If one has to go by the amount of pessimism in the market and the mood being really negative and nothing but negative, then going by the past experiences, markets bottom out when every one is talking about only down sides ignoring the fundamentals and the latest financial results.
One more point which may support these levels is the latest results which are not as bad as expected by the market.
At SENSEX level of 21000, we saw the same euphoria where every one was talking about only higher levels for the index, and not looking at the PE, Fundamentals, or results. That’s when market made the TOP.
So will market stop falling at this level of 8000-7600 which is nearly 70% from the peak and show some sideways movement?
Indian Market News, Market Gossip, Technical Analysis, news
bottom, bottom out, levels, Sensex, sensex 8000, supports
SEBI acts again,
The Securities and Exchange Board of India, or SEBI, has hiked the creeping acquisition limit to 75% from current 55%.
Promoters could earlier not do creeping acquisition beyond 55%. Now, they can buy up to 5% every year till the 75% limit is hit. The market regulator said creeping acquisition beyond 55% will only be through open market normal segment and not bulk deals.
This move has can be seen has positive for the markets and will send positive singles in markets.
Indian Market News, news
creeping, hike, promotor honding, SEBI
In the Market Meltdown since Jan 8, 2008 when the index made its all time high, some banks have lost more than 60% of their Jan 8, 2008 price.
- KOTAK MAHINDRA 77.64% fall from 1328 to 297
- ICICI BANK 76.98% fall from 1339.95 to 308.5
- IDBI 64.07% fall from 168.25 to 60.45
- CANARA BANK 59.87% fall from 391.45 to 157.1
- OBC 55.89% fall from 297.55 to 131.25
- SBI 52.74% fall from 2464.55 to 1164.75
- AXISBANK 49.44% fall from 1065.75 to 538.85
- BANK OF BARODA 45.86% fall from 452.35 to 244.90
- UNION BANK 45.02% fall from 224.55 to 123.45
- HDFC BANK 43.3% fall from 1715.75 to 972.90
- BANK OF INDIA 39.42% fall from 375.35 to 227.40
- PNB 38.46% fall from 682.35 to 419.95
Indian Market News
bank nifty losers, Banks, big losers, highest Fall
In order to increase the capital inflows in Indian markets today SEBI chairman Mr. C. B. Bhave has announced changes in P-notes policy. SEBI today scraped a rule which allowed P-notes could only account for upto 40% of the value of assets foreign fund, he also said entire framework for FII participation needs to be reviewed.
As per Oct 2007 decision FII’s were expected to bring down total p-notes issuance to 40% of their total assets before march 2009. However Mr. Bhave himself told the reporters that FII issuance of P-notes has already come down substantially and thus today’s decision may not make any immediate difference to FII position.
Derivatives, Fundamental Analysis, Indian Market News, Stock Tips, news
FII, P-notes, SEBI
Today Indian central bank, The RBI reduced CRR by 50 basis points to ease liquidity in the market. This measure was undertaken as an ad-hoc measure on a temporary basis. RBI has indicated that it will adopt a proactive policy and continue taking such ad-hoc measure from time to time depending on market conditions. The indian banks were facing tight liquidity crunch and this could have led to a major liquidity crisis hence all banks have welcomed this move and called for another 50 basis point drop. HDFC Bank chairman Mr. Deepak Parekh while welcoming this move said that this action was long overdue and infact should have been taken on last friday itself.
The RBI will hold a meeting at the end of this month where further actions are expected, this move is only expected to have an effect on overnight call rates and lending deposit rates will not be affected.
The above said action will come into effect from 11 Oct 2008 and will result in a liquidity release of 20,000 crores. Watch out for Banking stocks in tomorrow’s trading session.
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CRR, RBI, Reserve Bank
Indian markets faced a severe selling pressure on the news that some of the European banks are also facing problems similar to US banks and seeking heavy bailout packages from respective governments has led Indian markets to see new lows since march 2007.
Metal stocks and Real Estate are the ones which are facing heavy selling pressure, highly leveraged stocks such as Aban Lloyd, DLF, Unitech, private banking major ICICI bank saw heavy cuts in today’s trade.
As per the traders, market is expected to see four digit tick on sensex in next few days.
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BSE, DLF, ICICI, Indian Markets, Market fall, NSE, Sensex, Unitech