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RBI cuts CRR by 50 bps; repo, reverse repo by 100 bps

2009-01-02T12:47:19Z

The Reserve Bank of India (RBI) has cut the cash reserve ratio by 50 basis points (bps)�and both the repo and�reverse repo rates by�100 bps. The repo rate, after the cut, now stands at 4% from 4.5% earlier.

In a statement, the RBI said, �The global financial situation continues to be uncertain. Since the official recognition of recession in the US, the UK, the Euro area and Japan, the downside risks to the global economy have increased. On a review of current global and domestic macroeconomic situation, the Reserve Bank decided to take the measures.�

The release added, �The reduction in the CRR will inject additional liquidity of around Rs 20,000 crore to the financial system. It is expected�that the reduction in the policy interest rates and the CRR will further�enable banks to provide credit for productive purposes at appropriate interest rates. The Reserve Bank on its part would continue to maintain a comfortable liquidity position in the system.�

NIFTY LONGS WILL BE GOOD ONLY ABOVE 3060

2009-01-02T08:40:46Z

NIFTY LONGS WILL BE GOOD ONLY ABOVE 3060

buy 3000 put at 110 ta140 160

2009-01-02T08:39:43Z

buy 3000 put at 110 ta140 160

Strides Arcolab..............

2009-01-02T06:59:49Z

Strides Arcolab Ltd said on Friday it has got approval from the U.S. Food and Drug Administration for two more sterile products, taking the total product approvals to 14. The products are licensed to Akorn-Strides LLC, a joint venture between the company and Akorn Inc, it said in a statement

Daryl Guppy said ..............

2009-01-02T06:58:28Z

Daryl Guppy said that weakness is developing in the markets and the markets are likely to retest October lows. He feels that Nifty can test 2000-2200 levels and Sensex could fall to 7500 levels. False breakout was seen in the markets which has failed. There is a reasonable chance of markets retesting October lows in 4-5 weeks

USDINR

2009-01-02T06:32:05Z

The short term trend for USDINR is bullish. Intraday Sup is at 48.63 & 48.45, Res is at 48.95 & 49.08.

Sensex (9903) Res

2009-01-02T06:29:00Z

Sensex (9903) Res 10188-10570-10945 & Sup 9711-9550-9349.

finmart india: Nifty (3033) Res 3110-3147-3240 & Sup 2981-2928-2842

finmart india: NiftyFut (3043) Res 3118-3178-3298 & Sup 2988-2944-2845

BUY 2900.......... PUT...........

2009-01-02T05:38:14Z

�BUY 2900.......... PUT........... TO HEDGE

book the profits as you have less time

2009-01-02T05:16:20Z

�From 10:05 to 10:30, Nifty will make you run and ultimately will leave you without gains.

� From 10: 30 to 12:50, Market will remain highly volatile. You may get tired while booking profits at every intervals but Nifty will not lose its strength. However, trade with strength to take delivery of the stock, advises .From 12: 50 to the day end, Nifty may witness an increase in its volume. You will remain confused during this session. The day average is positive. But Friends, you may witness fluctuations as today is Friday, the last day of an uncertain week. Sell the stocks you took the previous day, and Trade with your understanding and before taking any long stand �

Market meltdown IN 2008

2009-01-01T13:14:37Z

The Indian stock markets had a dream run in 2007, with the 30-share BSE Sensex rising nearly 47% during the year. The past nine months, starting from January 2008, however, shook the financial markets to the core. Indian indices fell sharply accompanied with a high degree of volatility when the sub-prime crisis hit the global markets. Meanwhile, worried investors sent the stock markets into a dizzying rollercoaster ride.

There were many instances when market slumped following bad news from the global markets. Then again, there were many sessions when positive global sentiments lifted the market.

Here are the ups and downs in past nine and a half months starting from January 2008, when the market climbed up to its peak. The Sensex had hit an all time high of 21206.77 on 10 January 2008. On that day, the index had closed at 20582.08.

21 January 2008: The BSE Sensex registered its biggest single-day point fall. Benchmarks cracked following a sharp setback in global markets, selling by foreign institutional investors and domestic margin calls after a proposed US stimulus package failed to soothe fears the US will tip into recession.

The 30-share BSE Sensex declined 1,408.35 point or 7.41% to 17,605.35. The broader CNX S&P Nifty declined 496.50 or 8.70% to 5,208.80.

22 January 2008: Marketwide circuit filters were applied after key benchmark indices fell by 10% within minutes of commencement of trade. The market tumbled for the second day in a row as margin calls created havoc on the bourses. Though the market ended sharply down, it came off the lower level after a huge intra-day fall.

The BSE Sensex lost 875.41 points or 4.97% to 16,729.94. Nifty lost 309.50 points or 5.94% to settle at 4,899.30.

23 January 2008: The market surged after a two-day rout on speculation more funds will move to emerging markets after an emergency 75 basispoint (bp) cut announced by the US Federal Reserve on 22 January 2008.

The BSE Sensex advanced 864.13 points or 5.17% to 17,594.07. The broader CNX S&P Nifty surged 304.10 points or 6.21% at 5,203.40.

25 January 2008: In what has been a dramatic recovery, the market spurted on that day following a rally in global markets. Several global factors led to the rally including strong corporate sentiment in Germany and a return of some confidence in the US economy after solid employment data and a congressional fiscal package. The Bush administration's fiscal package included $150 billion of tax rebates and business incentives meant to prevent a slowdown in the US economy.

The 30-share BSE Sensex soared 1,139.92 points or 6.62% to 18,361.66. The broader CNX S&P Nifty jumped 349.90 points or 6.95% to 5383.35.

11 February 2008: Huge selling pressure was witnessed across the counters as investors fretted over the dismal debut of Reliance Power. Weak global cues, too, weighed on bourses that day. Anil Dhirubhai Ambani Group firm Reliance Power settled at Rs 372.50 on BSE, a discount of 17.22% over IPO price of Rs 450. It debuted at Rs 547.80, a premium of Rs 21.73% from the IPO price. Volumes in the stock were high. On BSE, 6.38 crore shares changed hands in the counter. Those who had invested in the Reliance Power IPO have incurred a loss of Rs 77.50 per share. Retail investors who had got a discount of Rs 20 per share, have suffered a loss of Rs 57.50 per share.

The BSE Sensex fell 833.98 points or 4.78% at 16,630.91. The broader CNX S&P Nifty was down 263.35 points or 5.14% at 4857.

14 February 2008: Strong global cues boosted the Indian market to surge on that day. The rally in global markets was triggered by an unexpected rise in US retail sales in January 2008 that helped ease recession worries in the world's largest economy.

The BSE Sensex rose 817.49 points or 4.82% at 17,766.63. The broader CNX S&P Nifty rose 272.55 points or 5.53% at 5202.

3 March 2008: The key benchmark indices witnessed unabated selling pressure across sectors, mirroring weakness in the global stock markets. A global sell-off was triggered today after weak US data on Friday, 29 February 2008, and a record loss of insurer American International Group Inc fuelled worries that there are more write-downs to come.

The BSE Sensex tumbled 900.84 points or 5.12% to 16,677.88. The broader CNX S&P Nifty fell 270.50 points or 5.18% at 4953.

13 March 2008: A major setback was witnessed on the bourses amid concerns about the effectiveness of the US Federal Reserve's efforts to aid strained credit markets. The US Federal Reserve on 11 March 2008 decided to lend up to $200 billion in treasury securities to shore up battered banks in exchange for debt, including mortgage-backed securities.

The BSE Sensex slumped 770.63 points or 4.78% at 15,357.35. The broader based S&P CNX Nifty was down 242.40 points or 5.10% at 4,623.60.

17 March 2008: A setback in global markets rattled domestic bourses on that day as the fire sale of ailing US bank Bear Stearns and the Federal Reserve's emergency cut in its discount rate intensified concerns that there could be more victims of the global credit crisis. The fifth-largest US investment bank Bear Stearns said on 14 March 2008, its liquidity position had deteriorated significantly and a cash crunch forced it to turn to the Federal Reserve and JPMorgan Chase for emergency funds. JPMorgan said on 16 March 2008 it would buy Bear Stearns in an all-stock deal, and that the Fed would fund up to $30 billion of Bear Stearns' less liquid assets. In a major development, the US Federal Reserve on 16 March 2008, cut its discount rate to 3.25% from 3.5% and said that it was creating a facility to let primary dealers borrow at that rate.

The BSE Sensex lost 951.03 points or 6.03% at 14,809.49. The broader based S&P CNX Nifty was down 242.70 points or 5.11% at 4,503.10.

25 March 2008: Intense buying in frontline stocks saw the Sensex breach the 16,000 mark on that day. Buoyancy was visible across the global markets, triggered by JP Morgan raising Bear Stearns� acquisition price 5 times and US economic data that showed US new home sales had risen 3% in February 2008.

The BSE Sensex rose 928.09 points or 6.07% to 16,217.49. The broader CNX S&P Nifty jumped 267.65 points or 5.81% at 4877.50.

31 March 2008: Sustained selling pressure in blue chips spooked the bourses after negative global cues dampened sentiment. The sentiment was also hit by reports that the Institute of Chartered Accountants of India (ICAI) asked companies to disclose losses on a mark-to-market basis incurred due to derivatives trades from the current financial year onwards (year ending March 2008) as a precursor to making a new accounting standard -- the AS-30 -- mandatory from 1 April 2011.

The BSE Sensex plunged 726.85 points or 4.44% at 15,644.44. The broader based S&P CNX Nifty plunged 207.50 points or 4.20% at 4,734.50.

27 June 2008: The market slumped after a sharp spurt in crude oil prices and political uncertainty due to Indo-US nuclear deal played spoil sport. Fears of a monetary tightening by the Reserve Bank of India (RBI) following surge in inflation to more than a 13-year high weighed on the sentiment. Crude oil hit a record of $140.39 on 26 June 2008 after Libya said it was studying possible options to cut output in response to potential US actions against Organization of the Petroleum Exporting Countries (OPEC) countries.

The BSE Sensex slumped 619.60 points or 4.30% to 13,802.22. The broader based S&P CNX Nifty tanked 179.20 points or 4.15% at 4,136.65.

2 July 2008: The market spurted on hopes the Congress-led United Progressive Alliance (UPA) government might be able to retain power on expectations of Samajwadi Party�s (SP) support at a time when Left parties were on the verge of withdrawing support over the Indo-US nuclear deal.

The BSE Sensex surged 702.94 points or 5.42% at 13,664.62. The broader based S&P CNX Nifty was up 196.6 points or 5.05% at 4,093.35.

3 July 2008: A surge in oil price to a record high above $144 a barrel and overnight fall in US stocks dragged Indian indices lower.

The BSE Sensex slumped 570.51 points or 4.18% at 13,094.11. The broader based S&P CNX Nifty was down 167.6 points or 4.09% at 3,925.75.

9 July 2008: A mix of positive domestic and global news helped bulls conquer the bourses. The market soared on sharp fall crude oil prices. Crude oil for August 2008 delivery slumped 3.8% to $136.04 a barrel on the New York Mercantile Exchange. The market got a boost on hopes the government would push through some of the economic reforms which the Left parties had stalled over the past four years. The Left parties on 8 July 2008 said they were withdrawing support to the Congress-led UPA government to protest the Indo-US nuclear deal.

The BSE Sensex surged 614.61 points or 4.6% at 13,964.26. The broader based S&P CNX Nifty was up 168.55 points or 4.23% at 4,157.10.

15 July 2008: The key benchmark indices collapsed under the combined weight of weak global markets and domestic political uncertainty. Fears over the solvency of major Western banks rattled stocks in Asia and Europe after the US Federal Reserve and Treasury Department mounted a rescue plan to help support top mortgage lenders Fannie Mae and Freddie Mac. The US government, which held or guaranteed nearly $5 trillion worth of mortgages in these two companies, announced a bigger line of credit with the Treasury. In return, the Treasury would buy 80% stake in the firms. The plan also allowed Fannie and Freddie to borrow directly from the Fed, giving them the same access that commercial banks and Wall Street firms have. While the plan tempered fears that the two firms would collapse, it did little to calm broader worries about the economy.

The BSE Sensex plunged 654.32 points or 4.91% to 12,676.19. The broader based S&P CNX Nifty tumbled 178.60 points or 4.42% at 3861.10.

17 July 2008: Frenzied buying in battered pivotals coupled with short covering triggered a solid rally following strong global markets and a savage fall in crude oil prices to $134.60 from $138.74 a barrel on the 15 July 2008.

The BSE Sensex surged 536.05 points or 4.26% at 13,111.85. The broader based S&P CNX Nifty advanced 130.50 points or 3.42% at 3,947.20.

23 July 2008: The market gave a thumbs up to the UPA government securing a confidence vote in parliament hoping to pave the way for stalled key economic reforms. Easing crude oil prices and firmness in global markets were the other positive factors that moved the domestic indices higher. The Congress-led UPA coalition government won a confidence vote in parliament late on 22 July 2008, ending speculation over an early election and allowed Prime Minister Manmohan Sigh to turn the page on political squabbling that had worried investors and stalled government action. The trust vote paves the way for operationalisation of Indo-US nuclear deal.

The BSE Sensex rose 838.08 points or 5.94% at 14,942.28. The broader based S&P CNX Nifty advanced 236.70 points or 5.58% at 4476.80.

15 September 2008: Bears ruled the roost as key benchmark indices posted substantial losses after US investment bank Lehman Brothers filed for bankruptcy protection, making it the largest and highest-profile casualty of the global credit crisis. Nonetheless, news that China's central bank cut interest rates helped the domestic bourses cut steep intra-day losses. China's central bank, acting against a background of extreme stress in global financial markets, cut benchmark lending rates by 27 bps to 7.20% on 15 September 2008. The People's Bank of China (PBOC) also cut the reserve requirement for all except the country's five biggest banks and the Postal Savings Bank by 1%. The PBOC said the aim of the easing was to maintain fast and stable economic growth.

The Sensex lost 469.54 or 3.35% at 13,531.27. The S&P CNX Nifty lost 155.55 points or 3.68%, at 4072.90.

16 September 2008: The RBI announced measures to avert a sharp fall in the rupee against the dollar and increase liquidity. The measures include direct RBI participation in the foreign exchange market, additional liquidity injection and increase in the Foreign Currency Non Resident Deposit (FCNR) and Non Resident External (Account) (NRE) term deposit rates.

Banks were also allowed, on a temporary basis, to avail additional support under the liquidity adjustment facility (LAF) up to one per cent of their net demand and time liabilities and seek waiver of penal interest. The LAF enables the RBI to modulate short-term liquidity under varied financial market conditions in order to ensure stable conditions in the overnight (call) money market. The LAF operates through daily repo and reverse repo auctions thereby setting a corridor for the short-term interest rate consistent with policy objectives.

The BSE Sensex slipped 12.47 points or 0.09% at 13,518.80. The S&P CNX Nifty rose 2 points or 0.05%, to 4074.90.

18 September 2008: The Union Government approved 12 foreign direct investment (FDI) proposals worth Rs 1414.65 crore recommended by Foreign Investment Promotion Board (FIPB). The proposals related to ministries/departments of commerce, economic affairs, heavy industry, information & broadcasting, information technology and telecommunications.

The BSE Sensex rose 52.70 points or 0.4%, to close at 13,315.60. The S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15.

19 September 2008: The market soared on hopes of a more comprehensive US government approach in taming the global credit crisis. US Treasury Secratary Henry Paulson called for the government to spend billions of dollars to take toxic mortgae assets off financial companies to restore financial stability.

The BSE Sensex jumped 726.72 points or 5.46% to 14,042.32. The S&P CNX Nifty advanced 207.10 points or 5.13%, to settle at 4245.25.

22 September 2008: Finance ministry raised overseas borrowing caps for infrastructure companies for rupee expenditure from $100 million to $500 million. Borrowings in excess of $100 million must have a minimum average maturity of seven years. The interest rate spread, the rate above London inter-bank offered rate (libor) at which infrastructure companies can borrow, was raised to 450 bps from 350 bps earlier.

The BSE Sensex fell 47.36 points or 0.34% to 13,994.96. The S&P CNX Nifty fell 22.20 points or 0.52% to 4223.05.

3 October 2008: Concerns about the effectiveness of the US bailout plan in averting a recession in the global recession pulled the market lower. The US House of Representatives passed a revised bailout plan. The revised bailout plan included a number of new provisions designed to make the bill more acceptable to skeptical lawmakers, notably a temporary measure raising the threshold at which bank deposits are protected from $100,000 to $250,000. The US-based bank Wells Fargo and Co agreed to buy financial services provider Wachovia Group, for about $16 billion, thwarting a planned Us-based commercial bank Citigroup Inc. deal announced on 29 September. On the same day, the Dutch government bought banking and insurance services provider Fortis Group's Dutch operations, for 16.8 billion euros.

The US House of Representatives on 3 October 2008, passed the Bush administration's revised $700 billion economic rescue package, four days after world markets were sent tumbling when the plans were initially rejected in a shock outcome. Under the plan, the Treasury was to buy illiquid assets held by financial institutions, in the hope of restoring confidence and thawing credit markets vital to the wider economy.

The BSE Sensex plunged 529.35 points or 4.05% to 12,526.32. The S&P CNX Nifty ended down 132.45 points or 3.35% to 3,818.30.

6 October 2008: Key benchmark indices registered steep losses as stocks fell across the globe as global financial crisis spread further to Europe and doubts persisted about the effectiveness of the US administration's $700 billion US financial sector bailout plan. France's BNP Paribas scooped up the assets of Fortis in Belgium and Luxembourg for 14.5 billion euros.

Market regulator Securities and Exchange Board of India (sebi) lifted the October 2007 restrictions on issue of participatory notes (PNs) by foreign institutional investors (FIIs) with immediate effect, a move widely perceived to bring in more funds to lift the sagging capital markets. FIIs were allowed to issue PNs against securities, including derivatives, as underlying assets. The PN limit of 40% of an FII's total assets under custody was also done away with.

The RBI announced a 50-bp cut in the cash reserve ratio (CRR), proportion of deposits banks need to keep with the central bank, to 8.5%, effective from 11 October 2008. The move was expected to infuse Rs 20,000 crore into the system.

The BSE Sensex lost 724.62 points or 5.78% to 11,801.70. The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35.

7 October 2008: The finance ministry expanded definition of infrastructure companies to include mining, exploration and refining companies for external commercial borrowing (ECB) purposes. Companies engaged in mining, exploration and refining activities were then allowed to borrow up to $500 million a year from abroad, 10 times more than the $50 million allowed earlier.

The BSE Sensex lost 106.46 points or 0.9% to 11,695.24. The S&P CNX Nifty was up 4.25 points or 0.12% to 3,606.60.

10 October 2008: The bourses suffered heavy losses on global sell-off despite worldwide central bank measures to stave off the financial crisis and on data showing dismal industrial production growth in August 2008. India's industrial production rose at a dismal 1.3% in August 2008 compared with a 10.9% growth in August 2007. Manufacturing grew a poor 1.1% in August 2008 versus 10.7% growth in August 2007. Consumer durables production rose 5.1% in August 2008 versus a 6.2% growth in August 2007. Capital goods prodcution rose 2.3% in August 2008 versus a 14.7% growth in August 2007. Meanwhile, industrial production growth for July 2008 was revised upwards to 7.4% from 7.1%. Crude Oil dropped below $80 a barrel for the first time in a year. Wells Fargo got control of Wachovia Bank.

The RBI once again reduced CRR by 100 bps to 7.5% to release Rs 60000 crore in system.

The 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86. The S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95.

13 October 2008: The market gained on consistent buying on firm global markets. Finance Minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors aided the rebound in equities on that day. The UK governement unveiled plan to inject up to $63 billion into Royal Bank of Scotland and the soon-to-be combines HBOS and Lloyds TSB Group. Germany unveiled a bank bailout plan that could cost up to 500 billion euros in state funds. The French government said it would provide up to 360 billion euros to help banks.

The BSE Sensex jumped 781.24 points or 7.42% to 11,309.09. The S&P CNX Nifty was up 210.75 points or 6.43% to 3,490.70.

14 October 2008: The RBI announced measures to infuse Rs 20000 crore through a special lending route for mutual funds to meet their liquidity needs and redemption pressure. As per the scheme, banks were allowed to borrow for 14 days at 9% interest per annum. In turn, they were to lend to mutual funds against their holdings of certificate of deposits in public sector banks.

The BSE Sensex rose 174.31 points or 1.54% to 11,483.40. The S&P CNX Nifty rose 27.95 points or 0.8% to 3,518.65.

15 October 2008: Worries over liquidity conditions in the financial system and weak global markets pulled the domestic bourses sharply lower on that day. The RBI extension of banks' special short-term lending (repo) facility to mutual funds, which have been witnessing redemption pressure, failed to avert the slide on the bourses.

The RBI further reduced the CRR by another 100 bps to 6.5% to release Rs 40000 crore into the banking system. This is the steepest-ever triple CRR cut in two weeks. In July 1974, CRR was slashed 200 bps to 5%.

The Sensex ended 674.28 points or 5.87% lower at 10,809.12. The S&P CNX Nifty ended down 180.25 points or 5.12% to 3,338.40.

17 October 2008: Bears ruled the roost on the bourses with the Sensex falling below the 10,000 mark for the first time in more than two years. The market declined sharply in late trade after witnessing bout of volatility earlier on that day. An initial surge boosted by reports government was considering several measures to raise domestic institutional participation in the equities proved short-lived. As per the reports, the government reportedly sought data from the RBI to consider a proposal to enhance the investment limit for bank exposure to equity markets. This will be part of several measures to boost domestic institutional participation in the markets at a time when foreign institutional investors (FIIs) are exiting. At present, a bank can invest up to 20% of net worth in a single company and up to 40% of net worth in a group.

On that day, Switzerland provided UBS AG, the European bank with the biggest losses from the credit crisis, a $59.2 billion rescue and pushed Credit Suisse Group AG to raise funds, joining authorities around the world in shoring up banks. As per reports, UBS will get 6 billion Swiss francs ($5.2 billion) from the government and split off as much as $60 billion of risky assets into a fund backed by the central bank, the Zurich-based company said. Credit Suisse declined government assistance and raised 10 billion francs from investors including Qatar.

The Sensex slumped 606.14 points or 5.73% to 9,975.35. The S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35.

22 October 2008: The key bencmark indices declined sharply as recession fears hammered foreign equity markets and helping knock the rupee to a record low against the dollar. Stock markets around the world fell sharply again as concerns of recession and falling commodity prices were heightened by a spate of gloomy corporate earnings.

The BSE 30-share Sensex lost 513.49 points or 4.81% to 10,169.90. The S&P CNX Nifty was down 169.75 points or 5.25% to 3,065.15.

24 October 2008: The BSE Sensex slumped 1,070.63 points or 10.96% at 8,701.07, recording its biggest fall in percentage terms since May 2004. The S&P CNX Nifty fell 359.50 points or 12.2% to 2,584. Nifty hit a low of 2,525.05 in late trade -- its lowest level since 11 November 2005.

The steep fall on the domestic bourses was part of a global equities rout on worries of a sharp global economic slowdown. The sell-off was also due to disappointment from the second quarter monetary policy review by the central bank announced on that day. Uncertainty on the final order with regard to short sales, also weighed on the bourses.

The Reseve Bank of India (RBI) kept all the key rates unchanged even as it lowered its 2008/09 growth forecast to 7.5% to 8% from a previous forecast of around 8%. The RBI also left the cash reserve ratio, the amount of funds that banks have to keep on deposit with it, unchanged at 6.5%.

There was uncertainty as to what steps the market regulator would take regarding short sales. Despite announcing its displeasure on overseas lending by foreign funds early this, the Securities & Exchange Board had not yet taken any concrete decision in this regard.

6 November 2008: The market tumbled in a highly volatile trading session as an unexpected increase in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Weak global market also spoiled the sentiments here. Global markets fell that day after as a fresh batch of dismal economic data in the US underscored the upbeat market mood from Democrat Barack Obama's victory in the US presidential election. Grim economic news included a report that showed deep cuts in employment by private employers in October and data that showed the vast service sector contracted sharply last month as the worst financial crisis in 80 years roiled the world's largest economy.

Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise. Inflation for the week ended 30 August 2008 was revised up to 12.38% from 12.10%.

The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22. The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.

10 November 2008: China announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The Chinese government has also promised to loosen credit conditions and cut taxes.

Four trillion yuan ($586 billion) will be spent on upgrading infrastructure, particularly roads, railways, airports and the power grid; on raising rural incomes via land reform; and on social welfare projects such as affordable housing and environmental protection.

The package also wraps in some of the disaster reconstruction spending from last winter's abnormally severe weather, the Sichuan earthquake in May 2008 and other natural disasters. It ties together many policy initiatives already underway as the country's leadership tries to close a potentially destabilizing income gap between the rich coastal cities and the poorer interior countryside.

In addition, China indicated a shift to 'moderately easy' monetary policy. After three interest rate cuts since mid-September 2008, the easing in monetary policy was a given. Lending limits on commercial banks are also being lifted. A long-expected change in the way value-added tax is administered will provide tax cuts, accounting for $17.5 billion of the package's total.

Meanwhile, in the US federal government was reportedly finalizing a new plan to rescue American International Group from financial ruin after it became clear that the original bailout, launched in September this year, had failed to stabilize the insurance giant.

The US government is reported to be proposing a $150 billion rescue package on easier terms that would get federal officials more involved in AIG but aims to reduce the strain on the company. The new deal would give AIG more time to repay the loan, which could increase the chance that AIG settles its debt without emerging as a shell of its former self.

The US Federal Reserve said Monday (10 November 2008) it will allow the American Express Company (AXP) and its American Express Travel Related Services Company to become bank holding companies.

The move would make the credit card giant eligible to receive a capital infusion from the US government, which is in the process of implementing a plan to inject up to $250 billion into the nation's banking system. The move also would give American Express access to the Fed's discount lending window and allow it to build a larger deposit base.

Qualifying as a bank holding company will provide American Express maximum flexibility and stability in this challenging economic environment, AXP said in a statement.

As part of the Fed's approval, an industrial loan arm of American Express has been given full bank status. The Fed in its approval order said the American Express companies set to become bank holding companies are adequately capitalized.

American Express, which has consolidated assets of $127 billion, is following the path taken by Morgan Stanley and Goldman Sachs Group Inc in September 2008 when they also became bank holding companies amid an escalating global financial crisis. In October, Treasury provided $10 billion in capital each to Goldman Sachs and Morgan Stanley.

23 November 2008: The US government will inject $ 20 billion into troubled banking giant Citigroup and will provide a guarantee of $ 306 billion to the financial firm.

As per the rescue plan, the treasury would invest $ 20 billion in Citigroup from the Troubled Asset Relief Programme in exchange for preferred stock.

Besides, the Treasury and the Federal Deposit Insurance Corporation (FDIC) would provide protection against $306 billion of toxic loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. The move comes close on the heels of the sliding 60% fall in the share price of Citigroup earlier.

In Indian market on Monday (24 November 2008), ended on a mixed note as the package to prop up Citigroup was seen as unlikely to ease all concerns about the broader financial sector and as concerns over the global economy remained.

The BSE Sensex ended 12.09 points or 0.14% lower at 8,903.12. While, the 50-unit S&P CNX Nifty closed 14.80 points or 0.55% higher at 2708.25.

25 November 2008: The US Federal Reserve outlined an $800 billion lending facility to support the market for consumer debt securities. The US central bank will buy billions of dollars worth of debt and mortgage-backed securities to increase the flow of credit for mortgages, student loans, car loans and credit cards. Ahead of the US stimulus announcement, the BSE 30-share Sensex lost 207.59 points or 2.33%, to 8,695.53. The S&P CNX Nifty fell 54.25 points or 2% to 2654.

26 November 2008: China's central bank cut banks' benchmark lending and deposit rates by 1.08% for the fourth time since mid-September 2008. The cut in the lending rate was the biggest since October 1997. The steep rate cut by China raised expectations of a coordinated action by other central banks by way of rate cuts to counter the downside risks to the global economy. Back home, the BSE 30-share Sensex jumped 331.19 points or 3.81% to 9,026.72. The S&P CNX Nifty gained 98.25 points or 3.70% to 2752.25.

China's central bank cut banks' benchmark lending and deposit rates by 1.08% for the fourth time since mid-September 2008. The cut in the lending rate was the biggest since October 1997. The steep rate cut by China raised expectations of a coordinated action by other central banks by way of rate cuts to counter the downside risks to the global economy. 4 December 2008: The Bank of England slashed interest rates by a full percentage point to shore up Britain's crumbling economy and head off the threat of deflation. The cut took rates to 2% - the lowest level since 1951. The central bank in Sweden slashed its key interest rate by a record 175 basis points to 2% on the same day, a shock move to try and prevent the economy from sliding deeper into recession. Back home, the BSE 30-share Sensex was up 482.32 points, or 5.51%, to 9,229.75. The S&P CNX Nifty was up 131.55 points, or 4.95%, to 2,788. French President Nicolas Sarkozy has unveiled a �22.5 billion package aimed at warding off recession and safeguarding jobs. The measures include around �1.1 billion to help carmakers avoid more layoffs as sales tumble. Sarkozy also floated the possibility of increasing that aid if US carmakers succeed in tapping a sceptical Congress for rescue funding. Most of the money in the two-year plan is destined for the construction industry, which will be helped by a �5.6 billion investment program. The government is also injecting �10 billion into the economy by front-loading tax credits and rebates. The French package will cost the equivalent of 1.3 percent of GDP and push the deficit to 3.9% of GDP in 2009, well above the European Union's 3% limit. The measures form part of a 200-billion-euro package proposed by the European Commission to boost the economy through spending and tax cuts. Australia's central bank cut its benchmark cash rate by a bigger-than-expected 75 basis points to 5.25% in an increasingly urgent effort to save the economy from the recession rapidly engulfing much of the developed world. 6 December 2008: The RBI on Saturday cut the repo rate - the rate at which RBI lends to banks - by 100 basis points to 6.5% from 7.5% and reverse repo - the rate at which banks park excess funds with RBI - by 100 basis points to 5% from 6%, effective from 8 December 2008. However it has kept cash reserve ration (CRR) - the proportion of deposits banks must keep with the central bank - unchanged at 5.5%. It is the third time since October the central bank has cut rates, which are now at their lowest since June 2006. 7 December 2008: South America's third largest country Peru said it will spend up to $13.2 billion next year on housing, highways and other projects, to maintain economic growth amid a global slowdown. The package is designed to increase spending on social works and infrastructure by $3.3 billion and to finalize $3 billion in previously signed loans. If necessary, another $7 billion will be introduced to reinforce public expenditures. The package seeks to avoid a drop in liquidity and internal credits, to sustain internal demand and generate employment and to assist small and medium-sized companies and the exporting industry. It also seeks to widen public expenditures on infrastructure and social programs, and to simulate private investment in the domestic market.The Peru government, however, did not say where the funds would come from. The Indian government on Sunday effected an across-the-board 4% cut in the central value-added tax (Cenvat) to bring down the prices of cars, cement, textiles and other products, and earmarked an additional Rs. 20,000 crore for infrastructure, industry and export sectors for the current fiscal. The package, while entailing a revenue loss of Rs 8,700 crore in the remaining four months of 2008-09, seeks to revive various crucial sectors such as housing, exports, automobile, textiles and small and medium enterprises (SMEs). In an all-encompassing measure, the Cenvat on all products - barring non-petroleum goods - have been reduced from 14%, 12% and 8% to 10%, 8% and 4% for various categories. Full exemption from basic customs duty has been effected on naphtha to provide relief to the power sector. While the export duty on iron ore fines has been withdrawn, the levy on export of iron lumps has been cut from 15% to 5%. The package seeks to boost power, exports, housing, auto, SMEs and infrastructure sectors through additional funding. The 10-point package, with significant incentives for the sectors affected by the slowdown, has also permitted India Infrastructure Finance Company (IIFCL) to raise Rs. 10,000 crore through tax-free bonds by March 2009 as part of the exercise to support the Rs. 1,00,000-crore highways development programme. 8 December 2008: The Australian government delivered more than A$8 billion in cash payments to families and pensioners to stop the economy from sliding into recession. The Australian government wants people to spend the money in the run up to Christmas, rather than pay off their debt, saying the spending will help protect jobs and save the economy from further slowing. The cash is part of a A$10.4 billion economic stimulus package announced on 14 October 2008 and aimed at boosting consumer confidence and retail sales as Australia fights off slowing growth and rising unemployment due to the global downturn. Back home, the BSE 30-share Sensex rose up 197.42 points or 2.2% to 9,162.62. The S&P CNX Nifty gained 69.60 points or 2.56% at 2784. Earlier on 14 October 2008, Australia had unveiled a A$10.4 billion stimulus plan in an effort to boost domestic spending, including one-off pre-Christmas payments for pensioners and poorer 19 December 2008: US President George W Bush said the government would provide $13.4 billion in short term loan to bail out the country's crippled auto industry from bankruptcy. The $13.4 billion loan, drawn from the $700-billion financial rescue fund, would be available this month and in January next year. Of the sanctioned amount, General Motors will get $9.4 billion while $4 billion will be given to Chrysler LLC, according to the US government. An additional $4 billion dollars may be available in February 2009. The loans would be called back if the automakers cannot prove they are viable by 31 March 2008. Viability would be mean that the companies must have a positive net present value, which does not necessarily mean immediate profitability but would require them to reach that point relatively soon. Meanwhile, on the same day, the Bank of Japan (BoJ) slashed the uncollateralized overnight call rate by 20 basis points to 0.1% from 0.3%, its second rate cut in two months. BoJ also announced several steps with the aim of ensuring stability in financial markets as well as facilitating corporate financing by conducting appropriate money market operations. The bank has decided to take measures to further facilitate corporate financing including outright purchases of commercial papers in addition to actions regarding outright purchases of Japanese government bonds (JGBs). The amount of outright purchases of JGBs would be increased to 16.8 trillion yen per year from 14.4 trillion yen per year with immediate effect. Also, the range of JGBs accepted in outright purchases would be expanded and purchases from specific maturity segments would be introduced. Back home, the BSE 30-share Sensex rose 23.48 points, or 0.23%, to 10,099.91. The S&P CNX Nifty gained 16.75 points, or 0.55%, to 3,077.50. 20 December 2008 (Saturday): Canada announced a Canadian$4 billion bail-out plan to aid two US car manufacturers with operations there. The federal government will provide Canadian$2.7 billion in short term loans, with a further Canadian$1.3 billion coming from Ontario, where the manufacturers are based. General Motors of Canada is eligible for loans of up to Canadian$3 billion and Chrysler Canada Inc for up to Canadian$1 billion. The Canadian arm of Ford Motor has not asked for immediate assistance. The amount promised represented the 20% share Canada has in the North American automobile industry. 22 December 2008: After the market closed on Monday, China's central bank announced a cut in banks' benchmark lending and deposit rates by 0.27%, the fifth cut since mid-September 2008. The move disappointed some investors as the rate cut was smaller than expected given the aggressive actions by other central banks. On Tuesday (23 December 2008), the BSE 30-share Sensex ended down 241.60 points, or 2.43%, to 9,686.75. The S&P CNX Nifty ended down 70.65 points, or 2.32%, to 2,968.65. 29 December 2008: The US Treasury Department, after Indian market closed, announced that it would commit $6 billion to supporting GMAC LLC, the financing arm of General Motors Corporation (GM), to save the ailing car giant from bankruptcy. The Treasury will buy a $5-billion stake in GMAC and also lend GM an additional $1 billion so that the largest US carmaker can contribute to the financier's reorganization as a bank holding company. This funding is in addition to the $13.4-billion emergency loan agreed to by the White House earlier this month to keep the iconic US car industry alive and avoid an even deeper economic recession in the country. The $13.4-billion loan provides GM with $9.4 billion and Chrysler LLC with $4 billion over December and January. GM could get another $4 billion in February. The funds will enable GMAC to expand lending to buyers and help rescue GM. The money will come from the government's $700-billion financial rescue package, which was initially reserved for financial institutions, but is now propping up lenders, the car industry and finance companies. Back home, on 30 December 2008, the Sensex rose 182.64 points or 1.92% to 9,716.16. The 50-unit CNX S&P Nifty closed 57.30 points or 1.96% higher at 2979.50.

Nifty regains 3,000 level; turnover low

2009-01-01T12:57:08Z

Buying in bluechip shares in the interest rate sensitive banking, auto and realty sectors propelled the key benchmark indices higher on the first day of the new calendar year 2009. The BSE 30-share Sensex advanced 256.15 points, or 2.66%. The S&P CNX Nifty settled above the psychological 3,000 mark. The market breadth was strong on buying momentum for small and mid-cap stocks. All the BSE sectoral indices logged gains. However turnover was low .....

Expectations of cut in interest rates

2009-01-01T12:06:42Z

Expectations of cut in interest rates by the central bank have strengthened after the central bank governor D. Subbarao met Prime Minister Manmohan Singh on Monday, 29 December 2008. Budget constraints are forcing India to rely more on interest-rate cuts to buoy the economy. However, hopes for hefty rate cuts suffered a blow after a television channel on Wednesday, 31 December 2008, quoted finance ministry officials as saying rate reductions may not be steep.

A further fall in inflation .....

2009-01-01T12:05:56Z

A further fall in inflation will provide room for the Reserve Bank of India to further cut interest rates. Inflation, measured by wholesale price index, fell to around 10-month low to 6.38% in the week ended 20 December 2008 from 6.61% in the previous week, data released by the government today, 1 January 2009 showed.

New Year cheer for the stock market

2009-01-01T12:04:56Z

Buying in bluechip shares including index heavyweight Reliance Industries (RIL) propelled key benchmark indices higher on the first day of the new calendar year 2009. Hopes of further fall in interest rates, a likely fuel price cut, an expected second economic stimulus package from the government and firm US markets overnight supported the domestic bourses. The BSE Sensex provisionally jumped 264.03 points, or 2.74%. The market remained in green throughout the trading session

BUY NIFTY FUT @2995 TGT1 3060,TGT2 3150 SL 2952

2009-01-01T11:34:40Z

BUY NIFTY FUT @2995 TGT1 3060,TGT2 3150� SL 2952