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Carnage Continued....
Yesterday Indian Market witnessed sharpest fall of recent days during the first half of trading time. Market reacted to the news of US Federal reserve Chief Ben Bernanke's comments of " Central bank`s record loans to unblock credit markets were insufficient to prevent a deeper economic downturn".
All BSE sectorail indices ended on red, but some sectors deepns the problem having cut more from index level. Consumer Durables and FMGC take the worst hit down about 6.8% and 5.2% respectively. Some stocks shined the street irrelevant to fall like Ranbaxy and Tata Power both were the leading gainer of Sensex, gaining by 9% and 4.8% respectively. Ranbaxy was a star performer due to the news on market that US Department of Justice has withdrawn motion against the company, being probed against allegedly bringing adulterated and misbranded medicines into U.S. On the loosing side JP Asso and Wipro were the worst performer till the end of day, both sheds 10% and 8% respectively.
In Evening ( according to IST ), 3 central bank - ECB ( European Central Bank ) , BOE ( Bank of England ) & US Federal Reserve in a co-ordinated move cuts Interest rates by 50bps. In a move to handle situation in China , China's central bank also reduced Interst rates by 27 bps and reduced reserve requirment by 50 bps.
Asian Markets - All Asian market closed in deep red . Japan stock exchange key index Nikkei 225 closed down by more than 9% this is the worst fall of Nikkei 225 of last 21 year.
European Market - All Eurpean market recovred on the news of Interest rate cuts but closed in red having a minimum cut of 5% in Eupore's key stock exchange. Dow Future also traded on positive having a gain of 2% in evening.. but finally ended on red falling about 190 points.
Currencies & Energies- Rupee touched a new low of 6 years, it depriciated towards the level of 48.81 against dollar and fiannly recovred 75 paisa after the rate cuts annouuncement across globe and finally closes at 48.00 / US Dollar. Crude - Take the hit on the news of economy slowdown on global scale, it formed a new 10 months low at $86.05/barrel and fianally closed at 90.70 as dow recovred.
Turnover on 08th October , 2008
NSECash Rs.12819.42 BSECash-Rs.5135.12 Future Rs.57666.95
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India RBI To Cut Cash Reserve Ratio By 150 BPs To 7.50%
RBI : CRR cut effective from 11th Oct, cut will infuse 60,000 cr rupees
The Reserve Bank is monitoring developments closely and continuously and would respond swiftly and even preemptively to any adverse external developments impinging on domestic financial stability, price stability and inflation expectations and the continuation of the growth momentum of the Indian economy. The Reserve Bank is committed to maintaining financial stability and active and flexible liquidity management using all policy instruments is an integral part of this objective.
Accordingly, on a review of the evolving liquidity situation in the context of global and domestic developments, it has been decided to reduce the Cash Reserve Ratio (CRR) by 150 basis points to 7.50 per cent of NDTL with effect from the fortnight beginning October 11, 2008 instead of the 50 basis points reduction announced on October 6, 2008. As a result of this reduction in the CRR, an amount of about Rs 60,000 crore would be released into the system (instead of the injection of Rs 20, 000 crore announced earlier).
Despite the Reserve Bank (RBI) lowering the cash reserve ratio by 150 basis points— thus, pumping in Rs 60,000 crore additional liquidity into the system—industry chambers feel there is need for another Rs 80,000 crore of liquidity to address the incipient slowdown in growth since credit is becoming difficult for industry.
AVOID RUMORS : please dont trust on "ICICI bank bankruptcy " news. such thing will never happen in india because of solvency ratio norm of RBI and SLR status will never allow any bank to fall to such level. it is logical and practical also. please sent it to all your friends
forwarded msg
If anyone shorted and holding below my lelvls... please cover ur shorts.. bcoz LC limit is only 100 points away.. Once it hit ,, trading wll be halted fro 1 hrs. and it will be very hard to get profit once it will open...
so my recomme ,, cover all shorts.. getting decent profit on 75 pints on Nifty Itself...
If anyone shorted and holding below my lelvls... please cover ur shorts.. bcoz LC limit is only 100 points away.. Once it hit ,, trading wll be halted fro 1 hrs. and it will be very hard to get profit once it will open...
so my recomme ,, cover all shorts.. getting decent profit on 75 pints on Nifty Itself...
Nifty gainedd by 130 points... from our short covering msg... well ok.. now those who have holding on nifty from that time.. pleaase// exit the position @ 3400 ,, only for those who are playing with multiple lots...
and who are trading with single or mini nf lot... trade with sl of 3326... on NF
again wait for lelvl of 3305.... trade according to that lelvl...