close at 5,561.
December 4, 2007: US mortgage giant Fannie Mae issues $7 billion of shares to cover losses linked to the housing market. On December 6, the Sensex ended up 58 points at 19,796.
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December 6, 2007: President George W Bush outlines plans to protect more than a million homeowners hit by the US housing slump. The Bank of England cut UK interest rates for the first time since 2005, amid signs that the economy is slowing. Sensex ended up 170 points at 19,966 on December 7.
December 10, 2007: Swiss bank UBS reports a further $10-billion write-down caused by bad debts in the US housing market. Lloyds TSB reveals that bad debt linked to the US sub-prime mortgage crisis will cost it pound 200 million.
December 11, 2007: Fed cut interest rates for a third time to 4.25 per cent to ease the credit crunch. On December 12, the Sensex gained 85 points.
December 13, 2007: World central banks agree coordinated action to inject at least $100 billion into short-term inter-bank credit markets to restore confidence. The Sensex, however, ended down 74 points at 20,031 on December 14.
------------------------------------------------
December 19, 2007: Morgan Stanley writes off $9.4bn in sub-prime losses and sells a 9.9 per cent stake in the company to the Chinese state investment company CIC for $5bn to rebuild its capital. Sensex ended up 71 points at 19,163 on December 20.
January 4, 2008: US unemployment rises sharply as job report sparks fall in stock market Sensex remains unfazed and ends up 126 points on January 6.
January 7, 2008: President George W Bush admits that the credit crunch could slow the US economy in 2008, but says it is still fundamentally strong. Sensex hits 21,000; ends up 61 points on January 8.
January 9, 2008: Bear Stearns boss James Cayne steps down after the firm reveals $1.9 billion in sub-prime losses, the largest in its history.
World Bank said that world economic growth will slow in 2008 due to credit crunch, but strong performance in China and India will cushion impact. The Sensex ended with a loss of 288 points at 20,582 on January 10.
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January 15, 2008: Citigroup, the largest bank in the US, reported a $9.8 billion loss for the fourth quarter and wrote down $18 billion in sub-prime losses. Sensex tumbled to a low of 19,513, down 738 points on January 16.
January 28, 2008: Belgian bank Fortis warned its losses connected to bad US mortgage debt could be as high as $1.47 billion. Sensex ended down 61 points at 18,091.
January 29, 2008: The US Federal Bureau of Investigation launched an investigation into 14 companies involved in the sub-prime mortgage crisis. Sensex continued to be in the red, as it ended down 333 points at 17,759 on January 30.
January 30, 2008: The US Federal Reserve cut interest rates to 3% from 3.5%. It was the second cut in nine days. US economic growth slowed. Sensex ends down 110 points at 17,649 on January 31.
February 5, 2008: US financial firm GMAC, which owns sub-prime lender Residential Capital, said it has made a $2.3 billion loss in 2007, compared with a $2.1 billion profit the year before.
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February 6, 2008: Wall Street saw its worst share losses in almost a year, amid fears that the worst US housing slump in 25 years is crippling the wider economy. On February 7 the Sensex closed with a loss of over 600 points at 17,527. The NSE Nifty closed with a loss of 190 points at 5,133.
February 10, 2008: Leaders from the G7 group of industrialised nations said worldwide losses from the US mortgage crisis could reach $400 billion. Sensex shed 834 points to close at 16,631 on February 11.
February 12, 2008: Swiss bank Credit Suisse said losses on sub-prime investments were $1.8 billion. Sensex ends up 341 points.
February 13, 2008: Britain's Bradford & Bingley cut the value of its sub-prime mortgage-related investments by $284.5 million. Japan's financial watchdog said Japanese banks suffered losses of $5.6 billion by the end of 2007. The Sensex closed with a huge gain of 817 points at 17,764 on February 14.
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February 14, 2008: Commerzbank, Germany's second-biggest bank, cut $1.1 billion off the value of investments linked to the sub-prime mortgage crisis and warned its losses could worsen.
March 7, 2008: The former bosses of Merrill Lynch and Citigroup were questioned by a Congressional panel over their bumper pay -- despite huge, sub-prime related bosses at their banks.
The Sensex ended the day with a marginal loss of 52 points at 15,924 on March 10. The NSE Nifty finished with a gain of 29 points at 4,800.
March 11, 2008: Central banks made another coordinated attempt to ease conditions in the credit markets, by announcing $200 billion of new emergency lending for banks.
March 14, 2008: Investment fund Carlyle Capital failed as the credit crisis spreads from sub-prime related products to other mortgage-backed investments.
Bear Stearns received emergency funding, after its exposure to mortgage-backed investments undermined confidence in the bank. And on March 17, Sensex ended with a hefty loss of 951 points at 14,809 -- one of its biggest single-day falls.
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March 17, 2008: Wall Street investment bank Bear Stearns was acquired by JPMorgan Chase for $240m, a fraction of its share price, in deal backed by $30 billion in Fed loans.
The bank got into trouble over its huge exposure to sub-prime mortgage-backed securities. The Sensex settled at 14,833 -- up 24 points. The NSE Nifty ended with a gain of 30 points at 4,533.
March 18, 2008: Wall Street investment banks Goldman Sachs and Lehman Brothers revealed that their first quarter profits have been halved by the credit crunch. On March 19, Sensex gained 161 points.
March 31, 2008: US Treasury announced major package to reform regulation of US financial markets and prevent future financial crises. Sensex ends down 18 points.
-----------------------------------------------
May 22, 2008: Swiss bank UBS, one of the worst affected by the credit crunch, launches a $15.5bn rights issue to cover some of the $37bn it lost on assets linked to US mortgage debt. Sensex fell 336 points on May 23.
June 19, 2008: The FBI arrests 406 people, including brokers and housing developers, as part of a crackdown on alleged mortgage frauds worth $1 billion.
Separately, two former Bear Stearns workers faced criminal charges related to the collapse of two hedge funds linked to sub-prime mortgages. It is alleged they knew of the funds' problems but did not disclose them to investors, who lost a total of $1.4 billion.
Sensex ends down 278 points on June 23.
July 13, 2008: US mortgage lender IndyMac collapsed -- the second-biggest bank in US history to fail.
On July 14, the Sensex finally ended with a loss of 139 points at 13,331.
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July 14, 2008: Financial authorities step in to assist America's two largest lenders, Fannie Mae and Freddie Mac. As guarantors of $5 trillion worth of home loans, they are crucial to the US housing market and authorities agreed they could not be allowed to fail. On July 15 Sensex tumbled by 654.32 points at 12,676.19, a level last seen on March 6, 2008.
September 5, 2008: US unemployment rate rose to 6.1%.
September 7, 2008: Mortgage lenders Fannie Mae and Freddie Mac -- which account for nearly half of the outstanding mortgages in the US -- were rescued by the US government in one of the largest bailouts in US history. On September 8 the Sensex rose by 461 points.
September 10, 2008: Wall Street bank Lehman Brothers posted a loss of $3.9 billion (?2.2 billion) for the three months to August. Sensex traded in the negative and ended down 339 points at 14,339.
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September 15, 2008: After days of searching frantically for a buyer, Lehman Brothers filed for Chapter 11 bankruptcy protection, becoming the first major bank to collapse since the start of the credit crisis.
US bank Merrill Lynch agreed to be taken over by Bank of America for $50 billion. On September 17 Sensex declined by 255.90 points.
September 17, 2008: Insurer American International Group apparently was too big to fail. The mammoth insurer, which had been pushed to the brink of bankruptcy by problems originating in the US mortgage crisis, is being bailed out by the Federal Reserve.
The Fed will extend a 24-month bridge loan of $85.0 billion to the insurer, in return for an unprecedented acquisition of a 79.9 per cent stake in the firm by the central bank.
Barclays announces that it will buy Lehman US units for $1.75 billion.
In a sharp pull-back: Sensex recovered over 700 points, to end up 53 points on September 18.
===================================
September 19, 2008: The US government proposed to create a $700-billion rescue fund for the American financial sector.
The fund will be used to buy back bad debt from ailing US banks and other financial institutions.
President George W Bush urged the Congress to endorse his plan as soon as possible. Congress is expected to take a decision in the coming days.
The move increased the US public debt to $11.3 trillion.
The President said: "This is a big package because it was a big problem." He argued that the drastic measures were necessary to keep the economy going. The president admitted that the plan would be funded with tax money, but added that "over time, we're going to get a lot of the money back."
Relieved investors sent stocks soaring on Wall Street and around the globe. The Dow-Jones industrials average rose 368 points after surging 410 points the day before on rumours that the federal action was afoot.
The Sensex on September 19 ended with a significant gain of 5.5% (727 points) at 14,042. The NSE Nifty soared over 5% (207 points) to 4,245.
That, till now, is the scenario. If the events that led to the world's worst-ever financial crisis are not scary enough, some economists fear that this might not be the end of the problem. So will things worsen? Only time will tell. .
-------------------------------------------------
Sept 23:
Sensex dn 425 pts to 13570
Source:Rediff.com
"The United States is so broke, its people at every level -- from the Federal Reserve on down -- don't know whether to shit or go blind," wrote James Howard Kunstler an American author and social critic - in one of his blogs.
But what unprecedented events led to this great financial catastrophe? As an op-ed in The Wall Street Journal puts it, "With the benefit of hindsight, everyone can see that the US economy built up an enormous credit bubble that has now popped. . . this bubble was created principally by a Federal Reserve that kept real interest rates too low for too long. In doing so the Fed created a subsidy for debt and a commodity price spike."
The Fed's 'cheap money' policy created artificial demand for housing which drove prices to unsustainable levels. As greed took over, dubious sub-prime liabilities were sold to hedge funds, insurance companies and foreign banks. And then the American financial markets were hit by a severe liquidity and credit crunch. High oil tags, lower spending by the corporate sector, rising unemployment, etc added to the woes of not just the Americans, but the entire world.
"Fastening your seat belts may not be enough for this ride. Better superglue yourselves to the floorboards and pray for God's mercy," concludes Kunstler. So when did the fall really begin? Click here to find out. . .
------------------------------------------------
August 9, 2007 is the official date when the crisis is said to have hit global finances. But the rot had started much earlier.
In 2006, the US housing market started to feel the pain of high interest rates -- which, between 2004 and 2006, had risen from one per cent to 5.35 per cent -- resulting in default rates on *sub-prime loans rising to record level.(*High risk loans to customers with poor or no credit histories).
February 22, 2007: HSBC fires head of its US mortgage lending business as losses reach $10.5 billion. On February 23, the Bombay Stock Exchange's sensitive index -- the Sensex -- ended down 356 points at 13,656. (Because of the time difference between India and the US, the market figures are of those a day later)
March 8, 2007: Biggest US house builder DR Horton warns of huge losses from sub-prime fall-out.
March 12, 2007: Shares in New Century Financial, one of the biggest sub-prime lenders in the US, were suspended amid fears it might be heading for bankruptcy.
Sensex gained 80 points to close at 12,983 on March 13.
March 13, 2007: Wall Street hit by sub-prime fears and on March 14, the sell-off on US and Asian markets saw the Sensex close with a loss of 453 points at 12,530. The NSE Nifty closed at 3,641, down 130 points.
Also read: America's largest bankruptcies
----------------------------------------------------
March 16: US-based sub-prime firm Accredited Home Lenders Holding said it would sell $2.7 billion of its sub-prime loan book -- at a heavy discount -- in order to generate some cash. On March 19, the Indian market closed at 12,645, up 215 points.
April 2 2007: New Century Financial, which was once the second-largest originator of subprime mortgages in United States files for Chapter 11 bankruptcy and lays off 3,299 people. Sensex gained 169 points to close at 12,625 on April 3, 2007.
May 3, 2007: GM finance unit loses heavily on sub-prime mortgages, and UBS closes its US sub-prime lending arm, Dillon Read Capital Management. Sensex ends down 144 points at 13,934, on May 4.
June 22, 2007: Investment bank Bear Stearns revealed it had spent $3.2 billion bailing out two of its funds exposed to the sub-prime market. The bailout of the fund was the largest by a bank in almost a decade. The Index ended with a gain of 21 points at 14,488.
July 18, 2007: Bear Stearns rings the warning bell. It tells investors that they will get little, if any, of the money invested in two of its hedge funds after rival banks refuse to help it bail them out. The India market was unrattled by the news, and it closed with a gain of 249 points at 15,550, on July 19.
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July 20, 2007: US Federal Reserve chairman Ben Bernanke warns that the US sub-prime crisis could cost up to $100 billion.
The Sensex continued with its march and ended up 167 points at 15,732 on July 23.
July 27, 2007: Worries about the sub-prime crisis hammered global stock markets and the main US Dow Jones stock index slipped.
The Sensex was no exception as it ended down 542 points on that day.
July 31, 2007: Bear Stearns stopped clients from withdrawing cash from a third fund, saying it has been overwhelmed by redemption requests. The lender also filed for bankruptcy protection for the two funds it had to bail out earlier.
Next day, that is, August 1, the Sensex ended with a hefty loss of 645 points at 14,936. The NSE Nifty ended at 4,346, down 183 points. Elsewhere in Asia, Hong Kong's Hang Seng slumped 730 points to 22,455. Japan's Nikkei plunged 378 points to 16,871. Taiwan's Taiwan Weighted index crashed 395 points to 8892, and China's Shanghai Composite index shed 170 points at 4,301.
August 6, 2007: American Home Mortgage, one of the largest US independent home loan providers, filed for bankruptcy after laying off the majority of its staff. And Sensex ended down 235 points on that day and on August 7 it gained 30 points at close.
August 9, 2007 French banking major, BNP Paribas announced that it could not fairly value the underlying assets in three funds -- Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia -- as a result of exposure to US subprime mortgage lending markets.
Faced with potentially massive exposure, the European Central Bank immediately stepped in to ease market worries by opening lines of euro 96.8 billion (then $130 billion) in low-interest credit. The Federal Reserve, the Bank of Canada and the Bank of Japan also intervened. On August 10, 2007, the Sensex marginally shrugged off the US subprime woes and closed with a loss of 232 points at 14,868.
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August 16, 2007: Largest mortgage lender Countrywide draws on its entire $11.5 billion credit line as liquidity crisis looms. Australian mortgage lender Rams also admits liquidity problems. And on August 17, the Sensex tanks 217 points at 14,142
August 17, 2007: The Fed cut the rate at which it lends to banks by half of a percentage point to 5.75 per cent, and once more warns of credit crunch. Taking cues from the global markets following the surprise 50bps rate cut by the US Fed on Friday (Aug 17), the Sensex closed with a gain of 286 points at 14,427 on Monday. The NSE Nifty ended at 4,209, up 101 points.
August 21, 2007: UK sub-prime lenders begin to withdraw mortgages. On August 22, the Sensex ended with a gain of 260 points at 14,249.
August 28, 2007: Leipzig, Germany based Sachsen LB Landesbank faced collapse after investing in the sub-prime market. Landesbank Baden-Wuerttemberg buys it for euro 250m. It was one of Europe's biggest victims of the credit crisis. But the ripple effect had not touched the Indian markets and the Sensex ended with a gain of 74 points at 14,993. NSE Nift closed up 39 points at 4,359 on August 29.
September 3, 2007 German corporate lender IKB announces a a loss of $1bn on investments linked to the US sub-prime market. Sensex gained 43 points on September 4 to close at 15,465.
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September 4, 2007: London Interbank Offered Rate or *Libor rate rises to 6.7975%, highest since December 1998. (*It is the rate of interest at which banks offer to lend money to one another).
Bank of China reveals $9bn in sub-prime losses but Chinese government said its foreign exchange reserves will not be affected
The Sensex ended September 5 with a marginal loss of 19 points at 15,446. The NSE Nifty ended at 4,476, down 3 points.
September 14, 2007: British bank, Northern Rock, which relied heavily on the markets, rather than savers' deposits to fund its mortgage lending asked for and was granted emergency financial support from the Bank of England. The bank is now owned by the UK government. On September 17 the Index closed with a loss of 99 points at 15,504.
September 18, 2007: The US Federal Reserve cut its main interest rate by half a percentage point for the first time in four years, to 4.75 per cent, a move that resulted in a strong rally across the globe. On September 19, the Sensex ended with its biggest-ever single-day gain of 654 points at 16,323. The Nifty gained 186 points to close at 4,732.
September 19, 2007: The Bank of England announces that it will auction pound 10 billion. The Sensex gained 25 points at 16,348 on September 20. The Nifty gained 15 points to close at 4,748.
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October 1, 2007: Swiss bank UBS world's biggest bank announced losses of $3.4 billion from sub-prime related investments. Later investment bank chairman and chief executive officer Huw Jenkins stepped down.
Citigroup unveils a sub-prime related loss of $3.1 billion. Two weeks later Citigroup is forced to write down a further $5.9 billion. Within six months, its losses stand at a whopping $40 billion. On November 5, its chief executive and chairman Charles Prince resigned.
On October 3, Sensex nears 18K, ends up 561 points. The NSE Nifty ended at 5211, up 142 points
October 5, 2007: Investment bank Merrill Lynch reveals $5.6 billion sub-prime losses. On October 30, Merrill Lynch chief Stan O'Neal resigned. Next day, the Sensex ended with a loss of 282 points at 17,491.
November 9, 2007: US's fourth largest lender Wachovia revealed a $1.1 billion loss due to decline in value of its mortgage debt plus $600m to cover loan losses (total $1.7 billion). Sensex ends down 171 points.
November 12, 2007: The three biggest US banking groups -- Citigroup, Bank of America and JPMorganChase -- agree to a $75 billion superfund to restore confidence to credit markets.
November 13, 2007: Bank of America writes off $3 billion in sub-prime losses. Sensex bounced back and ended up nearly 300 points.
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November 14, 2007: Mizuho, Japan's second largest banking group, saw a 17 per cent drop in first-half net profits and cut its full-year operating profit forecast by 13 per cent, largely as a result of sub-prime-related losses at its securities arm. On November 14, in one of the biggest ever rally, the Sensex zoomed 894 points, but the next day it ended down 144 points at 19,785.
November 15, 2007: British banking major Barclays said it had written down $2.6 billion in sub-prime losses. Sensex ended down 87 points at 19,698 on November 16.
November 20, 2007: US mortgage guarantor Freddie Mac sets aside $1.2bn to cover bad loans and reports a $2bn loss. Sensex ended with a loss of 678 points at 18,603 on November 21, one of the biggest single-day loss in absolute terms. The Nifty lost 220 points to close at 5,561.
December 4, 2007: US mortgage giant Fannie Mae issues $7 billion of shares to cover losses linked to the housing market. On December 6, the Sensex ended up 58 points at 19,796.
------------------------------------------------
December 6, 2007: President George W Bush outlines plans to protect more than a million homeowners hit by the US housing slump. The Bank of England cut UK interest rates for the first time since 2005, amid signs that the economy is slowing. Sensex ended up 170 points at 19,966 on December 7.
December 10, 2007: Swiss bank UBS reports a further $10-billion write-down caused by bad debts in the US housing market. Lloyds TSB reveals that bad debt linked to the US sub-prime mortgage crisis will cost it pound 200 million.
December 11, 2007: Fed cut interest rates for a third time to 4.25 per cent to ease the credit crunch. On December 12, the Sensex gained 85 points.
December 13, 2007: World central banks agree coordinated action to inject at least $100 billion into short-term inter-bank credit markets to restore confidence. The Sensex, however, ended down 74 points at 20,031 on December 14.
------------------------------------------------
December 19, 2007: Morgan Stanley writes off $9.4bn in sub-prime losses and sells a 9.9 per cent stake in the company to the Chinese state investment company CIC for $5bn to rebuild its capital. Sensex ended up 71 points at 19,163 on December 20.
January 4, 2008: US unemployment rises sharply as job report sparks fall in stock market Sensex remains unfazed and ends up 126 points on January 6.
January 7, 2008: President George W Bush admits that the credit crunch could slow the US economy in 2008, but says it is still fundamentally strong. Sensex hits 21,000; ends up 61 points on January 8.
January 9, 2008: Bear Stearns boss James Cayne steps down after the firm reveals $1.9 billion in sub-prime losses, the largest in its history.
World Bank said that world economic growth will slow in 2008 due to credit crunch, but strong performance in China and India will cushion impact. The Sensex ended with a loss of 288 points at 20,582 on January 10.
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January 15, 2008: Citigroup, the largest bank in the US, reported a $9.8 billion loss for the fourth quarter and wrote down $18 billion in sub-prime losses. Sensex tumbled to a low of 19,513, down 738 points on January 16.
January 28, 2008: Belgian bank Fortis warned its losses connected to bad US mortgage debt could be as high as $1.47 billion. Sensex ended down 61 points at 18,091.
January 29, 2008: The US Federal Bureau of Investigation launched an investigation into 14 companies involved in the sub-prime mortgage crisis. Sensex continued to be in the red, as it ended down 333 points at 17,759 on January 30.
January 30, 2008: The US Federal Reserve cut interest rates to 3% from 3.5%. It was the second cut in nine days. US economic growth slowed. Sensex ends down 110 points at 17,649 on January 31.
February 5, 2008: US financial firm GMAC, which owns sub-prime lender Residential Capital, said it has made a $2.3 billion loss in 2007, compared with a $2.1 billion profit the year before.
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February 6, 2008: Wall Street saw its worst share losses in almost a year, amid fears that the worst US housing slump in 25 years is crippling the wider economy. On February 7 the Sensex closed with a loss of over 600 points at 17,527. The NSE Nifty closed with a loss of 190 points at 5,133.
February 10, 2008: Leaders from the G7 group of industrialised nations said worldwide losses from the US mortgage crisis could reach $400 billion. Sensex shed 834 points to close at 16,631 on February 11.
February 12, 2008: Swiss bank Credit Suisse said losses on sub-prime investments were $1.8 billion. Sensex ends up 341 points.
February 13, 2008: Britain's Bradford & Bingley cut the value of its sub-prime mortgage-related investments by $284.5 million. Japan's financial watchdog said Japanese banks suffered losses of $5.6 billion by the end of 2007. The Sensex closed with a huge gain of 817 points at 17,764 on February 14.
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February 14, 2008: Commerzbank, Germany's second-biggest bank, cut $1.1 billion off the value of investments linked to the sub-prime mortgage crisis and warned its losses could worsen.
March 7, 2008: The former bosses of Merrill Lynch and Citigroup were questioned by a Congressional panel over their bumper pay -- despite huge, sub-prime related bosses at their banks.
The Sensex ended the day with a marginal loss of 52 points at 15,924 on March 10. The NSE Nifty finished with a gain of 29 points at 4,800.
March 11, 2008: Central banks made another coordinated attempt to ease conditions in the credit markets, by announcing $200 billion of new emergency lending for banks.
March 14, 2008: Investment fund Carlyle Capital failed as the credit crisis spreads from sub-prime related products to other mortgage-backed investments.
Bear Stearns received emergency funding, after its exposure to mortgage-backed investments undermined confidence in the bank. And on March 17, Sensex ended with a hefty loss of 951 points at 14,809 -- one of its biggest single-day falls.
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March 17, 2008: Wall Street investment bank Bear Stearns was acquired by JPMorgan Chase for $240m, a fraction of its share price, in deal backed by $30 billion in Fed loans.
The bank got into trouble over its huge exposure to sub-prime mortgage-backed securities. The Sensex settled at 14,833 -- up 24 points. The NSE Nifty ended with a gain of 30 points at 4,533.
March 18, 2008: Wall Street investment banks Goldman Sachs and Lehman Brothers revealed that their first quarter profits have been halved by the credit crunch. On March 19, Sensex gained 161 points.
March 31, 2008: US Treasury announced major package to reform regulation of US financial markets and prevent future financial crises. Sensex ends down 18 points.
-----------------------------------------------
May 22, 2008: Swiss bank UBS, one of the worst affected by the credit crunch, launches a $15.5bn rights issue to cover some of the $37bn it lost on assets linked to US mortgage debt. Sensex fell 336 points on May 23.
June 19, 2008: The FBI arrests 406 people, including brokers and housing developers, as part of a crackdown on alleged mortgage frauds worth $1 billion.
Separately, two former Bear Stearns workers faced criminal charges related to the collapse of two hedge funds linked to sub-prime mortgages. It is alleged they knew of the funds' problems but did not disclose them to investors, who lost a total of $1.4 billion.
Sensex ends down 278 points on June 23.
July 13, 2008: US mortgage lender IndyMac collapsed -- the second-biggest bank in US history to fail.
On July 14, the Sensex finally ended with a loss of 139 points at 13,331.
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July 14, 2008: Financial authorities step in to assist America's two largest lenders, Fannie Mae and Freddie Mac. As guarantors of $5 trillion worth of home loans, they are crucial to the US housing market and authorities agreed they could not be allowed to fail. On July 15 Sensex tumbled by 654.32 points at 12,676.19, a level last seen on March 6, 2008.
September 5, 2008: US unemployment rate rose to 6.1%.
September 7, 2008: Mortgage lenders Fannie Mae and Freddie Mac -- which account for nearly half of the outstanding mortgages in the US -- were rescued by the US government in one of the largest bailouts in US history. On September 8 the Sensex rose by 461 points.
September 10, 2008: Wall Street bank Lehman Brothers posted a loss of $3.9 billion (?2.2 billion) for the three months to August. Sensex traded in the negative and ended down 339 points at 14,339.
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September 15, 2008: After days of searching frantically for a buyer, Lehman Brothers filed for Chapter 11 bankruptcy protection, becoming the first major bank to collapse since the start of the credit crisis.
US bank Merrill Lynch agreed to be taken over by Bank of America for $50 billion. On September 17 Sensex declined by 255.90 points.
September 17, 2008: Insurer American International Group apparently was too big to fail. The mammoth insurer, which had been pushed to the brink of bankruptcy by problems originating in the US mortgage crisis, is being bailed out by the Federal Reserve.
The Fed will extend a 24-month bridge loan of $85.0 billion to the insurer, in return for an unprecedented acquisition of a 79.9 per cent stake in the firm by the central bank.
Barclays announces that it will buy Lehman US units for $1.75 billion.
In a sharp pull-back: Sensex recovered over 700 points, to end up 53 points on September 18.
===================================
September 19, 2008: The US government proposed to create a $700-billion rescue fund for the American financial sector.
The fund will be used to buy back bad debt from ailing US banks and other financial institutions.
President George W Bush urged the Congress to endorse his plan as soon as possible. Congress is expected to take a decision in the coming days.
The move increased the US public debt to $11.3 trillion.
The President said: "This is a big package because it was a big problem." He argued that the drastic measures were necessary to keep the economy going. The president admitted that the plan would be funded with tax money, but added that "over time, we're going to get a lot of the money back."
Relieved investors sent stocks soaring on Wall Street and around the globe. The Dow-Jones industrials average rose 368 points after surging 410 points the day before on rumours that the federal action was afoot.
The Sensex on September 19 ended with a significant gain of 5.5% (727 points) at 14,042. The NSE Nifty soared over 5% (207 points) to 4,245.
That, till now, is the scenario. If the events that led to the world's worst-ever financial crisis are not scary enough, some economists fear that this might not be the end of the problem. So will things worsen? Only time will tell. .
-------------------------------------------------
Sept 23:
Sensex dn 425 pts to 13570
Source:Rediff.com
Top 10 life insurance cos in the country:ET
Top 10 life insurance cos in the country
Life Insurance Corporation of India
LIC still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force. LIC experienced growth of only 5% during 2007-08 in new business premium. It had an estimated 1.1 million licensed agents, with the private insurers adding another 900,000.LIC witnessed decline in sales by 24% for new business premium for the first four months for the current financial year. Total sales stood at Rs 10,797.1 crore during April-July as against new sales of Rs 14,186.04 crore in the corresponding period last financial year.This is was mainly due to slowdown in economy and crash of stock market. Also, private companies are eating the share of LIC by introducing innovative products.
ICICI Pru is the biggest private life insurance company in India. It experienced growth of 58% in new business premium, accounting for increase in market share to 8.93% in 2007-08 from 6.97% in 2006-07. Total premium collected increased to Rs 8,305.80 crore from Rs 5,254.64 in 2006-07. Total number of policies sold went up by 49%, from 1,960,034 to 2,913,606 in 2007-08, with a market share of 5.73%.Renewal premium had gone up by 101% to Rs.5,526 crore from Rs 2,751 crore. The company has 950 urban and 1,000 non-urban branches across the country. For the first four months of current financial year, it reported growth of 45.3%.
Total new business premium collected by Bajaj Insurance was Rs 6,491.70 crore in 2007-08. The company reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in number of policies sold in 2007-08, with total market share of 7.36%.For the period of April – July 2008, total amount of new insurance premium sold was Rs 1,197.95 crore as against Rs 1,075.93 in the same period last year, experiencing a growth of 11.35%. Number of policies sold dropped by around 3%. Bajaj Allianz Life has a strong distribution network across the country with over 1000 branches spread over 950 towns. It plans to raise its capital base by infusing Rs 500 crore in next few months to support its expansion plans.
SBI Life Insurance Co Ltd
State Bank of India has a 74% equity stake and the balance 26% is held by French firm Cardif SA in SBI Life insurance. The company broke even in March 2006. It’s the fourth year of operations. SBI Life leveraged the 14,000-odd bank branches of its parent SBI to push insurance policies. The company grew 142.5% in the first four months of the current fiscal year. Total market share of the company increased from 3.14% in 2006-07 to 5.15% in 2007-08, making it the 4th largest company in India. However, in terms of new number of policies sold, the company ranked 6th in 2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08, an increase of 87% over last year. The company this year got approval to open 100 more branches to sell life insurance products.
Reliance Life Insurance Co Ltd
Reliance Life has sold maximum number of new group non-single policies in 2007-08. It experienced a phenomenal growth of 196% in 2008. Total new business premium collected was Rs 2,792.76 crore and its market share went up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in number of new policies sold in 2007-08.RLIC has been one of the fast gainers in market share in new business premium amongst the private players. It has crossed 1.7 Million policies in just two years of operations, after its takeover of AMP Sanmar business. The number of policies sold in the year 2007-08 stood at 10.74 lakh as against 4.51 lakh in the previous year. In a short span of time, the company accomplished a large distribution set-up by opening 600 branches in 10 months, taking the overall branch network to above 740.
HDFC Standard Life Insurance Co Ltd
HDFC Standard Life operates across more than 726 cities and towns of the country. It also has more than 383 corporate agents and other sales intermediaries, including banks like Union Bank and Indian Bank, for distribution of insurance products. The company strengthened its number of offices from 103 to 572 across the country in less than three years. The company also increased its depth in existing markets by increasing its financial consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. The Company generated new business premium income of Rs 2,680 crore in FY2007-08, registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th among the insurance companies and 5th amongst the private players.
Birla Sun Life Insurance Co Ltd
It is a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada for asset management, life insurance and wealth management businesses. The Aditya Birla Group holds 74% and Sun Life Financial holds the rest 26% in the company. The company reported growth of 157.18% for the first four months of the current fiscal year. For year 2007-08 growth in new business collection was 122.60%. With this growth rate, market share of the company increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year before, pushing down Max New York Life insurance company. During 2007-08, an additional capital of over Rs 550 crore had been infused in various trenches by the company. With this growth rate, the company is expected to break even by 2010, its ninth year of operations.
Max New York Life Insurance Co Ltd
The company reported growth of 73% in 2007-08. Total new business generated was Rs 641.83 crore as against Rs 387.51 crore. The company was pushed down to the 8th position from 7th in 2007-08. Market share of the company increased from 1.17% to 1.71%. Its performance has been very moderate as compared to other private companies. New business premium from April – July was Rs 641.83 crore. This is an increase of 66% over the same period last year. The company plans to increase its capital base to Rs 3,600 crore from Rs 1,200 crore at Present. It is planning to add 14,000 employees to its present strength of 11,000 to reach 25,000 by 2011 and open 250 new offices every year to reach more than 1,600 offices in different locations.
Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank, its affiliates and UK-based financial services firm Old Mutual plc. Total new premium collected is Rs 345.15 crore for the first four months as against Rs 159.95 cr, reporting a phenomenal growth of 160% over the same period last year. For the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Last year the company doubled its branch network to 150 from 74. The company is planning to increase this figure to 210 by end of this fiscal. Promoter of company - Kotak Mahindra Bank -- plans to expand to 250 branches from the existing count of 185 in the next year. With this the insurance company will have about 500 outlets to sell policies. Most of the expansion — around 75% -- is in tier II and tier III cities.
Aviva Life Insurance Company India Ltd
Aviva Life is a joint venture between FMCG major Dabur and the UK-based Aviva Plc. Growth in new insurance premium was mere 0.81% from April – July 2008 against the same period last year. Performance of company was very moderate last year also with reporting growth in new business of only 46%. Total premium was Rs 1,059.08 crore in 2007-08 as against Rs 724.03 crore in 2006-07. Market share of the company was 1.13% in 2007-08. The company ranking dropped to 10th in 2007-08 from 9th last year. It has presence in more than 3,000 locations across India via 221 branches and close to 40 bancassurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344 crore. With the fresh investment, total paid-up capital of the insurer would go up to Rs 1,348.8 crore.
Source: Northbridge Capital thro ET
Life Insurance Corporation of India
LIC still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force. LIC experienced growth of only 5% during 2007-08 in new business premium. It had an estimated 1.1 million licensed agents, with the private insurers adding another 900,000.LIC witnessed decline in sales by 24% for new business premium for the first four months for the current financial year. Total sales stood at Rs 10,797.1 crore during April-July as against new sales of Rs 14,186.04 crore in the corresponding period last financial year.This is was mainly due to slowdown in economy and crash of stock market. Also, private companies are eating the share of LIC by introducing innovative products.
ICICI Pru is the biggest private life insurance company in India. It experienced growth of 58% in new business premium, accounting for increase in market share to 8.93% in 2007-08 from 6.97% in 2006-07. Total premium collected increased to Rs 8,305.80 crore from Rs 5,254.64 in 2006-07. Total number of policies sold went up by 49%, from 1,960,034 to 2,913,606 in 2007-08, with a market share of 5.73%.Renewal premium had gone up by 101% to Rs.5,526 crore from Rs 2,751 crore. The company has 950 urban and 1,000 non-urban branches across the country. For the first four months of current financial year, it reported growth of 45.3%.
Total new business premium collected by Bajaj Insurance was Rs 6,491.70 crore in 2007-08. The company reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in number of policies sold in 2007-08, with total market share of 7.36%.For the period of April – July 2008, total amount of new insurance premium sold was Rs 1,197.95 crore as against Rs 1,075.93 in the same period last year, experiencing a growth of 11.35%. Number of policies sold dropped by around 3%. Bajaj Allianz Life has a strong distribution network across the country with over 1000 branches spread over 950 towns. It plans to raise its capital base by infusing Rs 500 crore in next few months to support its expansion plans.
SBI Life Insurance Co Ltd
State Bank of India has a 74% equity stake and the balance 26% is held by French firm Cardif SA in SBI Life insurance. The company broke even in March 2006. It’s the fourth year of operations. SBI Life leveraged the 14,000-odd bank branches of its parent SBI to push insurance policies. The company grew 142.5% in the first four months of the current fiscal year. Total market share of the company increased from 3.14% in 2006-07 to 5.15% in 2007-08, making it the 4th largest company in India. However, in terms of new number of policies sold, the company ranked 6th in 2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08, an increase of 87% over last year. The company this year got approval to open 100 more branches to sell life insurance products.
Reliance Life Insurance Co Ltd
Reliance Life has sold maximum number of new group non-single policies in 2007-08. It experienced a phenomenal growth of 196% in 2008. Total new business premium collected was Rs 2,792.76 crore and its market share went up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in number of new policies sold in 2007-08.RLIC has been one of the fast gainers in market share in new business premium amongst the private players. It has crossed 1.7 Million policies in just two years of operations, after its takeover of AMP Sanmar business. The number of policies sold in the year 2007-08 stood at 10.74 lakh as against 4.51 lakh in the previous year. In a short span of time, the company accomplished a large distribution set-up by opening 600 branches in 10 months, taking the overall branch network to above 740.
HDFC Standard Life Insurance Co Ltd
HDFC Standard Life operates across more than 726 cities and towns of the country. It also has more than 383 corporate agents and other sales intermediaries, including banks like Union Bank and Indian Bank, for distribution of insurance products. The company strengthened its number of offices from 103 to 572 across the country in less than three years. The company also increased its depth in existing markets by increasing its financial consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. The Company generated new business premium income of Rs 2,680 crore in FY2007-08, registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th among the insurance companies and 5th amongst the private players.
Birla Sun Life Insurance Co Ltd
It is a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada for asset management, life insurance and wealth management businesses. The Aditya Birla Group holds 74% and Sun Life Financial holds the rest 26% in the company. The company reported growth of 157.18% for the first four months of the current fiscal year. For year 2007-08 growth in new business collection was 122.60%. With this growth rate, market share of the company increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year before, pushing down Max New York Life insurance company. During 2007-08, an additional capital of over Rs 550 crore had been infused in various trenches by the company. With this growth rate, the company is expected to break even by 2010, its ninth year of operations.
Max New York Life Insurance Co Ltd
The company reported growth of 73% in 2007-08. Total new business generated was Rs 641.83 crore as against Rs 387.51 crore. The company was pushed down to the 8th position from 7th in 2007-08. Market share of the company increased from 1.17% to 1.71%. Its performance has been very moderate as compared to other private companies. New business premium from April – July was Rs 641.83 crore. This is an increase of 66% over the same period last year. The company plans to increase its capital base to Rs 3,600 crore from Rs 1,200 crore at Present. It is planning to add 14,000 employees to its present strength of 11,000 to reach 25,000 by 2011 and open 250 new offices every year to reach more than 1,600 offices in different locations.
Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank, its affiliates and UK-based financial services firm Old Mutual plc. Total new premium collected is Rs 345.15 crore for the first four months as against Rs 159.95 cr, reporting a phenomenal growth of 160% over the same period last year. For the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Last year the company doubled its branch network to 150 from 74. The company is planning to increase this figure to 210 by end of this fiscal. Promoter of company - Kotak Mahindra Bank -- plans to expand to 250 branches from the existing count of 185 in the next year. With this the insurance company will have about 500 outlets to sell policies. Most of the expansion — around 75% -- is in tier II and tier III cities.
Aviva Life Insurance Company India Ltd
Aviva Life is a joint venture between FMCG major Dabur and the UK-based Aviva Plc. Growth in new insurance premium was mere 0.81% from April – July 2008 against the same period last year. Performance of company was very moderate last year also with reporting growth in new business of only 46%. Total premium was Rs 1,059.08 crore in 2007-08 as against Rs 724.03 crore in 2006-07. Market share of the company was 1.13% in 2007-08. The company ranking dropped to 10th in 2007-08 from 9th last year. It has presence in more than 3,000 locations across India via 221 branches and close to 40 bancassurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344 crore. With the fresh investment, total paid-up capital of the insurer would go up to Rs 1,348.8 crore.
Source: Northbridge Capital thro ET
23 September 2008
Headlines of the Day
Nomura buys Lehman's Europe i-bank arm
RNRL mulls Rs 12,000 cr capex for cement, shipping
Financial closure for 2 mega plants this year: Reliance Power
RPL to tap opportunities for N-power
RBI's new directions for NBFCs
Tata buys stake in Riversdale Mining
Computer helper: What you need to know about Chrome
RPL's second refinery to go onstream in Nov
RIL stock falls on gas output delay
N-deal with India to support 2.5 lakh high-tech jobs in US
Lehman re-opens under Barclays ownership, 10k jobs offered
RBI credit policy review on October 24
Anil fires another salvo against Mukesh
Etisalat buys 45% in Swan for $900mn
RNRL vs. RIL: Anil says price no issue
Punj Lloyd bags $800mn Qatar Petro order
Bailout uncertainty, oil sinks Wall St
All about the bailout plan
Bernanke urges Congress to approve $700 b
Nagarjuna Construction bags Rs 413-cr orders
Ranbaxy open offer: Excess shares to be returned
Reliance’s $6 billion plant to run by mid-November
4 SEZs in Tamil Nadu get in-principle nod
Crude oil climbs by $25 a barrel
Hindalco to raise Rs 5,047 cr via rights issue
BPCL to invest Rs 1,500 cr on 24 oil exploration blocks
Shareholders approve SAIL-BRL merger
Asian Markets Follows Wall Street Losses
Market Timings due to Sun Outage
Reliance Capital Reliance Industries Limited
Bombay Rayon Fashions
Sakthi Sugars Panacea Biotec
Exide Industries GSK Pharma
Onmobile Global Reliance Industries Ltd
India Cements Reliance Industries
NTPC, India Real Estate NIIT Ltd
Bharti Airtel Ltd
Indian Banks exposure to failed investment banks
Post Session Commentary - Sep 23 2008
Battered market
Gold Surpasses $ 900 Mark Again
FII India Holding List
Havells India
Hindustan Unilever, Gateway Distripaks
India's trade deficit balloons
Source:ET, sify, BS , Deadpresident blog.
RNRL mulls Rs 12,000 cr capex for cement, shipping
Financial closure for 2 mega plants this year: Reliance Power
RPL to tap opportunities for N-power
RBI's new directions for NBFCs
Tata buys stake in Riversdale Mining
Computer helper: What you need to know about Chrome
RPL's second refinery to go onstream in Nov
RIL stock falls on gas output delay
N-deal with India to support 2.5 lakh high-tech jobs in US
Lehman re-opens under Barclays ownership, 10k jobs offered
RBI credit policy review on October 24
Anil fires another salvo against Mukesh
Etisalat buys 45% in Swan for $900mn
RNRL vs. RIL: Anil says price no issue
Punj Lloyd bags $800mn Qatar Petro order
Bailout uncertainty, oil sinks Wall St
All about the bailout plan
Bernanke urges Congress to approve $700 b
Nagarjuna Construction bags Rs 413-cr orders
Ranbaxy open offer: Excess shares to be returned
Reliance’s $6 billion plant to run by mid-November
4 SEZs in Tamil Nadu get in-principle nod
Crude oil climbs by $25 a barrel
Hindalco to raise Rs 5,047 cr via rights issue
BPCL to invest Rs 1,500 cr on 24 oil exploration blocks
Shareholders approve SAIL-BRL merger
Asian Markets Follows Wall Street Losses
Market Timings due to Sun Outage
Reliance Capital Reliance Industries Limited
Bombay Rayon Fashions
Sakthi Sugars Panacea Biotec
Exide Industries GSK Pharma
Onmobile Global Reliance Industries Ltd
India Cements Reliance Industries
NTPC, India Real Estate NIIT Ltd
Bharti Airtel Ltd
Indian Banks exposure to failed investment banks
Post Session Commentary - Sep 23 2008
Battered market
Gold Surpasses $ 900 Mark Again
FII India Holding List
Havells India
Hindustan Unilever, Gateway Distripaks
India's trade deficit balloons
Source:ET, sify, BS , Deadpresident blog.
Sensex sheds 425 pts on weak global cues
Sensex sheds 425 pts on weak global cues
The Wall Street tumbled yesterday on uncertainties over the details regarding the US Government's $700 billion plan to fix the financial market turmoil. With a sharp surge in crude oil prices also dampening the sentiment, Asian markets followed suit and the mood back home was not any different this morning.
Astro predictions on Sensex
There was a smart recovery in mid morning trade when the Sensex rebounded by over 250 points from a low of 13,721.42, thanks to some strong buying in Reliance Industries, ONGC and a few other blue chip stocks. However, the rally proved short-lived and the Sensex started sliding down fast in afternoon trade. A weak close on Asian bourses, the negative trend in European markets and the decline of US index futures never allowed any recovery thereafter.
Stockometer
While the Sensex, which plunged to a low of 13,543.47, ended at 13,570.31 with a loss of 424.65 points or 3.03%, the Nifty settled at 4126.90, a few points off a low of 4117.90, with a loss of 96.15 points or 2.28%.
Top gainers
Information technology, realty and bank stocks took a severe beating. Mirroring their fall, the respective sectoral indices went down by 5.07%, 4.68% and 4.19% respectively. BSE Teck eased by 3.54%. The Consumer Durables, Capital Goods, Metal, Power, Auto, Healthcare and FMCG indices slipped by 1% - 2.5%. BSE Oil & Gas and PSU lost 0.82% and 0.9% respectively.
Worst losers
Reflecting the sell-off in midcap and smallcap segments, the BSE Midcap and Smallcap indices ended lower by 2.06% and 1.63% respectively. Ranbaxy Laboratories lost over 11% on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company.
Software majors Satyam Computer Services (down 5.95%), Tata Consultancy Services (down 5.9%), Wipro (down 5.75%) and Infosys Technologies (down 5.15%) ended with sharp losses.
Realty stock DLF lost 6.25%. Housing finance major HDFC ended lower by 5.5%. Banking sector heavyweights ICICI Bank (down 5.45%), HDFC Bank (down 4.6%) and State Bank of India (down 4.05%) also declined sharply.
Jaiprakash Associates ended with a loss of 5.35%. Tata Motors lost over 5%. Tata Steel (down 4.6%), BHEL (down 3.4%), Grasim Industries (down 2.4%), Maruti Suzuki (down 2.35%), Sterlite Industries (down 2.15%), Larsen & Toubro (down 1.8%), Bharti Airtel (down 1.75%), Hindalco (down 1.55%), Reliance Infrastructure (down 1.5%), Reliance Industries (down 1.35%), ITC (down 1.1%) and Hindustan Unilever (down 1%) ended on a very weak note.
NTPC lost 0.9%. Mahindra & Mahindra and Reliance Communications ended with modest losses. ONGC declined marginally. ACC and Tata Power closed in the positive territory with small gains.
Unitech, Punjab National Bank, Suzlon Energy, Zee Entertainment, Ambuja Cements, SAIL, Siemens and Power Grid Corporation were among the prominent losers in the Nifty index.
Sun Pharmaceuticals (3.4%), Nalco (2.85%), BPCL (2.35%), Cairn India (1.45%), Hero Honda (1.35%) and HCL Technologies (0.7%) ended with notable gains.
Deccan Chronicle Holdings, Rolta India, Gujarat Minerals, Sintex Industries, Lanco Infratech, India Bulls Real Estate, HDIL, LIC Housing Finance, Educomp Solutions, Canara Bank and Hindustan Construction Company were among the major losers from BSE 'A' Group.
The market breadth was weak. Out of 2652 stocks traded on the BSE, 1823 stocks closed on a negative note. 760 stocks posted gains and 69 stocks ended flat.
------------------------------------------------
Equities tumble on US market woes
Nifty Sept premium eases, call buying at 4100
Sensex slips 425pts; banking, realty, IT stocks weigh
Source:ET,Sify.BS
The Wall Street tumbled yesterday on uncertainties over the details regarding the US Government's $700 billion plan to fix the financial market turmoil. With a sharp surge in crude oil prices also dampening the sentiment, Asian markets followed suit and the mood back home was not any different this morning.
Astro predictions on Sensex
There was a smart recovery in mid morning trade when the Sensex rebounded by over 250 points from a low of 13,721.42, thanks to some strong buying in Reliance Industries, ONGC and a few other blue chip stocks. However, the rally proved short-lived and the Sensex started sliding down fast in afternoon trade. A weak close on Asian bourses, the negative trend in European markets and the decline of US index futures never allowed any recovery thereafter.
Stockometer
While the Sensex, which plunged to a low of 13,543.47, ended at 13,570.31 with a loss of 424.65 points or 3.03%, the Nifty settled at 4126.90, a few points off a low of 4117.90, with a loss of 96.15 points or 2.28%.
Top gainers
Information technology, realty and bank stocks took a severe beating. Mirroring their fall, the respective sectoral indices went down by 5.07%, 4.68% and 4.19% respectively. BSE Teck eased by 3.54%. The Consumer Durables, Capital Goods, Metal, Power, Auto, Healthcare and FMCG indices slipped by 1% - 2.5%. BSE Oil & Gas and PSU lost 0.82% and 0.9% respectively.
Worst losers
Reflecting the sell-off in midcap and smallcap segments, the BSE Midcap and Smallcap indices ended lower by 2.06% and 1.63% respectively. Ranbaxy Laboratories lost over 11% on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company.
Software majors Satyam Computer Services (down 5.95%), Tata Consultancy Services (down 5.9%), Wipro (down 5.75%) and Infosys Technologies (down 5.15%) ended with sharp losses.
Realty stock DLF lost 6.25%. Housing finance major HDFC ended lower by 5.5%. Banking sector heavyweights ICICI Bank (down 5.45%), HDFC Bank (down 4.6%) and State Bank of India (down 4.05%) also declined sharply.
Jaiprakash Associates ended with a loss of 5.35%. Tata Motors lost over 5%. Tata Steel (down 4.6%), BHEL (down 3.4%), Grasim Industries (down 2.4%), Maruti Suzuki (down 2.35%), Sterlite Industries (down 2.15%), Larsen & Toubro (down 1.8%), Bharti Airtel (down 1.75%), Hindalco (down 1.55%), Reliance Infrastructure (down 1.5%), Reliance Industries (down 1.35%), ITC (down 1.1%) and Hindustan Unilever (down 1%) ended on a very weak note.
NTPC lost 0.9%. Mahindra & Mahindra and Reliance Communications ended with modest losses. ONGC declined marginally. ACC and Tata Power closed in the positive territory with small gains.
Unitech, Punjab National Bank, Suzlon Energy, Zee Entertainment, Ambuja Cements, SAIL, Siemens and Power Grid Corporation were among the prominent losers in the Nifty index.
Sun Pharmaceuticals (3.4%), Nalco (2.85%), BPCL (2.35%), Cairn India (1.45%), Hero Honda (1.35%) and HCL Technologies (0.7%) ended with notable gains.
Deccan Chronicle Holdings, Rolta India, Gujarat Minerals, Sintex Industries, Lanco Infratech, India Bulls Real Estate, HDIL, LIC Housing Finance, Educomp Solutions, Canara Bank and Hindustan Construction Company were among the major losers from BSE 'A' Group.
The market breadth was weak. Out of 2652 stocks traded on the BSE, 1823 stocks closed on a negative note. 760 stocks posted gains and 69 stocks ended flat.
------------------------------------------------
Equities tumble on US market woes
Nifty Sept premium eases, call buying at 4100
Sensex slips 425pts; banking, realty, IT stocks weigh
Source:ET,Sify.BS
22 September 2008
Reliance strikes 'gold' in K-G basin
Reliance strikes 'gold' in K-G basin
RIL to supply 40% of India's gas, oil! - another article
40% of India's gas, oil from RIL!
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, does little in half measures.
He had not interacted with the media for at least two years, yet the Chairman of the country’s largest private sector company made up for the hiatus by spending most of Sunday with scores of journalists from across the country.
Ambani was profusely apologetic for spoiling their Sunday. He had thought he would use the interaction to announce to world the first flow of oil from the company’s oil and gas field in the Krishna-Godavari basin, but he was pre-empted by a leak of that news a couple of days ago. So, he was left to explain the significance of the “historic day” for India. He did so with the same passion and commitment that has brought the first commercial quantities of oil flowing from a field just six years after gas was first discovered.
He claimed it was the fastest exploration and production effort in any deep water basin in the world. The global average is about nine years, he said, quoting a Goldman Sachs study.
There is a huge factory set up on the sea bed 7,000-8,000 feet under water, at temperatures close to freezing, run entirely with robots.
It was “world class expertise that Reliance had developed from scratch,” he said.
He said the production of oil and gas from the Krishna basin meant a lot for India’s energy security. He explained that within the next year-and-a-half, his company would be producing the equivalent of 550,000 barrels of oil a day increasing the domestic petroleum output of 1.3 million barrels a day by over 40 per cent, thereby reducing the need to import oil.
The country paid $56 billion last year for imported oil. Ambani said preliminary studies had indicated that the Cauvery and the Mahanadi basins also bore immense potential.
“We are more blessed with gas than oil,” he said. “That is a huge advantage because gas is the fuel of the 21st century, it being environment friendly.”
Alluding to the telecom model that he said had empowered the country, he said that in a matter of months, natural gas can be piped into millions of homes as cooking fuel. It would obviate the need for cylinders to be carried around, and it would be cheaper for consumers, the equivalent of Rs 116 a cylinder. The current price ranges from Rs 304 to 352.
From 5,000 barrels to 5.5 lakh barrels
Commercial production of gas from the D6 block in the KG basin would start from January-March quarter, said Mukesh Ambani.
Ambani said the crude, which started flowing on September 17, is now stabilised at 5,000 barrels a day, and would be scaled up to 5.5 lakh barrels of oil equivalent a day over the next four to six quarters. This would account for 40 per cent of domestic output. Gas would account for 90 per cent of production from the D6 block, and crude the rest.
Gas production would start with 15 mscmd (million standard cubic metres a day) and later be ramped up to 40 mscmd in a few months’ time.
The gas would be sufficient to feed 100-120 million households, power 50 million two-wheelers, 5 million cars and 10 million trucks, as well as supply fuel for 25,000 MW of power.
$20 billion saving per annum
Ambani said production from RIL’s fields will have an enormous impact on “the fortunes of India and Reliance”, contributing to foreign exchange and import bill savings of $20 billion a year.
Reliance owns 90 per cent of the D6 block, and Canada’s Niko Resources owns the rest.
Since RIL faces no scarcity of either capital, technology or talent, a third partner is not under consideration currently, but a good value proposition might change that. If someone were to give RIL a share in an equally productive asset in other parts of the world, the possibility of a partnership cannot be ruled out.
For full details:Reliance strikes 'gold' in K-G basin
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RIL to supply 40% of India's gas, oil!
September 22, 2008
Indian petrochemicals giant Reliance Industries Ltd will account for about 40 per cent of the country's energy production in the next 18 to 24 months, putting the company on track to earn a quarter of its profit from oil and gas production, from 5 per cent now.
The total hydrocarbon output from the Dhirubhai 6 (D6) block in the Krishna-Godavari basin, the field that is expected to more than double India's gas output, will rise to 550,000 barrels of oil equivalent a day (boed) by March 2010, RIL chairman and managing director Mukesh Ambani said in his first media meet in five years.
Text: Business Standard
In monetary terms, it is Rs 86,000 crore (Rs 860 billion) a year, Ambani said, adding the D6 block in the KG basin will transform the country's energy landscape.
Speaking at the sprawling Reliance Corporate Park in Navi Mumbai, Ambani termed the start of oil production at the D6 basin three days ago as a historic occasion not only for the company but for the entire country. The initial production from the block was 5,000 boed.
"From nowhere in 2002 as far as oil production is concerned, we are now set to be among the top 20 integrated energy companies in the world. In fact, RIL will be one of the world's largest deep-water oil well developers," a beaming Ambani said, as his wife Nita Ambani, who was sitting next to him, nodded.
"Around 40 years after Bombay High was discovered, this is India's major victory in the battle for energy security. RIL has managed to produce oil in two years - a time other companies would take just to map out their exploration nitty-gritty," Ambani said, looking appreciatively at his top team led by PMS Prasad, president & CEO (oil & gas).
Ambani is investing $5.2 billion to develop the KG basin. This oil production, Ambani said, will not only benefit customers but also reduce subsidies and thus release huge financial resources that the government can spend on development.
The company will start pumping natural gas from the KG basin in the January-March quarter, which is within the broad target of the company but later than the government's forecast that production would begin by November.
more @ above link.
Other related:
K-G basin gas to lift Reliance profit: Mukesh Ambani
RIL to step up oil output to 20,000 barrels by Diwali
RIL to supply 40% of India's gas, oil!
40% of India's gas, oil from RIL!
Reliance shares gain on gas output plans
KG Basin gas to lift Reliance profit: Mukesh Ambani
RIL: Commercial gas flow from KG basin begins January
RIL to step up oil output to 20,000 barrels by Diwali
RIL may offload stake in D6 block if it adds value proposition
RIL open to KG-D6 stake sale
Reliance's KG oil starts flowing; gas to follow in 2009
KG Basin gas to lift Reliance profit: Ambani
RIL to await court verdict before gas sale: CEO
RIL can sell KG gas at higher than discovered price
RIL to account for 40% of India's energy output: Mukesh
RIL to account for 40% of India's energy output: Mukesh
RIL to start production of gas in KG basin from Jan-March
Fastest exploration in deep water basin, says Mukesh
Source: ET, BS, Rediff, SIfy
RIL to supply 40% of India's gas, oil! - another article
40% of India's gas, oil from RIL!
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, does little in half measures.
He had not interacted with the media for at least two years, yet the Chairman of the country’s largest private sector company made up for the hiatus by spending most of Sunday with scores of journalists from across the country.
Ambani was profusely apologetic for spoiling their Sunday. He had thought he would use the interaction to announce to world the first flow of oil from the company’s oil and gas field in the Krishna-Godavari basin, but he was pre-empted by a leak of that news a couple of days ago. So, he was left to explain the significance of the “historic day” for India. He did so with the same passion and commitment that has brought the first commercial quantities of oil flowing from a field just six years after gas was first discovered.
He claimed it was the fastest exploration and production effort in any deep water basin in the world. The global average is about nine years, he said, quoting a Goldman Sachs study.
There is a huge factory set up on the sea bed 7,000-8,000 feet under water, at temperatures close to freezing, run entirely with robots.
It was “world class expertise that Reliance had developed from scratch,” he said.
He said the production of oil and gas from the Krishna basin meant a lot for India’s energy security. He explained that within the next year-and-a-half, his company would be producing the equivalent of 550,000 barrels of oil a day increasing the domestic petroleum output of 1.3 million barrels a day by over 40 per cent, thereby reducing the need to import oil.
The country paid $56 billion last year for imported oil. Ambani said preliminary studies had indicated that the Cauvery and the Mahanadi basins also bore immense potential.
“We are more blessed with gas than oil,” he said. “That is a huge advantage because gas is the fuel of the 21st century, it being environment friendly.”
Alluding to the telecom model that he said had empowered the country, he said that in a matter of months, natural gas can be piped into millions of homes as cooking fuel. It would obviate the need for cylinders to be carried around, and it would be cheaper for consumers, the equivalent of Rs 116 a cylinder. The current price ranges from Rs 304 to 352.
From 5,000 barrels to 5.5 lakh barrels
Commercial production of gas from the D6 block in the KG basin would start from January-March quarter, said Mukesh Ambani.
Ambani said the crude, which started flowing on September 17, is now stabilised at 5,000 barrels a day, and would be scaled up to 5.5 lakh barrels of oil equivalent a day over the next four to six quarters. This would account for 40 per cent of domestic output. Gas would account for 90 per cent of production from the D6 block, and crude the rest.
Gas production would start with 15 mscmd (million standard cubic metres a day) and later be ramped up to 40 mscmd in a few months’ time.
The gas would be sufficient to feed 100-120 million households, power 50 million two-wheelers, 5 million cars and 10 million trucks, as well as supply fuel for 25,000 MW of power.
$20 billion saving per annum
Ambani said production from RIL’s fields will have an enormous impact on “the fortunes of India and Reliance”, contributing to foreign exchange and import bill savings of $20 billion a year.
Reliance owns 90 per cent of the D6 block, and Canada’s Niko Resources owns the rest.
Since RIL faces no scarcity of either capital, technology or talent, a third partner is not under consideration currently, but a good value proposition might change that. If someone were to give RIL a share in an equally productive asset in other parts of the world, the possibility of a partnership cannot be ruled out.
For full details:Reliance strikes 'gold' in K-G basin
-----------------------------------------------------------
RIL to supply 40% of India's gas, oil!
September 22, 2008
Indian petrochemicals giant Reliance Industries Ltd will account for about 40 per cent of the country's energy production in the next 18 to 24 months, putting the company on track to earn a quarter of its profit from oil and gas production, from 5 per cent now.
The total hydrocarbon output from the Dhirubhai 6 (D6) block in the Krishna-Godavari basin, the field that is expected to more than double India's gas output, will rise to 550,000 barrels of oil equivalent a day (boed) by March 2010, RIL chairman and managing director Mukesh Ambani said in his first media meet in five years.
Text: Business Standard
In monetary terms, it is Rs 86,000 crore (Rs 860 billion) a year, Ambani said, adding the D6 block in the KG basin will transform the country's energy landscape.
Speaking at the sprawling Reliance Corporate Park in Navi Mumbai, Ambani termed the start of oil production at the D6 basin three days ago as a historic occasion not only for the company but for the entire country. The initial production from the block was 5,000 boed.
"From nowhere in 2002 as far as oil production is concerned, we are now set to be among the top 20 integrated energy companies in the world. In fact, RIL will be one of the world's largest deep-water oil well developers," a beaming Ambani said, as his wife Nita Ambani, who was sitting next to him, nodded.
"Around 40 years after Bombay High was discovered, this is India's major victory in the battle for energy security. RIL has managed to produce oil in two years - a time other companies would take just to map out their exploration nitty-gritty," Ambani said, looking appreciatively at his top team led by PMS Prasad, president & CEO (oil & gas).
Ambani is investing $5.2 billion to develop the KG basin. This oil production, Ambani said, will not only benefit customers but also reduce subsidies and thus release huge financial resources that the government can spend on development.
The company will start pumping natural gas from the KG basin in the January-March quarter, which is within the broad target of the company but later than the government's forecast that production would begin by November.
more @ above link.
Other related:
K-G basin gas to lift Reliance profit: Mukesh Ambani
RIL to step up oil output to 20,000 barrels by Diwali
RIL to supply 40% of India's gas, oil!
40% of India's gas, oil from RIL!
Reliance shares gain on gas output plans
KG Basin gas to lift Reliance profit: Mukesh Ambani
RIL: Commercial gas flow from KG basin begins January
RIL to step up oil output to 20,000 barrels by Diwali
RIL may offload stake in D6 block if it adds value proposition
RIL open to KG-D6 stake sale
Reliance's KG oil starts flowing; gas to follow in 2009
KG Basin gas to lift Reliance profit: Ambani
RIL to await court verdict before gas sale: CEO
RIL can sell KG gas at higher than discovered price
RIL to account for 40% of India's energy output: Mukesh
RIL to account for 40% of India's energy output: Mukesh
RIL to start production of gas in KG basin from Jan-March
Fastest exploration in deep water basin, says Mukesh
Source: ET, BS, Rediff, SIfy
Sensex ends 47 pts down
Market loses steam, ends lower on profit booking /Markets end choppy session lower
Short build up trims Sep premium, Nifty support at 3900
The Sensex opened with a positive gap of 173 points but struggled right through the session today as investors remained wary of building up positions. Though the mood was positive at the start thanks to a firm trend on the Asian bourses, not many blue chip stocks were seen attracting sustained attention today. The weak start in European markets rendered the afternoon session extremely choppy.
Stockometer
Select FMCG and metal stocks had a good outing today. Realty stocks opened well but gradually lost their way and drifted lower as the session progressed. Capital goods stocks met with a similar fate but losses recorded them turned out to be more pronounced.
Top gainers
Bank and pharma stocks bounced back a bit and regained some lost ground. Oil and IT stocks remained subdued. Auto and power stocks also drifted lower. After a good show early on, midcap and smallcap stocks wilted under pressure.
Worst losers
While the Sensex, which plunged to a low of 13,917.48, ended the day at 13,994.96 with a loss of 47.36 points or 0.34%, the Nifty closed at 4223.05 with a loss of 22.20 points or 0.52%. In intra-day trades today, the Nifty touched a high of 4303.25 and a low of 4202.40.
Scrip Scan
ACC (3.25%), Tata Steel (2.95%), ITC (2.15%) and Hindustan Unilever (1.7%) closed on a firm note. Bharti Airtel, Grasim Industries and ICICI Bank moved up by 1% - 1.25%. HDFC notched up a modest gain of 0.8%. Infosys Technologies and State Bank of India closed with marginal gains.
Experts' Talk
Satyam Computer Services lost 4.65% today. Jaiprakash Associates (down 3.8%), Maruti Suzuki (down 3.15%), Ranbaxy Laboratories (down 2.7%), Hindalco (down 2.65%) and Larsen & Toubro (down 2.6%) also declined sharply.
Tata Motors, Reliance Infrastructure, Sterlite Industries, BHEL, DLF, ONGC and Reliance Communications also ended with sharp losses. NTPC, Reliance Industries, Tata Power and Wipro lost 0.6% - 0.75%.
Suzlon Energy (down 6.35% to Rs 198.60) was the biggest loser in the Nifty index. Siemens lost over 3.5%.SAIL, BPCL, Reliance Power, Power Grid, Cipla, Zee Entertainment and Punjab National Bank also ended with sharp losses.
Unitech, Sun Pharmaceuticals, HCL Technologies, Tata Communications, Reliance Petroleum and Idea Cellular closed with sharp to moderate gains.
Gujarat Minerals recorded a hefty gain of 14.1% and was the star performer among BSE 'A' Group stocks today. Sesa Goa (13.15%) shot up on strong buying support. Sintex Industries vaulted 10.65%. Gujarat NRE Coke zoomed 7.25%.Phoenix Mills and Gujarat Petronet gained 6.55% and 5.5% respectively.
NMDC, Colgate Palmolive, Bajaj Financial Services, Crompton Greaves, United Breweries, Glenmark Pharmaceuticals, Aditya Birla Nuvo, Deccan Chronicle Holdings, GE Shipping, Akruti City, Sun TV Network and Dabur India gained 2% - 5%.
Midcap stock Moser Baer ended with a huge gain of 18.95% at Rs 133.55. Tulip Telecom surged 13.4% on a big order win. Ashapura Minechemicals, Tanla Solutions, Asian Hotels, Ess Dee Aluminium, Bharat Bijli, Apollo Tyre, EID Parry, Gujarat Alkalies, BF Utilities, HEG and Torrent Pharma were some of the prominent gainers in the midcap space.
Tips to book profits in stock markets! Click here
The market breadth was marginally negative when trade ended today. Out of 2666 stocks traded on BSE, 1234 stocks closed with gains. 1354 stocks ended on a negative note and 78 stocks ended flat.
Source:Sify, ET
Business Headlines from Sites,Blogs
Mitsubishi buys 20% stake in Morgan Stanley
US stocks open lower after bank bailout plan
Microsoft to buy back $40 billion of stock
Volatility in market to continue
Mkts try to analyse Wall St changes
Short build up trims Sep premium
Govt relaxes ECB norms for core cos
China toxic milk sickens 53,000
Goldman, M Stanley to be holding cos
Where AIG went wrong
AIG, world's most sophisticated insurer proved to be far from adept at managing its own risk. Despite assets in excess of $1 trillion.
Eight days that shook the world US mortgage crisis
BoJ to inject up to $30 bn Nomura buys Lehman's Asia biz
Tulip bags Rs 95 cr order from Madhya Pradesh
Kingfisher cuts 300 jobs; to return surplus aircrafts
Investor's Guide
Fluctuations are signals from mkt that warrant action
Shree Renuka Sugars: A good long-term bet
Banco Products: An attractive pick for conservative investors
Bilcare conquering new frontiers
Fundamental values amid crumbling free-market principles
Bull's eye: Info Edge, ONGC, Hindustan Unilever, Pantaloon Retail,Bartronics India, HDIL
Fixed income funds become increasingly important
In the spotlight: Digitally Speaking
Everest Kanto Cylinders for Long-term investors
Turmoil Redefined: Indices in intermediate downtrends
Rupee trims gains on oil buying, stocks
'Biocon is world's 7th biggest BT company'
Punj Lloyd gets $42 m order in Libya
Nifty may hit 4400 by this Thursday
Source:ET,Sify
US stocks open lower after bank bailout plan
Microsoft to buy back $40 billion of stock
Volatility in market to continue
Mkts try to analyse Wall St changes
Short build up trims Sep premium
Govt relaxes ECB norms for core cos
China toxic milk sickens 53,000
Goldman, M Stanley to be holding cos
Where AIG went wrong
AIG, world's most sophisticated insurer proved to be far from adept at managing its own risk. Despite assets in excess of $1 trillion.
Eight days that shook the world US mortgage crisis
BoJ to inject up to $30 bn Nomura buys Lehman's Asia biz
Tulip bags Rs 95 cr order from Madhya Pradesh
Kingfisher cuts 300 jobs; to return surplus aircrafts
Investor's Guide
Fluctuations are signals from mkt that warrant action
Shree Renuka Sugars: A good long-term bet
Banco Products: An attractive pick for conservative investors
Bilcare conquering new frontiers
Fundamental values amid crumbling free-market principles
Bull's eye: Info Edge, ONGC, Hindustan Unilever, Pantaloon Retail,Bartronics India, HDIL
Fixed income funds become increasingly important
In the spotlight: Digitally Speaking
Everest Kanto Cylinders for Long-term investors
Turmoil Redefined: Indices in intermediate downtrends
Rupee trims gains on oil buying, stocks
'Biocon is world's 7th biggest BT company'
Punj Lloyd gets $42 m order in Libya
Nifty may hit 4400 by this Thursday
Source:ET,Sify
17 September 2008
Todays Headlines
US govt announces $85 bn loan to save AIG
History of Lehman I Credit crisis: A subprimer
Barclays agrees to buy some Lehman assets: Source
US stocks end higher after Fed keeps rates unchanged
The Great Crash of 1929, and lessons taming the crisis of 2008
US FDA blocks imports from Ranbaxy for poor quality
Emami doubles open offer price for Zandu
AIG's shares plunge AIG too big to fail: Analysts AIG fact file
Experts speak on financial crisis Anatomy of credit crisis
Rising dollar to make your cell dearer
US crisis makes Satyam look East
Fed holds key rates steady
Morgan Stanley Q3 profit falls 3%
Can Chrysler survive US slump?
Reliance Infra eyes India steel plant - official
TCS, Wipro recast hiring plans
Welspun India to demerge divisions into separate cos
RBI may hike key rates again, says Dun & Bradstreet
Edelweiss Securities maintains baccumulateb rating on ITC
Kotak Securities maintain bbuybon Infosys Technologies
IRDA seeks status report from Tata, AIG
Indian IT majors turn cautious post Lehman, Merrill fall out
RBI steps in to cool financial markets
Fuel price cut only when oil at $67: Deora
RNRL may lead ADAG's new forays
ONGC to enter solar energy business
ADB lowers India's economic growth forecast to 7.4 per cent
Indian banks’ Lehman exposure negligible
RBI moves in to ease pressure on markets
Reliance Infra hopes for EPC contracts in nuclear energy
Value of AIG’s India mutual funds falls by 7%
250 stocks hit new year lows on NSE
---------------------------------------------
Other Stk,Mkt reports from Deadpresident
Economy, Oil & Natural Gas Corporation, HCL Techno...
IDBI HDFC ONGC
Banking shares recover
Rupee falls to nearly 47
Nifty September 2008 futures at premium
Asian Markets End Sharply Lower
Futures and Options - Sep 16 2008
Triveni Industries
Post Session Commentary - Sep 16 2008
Bank shares lead intra-day rebound; Fed in focus
AIG - India Holdings
More jitters for the market
Gold Ends Higher In Volatile Session
Daily Technicals - Sep 16 2008
Morgan Stanley - next ?
Lehman invested in DLF, Unitech
Futures and Options - Sep 15 2008
Goldman Sachs - India Holdings
Once in a Century Crisis - Greenspan
Oil's great crash
Monthly Economic Review
India Infrastructure
Weekly Technicals - Sep 16 2008
Nestle
Lehman India sell off
India Economy, Cairn India, Hindustan Unilever, He...
Sintex Industries, Everest Kanto, Nitin Fire Prote...
Warren Buffet - 10 ways to get rich
India GSM Subscriber Figures
Nagarjuna Construction Ltd
Lehman Brothers - India Holdings
Dalal Street catches cold as US sneezes
Infosys Technologies
Lehman Brothers - Holdings in India
Source:ET,BS,BL, deadpresident blog.
History of Lehman I Credit crisis: A subprimer
Barclays agrees to buy some Lehman assets: Source
US stocks end higher after Fed keeps rates unchanged
The Great Crash of 1929, and lessons taming the crisis of 2008
US FDA blocks imports from Ranbaxy for poor quality
Emami doubles open offer price for Zandu
AIG's shares plunge AIG too big to fail: Analysts AIG fact file
Experts speak on financial crisis Anatomy of credit crisis
Rising dollar to make your cell dearer
US crisis makes Satyam look East
Fed holds key rates steady
Morgan Stanley Q3 profit falls 3%
Can Chrysler survive US slump?
Reliance Infra eyes India steel plant - official
TCS, Wipro recast hiring plans
Welspun India to demerge divisions into separate cos
RBI may hike key rates again, says Dun & Bradstreet
Edelweiss Securities maintains baccumulateb rating on ITC
Kotak Securities maintain bbuybon Infosys Technologies
IRDA seeks status report from Tata, AIG
Indian IT majors turn cautious post Lehman, Merrill fall out
RBI steps in to cool financial markets
Fuel price cut only when oil at $67: Deora
RNRL may lead ADAG's new forays
ONGC to enter solar energy business
ADB lowers India's economic growth forecast to 7.4 per cent
Indian banks’ Lehman exposure negligible
RBI moves in to ease pressure on markets
Reliance Infra hopes for EPC contracts in nuclear energy
Value of AIG’s India mutual funds falls by 7%
250 stocks hit new year lows on NSE
---------------------------------------------
Other Stk,Mkt reports from Deadpresident
Economy, Oil & Natural Gas Corporation, HCL Techno...
IDBI HDFC ONGC
Banking shares recover
Rupee falls to nearly 47
Nifty September 2008 futures at premium
Asian Markets End Sharply Lower
Futures and Options - Sep 16 2008
Triveni Industries
Post Session Commentary - Sep 16 2008
Bank shares lead intra-day rebound; Fed in focus
AIG - India Holdings
More jitters for the market
Gold Ends Higher In Volatile Session
Daily Technicals - Sep 16 2008
Morgan Stanley - next ?
Lehman invested in DLF, Unitech
Futures and Options - Sep 15 2008
Goldman Sachs - India Holdings
Once in a Century Crisis - Greenspan
Oil's great crash
Monthly Economic Review
India Infrastructure
Weekly Technicals - Sep 16 2008
Nestle
Lehman India sell off
India Economy, Cairn India, Hindustan Unilever, He...
Sintex Industries, Everest Kanto, Nitin Fire Prote...
Warren Buffet - 10 ways to get rich
India GSM Subscriber Figures
Nagarjuna Construction Ltd
Lehman Brothers - India Holdings
Dalal Street catches cold as US sneezes
Infosys Technologies
Lehman Brothers - Holdings in India
Source:ET,BS,BL, deadpresident blog.
Why Lehman went bust and what it means for you
Why Lehman went bust & what it means for you
Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . .
What is (or was) Lehman Brothers?
America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition known to mankind.
The 158-year-old firm was founded by brothers Henry, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in New York after having made money in railway bonds. So what went wrong?
Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, like railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of Long-Term Capital Management in the 1990s.
Thus the collapse of the giant investment bank came as a major shock for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan.
The $613 billion (some estimates put the size at $639 billion) bankruptcy thus throws up the question: why did the Wall Street giant go bust? Here's why. . .
Why did Lehman Brothers go bankrupt?
The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy. Lehman was strangled by a massive credit crisis and fast plummeting real estate prices.
The gargantuan $60 billion loss in bad real estate loans forced the bank to file for bankruptcy.
However, the fall of the 158-year-year institution that started cotton trade in US before the American Civil War and financed the railroad that built a nation, got hit by a large dose of bad luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld.
But there were more reason. Check out what they were. . .
For full details:Why Lehman went bust & what it means for you
------------------------------------------------
Lehman falls, Merrill sold, AIG tottering. What next?
series of events in United States, including Bank of America agreeing to buy Merrill Lynch for $44 billion and Lehman Brothers' move to file a bankruptcy protection, has shaken up the global financial markets.
About 10 major banks, comprising Citigroup and Credit Suisse Group, reached an agreement to create a $70 billion borrowing facility committing their own money, which could be used to tide over the financial crisis.
Lehman Brothers thought of bankruptcy after it failed to find a buyer and financial media reports said that AIG could survive for only a few days without infusion of the capital.
The giants of financial markets have been shaken up by losses of hundreds of billions of dollars in bad mortgages in the housing markets.
Lehman Brothers began considering bankruptcy after Barclays and Bank of America, the top suitors, walked away apparently following Federal authorities declining to provide financial backup to them, declaring bankruptcy would allow Lehman's subsidiaries to continue to function as the company itself is wound down.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence," the New York Times said.
Though the Federal Reserve steered clear of bailout of Lehman, the Wall Street Journal said it is expected to take new steps to stabilise the broader financial system.
These steps, expected to be temporary, would make it easier for banks and securities firms to borrow from the central bank by using a wider range of collateral.
Bankers say these financial institutions might need short-term funds as they unwind their many trading positions with Lehman.
Merrill has some 60,000 employees and Lehman 25,000. It was not clear how the moves would affect them. AIG executives were reported to be trying to raise funds by selling assets or infusion of capital from private equity firms.
But late Sunday night, the New York Times reported quoting a person briefed on the matter that the insurance giant was seeking a $40 billion bridge loan from the Federal Reserve as a potential downgrade of its credit rating could spell doom.
Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counter-parties to withdraw capital from their contracts with the company, the paper said.
more @ http://specials.rediff.com/money/2008/sep/15slide2.htm
Source:Rediff.com
Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . .
What is (or was) Lehman Brothers?
America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition known to mankind.
The 158-year-old firm was founded by brothers Henry, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in New York after having made money in railway bonds. So what went wrong?
Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, like railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of Long-Term Capital Management in the 1990s.
Thus the collapse of the giant investment bank came as a major shock for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan.
The $613 billion (some estimates put the size at $639 billion) bankruptcy thus throws up the question: why did the Wall Street giant go bust? Here's why. . .
Why did Lehman Brothers go bankrupt?
The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy. Lehman was strangled by a massive credit crisis and fast plummeting real estate prices.
The gargantuan $60 billion loss in bad real estate loans forced the bank to file for bankruptcy.
However, the fall of the 158-year-year institution that started cotton trade in US before the American Civil War and financed the railroad that built a nation, got hit by a large dose of bad luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld.
But there were more reason. Check out what they were. . .
For full details:Why Lehman went bust & what it means for you
------------------------------------------------
Lehman falls, Merrill sold, AIG tottering. What next?
series of events in United States, including Bank of America agreeing to buy Merrill Lynch for $44 billion and Lehman Brothers' move to file a bankruptcy protection, has shaken up the global financial markets.
About 10 major banks, comprising Citigroup and Credit Suisse Group, reached an agreement to create a $70 billion borrowing facility committing their own money, which could be used to tide over the financial crisis.
Lehman Brothers thought of bankruptcy after it failed to find a buyer and financial media reports said that AIG could survive for only a few days without infusion of the capital.
The giants of financial markets have been shaken up by losses of hundreds of billions of dollars in bad mortgages in the housing markets.
Lehman Brothers began considering bankruptcy after Barclays and Bank of America, the top suitors, walked away apparently following Federal authorities declining to provide financial backup to them, declaring bankruptcy would allow Lehman's subsidiaries to continue to function as the company itself is wound down.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence," the New York Times said.
Though the Federal Reserve steered clear of bailout of Lehman, the Wall Street Journal said it is expected to take new steps to stabilise the broader financial system.
These steps, expected to be temporary, would make it easier for banks and securities firms to borrow from the central bank by using a wider range of collateral.
Bankers say these financial institutions might need short-term funds as they unwind their many trading positions with Lehman.
Merrill has some 60,000 employees and Lehman 25,000. It was not clear how the moves would affect them. AIG executives were reported to be trying to raise funds by selling assets or infusion of capital from private equity firms.
But late Sunday night, the New York Times reported quoting a person briefed on the matter that the insurance giant was seeking a $40 billion bridge loan from the Federal Reserve as a potential downgrade of its credit rating could spell doom.
Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counter-parties to withdraw capital from their contracts with the company, the paper said.
more @ http://specials.rediff.com/money/2008/sep/15slide2.htm
Source:Rediff.com
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