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Pintu

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http://www.indianexpress.com/news/realty-check-on-dstreet;-sensex-down-182-pts/716750/0

Realty check on D-Street; Sensex down 182 pts

ENS Economic Bureau Tags : National Stock Exchange, Nifty, LIC Housing, Housing Loan Scam Posted: Sat Nov 27 2010, 01:31 hrs Mumbai:

With real estate stocks getting a re-rating in the wake of the bribe-for-loan scam, the benchmark Sensex slumped below the crucial 19,000-level in intra-day trading before closing with a loss of about 182 points as the housing loan scam continued to hammer realty stocks.

The Sensex started the day on a firm note but soon lost ground in a highly choppy trade, and finally settled at 19,136.61, shedding 181.55 points or 0.94 per cent from previous close.

The National Stock Exchange's broad-based Nifty also tanked by 47.80 points to finish at 5,751.95. The Sensex had tumbled by 555 points in the last three days after the surfacing the loan scam on Wednesday. "The multi-crore scam could have a adverse impact on property prices, as lenders could tighten the norms for giving loans to realty players," said an analyst on the sustained fall in realty stocks.

Avinash Gupta, vice president, Bonanza Portfolio, said, "The market is confused as to what is going to be the impact of the probe undertaken by the CBI. There was also confusion on the names of companies going to come under the scanner of the investigating agencies. The weakness in small and madcap stocks was highly pronounced. The market feels that the cost of funds for the real estate sector would go up. There are also apprehensions that the availability of the credit for the sector would go down. These apprehensions caused the stocks of the sector to fall."

"For the third day running, the loan scam continued to take a heavy toll on the Indian market as concerns about its impact on property prices sent realty shares into a tailspin. However, the banking index recovered from the session lows and IT shares bucked the negative trend," said Amar Ambani, head of research, IIFL.

LIC Housing which is in the midst of the scam fell by another 11.91 per cent to Rs 932.10. Money Matters Financial Services — whose chairman Rajesh Sharma is in CBI custody for his alleged involvement in the loan scam — fell by another 10 per cent to Rs 382.55. Among real estate shares, Ackruti plunged by 13.38 per cent, DB Realty 10 per cent, Indiabull Real Estate 11.88 per cent, Orbit 13.08 per cent and Unitech 4.76 per cent. Jai Prakash Associates settled at Rs 105.75 with a loss of 8.04 per cent. The counter emerged as the worst performer among the 30 Sensex scrips. Another realty giant DLF too witnessed a plunge of 1.71 per cent to close at Rs 287.75.

Analysts said apprehensions that banks would cut lending to the realty sector after the surfacing of the scam led to the selling pressure. There's also talk of real estate prices falling in the wake of the margin squeeze.

Though the Government said it has not directed public sector banks to cut exposure in real estate following the housing-finance bribery scam, investors were not convinced. Financial Services Secretary R Gopalan had denied that the government has given directions on cutting lending to realty companies by state-run banks.

A host of factors like crisis in Ireland and South Korea, interest rate hike in China, and a string of scams including 2G spectrum row and housing loan racket, have seen the Sensex plummet by 896 points or 4.47 per cent so far this month. The continuous fall is an over-reaction to the negative news and also called it a buying opportunity for the investors.
 

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http://www.samachartoday.com/bse-sensex-falls-46-points-in-the-opening-trade/13800

BSE Sensex falls 46 points in the opening trade
December 7th, 2010

BSE Sensex falls 46 points in the opening trade


The Bombay Stock Exchange benchmark Sensex fell by over 46 points in the opening trade today.It was trading at 19,940, down by over 41 points a short while ago. Analysts said the fall in sensex is due to profit-booking amid weak trend on the other Asian markets.

Meanwhile, in other markets in Asia, Hong Kong's Hang Seng index was trading lower by 0.31 per cent, while Japan's Nikkei shed 0.14 per cent in early trade today.

In the US, Dow Jones Industrial Average ended 0.17 per cent low at yesterday's close.

Indian Rupee today appreciated by 10 paise to 44.84 rupees against the US dollar in the morning trade.It had gained 16 paise to close at 44.94 rupees against the US currency yesterday.

Dealers said sustained dollar selling by exporters and banks and mixed trend in other Asian currencies against the dollar kept the rupee sentiment firm.
 

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http://economictimes.indiatimes.com...-brokers-to-meet-Sebi/articleshow/7063028.cms

8 Dec, 2010, 05.04AM IST,ET Bureau
Unhappy over Jalan plan, BSE brokers to meet Sebi

MUMBAI: The BSE Brokers' Forum, an association of broker shareholders of the Bombay Stock Exchange, will approach the Securities and Exchange Board of India, or Sebi, to voice their concerns over the proposals of the Bimal Jalan Committee set up to look into the governance, ownership and listing issues of stock exchanges.

The brokers are unhappy over the proposal to disallow the listing of stock exchanges. They feel the proposal defeats the very purpose of the corporatisation and demutualisation scheme under which the brokers were allotted shares against membership cards they were holding in the erstwhile BSE.

In 2007, Asia's oldest bourse completed the demutualisation process to ensure that at least 51% of its equity was held by the public. Since then, many of its broker shareholders and also public shareholders, including large institutional investors, corporates and foreign investors like Deutsche Bourse and Singapore Exchange, have been holding shares in the hope that they would eventually get a chance to exit with better returns.

"We have set up a task force consisting of some of our committee members who will meet Sebi to convey our concerns over the Jalan report ," a members of the forum said, requesting anonymity.

While the market regulator has invited public comments on the report by December 31, many shareholders have already taken a critical view of its recommendations as it denies them an exit option .

Sebi chairman CB Bhave, however, has publicly defended the report. The brokers are also irked by some of the other suggestions, particularly the one which does not favour profit maximisation by stock exchanges and another against giving representation to brokers on the board. "If these recommendations are implemented, they would be detrimental to the interest of the BSE as a corporatised entity and also that of its shareholders," said a member of the exchange. "We favoured the corporatisation and demutualisation scheme because we thought it will be implemented with its original features," the member said.

A few brokers, however, are of the view that stock exchanges should not be allowed to function as a commercial organisation and to share its profits as dividend.

"Commercialisation of stock exchanges itself is debatable in the Indian context. There are some critical problems of listing, which stock exchanges will find difficult to deal with in their existing structure," said VK Singhania, director of Mumbai-based broking firm VNS Finance.
 

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http://economictimes.indiatimes.com...ng-stocks-shares-tank/articleshow/7032821.cms

3 Dec, 2010, 10.30AM IST,ET Bureau
SEBI bars 4 firms for rigging stocks; shares tank

MUMBAI: The Securities & Exchange Board of India , or Sebi, has unearthed a nexus between some mid-cap companies and stock market operators who rigged the share prices of these firms ahead of convertible bond issues and private placements to institutional investors .

Late on Thursday, the regulator barred the promoter groups of Murli Industries, Ackruti City, Welspun Corporation and Brushman India from dealing in their shares till further notice, for colluding with share trader Sanjay Dangi and his associates, and the Ashika Group in rigging the stock price of their respective companies. Sanjay Dangi and his group of investment arms, and the Ashika group of firms too have been banned. Ackruti City Managing Director Vimal Shah said he would challenge the Sebi order.

Shares of Murli Industries, Ackruti City Ltd , Welspun Corp and Brushman India were trading lower on Friday. Welspun Corp tanked 27 per cent while Ackruti City tumbled by 19.99 per cent to a record low of Rs 307.90, hitting a lower circuit on BSE. Murli Industries saw a steep decline of 19.99 per cent while Brushman India counter dropped by 4.96 per cent in the early trade on BSE.

ET had reported on December 2 that the Intelligence Bureau had information about Sanjay Dangi manipulating share prices of mid-cap companies, including Welspun, in connivance with the promoters. Dangi is a comparatively new name in the club of Dalal Street operators who specialise in rigging stock prices of mid and small-cap companies . "... the Dangi group successfully offers its services for a commercial consideration," said Sebi. The stock exchanges have been 'advised' by Sebi to enable squaring off the derivative positions of all these entities.

Barring Welspun, none of the other three companies is eligible for derivatives trading. December futures of Welspun Corporation closed at 220 on Thursday, a premium of 1.50 to the cash market price. The modus operandi in each instance was the same. The companies would have a set of investment arms, which would sell shares to various entities controlled by the Dangi group.

This cartel would then push up the stock price by buying some more shares from the market, and at the end of the operation, sell the shares back to the company's investment arms. The profits would be shared by the Dangi group and the companies. The Dangi group entities traded through a large number of stock brokers, primary among them being Ashika Stock Broking, Sanchay, Systematix Shares & Stocks and Anand Rathi Financial Services.

In the case of Murli Industries, the company had raised $23 million through foreign currency convertible bonds (FCCBs ) in February 2007, with a conversion price of 565. An FCCB holder has the option of converting the bonds into shares anytime during the tenure of the bond. But he will do so only if the conversion price is below the market price.

STOCK SHOCK

ENTITIES BANNED

Promoter groups of Murli Industries, Ackruti City, Welspun Corporation, Brushman India, share trader Sanjay Dangi & his group of investment arms, & Ashika Group of companies
 

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http://economictimes.indiatimes.com...-banks-MF-investments/articleshow/7032882.cms

4 Dec, 2010, 07.16AM IST,ET Bureau
RBI, Sebi to draft norms for banks' MF investments

MUMBAI: The Reserve Bank of India (RBI) will collaborate with market regulator Securities and Exchange Board of India (Sebi) to finalise the guidelines for banks' investments in mutual funds which are seen as a destabiliser during market swings.

" RBI has been taking inputs from us. The apex bank is concerned about volatility in inflows into mutual funds from banks. This time, it may involve Sebi in formulating the guidelines,'' said S Sridhar, chairman and managing director, Central Bank , on the sidelines of a media conference ahead of the bankers' conference beginning on Friday.

An analysis of the pattern of banks' investment in mutual funds shows that inflows tend to be volatile, typically during the beginning and end of a quarter and also at times of a sharp surge in loan demand. One saw banks withdrawing funds from mutual funds when they had to lend over Rs 1 lakh crore loan to telecom companies to pay various spectrum fees. Mutual funds are regulated by Sebi.

The RBI has been concerned over investments in mutual funds, essentially debt funds because it amounted to diverting from its core business of lending. Besides, there have been fears of 'circularity' of fund flows from banks to mutual funds and back through the collateralised borrowing and lending obligation (CBLO) route.

Also, mutual funds subscribed to commercial papers issued by corporates, which affected the resource flow to commercial sector by banks.

Former RBI Governor, YV Reddy, recently told ET that the circularity of investments between banks and mutual funds was one of the instances of excess of financialisation in the Indian economy, which the regulators needed to address as it did not give a clear state of the financial sector growth in the economy.
 

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http://economictimes.indiatimes.com...to-check-manipulation/articleshow/7038784.cms

4 Dec, 2010, 11.16AM IST, Santosh Nair,ET Bureau
Sebi may tighten disclosure norms to check manipulation

MUMBAI: Amid several instances of market manipulation , capital market regulator Sebi may tighten disclosure rules to check operators and company promoters cutting bulk trades outside the regulator's radar, feel fund managers and brokers.

It is common knowledge in market circles that most promoters control undeclared investment arms through which they buy and sell shares of their companies. This helps them evade creeping acquisition norms and other mandatory disclosures.

"It appears there is enough evidence with Sebi to show how open offer regulations have been side-stepped by purchasing shares through multiple entities carrying out bulk trades. It's likely that Sebi may ask bulk trade participants to reveal themselves," said a Mumbai-based broker.

Recent investigations show that it's possible for market operators to buy large blocks of shares well exceeding the open offer trigger limit of 15%.

"In Sangam India , the Dangi group, along with Ashika Group on November 23, 2010, had provided an exit route to investors such as Swiss Finance Corporation (Mauritius) and India Advantage Fund-I which were approximately holding 23.01% share capital in the said company," said Thursday's Sebi report on share trader Sanjay Dangi and entities controlled by him, alleged to be rigging share prices in collusion with the promoters. Sangam officials were not available for comment.

Broker-members are required to disclose to the stock exchanges all transactions for a client wherever the total quantity bought or sold is more than 0.5% of the equity shares of that company. This is referred to as a bulk deal. A block deal is one which is for a minimum of five lakh shares or a trade worth Rs 5 crore.

Fund managers and brokers say that one way of curbing malpractices would be for the regulator to relax norms for block deals and ensure that large deals are done through this window. The block deal window on the BSE and NSE — for a minimum of 5 lakh shares or for trades worth Rs 5 crore — is open for only the first half an hour of the trading session.

The transaction price can't be more than plus or minus 1% of the previous day's closing price, if the deals are struck right at the start of the session, or plus or minus 1% of the prevailing market price once trading commences for the day.

Brokers say that when it comes to large trades in mid-cap stocks, many fund managers prefer to route the trades through the regular window. One reason is that the buyer may want to keep his identity secret. This is not possible, if the trade has been done through the block deal window: identity of both the buyer and seller has to be disclosed.

Another reason, allege market watchers, is that bypassing the block deal window facilitates front-running — an illegal activity in which a trader takes a position in an equity based on advance information of an impending trade.

"Bulk deals are always negotiated, with the broker(s) finding a counterparty before entering the order on the trading screen," says a BSE broker , adding that promoters often use undeclared investment arms to absorb heavy selling in their stock from institutional investors. "But they buy in small chunks so as not to trigger the 0.5% limit for disclosing trades to the bourses," the broker said.

Last week, India Advantage Fund and Swiss Finance Corporation together sold around 90 lakh shares of Sangam. Of which, around 63 lakh shares were picked by Sanjay Dangi-controlled Pacific Corporate Services and Ashika Group-backed Withal Commercial. According to Sebi regulations, if entities or persons acting in concert acquire more than 15% in a company, they have to make an open offer for additional 20% of the company's equity.

In the case of Sangam India, the Dangi and Ashika groups were acting in concert, as the Sebi investigation showed.
 

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http://timesofindia.indiatimes.com/...nsex-advances-107-pts/articleshow/7099206.cms

Sensex advances 107 pts
PTI, Dec 14, 2010, 04.41pm IST

MUMBAI: The BSE benchmark Sensex advanced for the third straight day by adding over 107 points as inflation slowed to an 11-month low, raising hopes that RBI will finally stop the round of policy rate hike for this year.

The Sensex, which had gained 450 points in last two trading sessions, rose further by 107.41 points to 19,799.19 as investors felt the slowing inflation would reduce pressure on the Reserve Bank to hike interest rate for the seventh time in its meeting on December 16.

Continuing with its trend towards moderation, inflation declined to 7.48 per cent in November, mainly boosted by lowering of pressure on certain food items. It had stood at 8.58 per cent in October.

In a similar fashion, the broad-based National Stock Exchange index Nifty rose by 36.45 points to 5,944.10, led by consumer durables, metals and capital goods.

The upsurge was mostly supported by stocks of consumer durables and metal sectors on expectations of rise in sales and improved earnings next quarter.

A firming Asian trend, as rising commodity prices boosted raw material stocks, further fuelled the uptrend. The MSCI Asia Pacific Index rose 0.7 per cent to 135.21, a highest level.

In the 30-BSE index components, 19 stocks gained while 11 others ended with losses. The front runners were Reliance Industries, Reliance Infra, Larsen and Toubro, State Bank of India, Tata Steel and Tata Motors.

The consumer durable sector index gained the most by 3.14 per cent to 6,207.39, followed by metal sector by 1.60 per cent to 16,588.42 as base-metal prices advanced to record high in overseas markets.

Tata Steel rose 2.33 per cent to Rs 645.50 as it said the prices for plate and wire rod in Europe will be increased from Jan. 1. Sterlite Industries, largest copper producer, rose by 3.46 per cent to Rs 170.65. Copper surged to a record amid speculation demand will rise after China, the world's largest consumer, refrained from raising borrowing costs.

The capital goods sector index rose by 0.93 per cent to 15,449.14 as Larsen increased 1.48 per cent to Rs 1,997.35 and Reliance Infra, builder of a mass transit system rose 2.67 per cent to Rs 833.10.
 

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http://timesofindia.indiatimes.com/...-paise-against-dollar/articleshow/7100450.cms

Rupee recovers by 20 paise against dollar
PTI, Dec 14, 2010, 08.12pm IST

MUMBAI: The rupee today recovered sharply by 20 paise to close at a one-week high of 44.94/95 against the US currency on fresh dollar selling by exporters amid smart rally in domestic equities.

Sluggish dollar overseas as well as sustained capital outflows too boosted the rupee sentiment.

In lacklustre trading at the Interbank Foreign Exchange (Forex) market, the domestic unit opened remarkably higher at 44.94/95 as against previous close of 45.14/15.

Later, it was trapped in a narrow range of 44.92 and 45.0550 before settling the day's opening level of 44.94/95.

The Indian benchmark Sensex today ended higher by over 107 points, or 0.55 per cent, after gaining by over 449 points in last two straight trading sessions.

Exporters preferred to sell dollar at current level on persistent fall in dollar value in overseas. In New York, the dollar extended losses yesterday giving up an earlier advanced versus the Euro, Japanese yen and British Pound as US stocks and commodities gained ground.

In London today, the dollar index, gauging of six major currencies, was down by about 0.4 per cent.

Foreign Institutional Investors (FIIs) pulled out USD 912.4 million from equities in five sessions since December 7.

Wholesale price-based inflation dropped to 7.48 per cent in November from 8.58 per cent in the previous month.

The rupee premium for the forward dollar ended slightly lower on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in May eased to 134-136 paise from 135-1/2-137-1/2 paise on Monday.

Far-forward contracts maturing in November also softened to 233-235 paise from 234-236 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.01 and the euro at Rs 60.31.

The rupee fell back to Rs 71.32/34 against the pound sterling from Monday's close of Rs 71.03/05 and also dropped to Rs 60.52/54 per euro from Rs 59.76/78 previously.

It reacted sharply downwards against the yen to Rs 54.21/23 per 100 yen from its last close of Rs 53.66/68.
 

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http://www.telegraphindia.com/1101215/jsp/business/story_13302693.jsp

UK Sinha tipped to head Sebi
OUR SPECIAL CORRESPONDENT



New Delhi, Dec. 14: A government-appointed panel to find a successor to Sebi chief C.B. Bhave has zeroed in on U.K. Sinha, now chairman and managing director of UTI Asset Management Company.

Sinha's name was shortlisted after the final interviews yesterday and would be recommended for the approval of the cabinet committee on appointments, sources said.

A formal announcement will be made soon. The new chairman will get a five-year term. Bhave had a three-year term that will be over in February.

Sinha is also the chairman of the Association of Mutual Funds of India, the apex industry association for mutual funds.

Before moving to UTI, he was joint secretary in the department of economic affairs from June 2002 to October 2005. Sinha has also been part of various committees formed by Sebi and the finance ministry for capital market regulations.

The Sebi chairman would have the option to either get a pay of a secretary in the Union government or a consolidated salary of Rs 3 lakh per month.

The finance ministry had said the person preferably should have more than 25 years of experience and fall in the age group of 50 to 60.

Of those selected for the final interview, at least two — State Bank of India chairman .P. Bhatt and Reserve Bank deputy governor K.C. Chakrabarty — expressed their unwillingness to head the capital market regulator, sources said.

Others in the race were R. Bandyopadyay, corporate affairs secretary, S. Pradhan, additional secretary in the department of disinvestment, G.P. Singhal, Madhya Pradesh principal secretary, and two managing directors of SBI — S.K. Bhattacharya and R Sridharan.

The search panel was headed by cabinet secretary K.M. Chandrasekhar.

The other members of the panel were Ashok Chawla, finance secretary; R. Gopalan, secretary, department of financial services; and Alka Sirohi, secretary to the department of personnel and training.

The search panel had expressed the hope that the new chairman would be appointed before the post fell vacant.

"The Sebi chairman's post would become vacant on February 17, 2011. Before that we would have the successor," finance secretary Ashok Chawla had said.
 

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http://www.business-standard.com/india/news/rbi-to-buyto-rs-12000-crgovt-bonds/418103/

RBI to buy up to Rs 12,000 cr of govt bonds
Reuters / Mumbai December 14, 2010, 0:33 IST

The Reserve Bank of India said late on Monday it would buy up to Rs 12,000 crore ($2.7 billion) of government bonds through open market operations (OMO) in a move to inject liquidity into the country's banking system.

The Reserve Bank of India said the auction would be conducted on December 15.

Government securities to be purchased under the programme include the 7.02 per cent 2016 bond, the 7.99 per cent 2017 bond, the 8.13 per cent 2022 bond.
 

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http://economictimes.indiatimes.com...promote-fin-inclusion/articleshow/7157333.cms

24 Dec, 2010, 05.14PM IST,PTI
BSE to launch Shariah-compliant Index to promote fin inclusion

MUMBAI: The Bombay Stock Exchange Ltd (BSE) and Taqwaa Advisory and Shariah Investment Solutions (TASIS) will launch the BSE TASIS Shariah 50 index from Monday, December 27.

The Index will be the first Shariah Index created in India utilising the strict guidelines and local expertise of a domestic, the India-based Shariah advisory board.

The BSE TASIS Shariah 50 index consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500, an exchange release said here.

The creation of the index will help promote financial inclusion of the Muslim population in India and attract investment flows from international funds that must adhere to Shariah norms.

"The introduction of the BSE TASIS SHARIAH 50 Index will give Islamic and other socially-responsible investors another means to access the Indian market and will help attract pools of capital to India from the Gulf, Europe, and Southeast Asia," BSE MD & CEO, Madhu Kannan said.

This index will create increased awareness on financial investments amongst the masses and help enhance financial inclusion.

The index will also build a base for licensing for the construction of Shariah compliant financial products, including mutual funds, ETFs, and structured products, Kannan said.
 

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Country flag
Bombay Stock Exchange launches Islamic index

The Bombay Stock Exchange (BSE) in the Indian city of Mumbai has launched a new index which consists of companies that meet the Islamic legal code.

The Tasis Shariah 50 was formed using guidelines from an Indian Shariah advisory board.

Studies have found that most Muslims in India are excluded from the country's formal financial sector.

That is because Islamic law does not allow investment in companies that sell goods like alcohol, tobacco or weapons.

Neither does it allow investment in companies that derive significant profit from interest.

The index is intended to be the basis for other Shariah-compliant financial products.
'Come and invest'

BSE Managing Director and Chief Executive Madhu Kannan said that the new index would attract Islamic and other "socially responsible" investors both in India and overseas.
Continue reading the main story
"Start Quote

All Muslim countries of the Middle East and Pakistan put together do not have as many listed Sharia-compliant stocks as are available on the BSE"

End Quote Tasis Director of Research and Operations Shariq Nisar

"This index will create increased awareness of financial investments among the masses and help enhance financial inclusion," he said in a statement.

Companies included in the index have been screened by Tasis, which is based in Mumbai and whose board members include Islamic scholars and legal experts.

"Before anyone can attract investors, we need to put in place institutional infrastructure, and having an index to track Shariah-compliant stock is important," MH Khatkhatay, senior adviser to Tasis, told the Reuters news agency.

"If you have an ETF (exchange traded fund), for example, you need an index, or if overseas investors want to invest in Shariah index in India, this is an invitation for people to come and invest."

Tasis said the index would "unlock the potential for Sharia investments in India".

"The BSE has the largest number of listed Sharia-compliant stocks in the world," said Shariq Nisar, director of research and operations at Tasis.

"All Muslim countries of the Middle East and Pakistan put together do not have as many listed Sharia-complaint stocks as are available on the BSE."


Stocks will be reviewed every month to ensure they continue to meet the criteria - any which do not will be removed, officials say.

http://www.bbc.co.uk/news/world-south-asia-12083190
 

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good strategy by bse but d u think common muslim would like to participate in stock exchange . i mean would they like invest their fiancial securityy in highly volatile market . in india common people ( without taking religion into) remains out of stock markets because of fear of loss of its money and investing less is not profitable in stock markets it atleast requires good amount of money which i donot see any body willing to invest or say take risk . what d u say

by the way whats islamic legal code? i mean how does it workes? i mean no one can promise u a good retrun on investment untill it re-invest somewhere and charges interset on it from some else. plz educate me about this
thanks
 

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good strategy by bse but d u think common muslim would like to participate in stock exchange . i mean would they like invest their fiancial securityy in highly volatile market . in india common people ( without taking religion into) remains out of stock markets because of fear of loss of its money and investing less is not profitable in stock markets it atleast requires good amount of money which i donot see any body willing to invest or say take risk . what d u say
depends on individual risk appetite imo.

by the way whats islamic legal code? i mean how does it workes? i mean no one can promise u a good retrun on investment untill it re-invest somewhere and charges interset on it from some else. plz educate me about this
thanks
good question.

http://en.wikipedia.org/wiki/Islamic_banking (not very exhaustive)

--

Good move. This will encourage not only Indian muslims but also has the potential of attracting big bucks from Islamic world.
 

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anoop following Islamic codes means not making things that are prohibited in holy Koran.

It's a good move lot of people will be attracted in investing there, as India is the rising market, it makes perfect sense to invest.
 

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Here is a factsheet on the index by the investing firm TASIS that gives an idea about the index as well as some FAQs
http://www.tasis.in/BSE TASIS Shariah 50 Index Factsheet.pdf

This basically comes under the category of socially responsible investing. For example you have portfolios which are "environmentally friendly" e.t.c.

In terms of shariah compliant, it would likely be similar to similar products around the world. That is invest in the top 50 BSE companies which do not work in prohibited fields. From the NASDAQ-100 Shariah index the list of items that are avoided are

  • Alcohol
  • Entertainment
  • Financial - Conventional banking, insurance, financial services, or any other interest-related activity
  • Gambling
  • Pork
  • Tobacco

So for example, you can see that the index is overweight in Oil and gas, IT, Transportation, Health care e.t.c. but hardly any weight-age towards, say Financials or Alcohol or Media companies.


Coming to weather it will help the average Muslim, as anoop suggests probably not. Investing in the stock market is for those who have extra cash lying around and the average person of any religion will prefer to probably buy a flat or a house rather than invest in the stock market depending on their risk tolerance level

This is probably more targeted to the upper-middle class or well off section and overseas sovereign wealth funds. Besides, its not a Muslim-only index, so for example I know of some Hindus who are vehemently against Alcohol and related activities and this would cover that.

I think the main benefit will an influx of a lot of gulf money. Major stock indices in the US, UK and Hong Kong stock markets have similar indexes to attract gulf funds. Its a smart move to get into the act as well.
 

Pintu

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Sensex down by 205 pts despite fag-end recovery - Hindustan Times

Sensex down by 205 pts despite fag-end recovery
Press Trust Of India
Mumbai, May 21, 2011
First Published: 14:02 IST(21/5/2011)
Last Updated: 14:05 IST(21/5/2011)

Despite hectic short-coverings on the last day of the week ahead of the expiry of May contract coupled with strong results from Larsen and Toubro, the benchmark Sensex fell by 205 points to finish at 18,326.09. Sustained selling by foreign funds and fears of high interest rates which may affect corp
orate profitability mainly affected the market sentiments.

Steep hike in petrol prices and fears of rise in diesel prices next week are expected to stoke up the inflation further which weighed on the market sentiment, resulting the benchmark Sensex to fell to an 8-week low at 18,020.79.

Higher headline inflation, although it softened slightly in the month of April, and sluggish global trends too kept the market under pressure.

Gloomy earnings by the banking major State Bank of India (SBI) also led to the fall in the value of share prices.

The country's largest lender SBI's net profit tumbled to Rs 20.88 crore for the Q4 ended March 11, against Rs 1,866.60 crore in the same quarter last fiscal due to higher provision for bad loans and operating expenses.

Sensex recovered by 184 points on the last day of the week following strong results from Larsen & Toubro.

It resumed lower at 18,492.68 and dropped further to 18,020.79 before settling the week at 18,326.09, showing at net loss of 205.19 points or 1.11% from its last weekend's level.

The NSE 50-share Nifty also dropped by 58.40 points or 1.05% to end at 5,486.35.

Heavy sell-off from Foreign institutional investors (FII's) to the tune of Rs 7,612.70 crore during the current month till May 19 also affected the market sentiments.

Share of Larsen and Toubro (L&T) today rose by 8.05% as company reported a 17.25% growth in standalone net profit to Rs 1,686.21 crore for the quarter ended March 31, 2011.

Giving its outlook for the current year, the company said completion of several expansion projects is underway and it will strengthen the company's position of prominence in various business verticals.

Food inflation in the country slipped further to 7.47% for the week ended May 7, on the back of cheaper pulses, vegetables and wheat.

Among the major indices, the BSE-PSU fell by 4.74% followed by the BSE-Oil & Gas (4.62%), the BSE-Realty (4.18%), the Bankex (3.43%) and BSE-Metal (1.84%).

However, the BSE-Capital Goods shot up by 3.99% and BSE-Consumer Durable gained 1.04%.

Small-cap and Mid-cap indices also finished lower by 2.19% and 2.12%, respectively.
 

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