Offline
| Post a Message | Explore Forums | Browse Stock Messages | Hot Discussions | Top rated Messages | Top Boarders | |
|
|
|
Economy
Tracked by: 0 Boarder
The Reserve Bank of India, or RBI, has cut the cash reserve ratio, or CRR, by 50 bps to 8.5% with effect October 11. The cut will infuse Rs 20,000 crore into the system....
Tracked by: 0 Boarder
The Reserve Bank of India (RBI) on Monday said it was cutting the cash reserve ratio (CRR) for banks by half a percentage point to 8.5 percent, effective from Oct. 11, to alleviate pressures caused by the global financial crisis.
The measure would release 200 billion rupees ($4.2 billion) into the banking system, RBI in a statement released after market hours.
The CRR is the proportion of deposits banks need to keep with the RBI.
The measure was ad-hoc and temporary in nature, and would be reviewed on a continuous basis and liquidity management would continue to receive priority in the monetary policy, the RBI said.
($1 = 47.8 Indian rupees)
...
Tracked by: 0 Boarder
Oops warren believes
Quote
if things don`t improve, he`ll "have to go back to delivering newspapers.
Unquote
Gosh then what happens to us.. i am not going to be fooled though, i will redeem all my insurance money and invest in stocks. LOL
...
In reply to:
Warren Baffet Worried!
Posted by :
m_i_khilji
Article in VR by Dhirendra Kumar:-
Finally, Warren Buffett is scared. Perhaps you should be too. Fifteen months after start of the global credit crisis (which we innocently used to call the US sub-prime crisis in the olden days), the legendary investor has declared that he has never seen so much economic fear in his life. He has likened the crisis to an economic Pearl Harbour and said that if things don`t improve, he`ll "have to go back to delivering newspapers."
Just last week I`d mentioned how the crisis had left Buffett as a sort of a last man standing on Wall Street and how the crisis had proven the wisdom of what he used to say about financial derivatives and the kind of behaviour they presented. `Financial weapons of mass destruction,` was his description. Interestingly, while Buffett`s words sound more alarming, his actions have indicated hope. He has put down a large amount of cash (about eight billion dollars) to buy major stakes in Goldman Sachs and General Electric.
During this past few weeks, the scale of this crisis has become quite clear. As I`d written two weeks ago, the world has seen easy credit being available for many years, and now the cycle is threatening to reverse itself. Till a few days ago there was a naďve hope that the problem was caused by major global institutions not trusting the quality of assets on each others books. All that was needed was someone like the US government to underwrite the bad assets on these institutions` books and all would be fine.
These simple hopes have now disappeared. It is clear that the great unwinding is upon us. In many ways, what follows will just reset a balance that has been disturbed by the surfeit of money that the world`s economy has seen for about five or six years. The easy and cheap money has been used in all sorts of ways from setting up new factories and infrastructure to buying over-priced stocks and real estate. A cycle of asset price inflation came into being in which the only logic for prices to go up further was that they were going up and there was cheap money available to drive them up. That money is gone now.
What exactly do I mean by `the great unwinding`? Take the example of share prices in India. Almost all the foreign funds that have been driving up the markets are heavily leveraged. Someone has 10 million dollars and they borrow 10 or 20 times on that basis and then bring in the hundred or two hundred million dollars to invest. This could be happening in the hands of the actual fund that invests on Dalal Street or in the hands of that funds` investor but that doesn`t matter now. The 10 or 20 times will now be brought down to a much lower ratio. In a different way, the story of the Indian real estate market is also the same. Unfortunately, the story is also the same on many people`s credit card statements. Debt fuelled a buying binge, and now debt is suddenly a four-letter word.
But that`s the bad news. The good news lies in the actions (not the words) of people like Buffett. The time to buy assets at bargain prices are coming. In the long run, the fortunes will be made not by those who invested in the recent past, but those who will invest in the times to come. 
Tracked by: 0 Boarder
Article in VR by Dhirendra Kumar:-
Finally, Warren Buffett is scared. Perhaps you should be too. Fifteen months after start of the global credit crisis (which we innocently used to call the US sub-prime crisis in the olden days), the legendary investor has declared that he has never seen so much economic fear in his life. He has likened the crisis to an economic Pearl Harbour and said that if things don`t improve, he`ll "have to go back to delivering newspapers."
Just last week I`d mentioned how the crisis had left Buffett as a sort of a last man standing on Wall Street and how the crisis had proven the wisdom of what he used to say about financial derivatives and the kind of behaviour they presented. `Financial weapons of mass destruction,` was his description. Interestingly, while Buffett`s words sound more alarming, his actions have indicated hope. He has put down a large amount of cash (about eight billion dollars) to buy major stakes in Goldman Sachs and General Electric.
During this past few weeks, the scale of this crisis has become quite clear. As I`d written two weeks ago, the world has seen easy credit being available for many years, and now the cycle is threatening to reverse itself. Till a few days ago there was a naďve hope that the problem was caused by major global institutions not trusting the quality of assets on each others books. All that was needed was someone like the US government to underwrite the bad assets on these institutions` books and all would be fine.
These simple hopes have now disappeared. It is clear that the great unwinding is upon us. In many ways, what follows will just reset a balance that has been disturbed by the surfeit of money that the world`s economy has seen for about five or six years. The easy and cheap money has been used in all sorts of ways from setting up new factories and infrastructure to buying over-priced stocks and real estate. A cycle of asset price inflation came into being in which the only logic for prices to go up further was that they were going up and there was cheap money available to drive them up. That money is gone now.
What exactly do I mean by `the great unwinding`? Take the example of share prices in India. Almost all the foreign funds that have been driving up the markets are heavily leveraged. Someone has 10 million dollars and they borrow 10 or 20 times on that basis and then bring in the hundred or two hundred million dollars to invest. This could be happening in the hands of the actual fund that invests on Dalal Street or in the hands of that funds` investor but that doesn`t matter now. The 10 or 20 times will now be brought down to a much lower ratio. In a different way, the story of the Indian real estate market is also the same. Unfortunately, the story is also the same on many people`s credit card statements. Debt fuelled a buying binge, and now debt is suddenly a four-letter word.
But that`s the bad news. The good news lies in the actions (not the words) of people like Buffett. The time to buy assets at bargain prices are coming. In the long run, the fortunes will be made not by those who invested in the recent past, but those who will invest in the times to come....
Tracked by: 0 Boarder
The board of market regulator Sebi is expected to meet today in the backdrop of the global financial turbulence. The meeting is expected to take stock of the impact of the turbulence on the Indian capital markets and evolve suitable policy responses. ...
Tracked by: 0 Boarder
Inflation under control is good sign as far as markets are concerned, it would be ease on growth front. I think we could see lower & lower inflation from now onwards.
Gold, Crude, Food commodities has just begun corrective mode & equity correction almost overdone....
In reply to:
Inflation at 11.99% vs 12.14%
Posted by :
MMB Messenger
Inflation numbers came in at 11.99% for the week ended September 20. Earlier, inflation was seen inching lower. A CNBC-TV18 poll saw inflation for the week ended September 20 at 12.12 % against 12.14% a week ago.
Tracked by: 0 Boarder
Sir,
Government was happy to show inflation data as it went down by some 0.12 %
So government want to compliment himself that inflation is down and we are doing some thing. All election and political drama.
Government will do any thing to improve their image.
Regards...
In reply to:
Inflation
Posted by :
mohanji
Sir,
if I am not wrong From first Oct inflation was to be annouced on monthly basis.So how come inflation has been declared this thursday? regards
Tracked by: 0 Boarder
Europe and USA are not going to lead the world markets in the near future. They may take the global markets down with them. But is that justified ?? USA and Europe have themselves to blame for their fall and Asia is a zone which has very strong fundamentals and should not be treated in the same way as the bankrupt USA market or the weak Europe market. Even the Europe market can revive itself if it focuses more on Asia rather than on the America`s. Fundamentally speaking Asia alone has the leadership qualities as of today and it can alone bring the markets world over out of this bear quicksand. It could be China & Hongkong or India or Japan. But it has to be Asia and it will have to learn from the mistakes the USA has made in the name of capitalism. USA has proved once again that its form of model is not meant for global gain but it is a gain for a specific location but the loss is meant for all. The mess the global markets are in is just because of the USA. It is high time the wise men of the stock market and the financial family thought about the decoupling theory and Asia needs to decouple from the USA and Europe to move ahead with life ...
Tracked by: 0 Boarder
Dos and don’ts
• Economic crisis. market meltdown. rising interest rates. rising inflation... times are, indeed, tough. Here are 10 recommendations on what you should and shouldn`t do to keep your financial health on track.
What you should do
• Follow the news. Swinging markets and new regulatory initiatives... things are changing quickly. Each development affects different sectors differently. Follow the financial media-and Business Today`s Money section, for instance-to keep abreast of the latest developments in India Inc. and for advice on how to profit from them.
• Get your finances in order. There has never been a better time to make a budget and start paying off your debt and credit cards, personal loans, etc. If possible, transfer your loans from a bank that`s charging a higher rate of interest to one that promises a cheaper rate.
• Rethink your plans to retire. If you`re expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans.
• Call your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser, no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.
What you shouldn`t do
• Bail out. Dumping your stocks or equity mutual funds now, when values are especially low, will guarantee that you turn paper losses into real ones. Even if there`s more downside to come, staying on course often pays off during times of economic uncertainty.
• Stop saving. Those regular contributions you`ve been making to your savings or retirement accounts are an important part of good financial discipline, and there`s no reason to stop them now. We`ve long recommended the virtue of making regular, monthly savings. Continue this habit, even if it means cutting down on other things. like the weekly family outing, or that after-office drink with friends.
• Speculate. While lower prices of shares, create opportunities, speculation can get you into big financial trouble. Avoid it.
• Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment incomes, making it difficult to determine how much debt you can handle. If you must borrow, say, to put a child through college or to buy a house, be doubly sure that you`ve examined all the options and risks.
• Stop living. Although these times demand extra caution, there`s such a thing as over-reacting. So, don`t overreact. Reflect carefully and, where necessary, adjust. But don`t stop enjoying the little things of life. You`ll only make yourself sad.
Business Today.............
Tracked by: 0 Boarder
This is just another way to lose money. Pumping money into high risk avenues, such as equities, without understanding can prove dangerous. A Warren Buffet saying sums it all up -- To finish first, you have to first finish!
...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : radhika_nandlal
RAMGE,
Why swollen feet?
Tracked by: 0 Boarder
RAMGE,
Why swollen feet?...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : RAMGE
WoWji,
If its freudian desires, I disagree. Swollen feet (possible) ROFL
cheers
ramji
Tracked by: 0 Boarder
WoWji,
If its freudian desires, I disagree. Swollen feet (possible) ROFL
cheers
ramji...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : radhika_nandlal
RAMGE,
Men are born with oedipus complexes dont blame me for converting you.
Tracked by: 0 Boarder
Radhikaji,
It is his karma to spam if he doesnt what will he do?????????
regards,
amarawargaonkar...
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : radhika_nandlal
Sankar,
Kindly stop spamming the board with repetitive messages.
Thank you.
Me too spams the board but my messages are not repitive. Thats the difference. I think u can chat here but same messages are not ON.
Tracked by: 0 Boarder
Sankar,
Kindly stop spamming the board with repetitive messages.
Thank you.
Me too spams the board but my messages are not repitive. Thats the difference. I think u can chat here but same messages are not ON....
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : sankarcj
Technical analyst C.J.Mathews Sankarathil,MBA is on the views that October series will witness further fall upto 120000 levels,but he declined a further downside from there End of this month will see the recovery phace November will not go much upside but will see a mass upward movement in December Beging of 2009 is good for Indian Markets He assure 17000 level in Sensex by March 2009 Inflation is coming down N-deal will come as a reality Reliance started crude production RPL will start production from December TATA will find new place for NANO and will bringout in right time Indian growth rate will stand between 7% to 8.Overall Indian sene is good SEBI is strong RBI have strong steps Cenntral govt is stable and strong All compents are goo He added that the Indian Markets will outperform next year Indian Mutual funds have lot of money, FIIS is looking for India Indian retailors holding crores to invest All the Indian stocks are clean and reliable The Reliance group of stocks will be the leaders for next rally He optimised 35% growth next financial year
Tracked by: 0 Boarder
The India Nuclear power plans are sounding electrifying but the ground reality is different. See the news article in Business Standard of Sunday, 5/Oct/08. A huge and very very special alloy casting which is painstakingly produced and may have 50% probability of rejection due to 1000,000 possible defects, which it houses the main nuclear reactor vessel is made by only one company in the world, in Japan. It makes only five such casting sets per year. At the current order book situation, if an order is placed tommorow, probably it will try to deliver in 2016, no promise though. The good news is that it is trying to increase it`s production to 8 and 1/2 sets per year. No, gentlemen it is not interested in any JV, or setting up a new casting - forging unit, than the one it has at present. The present premium to jump the queue by buying through another buyer who has made a firm order for delivery in 2 years, is heard to be USD 100 million. Interesting "nuclear hot" news....
In reply to:
Nuke Deal Sets Ball Rolling.......
Posted by : WBuffetBlog
The Indo-US civilian nuclear deal clearing its final hurdle on Wednesday could set the ball rolling on the possibility of uranium imports from Nuclear Suppliers Group nations for the fuel-starved domestic nuclear power programme.
The groundwork for reactor imports and setting up of greenfield Light Water Reactor capacities involving global suppliers is, however, expected to take longer — anything from two to three years even in the best-case scenario.
As an immediate impact of the developments on the nuclear front, state-run Nuclear Power Corporation of India Ltd (NPCIL), which is currently starving for fuel and forced to run its 17 power stations at half their total capacity of 4,120 MWe, could well look at fuel imports to run its existing capacity at higher efficiency, a Government official involved in the exercise said.
In the case of reactor imports, the collaborative efforts could be faster in the case of Russia, since State-owned Russian nuclear firm Atomstroyexport is already assisting Nuclear Power Corporation of India Ltd (NPCIL) in setting up two units at Koodankulam in Tamil Nadu as part of a deal signed in 1988.
Additional reactors with Russian assistance at the Koodankulam site, with four Light Water Reactor units of 1,000 MWe each on the anvil, are expected to be the first of the block following the opening up of the Indian nuclear market.
NPCIL plans to commence work on setting up four new reactors at Koodankulam with Russian assistance this December, with the draft technical and economic proposals expected to be firmed up latest by March-April 2009. The utility has already carried out some of the groundwork, including setting up support infrastructure and the commencement of digging of the foundation pit, as well as getting necessary permissions from the Ministry of Environment and Forests for the four new reactors at Koodankulam, an official said.
Besides, a fast-track approach with the French utilities such as Areva SA (A joint venture between Areva and Siemens) could also be on the horizon, especially for the proposed Jaitapur project in Maharashtra, which was earmarked earlier for joint execution by the two sides.
This could, however, take two or more years in terms of actual reactor imports, according to officials. “What has been signed with France is only a framework agreement for nuclear cooperation (between the two countries). There are more steps to be taken to operationalise the pact, before utilities can sign agreements with French utilities for importing reactors,” an official said. For US firms, including GE-Hitachi combine and Toshiba-owned Westinghouse, entry into the Indian market could take longer.
The Indo-US nuclear deal will now head to the White House for Bush signing it into a law. With Wednesday’s Senate vote, the deal is now ready to be inked by the US Secretary of State, Ms Condoleezza Rice, when she arrives in New Delhi on her rescheduled trip on Saturday, with the External Affairs Minister, Mr Pranab Mukherjee.
The US-India Business Council, a prominent industry lobby comprising 300 of the top US companies committed to a long-term partnership with India, said: “A massive scope for commercial opportunity between US and Indian companies will also be the result, valued at more than $150 billion over the next 30 years, spurring a revival of the nuclear power industries of both countries that will create as many as a quarter million high-tech US jobs for generations to come.”
Boarder Circle