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Tata Motors Shares Hit A 52-Wk Low Of 320.25 Rupees Per Share After Nano Factory Pullout From Singur
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zoombusinessTracked by: 0 Boarder
Tata Motors Shares Hit A 52-Wk Low Of 320.25 Rupees Per Share After Nano Factory Pullout From Singur
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Agm Of-
+ Mastek.
* Egm Of
+ Apeego.
+ Aryaman Financial Services.
+ Mather & Platt Pumps.
* Board Meeting Of
+ Jaipan Industries To Mull Bonus Share Issue, Issue Of Gdr/Fccb.
+ Securities And Exchange Board Of India.
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Nifty strong support 3720 and 3750 levels. Break below will create a panic free fall. on upside 3920 is the resistance. Dont try to short in the morning, as expectations of demand buying will come.
courtesy stoxandmore...
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NRI steel tycoon Lakshmi Mittal has lost 16.6 billion pounds in the global credit crunch owing to plummeting stock markets in the last four months, media reports said i9n London on Sunday.
The 58-year-old Mittal heads a list of ten super-rich losers who together have seen their share portfolios shrink by about 23 billion pounds from their peaks, The Sunday Times claimed.
Another NRI entrepreneur Anil Agarwal, who built up his metals empire, has seen his stock plummet by 2.7 billion pounds.
The height of Mittal`s losses dwarfs those of others in the list of top 10 losers, which include Mike Ashley, the beleaguered owner of Newcastle United football club and the retailer Sports Direct.
Mittal has seen his family`s stake in ArcelorMittal, the steel conglomerate, fall from 33.24 billion pounds on June 4 this year to 16.63 billion pounds at the close of Friday`s markets. The loss is equivalent to 137 million pounds a day or nearly 6 million pounds an hour.
The credit crunch losses were established by comparing the value of shareholdings around the world held by them at their peak with the value at the close of markets last Friday.
Tim Bouquet, author of a book on Lakshmi Mittal, said the tycoon`s lifestyle was well suited to less ostentatious times.
"He`s very careful with money, he knows where most of the pennies go," Bouquet said. "He likes to joke that on his plane he serves pizza rather than champagne. Mittal`s idea of a good time is to order Chinese takeaway from Zen Central in Mayfair in London."
Mittal is also joint owner of Queens Park Rangers with Bernie Ecclestone, head of Formula One, and Flavio Briatore, managing director of the Renault Formula One team. They sparked protests from their fan base last weekend after raising prices for some games to 50 pound, the most expensive tickets in the Championship so far.
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The financial markets rivaled the summer Olympics in terms of broken records last week. The big difference, of course, is that no gold medals were handed out as stocks had their biggest point drop ever, the price of lending skyrocketed to new highs and U.S. auto sales fell to levels not seen since the early 1990s.
The biggest news of the week was the Dow Jones industrials` record 777-point plunge on Monday, after the House rejected the $700 billion bailout package. The legislative impasse also sent the S&P 500 down 16%, in its steepest slide since the index was created in 1989. It also spiked the London interbank offered rate—or the rate at which bank`s lend to each other—to an all-time high on Tuesday of 6.88%.
Libor fell and the Dow surged, though, as the week progressed and the Senate passed its own pork-laden version of the rescue bill late Wednesday. The Dow recovered half its record loss on Tuesday, surging by some 485 points, its highest one-day gain in six years. Libor on Wednesday had dropped to 3.79%.
Meanwhile, an even more ominous snapshot of the economy`s health was unveiled when automakers announced that they had sold fewer than 1 million cars in the U.S. in September for the first time since 1993. The industry moved 964,000 vehicles, off from the 1.31 million they sold during September 2007.
A host of other, somewhat obscure economic gauges set all-time records as well.
The so-called TED spread, which marks the difference between Libor and U.S. three-month treasuries, crossed 350 basis points for the first time. The Chicago Board Options Exchange`s volatility index, a gauge of options on the S&P 500 that is a key measure of market volatility, rose 34%, to a record 46.72. The three-month Libor/OIS spread, which tracks stress in the money markets, widened to 260.75 basis points.
While there were no medals, the financial turmoil did set one gold record. Literally: the holdings of the world`s largest gold exchange-traded fund, the SPDR Gold Trust, rose to more than 755 tons, their highest level ever.
By Matthew Monks...
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There is an old saying among general managers of sports teams: “Sometimes the best trades are the ones you don`t make.” The same is true of investments. In order to properly evaluate alternative investments, the following factors must be considered: costs, returns, volatility, distribution of returns, correlations to other portfolio assets, liquidity, tax efficiency, location, ability to eliminate unsystematic (diversifiable) risks, ability to control the asset allocation and whether more efficient alternatives exist. Those who don`t have the knowledge to make this type of evaluation should seek assistance from a trusted adviser. As Benjamin Franklin said: “An investment in knowledge pays the best interest.”
By Larry Swedroe...
In reply to:
Opinion: Wall Street`s latest rotten apple
Posted by : sambala
It`s time to get back to basics in determining which exotica are or are not suitable for investment
The recent demise of bear stearns and Lehman Brothers and the massive losses experienced by many investment and commercial banks demonstrate that they are not as successful at managing risk as they claim. Among the errors made were placing bets that would sink the company if wrong, treating the unlikely as impossible, and forgetting that liquidity can be an illusion. However, these same firms are exceptionally successful at something else: Designing products that separate capital from its owners. Let me explain.
In the search for better performance, investors explore the category of alternative or exotic investments—investments outside the familiar categories of equities and high-quality fixed-income investments. Great numbers of people embark on this quest when the performance of more familiar investments is lackluster. For example, the 2000-2002 bear market in equities led many investors to investigate alternative investments. Similarly, the 2003 collapse of short-term interest rates to 1% and the 2005 drop in Treasury bond rates to below 4.2% led investors to look for higher-yielding fixed-income investments.
Unfortunately, taking detours in the investment world usually results in sellers owning the yachts, not investors. As professional investors know, the surest way to create a small fortune is to start out with a large one and make “interesting” or “exciting” investments. Sophisticated investors never make investments without fully investigating the risks. If they cannot fully understand them, they don`t invest. Some investment products are so complex in design that it is very difficult (if not impossible) for the average individual investor to fully understand the risks and the costs. Make no mistake about it, the complexity is intentional. If investors understood the product, they would never buy. That is why many such products are truly “tourist traps” designed to be sold, never bought. When the sophisticated financial institutions that design these alternative investments send their marketing machines to square off against individual investors, it is the equivalent of the New York Yankees playing a sandlot baseball team.
A review of the academic research on alternative investments leads to the conclusion that individual investors in many of these products face the high likelihood of failure because of the dramatically higher fees. For example, once all the biases in the data have been removed, hedge funds have had a hard time keeping up with the risk-adjusted returns of Treasury bills. Not only have the returns been poor, but the academic evidence also demonstrates that there is no persistence in performance beyond the randomly expected.
The evidence on the performance of private equity is not much better. For example, while venture capital has provided returns similar to that of the S&P 500 index, it has underperformed similarly risky publicly traded small-cap value stocks. (And these securities do not involve lock-up periods.) And, after adjusting for leverage, buyout funds have dramatically underperformed public equities. These products carry such a surfeit of fees that while the suppliers enjoy a feast, the investors get the equivalent of the leftovers.
There are many other “high-fashion” products that are designed to benefit the issuer, such as equity-indexed annuities. (If investors truly understood them, not a single one would have been bought.) Then there is the category of “structured notes,” including the latest hot product, reverse convertibles. These products, like the shiny apple given to Snow White, have attractive features like a high coupon, but they contain poison in the form of risks not fully understood by investors. Perfect examples include the structured notes offered by Lehman Brothers. These notes provided 100% principal protection. Unfortunately for in-vestors, the “protection” was the backing of the company. After Lehman filed for bankruptcy, these notes traded for pennies on the dollar.
When it comes to these products, investors should consider the transaction from the perspective of the issuers—sophisticated financial institutions such as Morgan Stanley. They don`t play Santa Claus and give additional returns to investors. They issue them because they provide cheaper capital and investors earn lower returns than available from traditional instruments.
Cont..... 
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It`s time to get back to basics in determining which exotica are or are not suitable for investment
The recent demise of bear stearns and Lehman Brothers and the massive losses experienced by many investment and commercial banks demonstrate that they are not as successful at managing risk as they claim. Among the errors made were placing bets that would sink the company if wrong, treating the unlikely as impossible, and forgetting that liquidity can be an illusion. However, these same firms are exceptionally successful at something else: Designing products that separate capital from its owners. Let me explain.
In the search for better performance, investors explore the category of alternative or exotic investments—investments outside the familiar categories of equities and high-quality fixed-income investments. Great numbers of people embark on this quest when the performance of more familiar investments is lackluster. For example, the 2000-2002 bear market in equities led many investors to investigate alternative investments. Similarly, the 2003 collapse of short-term interest rates to 1% and the 2005 drop in Treasury bond rates to below 4.2% led investors to look for higher-yielding fixed-income investments.
Unfortunately, taking detours in the investment world usually results in sellers owning the yachts, not investors. As professional investors know, the surest way to create a small fortune is to start out with a large one and make “interesting” or “exciting” investments. Sophisticated investors never make investments without fully investigating the risks. If they cannot fully understand them, they don`t invest. Some investment products are so complex in design that it is very difficult (if not impossible) for the average individual investor to fully understand the risks and the costs. Make no mistake about it, the complexity is intentional. If investors understood the product, they would never buy. That is why many such products are truly “tourist traps” designed to be sold, never bought. When the sophisticated financial institutions that design these alternative investments send their marketing machines to square off against individual investors, it is the equivalent of the New York Yankees playing a sandlot baseball team.
A review of the academic research on alternative investments leads to the conclusion that individual investors in many of these products face the high likelihood of failure because of the dramatically higher fees. For example, once all the biases in the data have been removed, hedge funds have had a hard time keeping up with the risk-adjusted returns of Treasury bills. Not only have the returns been poor, but the academic evidence also demonstrates that there is no persistence in performance beyond the randomly expected.
The evidence on the performance of private equity is not much better. For example, while venture capital has provided returns similar to that of the S&P 500 index, it has underperformed similarly risky publicly traded small-cap value stocks. (And these securities do not involve lock-up periods.) And, after adjusting for leverage, buyout funds have dramatically underperformed public equities. These products carry such a surfeit of fees that while the suppliers enjoy a feast, the investors get the equivalent of the leftovers.
There are many other “high-fashion” products that are designed to benefit the issuer, such as equity-indexed annuities. (If investors truly understood them, not a single one would have been bought.) Then there is the category of “structured notes,” including the latest hot product, reverse convertibles. These products, like the shiny apple given to Snow White, have attractive features like a high coupon, but they contain poison in the form of risks not fully understood by investors. Perfect examples include the structured notes offered by Lehman Brothers. These notes provided 100% principal protection. Unfortunately for in-vestors, the “protection” was the backing of the company. After Lehman filed for bankruptcy, these notes traded for pennies on the dollar.
When it comes to these products, investors should consider the transaction from the perspective of the issuers—sophisticated financial institutions such as Morgan Stanley. They don`t play Santa Claus and give additional returns to investors. They issue them because they provide cheaper capital and investors earn lower returns than available from traditional instruments.
Cont........
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India Advantage
India`s vast domestic market and availability of low-cost workers with advanced technical skills has been instrumental in attracting the ever expanding number of multinationals who are setting up their manufacturing base in the country.
The sheer size of the Indian market has obvious appeal. The rapid growth of the Indian economy is likely to make India the fifth largest consumer market in the world by 2025 from twelfth in 2005, says a study by McKinsey Global Institute. Aggregate Indian consumer spending is likewise estimated to more than quadruple to US$ 1.77 trillion by 2025, on the back of a ten fold increase in middle class population and three fold jump in household income.
Along with this India offers abundant engineering and technical manpower, producing annually about 4,00,000 graduate engineers. Significantly, the technical workforce is set cross the two million mark this year, with the march from one million to two million happening in just about three years.
Top of the Value-Chain
With such a large technical workforce it is no accident that high skill-sectors account for almost 40 per cent of the manufacturing output in India. Taking advantage of this fact, several multinationals operating in skill-intensive industries requiring advanced technical expertise have set up their shop in India.
For example, ABB, Honeywell, and Siemens in electrical and electronic products; Cummins, DaimlerChrysler, and Toyota Motor in auto components and engineering; and Degussa as well as Rohm and Hass in specialty chemicals have all set up their manufacturing base in the country.
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In reply to:
* Something to cheer despite market meltdown *
Posted by : TrueCompanion
Manufacturing :
After the IT boom, a manufacturing revolution has been well underway in the Indian economy, spurred on by the increasing presence of multinationals, scaling up of operations by the domestic companies and expanding domestic market. The sector has been averaging 9 per cent in the last four years (2004-08), with a record 12.3 per cent in 2006-07.
India`s manufacturing base, which is the fourth-largest among emerging economies, is among the fastest growing and has seen more investments as a proportion of gross domestic product than any country except China.
Consequently, manufacturers from across the world are transforming India - which has all the required skills in process, product, and capital engineering, thanks to its long manufacturing history and higher-education system--into a potential manufacturing powerhouse.
"Every major company has India on its radar screen. And the number of companies, spanning diverse industries, planning to make India their global hub for host of operations has only been increasing by the day.
Cummins is making India its manufacturing hub for newly developed line of generator sets; Samsung plans to make its manufacturing plant in Chennai its global hub; Ford is making India its manufacturing hub for engine manufacturing; Suzuki and Hyundai are making India the manufacturing and exports hub for small cars. In fact, all the top five telecom manufacturers have set up manufacturing facility in India.
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Manufacturing :
After the IT boom, a manufacturing revolution has been well underway in the Indian economy, spurred on by the increasing presence of multinationals, scaling up of operations by the domestic companies and expanding domestic market. The sector has been averaging 9 per cent in the last four years (2004-08), with a record 12.3 per cent in 2006-07.
India`s manufacturing base, which is the fourth-largest among emerging economies, is among the fastest growing and has seen more investments as a proportion of gross domestic product than any country except China.
Consequently, manufacturers from across the world are transforming India - which has all the required skills in process, product, and capital engineering, thanks to its long manufacturing history and higher-education system--into a potential manufacturing powerhouse.
"Every major company has India on its radar screen. And the number of companies, spanning diverse industries, planning to make India their global hub for host of operations has only been increasing by the day.
Cummins is making India its manufacturing hub for newly developed line of generator sets; Samsung plans to make its manufacturing plant in Chennai its global hub; Ford is making India its manufacturing hub for engine manufacturing; Suzuki and Hyundai are making India the manufacturing and exports hub for small cars. In fact, all the top five telecom manufacturers have set up manufacturing facility in India.
...
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The last bear market during the ICE meltdown in 2000-01 had bottomed out after 18 months. The jury is out on whether history will repeat itself.
Even after devouring investors` wealth worth $20 trillion so far this year, the US subprime crisis refuses to die down. This is the second time in the current decade that equity investors worldwide have suffered heavily due to US-created problems. The first time they took the hit was during 2000-2001, when the information, communication and entertainment (ICE) sector crashed following a slowdown in America.
Capital markets battered
This time round, capital markets across the world have been severely battered. Dow Jones has led the mayhem by declining 25 per cent from 14,164.53 on October 9, 2007 to 10,609.66 on September 17, 2008. Owing to larger defaults in developed markets, foreign institutional investors (FII) have pulled out their investments in emerging markets.
China has been hit the most with Shanghai Composite declining 57.4 per cent between January 8, 2008 and September 30, 2008. The Indian market, represented by the 30-scrip BSE Sensex, has declined 38.4 per cent. For comparative purpose, we have taken indices of world markets and emerging Asian markets between January 8, 2008 and September 30, 2008.
The BSE Sensex figured among the top three underperformers on both occasions (ICE meltdown & subprime), indicating that the Indian market has not yet decoupled from the world. During the ICE meltdown, the Sensex had declined 56 per cent from its February 14, 2000 peak of 5,924.31 to 2,600.12 on September 21, 2001. Among world indices, only Nasdaq (down 67.8 per cent) and Taiwan Taiex (down 64 per cent) were below the Indian benchmark index.
After the ICE crisis was over towards the end of 2001, Indian markets staged a smart recovery.
On January 8, 2004, the Sensex rose to its February 14, 2000 intra-day high of 6,150. Except for a brief lull following the NDA`s defeat in the May 2004 general elections, Indian markets never looked back.
The India growth story - mainly a GDP growth of 9 per cent every year for the next 10 years -- went down well with foreign investors, who pumped Rs 178,355 crore in the domestic market between June 2004 and October 2007.
No wonder, the Sensex kept rising even after the US housing bubble surfaced in October 2007, putting to an end the bull-run in the US and Europe almost immediately. But the rise of the Sensex at this point in time gave birth to the so-called decoupling theory. The Indian benchmark index hit an all-time, intra-day high of 21,200 on January 8, 2008, from which day the slide began.
Foreign investors, who led the India show between 2004 and 2007, proved the decoupling theory wrong by pulling out over Rs 100,000 crore from the cash market between mid-October 2007 and September 30, 2008. The reason: concern over the subprime crisis causing damage to the banking sector, leading to credit losses and asset write-downs worldwide, affected the FII sentiment.
India Inc has lost over Rs 35 lakh crore in market capitalisation (m-cap) following a plunge in the BSE Sensex since early January this year. Banking, realty, refinery and power stocks have been the biggest losers with their m-cap slipping by over Rs 2.25 lakh crore each. Telecommunication, trading, technology, engineering, mining and steel companies have reported value erosion of Rs 1-1.73 lakh crore each.
Even after this unprecedented erosion in market value, the bottom is nowhere in sight. The last bear market during the ICE meltdown had bottomed out after 18 months, and it took another 28 months for the market to regain its previous high levels. The Sensex had declined by 56 per cent then. This bear phase is just nine months old. And analysts say this one too is not going to end in a hurry.
The market is at an alarming position right now, and it is unlikely to bottom out very soon even though the Sensex price to earnings (P/E) ratio is reasonably high at 16.6 times. At the lowest level of the ICE meltdown, the Sensex P/E had fallen below 10 times.
According to a study, the market has averaged 1.3 per cent in the 25 weeks that it has fallen since its January peak. This is slightly higher than the average of 1.1 per cent in the first 25 weeks of the previous three bear markets. If it accelerates, it could mark an early end to the bear phase, because in such a scenario, the market will reach its bottom early.
Economist Chetan Ahya, Executive Director, Morgan Stanley, says based on historical evidence, the market could take 18 months to bottom out.
However, if the bear market ends in another 25 weeks, this will be the shortest bear phase in the past 20 years.
Going by past experience, the pace of price fall is likely to slow down in the coming weeks. The previous two bear markets had an average weekly fall of 0.3 per cent after the first six months.
If India Inc performs well in the upcoming results season and the Reserve Bank of India takes some market-friendly measures in between, then a quick recovery in the market is possible.
However, in the second quarter of the current financial year, earnings of Indian companies, including those in the Sensex, are expected to be lower than the 14-15 per cent recorded in the first quarter. Analysts believe that capital goods, consumer goods, telecom, IT services and pharmaceuticals will drive growth, while energy, metals and others will put up a poor show....
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Pepper futures market fell sharply on Friday on bearish activities. October contract dropped by Rs 217 to Rs 13,820 a quintal below the spot price for MG 1. Similarly, November also dropped by Rs 222 a quintal to Rs 13,850, below the spot price. December declined by Rs 203 to Rs 14,084 a quintal....
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Good Report. very practicle. No expert comments. Good.
Thanks/Anil Ashar...
In reply to:
Bears pull down pepper futures
Posted by : MMB Messenger
Pepper futures market fell sharply on Friday on bearish activities. October contract dropped by Rs 217 to Rs 13,820 a quintal below the spot price for MG 1. Similarly, November also dropped by Rs 222 a quintal to Rs 13,850, below the spot price. December declined by Rs 203 to Rs 14,084 a quintal.
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ICICI (sell @ 540) made 498,
Sesa (sell @ 115-116) Made 107.55,
Nifty (Sell@ 3864) made 3829.
Cheers.
courtesy stox and more...
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The top five losers in BSE’s \`S\` group were down by between 13% to 20%.
Northgate Technologies plunged 19.97% to Rs 141.25. It was the biggest loser in BSE\`s \`S\` group shares.
Enso Secutrack declined 16.28% to Rs 36. It was the second biggest loser in S group.
Kallam Spining Mills slipped 16.11% to Rs 15.10. It was the third biggest loser in S group.
Kriti Industries India dropped 13.33% to Rs 7.61. It was the fourth biggest lose in S group.
Indo City Infotech slumped 13.13% to Rs 5.16. It was the fifth biggest loser in S group.
-CM
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In a move to increase its liquidity, American giant General Electricals will raise up to USD 15 billion through sale of shares with legendary investor Warren Buffett agreeing to buy stocks worth three billion dollars.
PTI/DNA -
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