<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India growth story flounders </b>
Pioneer.com
Vivek Sethi | New Delhi
<b>In the history of the Sensex, maximum pain has been inflicted in this last quarter of financial year 07-08 on investors sentiments. Investors have been bottomed out and started doubting the economic fundamentals. As, the benchmark index has already witnessed six out of the ten largest falls in its history in this last quarter</b>.Â
Moreover, the Government is caught between the proverbial "devil and the deep sea". As the mounting inflationary pressure is likely to tie down the RBI from loosening monetary policy, even though the slump in industrial growth would force the Reserve Bank of India (RBI) to cut interest rates during 2008-09, to be unveiled in April. And, the pace of economic growth would have taken a severe beating by the time the fiscal stimulus announced in by P Chidambaram in the Union Budget for 2008-2009 would have the desired impact of reviving consumer growth in the domestic market, if at all it does.
Although the global markets witnessed some marginal losses, the Indian markets ended up nursing the deepest cut.
Sensex on the Bombay Stock Exchange tanked over 770 points to close at 15,357.35 points. Marketmen said an onslaught of selling by funds gripped the markets, wherein the FIIs accounted for a net sale of Rs 108.50 crore, aggravated with the fears of recession in the US. The dismal IIP index and the dollar dipping below record low level against the yen since 1995 -- further dampened the market sentiments.
The 30-share Sensex, which commenced the day on a weak note, tumbled by 770.63 points to 15,357.35. The lowest closing recorded since August 31 at 15,318.60 points. The BSE barometer touched the day's low of 15,228.99 and a high of 15,873.28 points.
The wide-based National Stock Exchange index Nifty also dropped by 258.40 points to 4,623.60 as most of the heavyweight stocks led by banking sector yielded significant ground.
Over half a trillion dollars have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence today sent the market to its lowest level in about six-and-a-half months.
The Sensex had risen 6,500 points in 2007 to end at 20,286.99 points. In terms of the market capitalisation also, the loss incurred since the beginning of 2008 accounts for about 60 per cent of the total gain in 2007. The market capitalisation of all the listed companies had increased by Rs 35,45,626 crore in 2007 to end the year at Rs 71,69,985 crore.
Following are the 10 biggest fall witnessed by the benchmark index Sensex in its life-time:
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->10:16 AM - JP Morgan to buy Bear Sterns at $240 million, reports CNBC TV18. <b>Bear Sterns sells Indian stocks worth Rs 265 crore</b>. Expect the Fed to cut 50 bps on March 18 and the worst in the financial market is not yet over, says JP Morgan Chase. Bear Sterns problems post challenge to the system as a whole and liquidity, well functioning market essential to promote growth, says the Fed.<!--QuoteEnd--><!--QuoteEEnd-->
Under watch of so-called or self gloated Finanace Guru of India ManMohan SIngh who is also India's appointed Prime Minister (never been elected or unelectable)under SOnia of 10 Janpath Road, New Delhi.
<b>The 10 largest falls of the Sensex</b>
1. Jan 21, 2008 --- - 1,408.35 points
2. Mar 17, 2008 --- - 951.03 points
3. Mar 3, 2008 ---- - 900.84
4. Jan 22, 2008 --- - 875.41 points
5. Feb 11, 2008 --- - 833.98 points
6. May 18, 2006 --- - 826.38 points
7. Mar 13, 2008 --- - 770.63 points
8. Dec 17, 2007 --- - 769.48 points
9. Oct 17, 2007 --- - 717.43 points
10. Jan 18, 2007 --- - 687.82 points
<b>Sensex closes above 16k, posts second biggest gain of 2008</b>
Mumbai, Mar 25 (PTI) The markets finally seemed to be out of woods as the benchmark Sensex posted this year's second biggest gain of more than 928 points to regain the 16k level at close on signs that the worst of the US housing slump might well be over.
The 30-share Sensex on the Bombay Stock Exchange zoomed by 928.09 points, or 6.07 per cent, to settle the day at 16,217.49 over its yesterday's close. The index had slipped to below 16k level on March 13 this year.
The BSE barometer had seen the biggest ever gain of 1,139.92 points on January 25, 2008.
On BSE, it was aggressive buying across-the-board and it was best reflected in the fact that no index-related stocks posted losses and all sectoral indices posted gains. Brokers said this mirrors the all-round optimism and bodes well for the markets.
The 50-issue S&P CNX Nifty of the National Stock Exchange also flared up by 267.65 points, its fifth biggest point-wise gain, or 5.81 per cent, at 4,877.50 over its previous close.
Marketmen said a surprise increase in sales of US pre-owned housing data indicated that the worst of the housing slump might be a thing of past now and it lifted the investor sentiments which led to a rally in the Wall Street yesterday.
Dow Jones industrial average yesterday surged by 187.32 points. The Nasdaq composite index also had added 68.64points.
Most of the Asian markets also ended up in the range of 1.0-6.4 per cent today, while European indices also opened higher by 2.0-3.0 per cent.
Marketmen also added that the news that the JP Morgan raised the open offer for the ailing US investment bank Bear Stearns to USD 10 per share from USD 2 per share also aided in lifting the global indices.
Now we will see great fall soon.
What India is doing destroying small investor. International Hedge funds are having field day in Indian stock exchange, at the end it will finsih lot of indian companies and eventually Indian economy.
India need strong measure.
This is a good blog by the guy who runs moneyoga, good no-nonsense info on what to pick and sell, I visit but not too often, but when there is big market news.
This is a good blog by the guy who runs moneyoga, good no-nonsense info on what to pick and sell, I visit but not too often, but when there is big market news.
<!--QuoteBegin-Harshvardan+Mar 26 2008, 09:58 AM-->QUOTE(Harshvardan @ Mar 26 2008, 09:58 AM)<!--QuoteEBegin-->Mudy, I am also an small investor. What should i do? Is this the time to hold onto shares or is it the right time to book profits?
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When it comes to others money, I stay away from any advise. If they gain from advise that is great but if they lose that will make me very miserable. My best policy, stay away from personal financial advise. Take professional help.
Current Indian Stock market trend is not very sound, lot of hidden hands/interest. Very corrupt, this is based on my 17-18 years of observation.
Foreign hedge funds are playing big in Indian stock and will kill Indian growth as they did to Singapore, Brazil, Korea, Thailand in 90s.
I am surprised, why Government is not coming out with restriction and other strong measures? It is mind-boggling. Bear Strean collapsed but before dying they did big damage to Indian market.
<!--QuoteBegin-Harshvardan+Mar 26 2008, 12:28 AM-->QUOTE(Harshvardan @ Mar 26 2008, 12:28 AM)<!--QuoteEBegin-->Mudy, I am also an small investor. What should i do? Is this the time to hold onto shares or is it the right time to book profits?
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Harsh, for a small guy to beat market, it's pretty steep.
Some low risk and common sense approach, if you aren't doing it already would be is to
(a) have automated way of investing small amounts every month in a mutual fund or
(b) invest regularly (every month) in some 'decent' recognizable name stocks and end up dollar-cost-averaging.
The benefits are that you don't have to loose sleep and you are in the market through think-n-thin and in long run you do well.
Challenges with this are
(i) to be disciplined in terms of contributing regularly
(ii) finding some decent basket of stocks/funds (don't shoot for stars or shuffle portfolio too often)
(iii) reducing your monthly transaction fees (see if you can get into a progam with your brokerage or investment club on this)
Disclaimer: Any advice here (financial/investment/legal/business/medical/career related etc etc... on this or any other internet forum) should be taken for what it is; in other words, before spending take professional help.
<b>Sensex tumbles over 700 points to below 15,000-mark </b>
Indian stock markets plummeted by over four percent on Monday, with the benchmark Sensex falling below the 15,000-mark. The sharp slide in markets came on the back of rising international oil prices and on cues from weak Asian markets. At 11:08 am, the 30-share Bombay Stock Exchange index, Sensex was trading 713.49 points or 4.58 percent down at 14,858.69. The 50-issue National Stock Exchange index, Nifty was down 4.50% at 4419.65.
<b>Sensex down by 517 points. </b>
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Marketmen said investors were worried over spiralling inflation while leading economists and analysts predicted that price pressures would prompt RBI to further tighten the monetary policy.<!--QuoteEnd--><!--QuoteEEnd-->
Watch BSE crash tomorrow !!
I am failed to understand, how and why Ruppe is gaining when Oil and other commodities are going up. It means India is selling or leasing Gold.
Any clue ?
With two days USD 1 = Rs43.10 to todays Rs 42.70, yesterday it was Rs 42.55
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