Re: Sensex TECHNICALS
Hi Sudoku,
You can circulate This Thru BSE & NSE brokers & Create a Crash in market
(Before doing that let people in this Thread know...So they can Prepare..)
(I read in today's ET Some SMS circulated THU & WED regrading Single digit Inflation no's...).
Regards
Kumar
Hi Sudoku,
You can circulate This Thru BSE & NSE brokers & Create a Crash in market
(Before doing that let people in this Thread know...So they can Prepare..)(I read in today's ET Some SMS circulated THU & WED regrading Single digit Inflation no's...).
Regards
Kumar
cont'd..........................................................
Thinking they only had liquidity problems but prime assets........ the RBI innocently announced it would offer a repo line 2 MFs through banks. That was when the cat came out of the bag! The repo window drew bids of just a fraction of its size, clearly showing distressed MFs held little of repo-eligible assets - the bank CDs, which the RBI was willing 2 bridge finance.
It turns out that many liquid, money market & debt funds have put their money not in 1st class manufacturing companies with established businesses & credit histories........... but......... real estate ventures creatures of the recent boom in the sector with untested managements & stuck with plenty of unsaleable semi-finished projects. In present market conditions, they r obviously in no state 2 retire their liabilities to MFs.
How did they get there? On paper, the stricken MFs have invested only in AAA paper. But the AAA label is not what it used 2 be.
Predictably, there r loud & powerful voices pleading, demanding a bailout.
The IBA too (strangely) has added its pennys worth as has the ICICI Bank Chairman, Mr K.V. Kamath.
If this is agreed to, the RBI will, in effect, repo junk, toxic whatever u call them MF assets & may still have 2 b done for the nowadays familiar systemic risk argument. Of course, it will be justified saying even the US Fed is doing it.
Considering whats happened (whoever imagined debt funds could go belly up), it is fortunate that provident & pension fund reforms stalled. They propose investing in equities 2 improve returns.
v must thank our stars for the (much criticised) delay. Otherwise, v might have had the spectre of hot shot fund managers losing in short order the lifes savings of millions of ordinary people in the market crash.
That would have been 10s of thousands of crores of rupees bill for the Government................
Thinking they only had liquidity problems but prime assets........ the RBI innocently announced it would offer a repo line 2 MFs through banks. That was when the cat came out of the bag! The repo window drew bids of just a fraction of its size, clearly showing distressed MFs held little of repo-eligible assets - the bank CDs, which the RBI was willing 2 bridge finance.
It turns out that many liquid, money market & debt funds have put their money not in 1st class manufacturing companies with established businesses & credit histories........... but......... real estate ventures creatures of the recent boom in the sector with untested managements & stuck with plenty of unsaleable semi-finished projects. In present market conditions, they r obviously in no state 2 retire their liabilities to MFs.
How did they get there? On paper, the stricken MFs have invested only in AAA paper. But the AAA label is not what it used 2 be.
Predictably, there r loud & powerful voices pleading, demanding a bailout.
The IBA too (strangely) has added its pennys worth as has the ICICI Bank Chairman, Mr K.V. Kamath.
If this is agreed to, the RBI will, in effect, repo junk, toxic whatever u call them MF assets & may still have 2 b done for the nowadays familiar systemic risk argument. Of course, it will be justified saying even the US Fed is doing it.
Considering whats happened (whoever imagined debt funds could go belly up), it is fortunate that provident & pension fund reforms stalled. They propose investing in equities 2 improve returns.
v must thank our stars for the (much criticised) delay. Otherwise, v might have had the spectre of hot shot fund managers losing in short order the lifes savings of millions of ordinary people in the market crash.
That would have been 10s of thousands of crores of rupees bill for the Government................
