| Latest Forum Topics / User Research/Opinions |
 Post Reply
|
|
INDIA STOCK MARKET DOWN 7%
|
|
|
soloman
Master |
17-Oct-2007 19:40
|
|
x 0
x 0 Alert Admin |
Seems nobody cares about the Indian MKT |
| Useful To Me Not Useful To Me | |
|
ozone2002
Supreme |
17-Oct-2007 14:12
|
|
x 0
x 0 Alert Admin |
Indian Stocks, Rupee Slump; Regulator Proposes Equity Bet Curbs By Sam Nagarajan Oct. 17 (Bloomberg) -- India's stocks plunged, triggering a trading halt, and the rupee fell the most in two months after regulators proposed investment controls targeting global funds. The benchmark Sensex index dropped 9.2 percent after the Securities & Exchange Board of India late yesterday said it plans to limit trading by investors who purchase derivatives linked to Indian stocks, hiding their identity. Record share purchases drove the Sensex to an all-time high and fueled a 12.5 percent gain in the rupee against the dollar this year, eroding export earnings. The rout wiped more than $100 billion off the value of Indian stocks, led by ICICI Bank Ltd. and Reliance Industries Ltd. The planned clampdown raises concern more Asian regulators will consider restrictions to strengthen market oversight and head off investment bubbles that are fueling inflation. ``They want to limit the rate of flow in the market, which has been accelerating,'' said Tathagata Guha Roy, who helps manage $1 billion for Alliance Trust Plc in Hong Kong. ``There's a lot of new, hot money out there that's come in.'' The Bombay Stock Exchange Sensitive Index of 30 companies, or Sensex, fell as much as 1,743.96 to 17,307.90. It reopened and pared its decline to 6.6 percent. The rupee fell as much as 1.6 percent to 39.97 per dollar before trading at 39.855 as of 10:36 a.m. in Mumbai, according to data compiled by Bloomberg. The currency reached 39.27 on Oct. 11, the highest since February 1998. Derivative Buying More than half of the $17 billion of the net purchases of Indian stocks this year may have been through the use of derivatives known as participatory notes, JPMorgan Chase & Co. estimates. The notes, which change in value depending on the performance of the underlying securities, provide hedge funds anonymity in their investment. ``The near-term impact to investor sentiment should be significant,'' JPMorgan's Singapore-based strategists Claudio Piron and Yen Ping Ho wrote in a note to clients today. The ``proposed measures would constitute restrictions on the issuance of participatory notes to offshore investors and effectively plug an important source of equity inflows.'' Seeking Response India Cements Ltd., which fell 47.75 rupees to 260.50 rupees, was the most active stock by value in Mumbai. Reliance Industries Ltd. fell 298.30 rupees to 2,350.00 rupees and Reliance Industrial Infrastructure Ltd. dropped 119.20 rupees to 2,265.70 rupees. ``The government was getting uncomfortable with the sharp run, which was creating a bubble,'' said Jayesh Shroff, who helps manage the equivalent of about $6.4 billion at SBI Funds Management Pvt. in Mumbai. The regulator suggested foreign institutional investors may not be allowed to issue or renew offshore derivative instruments and will be required to extinguish existing participatory notes in 18 months. The regulator has sought a response to proposals by Oct. 20. ``The period is rather short at just four days, which is probably reflective of the urgency that is attached to these proposals,'' Piron and Yen said. India Economy India's growth, the second-fastest among the world's 20 major economies, is luring money from abroad. The flows accelerated after the U.S. Federal Reserve's Sept. 18 interest rate cut prompted global funds to chase higher returns. Overseas investors bought $8.2 billion more of Indian stocks than they sold since the Fed's decision, compared with $1.4 billion in the month preceding that, according to data provided by the Securities & Exchange Board of India. Their net purchases this year was a record $17 billion. Derivatives are contracts whose value is derived from stocks, bonds, loans, currencies or commodities or linked to specific events such as changes in interest rates or the weather. |
| Useful To Me Not Useful To Me | |
|
|
|
|
ozone2002
Supreme |
17-Oct-2007 14:00
|
|
x 0
x 0 Alert Admin |
sounds like more bad shit to come.. time to flee... while u still can.. |
| Useful To Me Not Useful To Me | |