07 Mar 2008 : Indian Stock Market News Round up

Sify
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RBI: Budget in line with growth, price goals
Central bank sees the government's 2008/09 budget as being in line with growth and price stability objectives, it said on Thursday, adding it will help to implement a farm debt relief scheme.

Government may ease foreign debt rule in future
India will ease restrictions on overseas borrowing by companies, introduced last year to slow capital inflows, as soon as local and global conditions allow, a senior finance ministry official said on Thursday

Investors must be encouraged to stay for longer term: FM
Defending his budget proposal to increase short term capital gains tax rate, Finance Minister P Chidambaram today said it would encourage the investors to hold on to their investments for a longer period in the markets, which are currently volatile.

Chidambaram asks brokerages to embrace corporate culture
Finance Minister P. Chidambaram has asked stock brokerages to introduce corporate culture in their working and suggested creating a separate exchange to list small and medium enterprises.

Chidambaram bats for cheaper housing loans
Finance Minister P. Chidambaram Thursday made another pitch for commercial banks to cut interest rates for their consumers, especially on housing loans up to Rs 0.2 crore that accounted for 80 per cent of exposures

The Economic Times
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India Inc on debt row, credit rating takes a hit
With Indian cos borrowing heavily to acquire businesses several times their own size, corporate India has seen a fall in its credit worthiness.

Volatile mkt: Now, brokers bat for commodity futures
Brokers feel that commodity futures may be a safer bet than the equity F&Os at this moment, even as experts have their reservations

International News
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Heavy losses on Wall Street on credit jitters
NEW YORK - Wall Street stocks wallowed in losses Thursday as growing worries about the financial and housing sectors kept traders in a grim mood.

US home foreclosures at new high
WASHINGTON : US home foreclosures rose to new highs in the fourth quarter of 2007 as loan delinquencies jumped to a 22-year high, the Mortgage Bankers Association reported Thursday

Gold price strikes record high near 1,000 dollars
LONDON : The price of gold hit a new record on Thursday close to the symbolic 1,000 dollars per ounce level as the precious metal was boosted again by the weak dollar, traders said

Oil price hit record high near US$106 amid New York explosion
LONDON : Oil prices soared to a record high close to US$106 a barrel on Thursday as traders were spooked by a small explosion in New York, a surprise fall in US crude stockpiles and the weak US currency.

U.S. department stores report weaker February sales
ATLANTA (Reuters) - Major department store chains reported lower February same-store sales on Thursday as consumers spent less on home goods and women's apparel in the weaker U.S. economy.

Household wealth dips for first time since 2002
WASHINGTON (Reuters) - The net wealth of U.S. households fell for the first time in five years during the fourth quarter last year as the value of real estate holdings and stocks weakened, the Federal Reserve said on Thursday

U.S. jobless claims tumble 24,000 last week
WASHINGTON (Reuters) - New applications for U.S. jobless benefits tumbled by 24,000 last week to a much lower-than-expected 351,000, but the number remaining on jobless aid stood at the highest level in nearly two and a half years, a Labor Department report on Thursday showed.

RK
http://yourmitra.wordpress.com

06 March 08 : Good day ahead for the indian markets

Its green everywhere - US and Asia, so expect a good day for the indian markets as well.

RK
Rental Classifieds and Real Estate Social Network

05 Mar 2008 : Indian Stock Market News and Analysts Tips

MoneyControl
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• Gbl weakness accentuated Budget negatives: Kotak Sec
• Mkts to be choppy for 3-6 months: Lehman
• '08 to be down year for mkts: Morgan Stanley
• Mkts still seeing excessive valuations: Damani
• Farm loan waiver +ve in short-term: MF Global
• Mkts to consolidate for a month: Kotak Mah

Sify
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Eicher cuts truck prices after budget duty drop
Truckmaker Eicher Motors Ltd said on Monday it will cut commercial vehicle prices by between Rs 5,000 and Rs 19,000 each, following a government plan to cut taxes on cars, trucks and motorbikes

TRAI to review FI limits for broadcasting sector
In view of convergence of broadcasting and communication technologies, Telecom Regulatory Authority of India (TRAI) today proposed to review Foreign Investment (FI) limits in the electronic media to provide level playing field among competing technologies

Exports grow 20.47% in Jan
Exports showed a healthy growth of 20.47 per cent in January this fiscal over the same month last year, but expanded by a single digit figure of 7.66 per cent in rupee terms due to pricey domestic currency

Narayana Murthy to join HSBC board
Global banking giant HSBC on Monday said Indian IT major Infosys' Chief Mentor N R Narayana Murthy will join its board in May with an annual renumeration of 65,000 pounds (about Rs 52 lakh)

The Financial Express
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Bihar okays $10-bn investments
The Bihar government has approved investment proposals worth over Rs 40,000 crore, many by big corporate entities, but there are still hurdles in the way like poor infrastructure and land acquisition, the state's latest economic survey said

FM: were not as decoupled as we think
Finance minister P Chidambaram appeared unruffled by the downslide in the domestic stock markets, attributing it to a slowdown in US markets. The benchmark Sensex slid 5.1% on Monday, tracking other weak Asian markets.

World economy slips further, prices gear up
The world economy geared down another notch in February but the inflation threat intensified, data showed on Monday, posing the biggest challenge for central bankers in a generation

Investors lose Rs 2.7 lakh cr since Budget; FIIs sell heavily
Over Rs 2.70 lakh crore has been wiped out in market capitalisation since the Budget was presented on February 29, when the Sensex touched 17,578.72. The M-cap of the Bombay Stock Exchange, which touched Rs 58,85,951 crore on February 29, 2008 is now down to Rs 56,15,813 crore on March 3,

Leather sector faces huge lay-offs, seeks fiscal support
Continuous fall in export earnings owing to the widening gap in the rupee-dollar parity is forcing the leather industry substantial production cuts that might lead to lay-off of more than one lakh employees

HSBC absorbs $17-bn subprime hit
HSBC's profits rose 10% last year, just below analysts' forecasts, as strong gains in Asia helped Europe's biggest bank absorb a $17.2 billion hit for bad debts largely due to US housing problems.

Nano fears hit two-wheeler manufacturers
The Nano fear seems to have begun to creep into the minds of two-wheeler manufacturers. In a post-Budget meeting with the finance minister on Monday, the biggies of two-wheeler industry, Hero Honda and Bajaj Auto, requested for a further reduction in excise duty on two-wheelers from 12% as announced

The Economic Times
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RBI may allow trusts to invest abroad
This would open the gates for Indian educational institutions like IITs and IIMs besides religious bodies and charities to invest in or acquire overseas assets.

International News
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Stocks flat as Alcoa, Exxon rise; Nasdaq falls
NEW YORK (Reuters) - The Dow and the S&P 500 ended little changed on Monday as soaring commodity prices

February auto sales tumble, Detroit hit hardest
DETROIT (Reuters) - U.S. auto sales tumbled in February in the face of a slumping economy and high gas prices with double-digit declines by all three struggling Detroit-based automakers.

RK
Rental Classifieds and Real Estate Social Network

Blame yourself every time a market expert fails you

Interesting article by Vivek Kaul/ DNA MONEY that I came across on Sify. Re-posting as it is.

The Sensex has fallen by 10.8 per cent since the beginning of this year. Experts who till two months back saw no wrong with the up and away Sensex, and were predicting it will continue to go up, can now be seen on news channels saying "I told you so" on the fall.

Fact is, most of them really don't know what they are talking about.

As Fred Schwed Jr writes in Where Are the Customers' Yachts? or A Good Hard Look at Wall Street, "Deep thinking continues to be, as ever, mostly second guessing."

The book was first published in 1940, and remains relevant even today.

Schwed writes, "But is it surprising that no one of them is ever quite right? The best explanation is that some of them don't know what they are talking about; and those who do know, don't tell all they know, or don't permit themselves to believe all they know."

So, why try and predict something that is largely unpredictable?

Well, there are several reasons. For one, "It seems that the immature mind has a regrettable tendency to believe as actually true that which it only hopes to be true. In this case, the notion that the financial future is not predictable is just too unpleasant to be given any room at all in the Wall Streeter's consciousness. But, we expect a child to grow up in time... This, however, is asking too much of the romantic Wall Streeter - and they are all romantics, whether villains or philanthropists. Else, they would have never chosen this business, which is a business of dreams. But the ultimate dream they almost never shed: that there is a secret, meaningful and predictable, in the rise and fall of financial enterprises - that a "close study" of this and that will prove something; that it will tell the initiate when there will be a rally and give the speculator a better than even chance of making a killing," writes Schwed.

Also, most investors like to know where the stock market is headed to. And this is where the so called "stock market" experts come in, to fulfil an inherent need.

Schwed writes, "For one thing, customers have an unfortunate habit of asking about the financial future. Now, if you do someone the signal honour of asking him a difficult question, you may be assured that you will get a detailed answer. Rarely will it be the most difficult of all answers - "I don't know.""

And at times, the "cock and bull" story these experts come up with is largely to generate more business for firms they work for. "On the economic side there is no denying that the more financial predictions you make, the more business you do and the more commissions you get. That, we all know, is not the right way to act at all. But I doubt if there are many, or any, Wall Streeters who sit down and say to themselves cool, "Now let's see. What cock-and-bull story shall I invest and tell them today"... The broker influences the customer with his knowledge of the future, but only after he has convinced himself," writes Schwed.

The other kind of prediction maker is the chartist or the technical analyst, as they are popularly known these days.

Schwed writes, "He arms himself with a chart (the simplest sort of graph) which depicts the ups and downs in price of the market as whole or of a commodity. This he studies, well away from the news ticker. It is his claim that he can discern in this jagged pattern of behaviour, which reproduces itself, and that certain of the peaks, valleys, and wobbles tell him when it about to do it again."