Sensex ends 801 pts down on weak global mkts and declining IIP growth

Sensex ends 801 pts down on weak global markets and declining growth
Market retreats on dismal IIP growth at 1.3%
Inflation eases but no respite for markets; Sensex down 7%
Stock futures point to sharply lower Wall Street open

Investors, taking cues from bleeding global markets, pressed the panic button at the opening bell on the major Indian bourses this morning. As stock prices went tumbling down, the Sensex crashed by around 9.5% to 10,239.76 within the first few minutes.

Stockometer
Infosys Technologies reported a near 10% jump (quarter on quarter) in its net profit but the company's sales fell short of market expectations and the stock went down by over 17% to Rs 1040. Other IT majors and a host of old economy blue chips, including index heavyweights, too nosedived on selling pressure. Infosys Technologies, however, bounced back smartly - it even enjoyed a spell in the positive territory this afternoon - and significantly trimmed down its losses.
Top gainers
Just as it appeared that the Sensex would hit the 10% lower circuit and force a stoppage of trade, the Reserve Bank announced a surprise 150 basis point cut in Cash Reserve Ratio. The Sensex then staged a strong recovery and rose to a high of 10,904.13. The Nifty, which had plunged to 3198.95 in early trade, rallied to around 3400.
Worst losers
However, the recovery proved short-lived as dismal industrial production figures triggered another strong round of selling across the board. Thereafter, despite a couple of modest recoveries from lower levels, the benchmark indices Sensex and Nifty ended the session with huge losses today.
Scrip Scan
While the Sensex ended the day at 10,527.85 with a loss of 800.51 points or 7.07%, the Nifty settled at 3279.95 with a loss of 233.70 points or 6.65%.
Experts' Talk
Ranbaxy Laboratories (4.75%) and State Bank of India (2.3%) were the only gainers from the Sensex today. From the Nifty pack, except Ranbaxy and State Bank of India, the others ended in the negative zone.
Reliance Communications lost a little over 21%. ICICI Bank, despite regaining some lost ground, closed lower by as much as 19.7% today. Reliance Infrastructure lost 19.2%. Jaiprakash Associates eased by 16.25%. Tata Steel lost nearly 15%. Hindalco went down by 11.15%.
HDFC, DLF, BHEL and Larsen & Toubro lost 8% - 9%. Reliance Industries posted a loss of 7.4%. Hindustan Unilever, Wipro, Sterlite Industries, Grasim Industries, Bharti Airtel, Satyam Computer Services, NTPC, HDFC Bank, ACC, Mahindra & Mahindra, ONGC, Tata Motors, Tata Power, Tata Consultancy Services, Tata Motors, Maruti Suzuki and ITC also ended with sharp losses.

Suzlon Energy lost 17.65% today. Unitech (down 12.15%), Cairn India (down 11.9%) and Ambuja Cements (down 11.6%) also suffered heavy losses. Reliance Power, Tata Communications, HCL Technologies, Siemens, ABB, Zee Entertainment, SAIL, Cipla, Punjab National Bank, GAIL India, Sun Pharmaceuticals and Reliance Petroleum lost 5% - 9%.

Realty stocks Orbit Corporation, India Bulls Real Estate, HDIL, Mahindra Lifespace, Penland, Anant Raj Industries, Akruti City and Omaxe declined sharply.

Metal stocks Welspun Gujarat, Gujarat NRE Coke, Jindal Saw, Ispat Industries, Sesa Goa, Jindal Steel, Hindustan Zinc, Jai Corp and NMDC suffered sharp losses.

Among capital goods stocks, Elecon Engineering, Jyoti Structure, Punjab Lloyd, Usha Martin, Areva, Walchandnagar Industries, Alstom Projects, Reliance Industrial Infrastructure, Everest Kanto Cylinder, Crompton Greaves, Havells India, Gammon India, BEML, Bharat Bijli, AIA Engineering and Lakshmi Machine Works went down sharply.

Midcap and smallcap stocks were battered once again. Mirroring the sell-off, the Midcap and smallcap indices lost 8.34% and 7.31% respectively.

Tips to book profits in stock markets! Click here

The market breadth was very weak. Out of a total of 2619 stocks traded on BSE today, only 382 stocks closed on a positive note. 2189 stocks posted losses and 48 stocks ended flat.

Sensex sheds another 800pts, down over 50% from peak

Source:Sify,ET,BS etc

Mkt,Technology headlines frm Deadpresident and others

Results Calendar - Oct 10-11-13 2008

Hedge funds caused market crash ?
Poll Results - My Overall Portfolio is ...
Results Calendar - Oct 10-11-13 2008
Idea Cellular - Annual Report - 2007-2008
HOEC - Annual Director's Report - 2007-2008
Polaris Software - Annual Report - 2007-2008
Geodesic - Annual Director's Report - 2007-2008

SBI, ICICI Bank October 2008 futures at premium
Rupee bounces back
It's national bankruptcy for Iceland
British govt with a rescue act!
Post Session Commentary - Oct 8 2008
Late buying trims losses
Sensex off 13% from recent high
Marc Faber Commentary

For TAMIL lang viewers:
வைரஸ் விரட்டு
மணநாளுக்கென ஒரு தளம்
மனதில் உறுதி வேண்டும்
பாதையை மாற்ற ஹேக்கிங்

www.Labnol.Org
Want a Free Webcam? Just Sign-up for a WebEx Trial Account
When It Comes to Sending Spam, India Ranks at #7
Useful PowerPoint Presentation Tips by Seth Godin
Rososo - the simplest RSS Reader
Earthcomber Sues TechCrunch Blog and Loopt for ‘Patent Infringement’

Google Web Search May Get RSS Feeds via Google Alerts
Create a Back Up of your Tumblr Blog
Create a Back Up of your Tumblr Blog
Find Spelling Mistakes on Web Pages with Spellist
Take Automated Screenshots of Web Pages from Command Line

Xplorer2 – This File Browser Is Better Than Your Windows Explorer
Gmail Goggles: No More Drunk Emailing on Friday Nights
Optimize Image Sizes Online With Yahoo’s Smushit
Ubiquity Tutorial: How to Write a Simple BSE Sensex Tracker
A Good Looking Blogger Template for your Blogs
Google SMS Channels: Send SMS Text Messages to your Group for Free

http://www.techcrunch.com/
Angel Investor Ron Conway Emails His Portfolio Companies Over Financial Meltdown
This Week on CrunchBoard
Yahoo Closes At $13.76. What A Train Wreck.
Come And Get It: Naughty America Is Building An iTunes For Porn
Are The New Woot Ads Funny Or Just Offensive?
Sazell Gets A Much Needed Facelift, Overhauls Its Widgets
Earthcomber Sues TechCrunch Out Of Spite, Pisses Me Off Personally
Erick Schonfeld Discusses MySpace Music On WNYC’s Soundcheck
Another Way To Follow The Campaign: Dipity’s Election Center Timelines
Who’s Messing With Twitter Search?
Poptent Lets Brands Crowdsource Advertising On The Cheap
Microsoft Office Labs Releases “Touchless” Multi-Touch Software As An Open-Source SDK
Reframe It Retreads Web Annotation As A Browser Add-On
Mufin: An Automated Music Recommendation Engine That Actually Works
Organize All The World’s Information, Then Put Google Ads On It
TouchType Makes iPhone Email Better With Landscape Mode
Seattle’s Top Entrepreneurs Band Together To Invest In Local Startups
LP33.tv’s Innovative Music Site Launches To The Public

Source: Deadpresident, PKP, Labnol,Techcrunch blogs.

Most powerful women of India Inc - Business Today

COVER STORYOctober 19, 2008
Most powerful women in Indian business
In pics: 25 best women of India Inc.


Yet another edition of BT's most powerful women in business, together with the rising stars, the start-up heroines, the microfinance mavens and even the inheritors. The women listed here come from an amazing variety of academic and family backgrounds and have established themselves in an equally diverse range of industries despite the near-crippling drag of home and hearth.

Some were lucky to have been at the right place at the right time; one admits that she is not the sort of mother who packs their child's tiffin in the morning-and another is "quite unashamed" to say that she eased up on her career to be with her children when they needed her most. And look out for the rising star who takes her two-year-old daughter jetsetting as she shuttles between two cities in the US and her Indian headquarters, and for the lady who came back to India to be near her ailing mother-in-law-but succeeded with yet another start-up.

Consider: would this list have been possible 20 years ago? On the other hand, how far is the day when BT will list the 250 most powerful women in Indian business and not just 25? The answer to the first question is a definite no. The answer to the second depends on how India builds its infrastructure. Not the infrastructure of expressways and trans-harbour links, but the infrastructure of child care and crèches, schools that don't burden children with homework, on-call housekeeping services, et al. Today, if the child of a working couple falls ill or is let out from school early, or if the babysitter goes on French leave, who has to miss office? No prizes for guessing the correct answer.

Read the stories of BT's amazing women, and you will discover that there are no intellectual differences between men and women. But how many men with a PhD in theoretical nuclear physics or two post-graduate degrees from Yale and Harvard would choose to work for an MFI? The workplace brings with it another gender inequality: the woman rushing home to help her child with his or her homework cannot go out bonding or networking.

So, here's to a growing list of women achievers. May their tribe grow, may the list get longer and may they never have to tell our readers the best way to deal with a glass ceiling.

The top 25
They span generations and are there in every field, from tractors to television, from biscuits to banking, from HR to hospitals. Denied entry into a male bastion, they create another industry (as Kiran Mazumdar-Shaw of Biocon did). They love their saris and their cooking, but also frame the laws that govern the world of alpha-male stockbrokers. They are the most powerful women in the corporate world.

Amrita Patel64, Chairman, NDDB

Power to me means: Maintaining the highest standards of integrity at all times.My favourite life-after-work activity: I am actively involved in two movements—ecological security and rural healthcare.The best way to deal with a glass ceiling: Fortunately, I have not had to fight the glass ceiling. Hard work, commitment and caring in word and deed helps people overcome obstacles.Mantra for maintaining work-life balance: Meditation.
I am not a businesswoman,” says Amrita Patel, Chairman of National Dairy Development Board, the world’s largest dairy development programme, which involves over 12.4 million farmer families, 117,000 co-operative societies and procures 21.5 million litres of milk every day. “I’m in the business of putting other women into business and enabling them to earn a daily income,” says Patel, chairman since 1998. “We must ensure that we do not become importers,” she adds. Patel is behind a National Dairy Plan that looks at demand and supply up to 2021.

More Lists @ Most powerful women in Indian business


Top start-up women
The six start-up women chosen by BT this year are beacons of hope for thousands of women— and men?—who have similar dreams but lack a role model or simply need a prod to get going.
The top in business In pics: India Inc.’s best
On the power track In pics: The rising stars
For women, by women In pics: Women in MFIs
The thought leaders In pics: Top women thinkers
Papa don't preach In pic: The inheritors
The power list in retrospect

From BT archives
2007: Vinita Bali remains at top
2006: Magic at Britannia
2004: Arnavaj Aga remains at top
2003: India Inc's Ms Conscience
Most powerful women in Indian business
Nothing is impossible
For women, by women
The thought leaders
Papa don't preach
The power list in retrospect
The establishment

On the power track In pics: The rising stars
Doing their own thing In pics: Six start-up women
The thought leaders In pics: Top women thinkers

-------------------------------------
Other BT articles
Special
Saving Wall Street
Rachna Monga
After the turmoil, the US financial services sector waits for a bail-out. Whatever happens from here, it’s the death of blueblooded investment banking as we knew it.
Hello Dalal Street
Here comes the pain!

Jobs
Time to switch sectors?
Saumya Bhattacharya
Shortage of talent and demand for new skills is driving people to switch jobs across sectors.
A prescription for growth

Money
Riding the volatile times
K.R. Balasubramanyam
Market confidence has been hit by worldwide financial uncertainty. A beaten-down market and falling asset prices are hurting investors. How should you ride out the storm?
Fine-tune your portfolio
The bond of gains
Glitter Is back
No more cover
A shot of cash
MF scoreboard

From bankruptcy to laughing all the way to the bank
Changing skyline

More @ http://businesstoday.digitaltoday.in


Source:BT

RIL, ICICI Bk major contributors to the market fall

RIL, ICICI Bk major contributors to the market's fall

Sensex fell nearly 50% from its 52-week high of 21206.77 on January 10. It has fallen below 11,000 for the first time since August 2006. Out of the thirty stocks that contributed to the fall,
Reliance Industries, ICICI Bank, L&T, Reliance Communications, HDFC, Reliance Infrastructure, Tata Steel, SBI, JP Associates are the top ten contributors. Reliance Industries and ICICI Bank, alone, have contributed nearly 30% to the fall.

Reliance Industries, ICICI Bank, L&T and Reliance Communications have contributed 14.71%, 14.41%, 8.73% and 5.31%, respectively.

Biggest contributors to the fall from 21206.77 to 11000.


Name Contribution(pts) Contribution (%)
Reliance Ind -1502 14.71%
ICICI Bank -1443 14.14%
L&T -891 8.73%
Reliance Comm -562 5.51%
HDFC -444 4.35%
Reliance Infra -419 4.11%
Tata Steel -407 3.99%
SBI -390 3.82%
JP Assoc -376 3.68%
HDFC Bank -368 3.61%
DLF -325 3.18%
Infosys -317 3.10%
Sterlite Ind -308 3.02%
BHEL -244 2.39%
Bharti Airtel -230 2.25%
ITC -222 2.17%
ONGC -197 1.93%
Grasim -188 1.84%
NTPC -185 1.81%
Tata Power -182 1.78%
Hindalco -174 1.70%
Tata Motors -172 1.68%
TCS -159 1.55%
Satyam -157 1.54%
M&M -99 0.97%
Wipro -85 0.83%
ACC -63 0.61%
Ranbaxy -60 0.58%
Maruti Suzuki -56 0.55%
HUL -15 0.15%

---------------------------------------------
Moneycontrol Special: US PollsGet the Indian perspective. News & analysis updated daily by our reporters in the US
Infy Q2 net seen up 9.6% to Rs 1427.5cr
CRR cut may pep real estate developers
Re hits 6-yr low; near Rs 49/$ mark
FDA responds to subpoenas against Ranbaxy
Invt should take informed decisions: FM

'Little impact on India of global rate cuts'
US stocks end lower after emergency rate cut
World economy to slow sharply, led by US: IMF
Oil prices tumbled below $88 a barrel
China stocks open higher after rate cut
Heard on the Street


Source:ET,MC

Sensex pares losses to close above 11k, Dips below 11k in Intraday

ALERT: Fed orders emergency rate cut to 1.5 per cent
**************************************
Sensex pares losses to close above 11k (edited)
Sensex, Nifty break crucial supports levels
Sensex ends 367 pts down despite a strong recovery
Markets shows signs of pull-back, Sensex above 11K
Sensex ends down 367pts; Ranbaxy soars 9%
Indian economy is still strong
Rupee falls to nearly six-year low

Buying interest in largecaps helped benchmarks to recover from day’s lows but end in the negative terrain. However, midcaps and smallcap stocks continued to remain under selling pressure.

Bombay Stock Exchange’s Sensex ended at 11,405.73, down 367 points. The index touched an intra-day low of 10.740.76 and a high of 11,405.73. National Stock Exchange’s Nifty closed at 3533.35, down 93 points. The broader index touched a low of 3329.45 and high of 3604.40.

BSE Midcap Index closed 5.51 per cent lower and BSE Smallcap Index declined 5.09 per cent. Shares of Ranbaxy Laboratories reversed losses to surge 9.84 per cent on media reports the US Department of Justice had withdrawn a motion against the drugmaker, which was being probed for allegedly bringing adulterated and misbranded medications into the US. Tata Power (5.68%), DLF (2.48%), Mahindra & Mahindra (2.11%) and Maruti Suzuki (1.49%) were the other gainers in the 30-share index. Jaiprakash Associates (-9.41%), Wipro (-7.05%), State Bank of India (-6.61%), Satyam Computer (-6.07%) and Sterlite Industries (-6.07%) were under pressure. Market breadth remained weak through the day. On BSE, 2151 declines outnumbered 457 advances. (provisional)

European markets recover after shock rate cuts
Nikkei tumbles 9.4 pc in biggest 1-day fall since 1987
Tokyo stocks suffer worst crash in two decades
European stock markets slammed by financial crisis
Rupee at six year low on rate cuts

----------------------------------------------
Sensex ends 367 pts down despite a strong recovery

With global indices plunging to new multi-year lows on growing concerns over the financial mess, equities opened on a dismal note on the major Indian bourses this morning. Stocks cutting across sectors and size plunged sharply on heavy selling and sent the benchmark indices Sensex and Nifty to new lows in the process. Stockometer The Sensex, which had touched a historic high of 21,206.77 on 10 January this year, crashed to 10,740.76. The barometer's fall, despite some strong spells of buying here and there, has been quite rapid since July. Today's low is the benchmark's lowest since early August 2006. Top gainers Quite a few high profile investment bankers have fallen down in quick succession in recent weeks and investors, fearing more such collapses, are highly reluctant to enter the ring with purchase orders these days. Measures like the $700 billion bailout package, infusion of funds by central banks to improve liquidity, the recent 50 basis points cut in CRR, the market regulator's decision to lift curbs on FII investments through Participatory Notes have all failed to lift investor sentiment. Worst losers The fall this afternoon was so swift that it raised fears of the indices hitting the 10% lower circuit triggers. However, select blue chip stocks managed to garner support at lower levels, regained some lost ground and pulled the market out of its dismal levels.
While the Sensex ended the day at 11,328.36 with a loss of 366.88 points or 3.14%, the Nifty, which tanked to a low of 3329.45 in intra-day trades, closed at 3513.65, down 2.58% or 92.95 points from its previous closing mark.
Among Sensex stocks, Ranbaxy Laboratories (up 9.1% to Rs 279.25) rallied smartly following the US Department of Justice withdrawing a motion against the company. Tata Power ended with a handsome gain of 4.8% at Rs 804.60. Mahindra & Mahindra (2.75%) and Maruti Suzuki (2.65%) closed on a high note. DLF rallied sharply and ended with a gain of nearly 2%. Reliance Communications edged up marginally.
Nifty stocks Nalco (4.65%), SAIL (1.65%), Sun Pharmaceuticals (1.4%) and Cairn India (0.85%) closed on a firm note. Hero Honda ended with a small gain at Rs 872.50.
Jaiprakash Associates ended with a big loss of 9.9%. Wipro lost 7.9%. Sterlite Industries, ICICI Bank, State Bank of India, Tata Steel, Tata Motors, Satyam Computer Services, ITC and Tata Consultancy Services ended lower by 5% - 7%.
Hindustan Unilever, Hindalco, Larsen & Toubro, Infosys Technologies, HDFC, ACC, ONGC, Grasim Industries, Bharti Airtel, Reliance Industries and HDFC Bank also ended with sharp losses.
Suzlon Energy, despite regaining more than 50 per cent of its losses, ended lower by 8.95%. Zee Entertainment, BPCL, Siemens, Reliance Power, HCL Technologies, GAIL India, Cipla, Reliance Petroleum, Tata Communications, Ambuja Cements, ABB and Unitech closed with sharp losses. As several midcap and smallcap stocks tumbled on selling pressure, the market breadth was very weak today. Out of a total of 2,652 stocks traded on BSE, 2,165 stocks ended in the negative territory. 441 stocks posted gains and 46 stocks ended flat.
----------------------------------------------
Other Stories:
FDI inflows jump by 124% to $14.6 b
Russia, Paris suspend stock trading
More CRR cuts, easing of ECB rules expected
Sensex sinks in global financial tsunami
TCS to acquire Citigroup GS for $505m

UK announces $87 b rescue package
India, US may ink N-deal on Friday
US stocks fall despite rate cut
Britain unveils $875 bn bank rescue amid market panic
India ready to inject more cash into markets: FM

Oil falls on eco slowdown fears
FTSE tumbles 6.8 per cent
Poll: Annual inflation seen at 11.98%
Reliance to commission new plant by Nov-end
SEBI decision on PNs effective from October 7
Indiabulls Real Estate Q2 net dips 76 pc at Rs 7.99 cr

SourcE: ET,Rediff,Sify,BS Etc.

SEBI removes curbs on P-Notes ,RBI cuts CRR by 50 bps

Alert:Wall Street tumbles; Dow falls below 10000
------------------------------------------------
SEBI removes curbs on P-Notes
Sebi lifts curbs on P-Notes
P-note norms revised; no cap in ODIs
SEBI removes restrictions on P-Notes

ET:
The Securities and Exchange Board of India on Monday did a U-turn by doing away with the restrictions on issue of participatory notes by fore
ign institutional investors against securities, including derivatives, as underlying.
The move seems aimed at reversing the foreign fund outflows in recent times due to the credit crisis in the US and spread to Europe. The decision, as SEBI chief CB Bhave put it, was in view of the current market conditions. Bombay Stock Exchange’s today closed below the 12,000 mark. The 30-share index shed 724.62 points or 5.78 per cent to close at 11,801.70, but off the low of 11,732.97. National Stock Exchange’s 50-share Nifty settled at 3602.35, sharply down 215.95 points or 5.66 per cent from the previous day’s close. In October last year, the markets regulator had put a 40 per cent cap on FIIs’ total asset holding via participatory notes or overseas derivatives instruments and stopped them from issuing fresh P-notes or renewal of old ones. SEBI had given FIIs an 18-month deadline ending in March 2009 to do the needful. The moved was aimed to keep track of foreign flows into the country. However, the market regulator’s decision to scrap the restriction on P-notes holding can be debated in times when the world markets are faced with a liquidity crisis and plumbing lows. There could only be a short-term bounce back and a long-term benefit for the market, say marketmen. There could hardly be any major trend reversal in the market as FIIs are pulling out persistently from the emerging market like India, on the worries that most of the major economies heading towards recession following the liquidity crunch, said a senior official with a global investment firm. “However, the move is positive for long-term but in this environment we don't think any major positive change in the domestic market until and unless global crisis settles down.” According to Amitabh Chakraborty, president-equity, Religare Securities, “This should be a positive for the market, although majority of the FIIs are way below the 40% limit today, and hence sufficient headroom already exists for FII investment through the P-note route. FII eligibility criteria remain unchanged.” “We believe that a short term bounce back is likely, as the US is in an oversold zone and a sharp relief rally is possible there, but we remain cautious. While a short term spike of 10 to 15 percent in Sensex can't be ruled out, we are seeing market bottoming out at about 9000-10000, given our Sensex earnings estimates of 10-12% in FY2009 and historically market had bottomed out at about 9-10x forward earnings,” Chakraborty said of the markets. However, Anand Tandon, director of equities, Brics Securities, was sceptical about the SEBI move having any great impact on the markets, “One thing you need to understand that global situation is the dominant factor now. The impact of removing restrictions on overseas derivative instruments would be virtually a muted one considering the unprecedented global financial crisis. It seems to be pertinent move considering the current market situation, but I doubt that it would trigger massive inflows of FIIs. Though it signals of almost an ‘all-norms-relaxed’ move, the situation in the US is still gloomy and impact of which cannot be ruled out the domestic market movement,” Tandon said. The market’s fall from 21206.77 on Jan 10 this year started with trouble brewing in the US following defaults on home loans or the sub-prime crisis and spreading to financial institutions having exposure to this market. G Venkatramani, executive director, Nextgen Capital, said, “This could trigger a short-term recovery in the market but would not hold the downtrend for a long as the global markets are still wobbling with negative vibes though the domestic fundamentals are still sound.” According to Euromax Capital Services, “As the asset value has been falling sharply, this 40 per cent is really very less for the market. Thus, SEBI's move should be taken as a positive one, but a greater impact is less possible due to meagre liquidity in the system.”
SEBI revises P-note norms; lifts 40% cap in ODIs

Sebi revises P-note norms, scraps ODI restrictions

The Sebi Board met today in the backdrop of the global financial turbulence. The meeting took stock of the impact of the turbulence on the Indian capital markets and evolve suitable policy responses.
CB Bhave, Chairman, Securities and Exchange Board of India (SEBI), said norms on participatory notes have been revised and the limit on overseas-derivative instruments (ODIs) in both cash and derivates will be removed. “The 40% cap on assets under custody in cash market will be removed,” he said.
Earlier, in October 2007, the Sebi had banned fresh issue of P-Notes by FIIs. This was done to check the significant flow of foreign funds into the Indian stock markets. The excess liquidity was difficult for the financial market regulators to handle.

Here is a verbatim transcript of CB Bhave's address to media persons. Also see the accompanying video.

We had received a lot of feedback from various stakeholders. The Board considered all the views that had been received as well as the proposal that we had put up. It has been decided that the SME exchange can be either in the form of a new exchange, or an exchange trading platform of an existing exchange, and that there will be competition in this area. So, it is not going to be one exchange that would be licensed by us to be set up as an SME exchange.

The board also decided that the eligibility criteria would be made public by us. Then the exchange, which is newly setup for this purpose, or an exchange that is proposing to setup an existing exchange, which is proposing to set up a platform, can apply and Sebi will then consider those applications.

The board also considered the issue of norms that we have laid down for shareholding by individual shareholders in the demutualised stock exchanges. Again a discussion paper on this was put out by Sebi. As you are all aware the proposal in that discussion paper was to enhance this limit from 5% to 15% for some category of shareholders.

So, the board approved this limit from 5% to 15% for six categories i.e. public financial institutions, stock exchanges, depositories, clearing corporations, banks, and insurance companies.

It also discussed the issue of the entire framework that governs the participation in our markets by what we call FIIs, or foreign institutional investors. The board was of the view that the entire structure needs a comprehensive review. For this purpose, it was decided that we will put out a policy paper, which will be in the public domain for receiving comments from people.

The board also reviewed the decisions of October 2007 with regard to the offshore derivative instruments, or Participatory Notes as they are popularly called. It was decided at that time that these decisions would be subsequently reviewed on the basis of the data that we receive.

On the basis of this review, the board decided that the restrictions on ODIs on derivatives will be removed. Also, the restrictions on having only 40% ODI in the cash investments will also be removed. So, both restrictions that were put for offshore derivative instruments have been decided to be removed. They are no longer applicable.

The board in October 2007 had also decided that we will expedite the process of registering FIIs and sub-accounts so that people come and directly register here in the Indian market. It reviewed that position as well and it was reported to the board that during the last 11 months – October 31, 2007 till now – 397 FIIs and 1,160 sub-accounts have been registered. So, we found that that process is going on smoothly.

These were three important decisions that were taken in the meeting today.

===================================
RBI cuts cash reserve ratio by 50 basis points
CRR cut by 50 bps; Bankers don't see cheap loans soon
RBI cuts CRR by 0.5%
Industry hails CRR cut
RBI cuts CRR by 50 bps to 8.5%
RBI cuts CRR by 50 bps to 8.5%, effective October 11

MUMBAI: The Reserve Bank on Monday slashed by 0.50 per cent the rate of mandatory deposits that banks need to keep with it to ease the tight liquidity position, a move that may induce banks to lower commercial lending rates. The new Cash Reserve Ratio (CRR) of 8.5 per cent will be effective from October 11 and would unlock about Rs 20,000 crore into the banking system, RBI said. This is the first time in almost three years that the bank has relaxed its tight monetary policy stance that it had adopted to contain inflation. The move, which comes in the backdrop of inflation easing below 12 per cent and outflow of foreign capital, is aimed at infusing more funds in the financial system.

==================================
Other TOP stories:
FIIs shed equities worth Rs 2,051 cr
Mkts at 2-yr low: What are experts saying?
Rupee at 5-½ year low as shares slide
Crude oil prices tumble to 8-month low
Wall Street tumbles; Dow falls below 10000
Govt earned Rs 1,47,197 cr in I-T

London stocks slump 8.65%
Investor's wealth below Rs 40 trillion
Falling Re to pull down IT Q2
'Capitulation phase of bear mkt for '08 on'
Thermax bags Rs 450 cr order for captive power plant
D-Street meltdown: 162 stocks hit 52-week lows

SEBI does a U-turn on P-notes as market hits bottom
SEBI does U-turn on P-notes; move could trigger short-term bounce
BNP Paribas' 12-month Sensex target 9476
Nikkei falls to 4-year lows, economy worry hits hard
Brazilian stocks massacred, triggers two trading suspensions

RBI - our banks are ok !
Wall Street tumbles
Term - credit default swap
RBI cuts CRR by 50 basis points
Sebi removes curbs on P-notes
Rupee slides again / RIL, Reliance Capital, RPL October 2008 futures at...
Asian Markets Consolidate Losses As Financial Worr...
Post Session Commentary - Oct 6 2008
Bail-out approval fails to raise spirits
Market tumbles as global financial crisis spreads
Nervousness may continue

Stock Technical Levels
Daily News Roundup - Oct 6 2008
Mountains of worry! Weekly Technicals - Oct 6 2008
GAIL India Q2FY09 Fertlizer Preview
ULIPs vs Mutual Funds
Mahindra Holidays & Resorts files DRHP
Bajaj Hindustan India Utilities
Is India insulated ?


Source:ET,MC,BS,Sify,Rediff,Deadpresident blogs etc

Sensex plummets 725 pts on global weakness, Sensex at 2 year low

Sensex plummets 725 pts on global weakness

Indian market tanks over 5%

It was a long trip down south for benchmark indices Sensex and Nifty today as the bears thronged the ring at the opening bell and remained busy trampling down stocks cutting across sectors right till the end of the session.
Stockometer
The passage of the $700 billion bailout bill did nothing to lift the sentiment in global markets. The Wall Street had ended on a weak note last Friday after trading firm till the final hour. Asian markets went into a tailspin on doubts about the effectiveness of the bailout package in reviving the financial sector from the current turmoil. European markets crashed as well.
Top gainers
With the reporting season just a few sessions away and fears of heavy fall in revenues for the quarter ended September 2008 haunting the sentiment, investors appeared least inclined to pick up stocks today.
Worst losers
The Sensex crashed to 11,732.97, its lowest level in more than two years. It ended the day 11,801.70 with a massive loss of 724.62 points or 5.78%. The Nifty closed 5.66% or 215.95 points down at 3602.35. It touched a low of 3581.60.

BSE CD went down by 11%. The Realty and Metal indices tumbled 9.91% and 9.27% respectively. BSE CG and Power lost around 7.25%. Oil & Gas index ended 6.14% down. The IT and Teck eased by 5.82% and 5.62% respectively. BSE Healthcare, FMCG, Bankex, PSU and Auto lost 3.5% - 4.8%.

Midcap and smallcap stocks were slaughtered. BSE Midcap lost 7.13% and Smallcap ended lower by 6.92%. The market breadth was very weak right through the session. On BSE, only 281 stocks posted gains. 2369 stocks declined and 27 stocks ended flat.

Selling was so widespread that not even a single Sensex stock ended on a positive note today. Among Nifty stocks, Tata Communications (2.35%), BPCL (1.95%) and GAIL India (0.75%) bucked the weak trend and ended with gains.

Sterlite Industries (down 15.25%) was the biggest loser in the Sensex. Reliance Infrastructure (down 13.9%) was sold heavily in the final hour of trade. Jaiprakash Associates (down 13.55%) had another miserable outing. Tata Steel lost over 11%. DLF ended 10.3% down. Tata Power closed with a loss of 10.15%. Reliance Communications and Grasim Industries closed lower by 9.95% and 9.5% respectively. BHEL lost 7.45%.

Reliance Industries slipped by around 6.75%. Ranbaxy Laboratories lost 6.55%. Larsen & Toubro, Wipro, Satyam Computer Services, Tata Consultancy Services, HDFC Bank, HDFC, ITC, Infosys Technologies and Tata Motors lost 5% - 6.5%.

ACC, Bharti Airtel, Hindustan Unilever, ICICI Bank, Mahindra & Mahindra, Maruti Suzuki, ONGC and State Bank of India ended lower by 2% - 4.25%. Hindalco and NTPC also closed with sharp losses.

Suzlon Energy went down by 13.8%. Cairn India slipped by over 11%. Unitech, Reliance Petroleum, Ambuja Cements, Reliance Power, HCL Technologies, Nalco, Zee Entertainment, Idea Cellular, ABB, SAIL and Sun Pharmaceuticals lost 4% - 9%. Hero Honda, Siemens, Cipla and Power Grid Corporation also declined sharply.

Spice Telecom tumbled by over 30% today. Praj Industries, Aban Offshore, Chambal Fertilizers & Chemicals, Shriram Transport, GVK Power, JSW Steel, HDIL, Hindustan Construction Company, Century Textiles, Jindal Steel, India Bulls Financial Services, Phoenix Mills, IB Securities and Bombay Dyeing lost 13% - 20%.

Monnet Ispat, S Kumar's Nationwide, ICSA, Great Offshore, Sterlite Technologies, Gitanjali Gems, Shopper's Stop, Kansai Nero, Shree Precoated Steel, Prakash Industries, Madhucon Projects, Orbit Corporation and Motherson Sumi were some of the big losers in the midcap space.

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Sensex @ 2-yr low

The Sensex opened with a negative gap of 242 points at 12,284 on the back of negative cues from the global markets. The NSE Nifty is down 216 points at 3,602.The US markets on Friday tumbled despite the House of Representatives clearing the $700 bn revised bailout package. As a result of which Asian markets were down 3-4% on an average at the opening bell.
Eventually, most of the asian markets like Hang Seng, Nikkei, Straits Times, Shanghai Composite and Seoul Composite indices ended with losses in the range of 4-6% each.
Bank home, the index too witnessed unabated sellling and tumbled below yet another psychological mark of 12,000, to a low of 11,733 - down 793 points from the previous close. The Sensex finally ended with a significant loss of 725 points (5.8%) at 11,802.
In the process, the index has shed 9.6% (1,254 points) in the last two trading sessions, and is down a whopping 41.8% (8,484 points) so far this year.
The BSE Realty index slumped almost 10% (330 points) to 3,000. The Metal index plunged 9.3% (780 points) to 7,636. The Capital Goods and Power indices tumbled over 7% each to 9,495 and 2,066, respectively.
The market breadth was extremely negative - out of 2,677 stocks traded, 2,369 declined, 281 advanced and 27 were unchanged on Monday.
BIG LOSERS...
Sterlite slumped over 15% to Rs 335. Reliance Infrastructure tumbled 14% to Rs 638, and Jaiprakash Associates [Get Quote] plunged 13.5% to Rs 100.
Tata Steel [Get Quote] crashed 11% to Rs 350. DLF, Tata Power [Get Quote] and Reliance Communications [Get Quote] dropped around 10% each to Rs 302, Rs 798 and Rs 300, respectively.
Grasim [Get Quote] shed 9.5% at Rs 1,591. BHEL crumbled 7.5% to Rs 1,449.
Reliance, Ranbaxy [Get Quote] and Larsen & Toubro slipped around 6.5% each to Rs 1,642, Rs 246 and Rs 1,083, respectively.
Wipro [Get Quote] and Satyam [Get Quote] dropped over 6% each to Rs 320 and Rs 294, respectively.
TCS [Get Quote], HDFC Bank [Get Quote], HDFC and ITC declined around 5.5% each to Rs 619, Rs 1,202, Rs 1,965 and Rs 180, respectively.
Infosys [Get Quote] and Tata Motors [Get Quote] were down over 5% each at Rs 1,318 and Rs 314, respectively.
MOST ACTIVE COUNTERS
Reliance topped the value chart with a turnover of Rs 381 crore followed by Reliance Capital [Get Quote] (Rs 244 crore), Axis Bank (Rs 141 crore), ICICI Bank [Get Quote] (Rs 119 crore) and Tata Steel (Rs 117.70 crore).
Debutant 20 Microns led the volume chart with trades of around 1.30 crore shares followed by IFCI (1.06 crore), Reliance Natural Resources [Get Quote] (1.04 crore), Reliance Petroleum [Get Quote] (71 lakh) and Jaiprakash Associates (59 lakh).

Source:ET,Sify

Week Ahead: Another test of support at 3,800

Week Ahead: Another test of support at 3,800

If the market closes below 3,715, it could lose another 200 points landing between 3,500-3,550.

A pattern of crash, recovery and another crash saw the Nifty back at 3,818 points for a week-on-week loss of 4.19 per cent. The Sensex eased to 12,526 points for a loss of 4.39 per cent. The Defty was down 5.19 per cent with the rupee diving below the 47 mark.

Volumes were low and declines outnumbered advances by a hefty margin. The FIIs were massive sellers which contributed to pressure on the rupee. Indian institutions were token buyers. The Nifty Junior lost 4.47 per cent while the Midcaps 50 lost 5.33 per cent and the BSE 500 lost 4.78 per cent. Incidentally both Sensex and Nifty hit respective 52-week lows of 12,153 and 3,715.

Outlook: Prospects are bearish. But it’s possible that support at the current levels will hold. If so, the Nifty will range-trade between 3,715-4,150. If the market closes below 3,715, it could lose another 200 points landing between 3,500-3,550.

Rationale: The new lows confirmed an intermediate downtrend is in force. The breach of support at 3,800 on intra-day basis also suggests that sellers are becoming more powerful than buyers at that level. This makes it likely the market will make a downside breakout with a target projected to 3,500.

Counter-view: The intermediate downtrend has been in force since mid-July when the market hit a peak of 4,650. Since then, it’s been lower highs and lower lows. After six weeks, the downwards momentum may ease, though this is unlikely in a long-term bear market. If the market does trade up but it will run into resistance between 4,000-4,150. A serious recovery is most likely closer to settlement when short covering would be present.

Bulls & bears: Metals were among the worst performing sectors in a week when around 1,000 stocks touched their respective 52-week lows. Tata Steel, Sterlite, Sail, Nalco, Jindal and Hindalco all did badly. Banks saw wild swings after ICICI was the target of rumours of bankruptcy and other bank stocks also saw selling followed by recovery. The Bank Nifty eventually lost just 0.6 per cent.

FMCG majors like HUL, ITC and Colgate held their ground. Pharma stocks such as Dr Reddy’s, Sun Pharma and Lupin did well and even Ranbaxy looked to have bottomed. Real estate and other rate sensitive stocks such as automobiles, financial institutions and NBFCs generally lost ground.

However two-wheelers like TVS and Hero Honda did much better than four wheelers. The IT industry continues to suffer from fears of US recession and the CNX IT lost 3.3 per cent. The trader’s choices next week vary from shorts, to stocks that may be bottoming, to the odd defensive holding.

Hind Unilever
Current Price: Rs 256.7
Target Price: Rs 265

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Despite a reduction in trading volumes, HUL has held its price gains in a weak market. It may have completed a breakout when it closed above Rs 255. The stock has a potential upside till Rs 265 and a downside till around the Rs 245 levels. Keep a stop at Rs 250 and go long.

ICICI Bank
Current Price: Rs 504.35
Target Price: Rs 550

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The stock saw amazing gyrations between a low of Rs 460 and a high of Rs 565 as it generated high volumes. It has support close to the current price and is most likely to settle into range trading between Rs 500 and Rs 560. Keep a stop at Rs 495 and go long, intending to book profits above Rs 545. If Rs 495 is broken, the next support is Rs 480.

Lupin
Current Price: Rs 770.2Target Price: Rs 810

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The stock has made an upwards breakout on a volume expansion. It faces resistance between Rs 770 - Rs 780 and it has a possible upside till the Rs 810 levels. Keep a stop at Rs 760 and go long. Be prepared to wait up to 10 sessions while it traverses Rs 770 - Rs 780.

Tata Steel
Current Price: Rs 393
Target Price: Rs 380

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The stock has made a downside breakout on heavy volumes. It has a target projection of Rs 380 and this may be exceeded due to high volume. However, any pullback is likely to lead to a bounce till the Rs 420 levels so, there are risks involved in going short. Keep a stop at Rs 400 and go short. Book partial profits at Rs 380. If the Rs 400 stop is broken, go long with a target of Rs 420 and a stop at Rs 395.

TVS Motor
Current Price: Rs 35.65
Target Price: Rs 42
The stock is testing resistance at Rs 36 and if it closes above Rs 36.5, it is likely to have a target of Rs 42. Volumes have been on the high side, which is a good sign in a breakout situation. Keep a stop at Rs 34.5 and go long. Increase the position between Rs 36.5 and Rs 37.5.
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INVESTOR GUIDE frm ET

Bank, energy stocks ease blow for MFs6 Oct, 2008, 0549 hrs IST
NAVs of actively managed diversified stock funds slumped in September, but most of them outperformed the benchmark stock index, cushioned by cash and a softer fall in bank and energy stocks.

The bear grip tightens 6 Oct, 2008, 0546 hrs IST, Deepak Mohoni
The indices remain in the intermediate downtrend which started from the BSE Sensitive Index’s September 8 high of 15,107.

Pressure continuously mounting on Nifty 6 Oct, 2008, 0543 hrs IST, Shakti Shankar Patra
The pillar on which the five-year bull market was built - something that had come to the Nifty’s rescue even during the current crisis - is now busted.

Hedge, private equity funds head for the rocks 6 Oct, 2008, 0534 hrs IST
Forced deleveraging and potential global recession mean the whole range of alternative investments, including real estate and commodities, are very vulnerable.

Hindalco's rights issue: A good investment opportunity 6 Oct, 2008, 0528 hrs IST, Santanu Mishra
Strong fundamentals and a good offer price make Hindalco’s rights issue a good investment opportunity. But if its share price falls well below the offer price, investors will be better off buying the stock from the open market

Even dividend can generate better returns 6 Oct, 2008, 0525 hrs IST, Karan Sehgal
Investing in select stocks from a purely dividend point of view can generate better returns in the long run than investing in the seemingly high interest-paying fixed deposits

Ipca Labs contemplates huge expansion plans 6 Oct, 2008, 0518 hrs IST, Kiran Kabtta
Ipca Labs has an integrated business model with huge expansion plans. Investors can consider the stock based on its growth & value prospects

Good time to begin systematic investing 6 Oct, 2008, 0513 hrs IST
It is too early to make positive predictions about the tsunami that has hit global financial markets. But as things get back to normal slowly, the surroundings will change for the better. This is a good time to begin systematic investing.

Slowing economy may offer respite to retail sector 6 Oct, 2008, 0507 hrs IST, Supriya Verma Mishra
A slowing economy may offer some respite to the domestic retail sector. Falling rentals now provide a glimmer of hope to players who are on an expansion overdrive and experimenting with new formats

The grim scenario of Rupee 6 Oct, 2008, 0500 hrs IST, Ramkrishna Kashelkar
From moving in a fairly stable range over the past three years, the rupee suddenly finds itself swerving around in a rather rocky terrain.

Source: Economic Times, Business standard.

SEBI may ease PN curbs to pep up Dalal St

SEBI may ease PN curbs to pep up Dalal St

The government and financial regulators are set to ease some of the restrictions imposed on foreign portfolio investors last year. The move is part of an effort to bolster capital inflows which have been slowing down lately, according to persons familiar with the matter. Capital market regulator the Securities & Exchange Board of India (SEBI) is likely to discuss a proposal to this effect at its board meeting on Monday.

Foreign institutional investors (FII), who were barred from holding more than 40% of their assets in participatory notes (PNs), could be given some flexibility on this count in the backdrop of the changed scenario in the domestic financial market. The 18-month deadline — ending in March 2009 — to unwind certain PN positions is also likely to figure at the meeting, sources close to the development said. In October 2007, Sebi had placed a ban on either fresh issuance or renewal of PNs by foreign portfolio investors or their sub-accounts in cases where the underlying Indian securities were derivatives. These investors were then directed to wind up their current position over 18 months. It was also decided then to cap the percentage of PNs or offshore derivative instruments (ODIs) outstanding at 40% of the total assets under custody of a registered foreign portfolio investor. One option could be to extend the March 2009 deadline for winding up of positions in cases where PNs have been issued with derivatives as the underlying. A more rigorous know your client (KYC) norm may also be imposed to address concerns relating to money laundering and terrorism financing, if the proposal to ease the current restrictions goes through. With the seizure of credit markets abroad and the attendant squeeze on liquidity , capital inflows into India, be it in the form of portfolio inflows, foreign borrowings or private and venture capital, has been hit over the past few months. Foreign institutional investors (FIIs) have so far taken out close to $10 billion, while foreign borrowings have aggregated close to $10 billion so far compared to net borrowings of $22 billion during the last fiscal. Foreign direct investment (FDI) flows though have been robust at over $10 billion in the first quarter of this fiscal. Sceptics say impact of PN rules change limited However, given the assessment of significantly lower inflows over the next couple of quarters, the government, Sebi and RBI are considering whether to ease the October 2007 restrictions imposed on FIIs in the form of a ban on issuance of ODIs or PNs as they are popularly known, a person close to the development said. ODIs or PNs are derivatives issued against an underlying Indian security, which could be shares or derivatives, by foreign portfolio investors registered in India to overseas investors who are not registered here or seek to trade anonymously.


At that time, the government had defended the move, saying it was aimed at moderating inflows . Large inflows put pressure on monetary policy managem
ent in terms of containing growth of money supply (created through release of rupee funds into the system for mopping up of dollars) and the risk of higher inflation.

“The scenario has changed now. We need to weigh global factors and attract inflows,” said a person associated with the review exercise. Even in October 2007, the finance minister had said that there was no move to completely ban PNs and that the restrictions were to moderate inflows. He had said that the move was in the interests of all categories of investors. However, in the past, RBI had made it clear its discomfort on the issue of PNs and when inflows soared to over $10 billion in September 2007, sought a ban on fresh or incremental issuance of PNs. RBI’s concern also related to the identity of the beneficiary of this instrument.

The central bank has consistently been sceptical about PNs compared to Sebi and the finance ministry. After the ban came into force, the share of PNs in total portfolio inflows is reckoned to have fallen from over 51% in August 2007 to almost half. Since January 2008, the Indian market has fallen in line with global trends. Morgan Stanley estimates that capital inflows have declined to $30-35 billion during April-August 2008 compared with $108 billion in the fiscal year 2008. There are enough sceptics who feel that tweaking the rules now may not have much of an impact in the short term. Their reasoning is that given the redemptions being faced by many hedge funds and the fact that some of the biggest issuers of PNs — such as Merrill Lynch — themselves are in trouble, the impact of a change in policy could be quite limited. But there are others who counter this by saying that the growth story is still attractive.

Coupled with this is the fact that the market is perceived as well-regulated. The data collected after imposing restrictions on PNs would be placed before the board on Monday. Though, the board had held some discussions on the matter at its last meeting also, it wanted to deliberate more on the issue before taking a decision.

Policymakers are of the view that capital flows should be eased to take some pressure off the rupee which has been slipping against the dollar. The finance ministry has already eased some restrictions that were imposed on external commercial borrowings last year in order to increase capital flows into India as well as address the fund requirement of the corporate sector. Sources in the government also said more measures that could boost capital flows into the country could be considered.

Source:ET