Bailout Plan Passed by House

In an historical event the House of congress passed the modified bailout bill on Friday. As you know, the earlier version of the bill was defeated in the House on Monday but after some modifications it was passed by the senates on Wednesday. The government succeeded in convincing some republicans who voted against the bill on Monday with the additions into the bill.

American president, Bush, after the bill was passed in the House, Said "By coming together on this legislation, we have acted boldly to prevent the crisis on Wall Street from becoming a crisis in communities across our country". Read more

October 4, 2008 | Filed Under Market Analysis | Leave a Comment

SEC extends ban on short selling in financial stocks

Securities and Exchange Commission (SEC) extended an unprecedented ban against all sorts of short selling in 800 financial companies’ stocks. It would keep in place at least until a decision comes out from the Congress on bailout plan on Friday.

As per the law the ban will end no later than October 17th. SEC banned short selling in financial stocks from September 18th to stop the free fall of the share prices and to shore up the confidence in the investors. The ban was to expire today. The ban would end if the House of Congress accepts the modified bailout plan which was passed by the senate on Wednesday.

October 2, 2008 | Filed Under Market Analysis | Leave a Comment

Bailout plan passed by the senate/Effect on Indian markets

The senate Wednesday night passed the controversial bailout bill with a wide margin of 74-25. The Presidential candidates Barack Obama, D-Illinois, and John McCain, R-Arizona are among the senators who voted in favor. Total 39 Democrats, 34 Republicans and independent Sen. Joe Lieberman voted in favor where as 9 Democrats, 15 Republicans and independent Sen. Bernie Sanders voted against the bill.

There were some changes to the bill that failed in the House (Congress) which softened the Republicans. This bill includes additional features of $110 billion in tax breaks for businesses and the middle class and a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance (FDIS). With the tax break there would be fewer burdens on common man and with raise in insurance limit the depositors will come forward to deposit in banks.

The Securities and Exchange Commission (SEC) eased a rule on mark to market prices. The companies’ balance sheets now need not show the devalued assets with the prices one can get in the current market.

Now this modified bill again will move to the House on Friday for the approval. The government has already started measures to change the minds of the people who voted against the old bill on Monday. Read more

October 2, 2008 | Filed Under Market Analysis | Leave a Comment

Change in Market Timings at NSE and BSE

Due to sun outage Indian markets timings are changed from September 24th to October 08th. The Bombay stock Exchange announced that due to heavy solar activity, the VSAT services are likely to be disrupted from September 24, 2008 to October 08, 2008 (both days inclusive).

It has, therefore, been decided to re-schedule the trading session timings from September 24, 2008 to October 08, 2008 (both days inclusive) as follows: Read more

September 23, 2008 | Filed Under Market Analysis | Leave a Comment

Indian Markets Next week September 22nd 2008

Last week markets all over the world went through a very high volatile phase. Financial crisis scared the investors but settled down with the intervention of Federal Reserve. Markets tumbled following the news of Lehman bankruptcy, Merrill’s take over, AIG’s request for bail out etc. It’s really gestation period. Fed has come out with a bail out plan to rescue more companies. But the big question is if they could come out of this big crisis in the near future. As far as the Indian companies are concerned, every one is waiting for Q3 results. They might not be as good as they were expected earlier. Any surprises would boost the Sensex at least for couple of thousands.

Wholesale Price Index based inflation was slightly up at 12.14 for the week ended September 6th against a previous figure of 12.10. The monetary measures taken by RBI and fiscal measures taken by the Government are expected to yield results only after November. Till that time 2 digit inflation is a sure-shot. Crude prices are little over $100. It’s not the centre of the news as some interesting news flowing down every day. Read more

September 22, 2008 | Filed Under Market Analysis | Leave a Comment