The Indian Economy maybe secluded from the Global Crisis to a large extent, however, some sectors dependence on the same is all set to drag down the Indian financial sector. Credit Suisse in a report said, on a conservative basis gross NPLs are expected to rise by 194% by March 2011, with the ratio rising to 4.3%, even before the most recent market turmoil. Amidst a much higher cost of capital and risk premia, (more…)
Author: CP
CRR Cut + P-Note Restriction Analysis
Reserve Bank of India (RBI) announced a cut in the cash reserve ratio requirement (CRR) for banks by 50 bp today to be effective from October 11, 2008. The cut is expected to infuse liquidity in the domestic money market which has seen a sharp squeeze as reflected in the overnight interest rates in the money market and high recourse to the RBI by the banks for liquidity recently. Going further, expect the RBI to relax CRR and statutory liquidity ratio (SLR) in order to manage liquidity if global conditions continue to deteriorate and expects the central bank to cut interest rate in 1Q2009.
P-Note Ban and Lifting the same Saga:
SEBI banned P-Notes few months ago and was speaking loud about the know-your-investor etc. However, it has lifted the same in view of the current market conditions to boost inflows into the market. I guess it is time for all the good men to come to the aid of poorly managed affairs in the Government.
Realty + Core Sector Pull Down Sensex
In the last two trading sessions, the benchmark BSE Sensex has plunged by more than 1,200 points on massive unloading by beleaguered foreign institutional investors, as the financial crisis spread to Europe. Indian Real Estate saga built on paper foundation has collapsed and all the realty stocks hit a new low today. Taking the plunge were most core sector stocks as well – Reliance Infrastructure, Tata Steel, Tata Power, Reliance Industries, BHEL, ACC and Larsen & Toubro. (more…)
Reliance promoters Shareholding – Update
Reliance Industries (RIL) has issued 120m shares to its promoters at Rs1,402/share. The shares were issued on the exercise of options attached to the 120m warrants issued preferentially to the promoters in April 2007.
Prior to exercising the warrants, RIL management did some book adjustments on transferring shares held by various group companies as treasury stocks without any voting rights. [Some analysts are unhappy by the way RIL has done this adjustment – price at which group companies benefited the shares etc]
RIL’s outstanding shares are up to 1,574m shares. The promoter’s stake in RIL is now up to 42.4% from 37.6% after issue of 120m shares. Another 12.6% of treasury shares are controlled by RIL management and held for benefit of all shareholders. Including treasury shares the stake controlled by promoters is up to 54.99% from 51.28% before issue of 120m shares
Indian Bear Market for 29 Month More ?
If technical analysis from the past is to be believed, then Indian Stock market is headed for a 29 Months bear market from this month. WTF ? Well, here is the basis for the same. The present fall has striking similarity to the 2001 correction and the bear market there-off.
Have a look at the following chart of 2001, [Courtesy: Deepak Singh] (more…)
Chemcel Biotech – Basis Allotment
We have obtained the basis of Allotment of Chemcel Biotech IPO for Retail and HNI Category. For, institutions, I believe they are calling and informing the pattern of allocation in such terrible market conditions. WoW!!! Investors Rule. (more…)