Archive for August 25th, 2009

US Economists feel Positive, says Worst is Behind :)

Worst is behind :)

Among the world’s large economies, UK, which is the seventh largest and Italy, the tenth, remain in recession, like the US.

The UK economy shrunk 0.8% in the second quarter, while Italy’s was down 0.5%.

😦

Unlike in the UK, however, economists in the US believe the worst may be behind them.

‘‘It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, may be September,’’ Nobel laureate Paul Krugman was quoted as saying.

🙂

There is evidence that his is not undue optimism.

The pace of job losses in the US slowed more than forecast in July and the unemployment rate dropped for the first time in more than a year.

US GDP also shrank by just 0.3% (equivalent to an annualized 1%) in the seconnd-quarter after a 6.4% drop in the previous three months.

🙂

That explains why US Federal Reserve is willing to bet that the nosedive the economy had witnessed in recent months is behind it.

🙂

Over the last two years, the US has witnessed its worst financial crisis in decades, but that could be ending, which is good news for the world since it accounts for a fifth of global GDP.

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France and Germany also announced unexpected returns to the growth path, which means that four of the world’s five largest economies and six of the top 10 are now not in recession.

🙂

Adding to the sense of optimism, the US Federal Reserve left rates unchanged, saying that the world’s largest economy was showing signs of levelling out.

🙂

Among the five largest economies of the world, measured in purchasing power parity (PPP) dollars — which is more of an apples to apples comparison — China and India are already growing at healthy rates, although lower than their own pace for the last few years.

🙂

Japan too has climbed out of recession and so has Germany.

These economies and the US account for 47% of world GDP in PPP terms.

🙂

Among the world’s other large economies, Brazil is also now no longer in recession having grown by 1.5% in the second quarter.

Among the world’s large economies, UK, which is the seventh largest and Italy, the tenth, remain in recession, like the US. The UK economy shrunk 0.8% in the second quarter, while Italy’s was down 0.5%.

Unlike in the UK, however, economists in the US believe the worst may be behind them. ‘‘It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, may be September,’’ Nobel laureate Paul Krugman was quoted as saying.

There is evidence that his is not undue optimism. The pace of job losses in the US slowed more than forecast in July and the unemployment rate dropped for the first time in more than a year. US GDP also shrank by just 0.3% (equivalent to an annualized 1%) in the seconnd-quarter after a 6.4% drop in the previous three months.

That explains why US Federal Reserve is willing to bet that the nosedive the economy had witnessed in recent months is behind it. Over the last two years, the US has witnessed its worst financial crisis in decades, but that could be ending, which is good news for the world since it accounts for a fifth of global GDP.

Some light showed up at the end of the recession tunnel on Wednesday as France and Germany announced unexpected returns to the growth path, which means that four of the world’s five largest economies and six of the top 10 are now not in recession.

Adding to the sense of optimism, the US Federal Reserve left rates unchanged, saying that the world’s largest economy was showing signs of levelling out. Both France and Germany had been predicted by most economists to face a decline of about 0.3% in their GDPs for the second quarter (April-June) of 2009, but they surprised themselves and the rest of the world by announcing that they’ve actually recorded growth of 0.3% each.

Among the five largest economies of the world, measured in purchasing power parity (PPP) dollars — which is more of an apples to apples comparison — China and India are already growing at healthy rates, although lower than their own pace for the last few years. Japan too has climbed out of recession and so has Germany. These economies and the US account for 47% of world GDP in PPP terms.

The Eurozone as a whole is also now projected to have contracted by just 0.1% compared to the 2.5% fall in GDP in the first quarter (January-March). The growth rates reported by Germany and France may seem like nothing to get excited about, but considering that German GDP shrunk by 3.5% in the first quarter and France’s by 1.3%, it is quite a smart turnaround.

Among the world’s other large economies, Brazil is also now no longer in recession having grown by 1.5% in the second quarter.

Indian Govt to Negatiote with Swiss Banks over Secret Black Money Info !

black money

A day after Swiss banks said it will not allow India to ‘fish’ for details about illegal money stashed in their banks, Government Monday night said it was not interested in getting information on all secret accounts held by Indians but will pursue specific cases.

🙂

Union Finance Minster Pranab Mukherjee on Monday said the Indian Government will look into the matter of Swiss banks rejection to hand over details of the Indian clients.

🙂

“They (Swiss Bankers Association) have not refused (to divulge information). They have suggested they are not for fishing and we are also not interested in fishing their whole list (of bank accounts),” Mukherjee told reporters.

He also added, “We will also work on specific information and we will also like to follow the Organisation for Economic Cooperation and Development pattern.”

🙂

Earlier India’s hope to acquire information on Indian black money stashed away in Swiss banks dealt a severe blow, with the latter refusing on Sunday to reveal any details, saying that “Swiss law and tax model convention don’t permit name-fishing expedition” by a third country.

😦

The blow to India came barely a week after Swiss banking giant UBS AG turned over details of 4,450 secret accounts to the United States, under an agreement agreed upon by the two.

😦

On the Other side, Government has come under attack from the opposition for not “properly” making efforts to unearth black money parked in Switzerland.

The BJP wanted the government to mount diplomatic pressure on Switzerland to get the details.

“When the US government can get the list of persons (who have illegally stashed money in Swiss banks), why can’t the Indian government…It is the responsibility of the government. How can there be double standards,” CPI(M) Politburo member Brinda Karat said.

JD(U) attacked UPA government accusing it of not “properly” pursuing the matter with Swiss authorites and “not actually wanting to do it”.

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The Congress defended the government saying it was doing all it can under its jurisdiction to get the black money out as it was an issue of public interest and concerned the common man.

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“They (Swiss Bankers Association) have not refused (to divulge information). They have suggested they are not for fishing and we are also not interested in fishing their whole list (of bank accounts),” Mukherjee told reporters.

Mukherjee said, “We will also work on specific information and we will also like to follow the Organisation for Economic Cooperation and Development pattern.”

Earlier India’s hope to acquire information on Indian black money stashed away in Swiss banks dealt a severe blow, with the latter refusing on Sunday to reveal any details, saying that “Swiss law and tax model convention don’t permit name-fishing expedition” by a third country.

EQUITY UPDATE for 24th August,2009

Daily Equity Update

POST MARKET REPORT 🙂

The BSE Sensex closed higher by 387.92 points or (2.55%) at
15,628.75 and NSE Nifty ended up by 114 points or (2.52%) at
4,642.80.

BSE Mid Caps and Small Caps closed with gains of 145.06 and 182.89 points at 5,704.38 and 6,645.87 respectively.

🙂

The BSE Sensex touched intraday high of 15,676.35 and intraday low of 15,362.9.

Among the Sensex pack all 30 stocks ended in green territory.

The market breadth indicating the overall health of the market remained extremely positive as 2044 stocks closed in green while 715 stocks closed in red and 67 stocks remained unchanged in BSE.

🙂

The S&P CNX Nifty is up by 114.00 points or 1.65 % to 4642.80.

The NSE turnover was up Rs.15015.83 from last trading session’s Rs. 14697.33 crore.

🙂

NEWS UPDATES

-Austral Coke & Projects board will meet on 3 September 2009 to consider issuing bonus shares.

Indiabulls Real Estate emerged as the top financial bidder for redevelopment of Maharashtra government buildings at Mantralaya in Mumbai.

Bharat Heavy Electricals bagged an order worth Rs 2,630crore.

-Eleven metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.72% to 2,913.90 on 21 August 2009.

🙂

MARKET OUTLOOK

On the first trading day of the expiry week, index opened strongly on the positive note and sustained those gains throughout the session.

🙂

As we have seen in last trading session, it managed to close above 4490 levels that triggered buying spree across the board in today’s trade.

Market breadth remained strongly on the positive side with Realty, Capital good & FMCG pivots ended on the top.

Technically, we expect index to test higher levels in the days to come but it’ll volatile sessions ahead due to expiry week of F&O
contracts.

🙂

SENTIMENT INDICATOR

PCR of index options is at 1.18 from last trading session’s 0.96

PCR of Stock options is at 0.28 from last trading session’s 0.40.

PCR of total F&O is at 1.14 from last trading session’s 0.94.

The advances are 910; declines are 184 and unchanged are 22.

The implied volatility has decreased to 31.44 from last trading

session’s 35.41

🙂

TaBLES

1.

daily equity update economy data

2.

sector watch

Comment: Realty & Consumer Durables are the major gainers in day’s session

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3

TRENDS OF INDIAN  MARKET INDICES

4.

TRENDS OF WORLD MARKETS INDICES

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