<b>Dial Marx for Mayhem</b>
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Among the IT stocks, Infosys dropped 10.92 per cent (Rs 555) to Rs 4,527, while suffered a substantial loss of 18.36 per cent (Rs 284) to Rs 1,262. Satyam ended up with a loss of 5.95 per cent (Rs 19) to Rs 293.
From among the bank stocks, HDFC Bank scrips were down 20.63 per cent (Rs 74) to Rs 286, while ICICI Bank tanked by 9.92 per cent (down Rs 26) to end at Rs 239.
Grasim recovered from its early lows to end 5.81 per cent lower (Rs 63) at Rs 1,018, while L&T tanked 9.82 per cent (Rs 50) to Rs 463. Gujarat Ambuja dropped 11.32 per cent (Rs 35) to end at Rs 276. ACC s loss was 7.74 per cent (Rs 21) as it ended at Rs 246. Bajaj lost 7.49 per cent (Rs 68) to Rs 845. Hero Honda dropped 8 per cent (Rs 35) to Rs 407, while Tata Motors weakened by 8.75 per cent (Rs 36) to Rs 377. <b>Reliance Energy tanked 25.55 per cent (Rs 164) to Rs 477, while Tata Power dropped 19 per cent (Rs 62) to Rs 262</b>, Tisco was minus 9 per cent (Rs 26) to end at Rs 263
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"I foresee Indian stock markets piercing its earlier bottom in a very short span of time. Because foreign money, which has come into India built on hopes of reform and stablility will flow out of India and 50 percent of it was hedge fund money, which would always go out, come what may, forcing our interest rates, our fiscal deficit to rise because the government at the center is leftist leaning, it will increase subsidies, reforms will not take place. And I think coupled with rising petrol prices, commodity prices, India is in for a very very bad time," Vipin Aggarwal, director, Longview Research and Advisory Service said in New Delhi.
05-18-2004, 05:51 AM (This post was last modified: 05-18-2004, 06:16 AM by acharya.)
Left blames BJP for panic at bourses
By Sandeep Dikshit
NEW DELHI, MAY 17. The Left parties today accused the BJP of destabilising the stock markets as part of its "belligerent attitude" towards the new government supported by secular parties. The CPI(M) politburo member, Sitaram Yechury, told newspersons that the BJP had adopted a "politically belligerent posture" by refusing to attend the swearing-in ceremony. On the economic front, it had sought to "create volatility" in the stock markets in an attempt to unsettle the new government.
Mr. Yechury said "it was the duty" of the former Disinvestment Minister, Arun Shourie, to reveal the names of the 10 people who were part of a bear cartel involved in pushing down the market. "The Minister, at that time, had said he knew the names of those 10 people. Now that he is no longer in the government, he should share this information with the new government so that appropriate action could be taken against them." The CPI(M) leader said another reason for the fall in share values was the worldwide volatility in the stock markets. "The Indian stock exchanges cannot be isolated from this trend," he said.
Earlier, the CPI general secretary, A.B. Bardhan, interpreted the stock market crash as a "deliberate attempt on the part of Rightist forces to create a scare in view of the coming change of Government and the leading role played by the Left." He said that while the Left understood the usefulness and role of stock exchanges, it was sure that "certain forces who want to influence the political and economic policies of the country" were responsible for the stock market volatility. "We are not at all scared by this and appeal to those who have doubts that we are committed to stable economic growth that helps the country's poor and the economy in general and not just a section of the people."
Mr. Bardhan felt there was no reason for any section to get scared by today's crash. The Left wanted to convey the same message when the market crashed last week after their leaders called for a check on reckless disinvestment.
<span style='color:red'>The All-India Trade Union Congress general secretary, Gurudas Dasgupta, said the Left was not against foreign institutional investors (FIIs). </span> <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
The CPI (M) leader, Nilotpal Basu, said the stock market crash was not linked to economic fundamentals but was influenced by FIIs. The loss was "notional" and the crash demonstrated the need to carry out capital market reforms to facilitate the entry of small investors.
<!--QuoteBegin-Mudy+May 17 2004, 07:32 PM-->QUOTE(Mudy @ May 17 2004, 07:32 PM)<!--QuoteEBegin--> Indian knows how to commit sucide. <!--QuoteEnd--><!--QuoteEEnd-->
Well! the middle-class folks, who were indeed shinning deserve this. 2 lakh crores just vanished.......
My message to the Indian middle-class: <b>U deserve this!</b>.
The strength of democracy is that Indian elections entail peaceful changes. A change in the Government has taken place. The NDA and the BJP have gracefully accepted the change. Therefore, there should be no reason for any panic in the society including the capital market.
A growth of capital market is vital for India's economy. Over the last six years of the NDA's Rule several capital reforms have taken place, which have strengthened the investors confidence in investment.<b> The Left Parties in India have won 60 odd seats in the Lok Sabha. The Left Parties have not been given mandate to rule this country on the strength of their communist ideology. There is no vindication of left economic policies by the electorate throughout the country</b>. Unfortunately outlandish statements by certain Left Party leaders indicate an attempt of their position in holding the balance of power. The statements indicate excessive political pressure on those drafting the agenda of the new Government. Some of the statements are on economic adventurism. These statements have adversely influenced the sentiments of the market and has sent negative signal to the investors.
The governance is a serious business. We hope those who are drafting agenda of the new Government will resist these pressures coming from those who wish to exercise powers without responsibility.
<b>The BJP ridicules the allegation made by certain Congress and Left Party leaders that the BJP is responsible for the fall in the stock market. Instead of analysing the reasons for the fall and if the Leaders of the future Government are indulging in such reckless allegations, it only shows their lack of understanding of the economy and the capital market.</b>
Okay, India's stock market crash made news in NBC. "Now India's economy is in deep crisis" "crash broke 129 years record" "lost $40 billion since Italian born Sonia is expected to take charge backed by communist" <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo--> <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
From ToI <!--emo&:angry:--><img src='style_emoticons/<#EMO_DIR#>/mad.gif' border='0' style='vertical-align:middle' alt='mad.gif' /><!--endemo-->
People have died during the blasts of '93 on Dalal St and I don't appreciate this attempt by ToI to drive a point. <!--emo&:angry:--><img src='style_emoticons/<#EMO_DIR#>/mad.gif' border='0' style='vertical-align:middle' alt='mad.gif' /><!--endemo-->
<img src='http://img42.photobucket.com/albums/v130/indiaforum/dalalstreet.jpg' border='0' alt='user posted image' />
<b>India's key share index tops 6,700, at new high</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->BOMBAY, Feb 14 (Reuters) - India's key share index rose to a new high on Monday morning, supported by Wall Street's gains and expectations of tax and other reforms in the upcoming federal budget.
The benchmark 30-share Bombay index was up 1 percent at 6,700 points at 0432 GMT. It had touched a high of 6,707.17 points in opening deals, outpacing the previous best of 6,696.31 points struck on Jan 4.
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mkts are really going wild. people are expecting 7K easily by the time of budget coming out. mkts are expecting that commies will keep whining but wont interfere. little EPF rise here and there is all they are going to get. lets see how monsoon is going to be this year. if its good there will be nothing that can stop the bulls.. <!--emo&:devil--><img src='style_emoticons/<#EMO_DIR#>/devilsmiley.gif' border='0' style='vertical-align:middle' alt='devilsmiley.gif' /><!--endemo-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Sensex does it again, rewrites history</b>
PTI/ Mumbai
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) rewrote history, with both key indices scaling their life-time highs after heavy institutional buying pushed up the broad-based market.
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The market shrugged off the high international crude oil prices which ruled above the $53 a barrel. The market opened on a firm note and steadily marched ahead during the session with automobile, banking and oil & gas sector stocks taking the lead.
The 30 -stock sensex which opened 14 points higher at 6,700.79 and briefly slipped to a low of 6,691.18 points, later spurted up by 103 points to a new life-time high of 6,794.22 points in afternoon, surpassing its previous record of 6,725.92 touched on Tuesday morning.
Sensex ended at a historic closing high of 6,784.72 points, gaining a whopping 97.83 points or 1.46 per cent from Wednesday's close of 6,686.89
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<b>Rs 50,000 crore sink with Sensex</b>!<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Investors on Friday lost a staggering Rs 50,000 crore (Rs 500 billion) in the stock markets as prices of most of the blue-chip shares fell sharply pulling down the Sensex by 220 points, the single largest fall since May 2004.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The total m-cap at BSE plunged by Rs 50,000 crore to Rs 18,82,779 crore (18,827.79 billion) while the value of Sensex scrips fell by Rs 24,000 crore (Rs 240 billion) to Rs 6,98,666 crore (Rs 6986.66 billion).
The BSE-200 Index nosedived to 841.38 from the previous close of 867.43 while Dollex-200 were quoted sharply down at 319.60 compared to previous close of 330.10.
The BSE-500 Index fell by 80.48 points to 2664.81 from Wednesday's close of 2745.29 and the Dollex-30 ended lower at 1170.41 from 1213.75.
Among the sectoral indices, the BSE-IT Index nosedived by 160.20 points to 2434.47 from the previous close of 2594.67, the Bankex by 115.77 points to 3771.08 from 3886.85 and the BSE-Metal Index by 291.35 points or 4.67 per cent to 5947.98 from 6239.33.
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Investors on Friday lost a staggering Rs 50,000 crore (Rs 500 billion) in the stock markets as prices of most of the blue-chip shares fell sharply pulling down the Sensex by 220 points, the single largest fall since May 2004.<!--QuoteEnd--><!--QuoteEEnd-->
Dow closed down about 200 points too. Buying opportunity <!--emo&:devil--><img src='style_emoticons/<#EMO_DIR#>/devilsmiley.gif' border='0' style='vertical-align:middle' alt='devilsmiley.gif' /><!--endemo-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Dow closed down about 200 points too. Buying opportunity<!--QuoteEnd--><!--QuoteEEnd-->
Nah!, too risky.
Oil price is still very high and no intervention is expected from Bush. World economy may see worst slow down in coming month. It will serve US interest and may create itch in China's pocket.
<b>Sensex down by 266 pts on fears of government probe</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The Bombay Stock Exchange (BSE) Benchmark 30-share Index opened sharply lower at 8,480.62 and later spiralled down to the day's low of 8,186.13 before ending the day at 8,221.64 from Wednesday's close of 8,487.14, a net fall of 265.50 points or 3.13 per cent.
Thursday's fall is the biggest since May 17, 2004 when the Sensex had crashed by 564.71 points
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The market was gripped by fear that the Government and various investigative agencies would probe the abnormal and rapid rise in share prices, particularly in small-cap stocks.
Selling was also sparked off by speculation that offices of some major stock brokers in Gujarat had been raided by Income Tax authorities during the trading
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>PM 'loses sleep', markets lose points </b>
Pioneer News Service / New Delhi
Many years ago when the Harshad Mehta market boom was at its height, then <b>Finance Minister Manmohan Singh told Parliament that "I don't lose sleep over what happens in the share market."</b>
But this time he appears to have done so already. Finding the Sensex a bit too hot to handle, on Wednesday Prime Minister Manmohan Singh spoke to Finance Minister P Chidambaram about his concern on the market rally. As a result, the Finance Minister directed joint secretary capital markets UK Sinha to rush to Mumbai.
According to reports, the Government is investigating the role played by a large number of prominent NBFCs and broking firms in the wide swing in the stock market. A probe is also on to assess whether cooperative banks have been used for routing funding to brokers. Market is also abuzz with the news that Indian money stashed abroad is flowing back through FII sub-accounts.
<b>The Government and regulators have also stepped up vigilance, probing FII inflows through Mauritius. </b>Intelligence Bureau has despatched two additional directors to Mumbai to investigate whether any manipulation has led to the surge in the market.
<b>The Government's well-publicised concern over the PM 'loses sleep', markets lose points "unreal" market boom evidently triggered the correction on Thursday</b>. On top of it, the I-T crack down on the stockbrokers and other "suspect" market players played in a sharp decline in the Sensex and the collapse of the penny stocks boom.
In connection with the recent unjustified run-up in the penny stocks and small cap, the Income Tax Department on Thursday carried out raids on stock brokerages in Ahmedabad and Rajkot. The offices of five Gujarat-based stockbrokers have been raided. The brokerages raided in Ahmedabad include the Marwari Group, Praveen Ratilal Share Broker, Monarch Project and Finance, We & You and Mahipat Rai Chand.
The department raided 25 branch offices of the brokers in Mumbai, Ahmedabad and other cities in the region. According to reports, the brokers have been raided for allowing trade without margins. <!--emo&:angry:--><img src='style_emoticons/<#EMO_DIR#>/mad.gif' border='0' style='vertical-align:middle' alt='mad.gif' /><!--endemo-->
Following the news, penny stocks lost further ground. Birla Ericsson, Maral Overseas and Aksh Optifibre ended the day in the red and the market tasted the sharpest fall after Black Monday of May 17. The benchmark index, the Sensex shed 265 points to close at 8,221.
The raids come a day after the market regulator SEBI said it plans to closely scrutinise any potential speculators.
However, towards the end of trading session on Thursday, Ministry of Finance clarified that the I-T Department is not conducting nationwide raids on brokerages. The officials have further said that no NBFC or broker is under the Finance Ministry's scanner, adding that there is no evidence of market manipulation yet. "It is not an alarmist situation. The 30 stocks of the Sensex and the 50 stocks on Nifty have been moving on fundamentals."
The Finance Ministry says that the burden of action if any lies with Sebi and RBI.
Meanwhile, the Ministry of Company Affairs has advised that the small investors should be guided by strong fundamentals of the company whose shares they wish to deal in. Their decision should be based upon proper analysis of the background of the company, the promoters and other relevant considerations.
It said that economy is doing very well. Quarterly results of the companies in general reflect a very healthy growth rate, the Ministry said in a release
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