Posts Tagged ‘Brokers’

Dubai Debt News Sent a Shudder Throughout World Markets

Just a year after the global downturn  derailed  Dubai’s explosive growth, the  city is now  so  swamped  in  debt that  it’s  asking  for a  six-month  reprieve  on  paying  its bills.

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Dubai Debt Fears Grip World Markets

 

This has cast a shadow on a world only just emerging from the worst economic crisis since the 1930s,  knocking markets  from Sydney to Sao Paulo and raising questions about Dubai’s reputation  as a magnet for international investment.

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For India, which has tens of thousands of its citizens living  and working in the emirate,  the concerns are more direct:  thousands of its expats staring at job losses and  the economy, sharply reduced trade.

India, which gets nearly a quarter of the remittances from the United Arab Emirates and  has lakhs of laborers working in the region, could be worse off than most other nations  if the crisis escalates into a full-blown one  like the Russian or Argentinean crises of the past.🙂

India’s exports to the UAE stood at $23.92 billion in FY09.

It is very likely that we may see one more leg of job losses in Dubai.

The only consolation for the region is that Abu Dhabi is booming.

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Indian shares and the rupee fell in sync with other global markets where investors are fleeing for safety after Dubai debt trap concerns.

The Bombay Stock Exchange benchmark Sensex on Friday tumbled over 451.63 points to 16,403.30 points in the first ten minutes of trading on hectic selling by funds in line with weak global cues and concerns over Dubai’s debt.

Similarly, the wide-based National Stock Exchange index Nifty dropped by 140.50 points to 4865.05 points.

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Brokers said the selling focus was more on banking and realty stocks after Dubai’s debt problems revived concerns about the global financial system and rattled markets across Europe and Asia.

Indian rupee fell 24 paisa to 46.55 against the dollar.  The MSCI Emerging Markets Index lost 1.4%.

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Most European indices were about 2% lower after Asia tumbled.

The Shanghai Composite Index slumped 3.6%, its biggest drop since August, and Brazil’s Bovespa Index slipped 1.1%. U.S. markets were closed for the Thanksgiving holiday.

Credit-default swaps tied to debt sold by Dubai rose as much as 131 basis points to 571.

“Dubai isn’t doing risk appetite any favours at all and the markets remain in a vulnerable state of mind,” said Market analysts.

“We’re still in an environment where we’re vulnerable to financial shocks of any sort and this is one of those.”

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Market May Continue to See Sideway Movements: Experts

Market To Move sideways : Expert

Market To Move sideways : Expert

After last week’s correction, witnessing a dip of 492 points, market experts said this week might continue to see sideway movements with slight downward bias.

They opined it was basically the momentum play which took the markets beyond 17,000 points and therefore downside movement was expected.

They maintained that currently the markets are over stretched and any rise in the short-term is unlikely.

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They ruled out that Reliance’s bonus shares or Infosys’s better than expected earnings will stoke the markets with positive sentiments this week.

In the previous week, CNX Nifty declined 138.2 points or 2.72 per cent on a weekly basis to close at 4,945.20 last Friday against last week’s close of 5,083.40.

Similarly, Bombay Stock Exchange Sensitive Index, or Sensex, slipped below 17,000 mark to close the week at 16,642.66, down 2.87 per cent.

Brokers pointed out that this week, Nifty may bottom out at 4,800 levels. It should not come below this as fundamentals of the country are intact.

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Last week, indices which ended in the green include consumer durables, fast moving consumer goods, health care, metals and power.

On the other hand, auto, bankex, capital goods, IT, oil & gas and realty index closed in the red.

Jagannadham Thunuguntla, equity head at SMC Capitals, said,

“Markets are facing resistance. It is difficult to expect sectors to outperform.  Though some stocks could do well.  But it seems, market is not in a mood to hear any good news.”

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This week, experts are betting big on telecom, infrastructure, consumer durables and banking space.

They held bearish stand on sectors like IT and auto.

Experts said that from this week onwards, corporate earning seasons will start which market will closely watch for.

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IRDA Shot-Downs FINWEB Proposal :)

Irda has rejected FINWEB's proposal :)

Irda has rejected FINWEB's proposal 🙂

IRDA, the insurance regulator has rejected a proposal to register all financial advisors with the Financial Well-Being Board of India (FINWEB).

FINWEB is an agency to write rules on the common minimum standards for over 3 million sellers of insurance, pension and mutual fund products.

The proposal was aimed to protect interests of 188 million investors in the country.

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In addition, it features in a consultation paper of a panel set up by the High Level Committee on Financial Matters (HLCCFM), an apex forum for financial sector regulators.

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The IRDA has powers at present to license insurance agents and brokers.

The proposal is being interpreted as a back-door entry for FINWEB to take over this function.

Besides, FINWEB will also have a self-regulatory arm to bring all financial advisors under one common standard going by the consultation paper on ‘minimum common standards for financial intermediaries and financial education’.

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But the IRDA has opposed any new arrangement to create a new architecture for financial sector advisors.

IRDA Chairman was quoted as “The mandate of the insurance regulator is to find the fine balance between the duty to regulate, promote and ensure the orderly growth of the insurance business, re-insurance business and protect the interests of policy-holders.
The insurance regulations have achieved this balance”.

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SEBI Asked BSE to Set its House in Order before Planning a Listing !!

Sebi has asked BSE to set its house in order before planning a listing :)

Sebi has asked BSE to set its house in order before planning a listing 🙂

The Securities and Exchange Board of India (Sebi) asked BSE to set its house in order before planning a listing.

Of late, BSE has planned to list on the exchange for sometime and had approached Sebi for permission to list without an initial public offer.

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Sebi, however, also has to formalize norms for regulating self-listed companies while in order to sell their shares, some BSE members were eager on the listing of the exchange.

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Moreover, the market regulator communicated its position to the stock exchange informally and BSE started steps to develop its technology platform.

In addition, BSE acquired Marketplace Technology (MT) in order to offer back-office solutions for brokers estimated at Rs 43 crore.

On the other hand, BSE, over the years has regularly lost out to NSE on the technology front and new players like Financial Technologies are trying to ride the technology path setting up exchanges such as Multi-Commodity Exchange (MCX) and MCX Stock Exchange.

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Further, BSE has lost the top slot in terms of turnover even though it has more companies listed on it .

It will also be re-launching its derivatives trading and a new marketing campaign which is likely to help it popularize the product.

The move comes at a time when others such as MCX-SX are trying to enter the space.

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Festivals and Trading Holidays Set to Keep Dalal Street Less Lively This Week :)

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week

Despite bullish sentiment on hopes of strong quarterly results from firms, the Dalal Street is likely to less lively this week, as festive mood and fewer trading sessions would see investors withhold their positions and postpone buying, analysts said.

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Brokers believe the market sentiment will remain positive, even as investors will get only three trading sessions before the second quarter results of companies starts coming in.

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“The market is expected to remain in consolidation phase on the back of less trading sessions and festive season,” SMC Global Vice-President Rajesh Jain said.

The market would trade only for three days this week, as Monday and Friday will be trading holidays on the occasion of ‘Dussera‘ and ‘Gandhi Jayanti‘, respectively.

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Over the week, the BSE Sensex slid 193.43 points, or nearly 1.14 per cent and closed at 16,693 points.

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The under current in the market is bullish, there are not much expectations by investors for this week, while stocks may also look for global cues,experts observed.

The result season will kick start with IT major Infosys scheduled to announce its second quarter results on October 9.

During the last week, foreign institutional investors have put in over Rs 6,528.1 crore in Indian markets.

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