Current news & Rumours in the mkt

[praveen taneja]

FII pullback to hurt growth, fiscal targets

Delhi: With foreign institutional investors (FIIs) selling equities worth over Rs 8,688 crore in the last 16 trading sessions, the country is seeing the sharpest reversal in foreign capital inflows since the Lehman Brothers collapse 20 months back. Benchmark indices that advanced the most in more than two weeks on Monday, on the news of a possible patch-up between the Ambani brothers, failed to gain traction and closed flat on lack of FII support.

While macro-policy managers have put up a brave face, many analysts have begun to take note. It is feared that the 8.75% growth projection and a return to the fiscal consolidation path could remain elusive if the trend continues.

Analysts are sceptical of India retaining its status as an investment destination despite the euro zone crisis, the full effect of which is yet to be known. “Our view is that if the European crisis deepens, and global markets suffer another leg down, it will get increasingly difficult for India to remain unaffected,” says Ridham Desai, head of research at global financial services firm Morgan Stanley.

In the quarter ended March 2010, FIIs held 14.5% in the BSE 500 stocks, making them the single largest investor class to decide the fate of the markets.

 

[praveen taneja]

Breaking news =Europe’s debt crisis may be prolonged and hamper global economic recovery, Japanese policymakers said on Tuesday, as fears of a double-dip recession piled more pressure on equities and the battered euro. Japan A month-long selloff has routed global stocks as even a $1 trillion pledge from European leaders was not enough to calm fears that Greece’s debt woes would spread to other deeply indebted nations, particularly in southern Europe

 

[praveen taneja]

spain stock market -611 3.2% down

 

[praveen taneja]

A COMMITTEE of market regulator Sebi will consider the issue of restricting mutual funds from selling an equity product that involves betting on future prices.

The Sebi Mutual Fund Advisory Committee is concerned that this is not mutual funds' core activity and may take a decision on May 31. Equity options is a derivative product where investors bet on future value of stocks or their indices and Sebi is against mutual funds getting into the hedging business, as it could suffer losses.


In a letter sent to all fund houses recently, Sebi had sought proposals from asset management companies (AMCs), regarding selling of equity options and an increased disclosure of their investment in this segment, sources in fund houses said. Mutual funds have already submitted their view to Sebi and they may be reviewed at the Sebi's Mutual Fund Advisory Committee meeting scheduled on May 31. "MF industry body Association of Mutual Funds of India (Amfi) has already submitted its views in consultation with industry players. The proposal would be discussed on May 31," a Sebi source said on condition of anonymity.


The market regulator on its part wants the fund houses to control the risk exposure and clearly demarcate their risky exposure, he added. Industry players said, Sebi has been looking at ways and means of regulating distribution of MF products and also MFs investment in derivatives..


Selling an option usually involve huge losses as the underwriter gets exposed to unlimited risks when market becomes volatile or collapses or hits the upper circuit. The objective of Sebi could be to ensure that MFs can hedge by buying options, but they should not underwrite the option as it is not the core business of MFs to take risk this way.

 

[praveen taneja]

Results Today:



Asian Hotels,

Bajaj Electricals,

Bank of India,

BHEL,

Cinemax,

Dalmia Cement,

Emco,

Ess Dee Aluminium,

Everest Kanto,

Godrej Industries,

Gujarat Alkalies,

GMDC,

GNFC,

HPCL,

Indian Hotels,

Mphasis,

Mukand,

Northgate Tech,

Oil India,

REI Agro

and Tata Steel.

 

[amrutkumar]

Results Today:



.

Can you please send me the Link, where you get the Result Info, PT Bhai.

 

[praveen taneja]

Bro I recv this info from yahoo group if u want can mail u name of group

 

[magnet]

1 Strong rumour going around is of piramal healthcare

After making so much money and will now been making 43% of revenues what they used to earn before abbott deal is a special dividend company is planning

And rumour is it to be of around 100Rs per share

Note::I hold 15 shares at 589 price....source of rumour is everywhere on forum ..Amount source is dna money front page today

 

[magnet]

One more strong rumour for long time investors

According to fundamental analyst rajesh tambe

According to the secret pact between ambani brothers Anil might get 9000 crore cash

And he might use this money to buy spicejet.....only a rumour

my personal addition...He can use this money to increase his stake in fame too...

 

[praveen taneja]

*Dow 10259, up 2.9% *Nasdaq 2277, up 3.7% *S&P500 1103, up 3.3%





SHARES RISE

Key Wall Street share indices ended higher with news of China's denial of a report suggesting it is planning to offload its eurozone bond holdings coming as a big relief to the market.

The news led to rebound in euro, which had lost lot of ground in the previous session, and encouraged investors to buy shares.

Shares opened higher and stayed higher for the rest of the session.

Late-minute buying ensured shares ended at the day's highs.

This was the second best gain posted by the market in the last 10 months, and investors are now watching if the rally will be extend to the next session.

So far this month, Dow and S&P have not managed two rallies in a row, and if they do on the last trading day of the month, it will be regarded as a positive sign.

Among other news on European debt front was Spain's lower house approving austerity measures although investors didn't fail to note the approval came by just one vote margin.

Economic data releases weren't really enthusing but amid relief from eurozone debt front, investors largely ignored the data.

Despite the gains, all three key indices are on track to end the month lower with just one more session to go.

May 31 is a holiday in the U.S. for Memorial Day.



CHINA DENIES REPORT

China's State Administration of Foreign Exchange said foreign reports suggesting it is evaluating its Eurobonds are "groundless".

The head of SAFE said Europe has in the past been one of its major investment markets and will continue to remain so.

He said, "We support the European Union and the International Monetary Fund package of financial stability measures being taken. I believe with the joint efforts of the international community, eurozone will be able to overcome difficulties and maintain stability of European financial markets and healthy development."

A day ago, The Financial Times reported China is reviewing its holdings of eurozone debt in the wake of the crisis that swept through the region's bond markets.

The denial from SAFE came as no surprise for many commentators who questioned the veracity of the story given China never tells anyone what it is doing on its monetary policy.

Besides, if China sells its eurozone bonds, it will mark the death of euro.

The country will be the biggest loser if this happens as it has large such holdings.



INITIAL CLAIMS DOWN

Initial jobless claims fell 14,000 in the week ended May 22 to 460,000.

While the drop in claims was more than expected, given the upward revision in previous data, the initial claim level of 460,000 was higher than economists' median expectations.

The four-week moving average rose 2,250 to 456,500.

Continuing jobless claims fell by 49,000 in the week ended May 15 to 4.6 million. The four-week moving average also fell by 115,000 to 4.637 million.

Economists note jobless data has continued to surprise on the downside with claims not yet suggesting recovery that other data indicated.

On the plus side, however, claims seem to have resumed slow declines and economists will continue to watch the data closely in the next few weeks.