Archive for October 21st, 2009

Retail Investors Lying Low Despite Spate of IPOs/Market Surge

Retail Investors Lying Low despite IPOs and market surge

Retail Investors Lying Low despite IPOs and market surge

Despite the spate of initial public offerings and the surge in the equity market, demat accounts have not shown any acceleration in growth in August or September.


Demat accounts rose at a steady rate of 1.34 per cent both in August and September, show data collated from depositories NSDL and CDSL.

Fresh additions β€” at around 2 lakh every month for the last four months β€” might seem substantial, but are not commensurate with the bullish sentiment for stocks, said marketmen.

The total number of Demat accounts stands at 155.67 lakh accounts as on September against 153.61 lakh accounts as on August-end.

The increase in new demat accounts is not substantial, given the rising interest in equities, both from existing and new investors.

Experts have cited the reason this is because retail investors are still not entering the market in a big way, it is just a trickle.

There is no significant change in retail investor sentiment during the past few months.

Typically, there is a big surge in new investors during the IPO season, but this time the pattern is different.


One of the reasons is that this time the IPOs, unlike earlier, are not crowd pullers.

Maybe because the issues were rather aggressively priced.

As even the bigger IPOs have not given any remarkable returns on listing, retail investors are shying away from them, said some brokers.

The retail investor appears to be unsure about the sustainability of the rally in the equity markets, said Mr Jagannadham Thunuguntla, Equity Head, SMC Capital.




Commodity Check :

Potato is probably the most popular food item in the Indian diet. Potato is a very rich source of starch. It also contains phosphorus, calcium, iron and some vitamins.

Indian Scenario

India is the third largest potato-producing country in the world, after China and Russia,with a total acreage of 14 lakh hectares, producing 250 lakh tonnes of the crop.

Potato is cultivated both as a Kharif & Rabi crop, under assured irrigation during short winter days from October to March.

Potato cultivation is more concentrated in the Gangetic plain comprising Uttar Pradesh, Bihar and West Bengal.

Price Movement

The price of potatoes from UP, Haryana and Punjab in the four key wholesale mandis of Delhi, Azadpur, Okhla, Keshavpuram and Ghazipur, ranges from Rs 10 per kg to Rs 16per kg, up from Rs 6-15 per kg a couple of months ago.

The prices, however, saw an up-trend touching highest in the last five years, at Rs.1,400 per quintal (100 kg) owing to poor production in the neighboring states of Bihar and West Bengal.

The current potato prices in the market are reigning between Rs.1,400 and Rs.1,700 per quintal.

The horticulture department expects the acreage to rise to 545,000 hectares this season in the backdrop of bullish prices.

The farmers would prefer potato since this would fill in their paddy losses without affecting their rabi wheat crop in winters.

The trend could again result in windfall production of potato next year, causing severe storage problems, as was the scenario last year.

Last year, the prices nosedived so much that the cold storage had no space and the crop was forced to lie on roads.

Prices…. Fireworks

Food prices are likely to go up in the coming weeks as floods in the southern states of Karnataka and Andhra Pradesh have destroyed crops.

Due to crop failure in states like Maharashtra, West Bengal and Karnataka, the potato crop output this year has fallen by about 20%.

The common man has been hit hard by the rising prices of potatoes and vegetables which have soared by 81% and 43% respectively in the past one year.

The prices are unlikely to come down before December as new crop is likely to arrive only in late November, which will then ease the supply pressure.

Rising prices of other vegetables are also providing support to the potato market. The potatoes available during April-October period are largely supplied by cold storages.

About 16-17 MMt of potatoes are estimated to have been stored from 2008-09 crop to meet the demand in lean season.

According to the Nasik-based National Horticultural Research and Development Foundation (NHRDF), potato production in 2009-10 is estimated to be about 31 million metric tonnes (MMt), same as last year.

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Next window for N-E monsoon from Oct 27 to Nov 4

Lets Get to know of the latest Agri updates in the country πŸ™‚

Next window for N-E monsoon from Oct 27 to Nov 4

Next window for N-E monsoon from Oct 27 to Nov 4

Next window for N-E monsoon from Oct 27 to Nov 4:

The next window for the North-East monsoon over the Bay of Bengal and adjoining peninsula is likely to open up during October 27 to November 4 in what is an unusually delayed onset this season.

The US National Centres for Environmental Prediction sees the south-central and adjoining south Bay of Bengal and peninsular India being brought under wet cover during this period.

This too is expected to happen around October 27, another reason why the nearly contiguous Bay of Bengal should be able to breathe free to get the northeast monsoon going.

Meanwhile, India Met Department satellite pictures showed cloud build up along the equator and a northwest-to-southeast banding of clouds over northeast Bay of Bengal.

These patterns were being attributed to the `pull’ effect of Super Typhoon Lupit.


In Other major Agri Updates we can see that Wheat futures has hit the upper limit and has risen 4 per cent on short covering:

Wheat futures climbed 4 per cent to hit the upper limit on the Multi Commodity Exchange today on the back of covering-up of short positions by traders amid good demand in the spot market.

At the MCX, wheat for delivery in December contract shot up 4 per cent to hit the upper limit at Rs 1,320.80 per quintal in a turnover of 11 lots.

Besides covering-up of short positions, firming trend in wheat at spot markets following demand against tight supply mainly pushed up wheat prices at futures market.


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Wheat futures hit upper limit, rises 4 per cent on short-covering: