Comments on: The recent stock market depression http://www.grmtech.com/blog/the-recent-stock-market-depression/ Innovative Minds at Work Sat, 27 Feb 2010 06:07:19 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Gokul Chowdhury http://www.grmtech.com/blog/the-recent-stock-market-depression/comment-page-1/#comment-20 Gokul Chowdhury Mon, 27 Oct 2008 05:05:12 +0000 http://www.grmtech.com/blog/?p=13#comment-20 Foreign Institutional Investors (FIIs) were not behind the recent fall in stock markets and there was no proposal to either ask them to withdraw from Indian market or ban them, Finance Minister P Chidambaram said. “Foreign Institutional Investors (FIIs) trading in stock market are the reason behind volatility (in stock markets) on certain days.” The ups and downs in the stock markets depend on the changing perceptions of investors — domestic and overseas, retail and institutional — about the economy, the sector and the company. “The recent fall in the stock markets is attributed among other factors, to the sub-prime mortgage crisis in the US, change in the monetary stance of developed countries, the expected recession in US (and) firming up of oil prices.” There is, however, no “proposal to ask Foreign Institutional Investors (FIIs) to withdraw or ban Foreign Institutional Investors (FIIs).” While the benchmark Sensex fell 7.4% on 21 January, it rose 34.5% during this fiscal on a point-to-point basis from end of March 2007 to end of February 2008. Finance Minister P Chidambaram said systems and practices have been put in place to promote a safe, transparent and efficient stock market and to protect market integrity. The systems instituted include advanced risk management mechanisms comprising on-line monitoring and surveillance, various limits on positions, margin requirements and circuit filters. “The systems and practices are reviewed continuously and modified to meet emerging needs,” he said. Measures taken to broaden and deepen markets include screen based trading system, dematerialization of securities, corporatization and demutualization of exchanges, settlement through clearing corporation and trading in of derivatives. Many investors are thinking that they have almost faced the shocks of current crisis. Frankly to tell, Indian economy has still not faced even 25% of crisis effect. We will feel the “real shocks” in the next 2-3 months as it is slowly spreading to India. It will be a surprise if Indian main economy escapes from this global crisis. But stock markets already discounted 70% of credit crisis effects on our businesses. That’s the only hope for stock market investors. "What’s the 26-year low for BSE Sensex?" Japan's "Nikkei" touched 1982 levels during intraday trading on this Monday. Markets expect fresh steps by global authorities this week to try to stabilize shaky markets. The US Federal Reserve is expected to cut interest rates Wednesday from the current level of 1.5 per cent. Investors are also waiting for Thursday's US gross domestic product figures for the third quarter, which are expected to show a contraction. A slew of economic indicators and corporate results are also due this week in the United States, Europe and Japan, which analysts said are unlikely to give much cause for optimism. "If the fall in markets has its origins in the fear of an international recession, then the coming week will be very bad," said Carl Weinberg at High Frequency Economics in New York. "The economic calendar is full of indicators that will be uniformly atrocious." Foreign Institutional Investors (FIIs) were not behind the recent fall in stock markets and there was no proposal to either ask them to withdraw from Indian market or ban them, Finance Minister P Chidambaram said. “Foreign Institutional Investors (FIIs) trading in stock market are the reason behind volatility (in stock markets) on certain days.” The ups and downs in the stock markets depend on the changing perceptions of investors — domestic and overseas, retail and institutional — about the economy, the sector and the company. “The recent fall in the stock markets is attributed among other factors, to the sub-prime mortgage crisis in the US, change in the monetary stance of developed countries, the expected recession in US (and) firming up of oil prices.” There is, however, no “proposal to ask Foreign Institutional Investors (FIIs) to withdraw or ban Foreign Institutional Investors (FIIs).”

While the benchmark Sensex fell 7.4% on 21 January, it rose 34.5% during this fiscal on a point-to-point basis from end of March 2007 to end of February 2008. Finance Minister P Chidambaram said systems and practices have been put in place to promote a safe, transparent and efficient stock market and to protect market integrity. The systems instituted include advanced risk management mechanisms comprising on-line monitoring and surveillance, various limits on positions, margin requirements and circuit filters. “The systems and practices are reviewed continuously and modified to meet emerging needs,” he said.

Measures taken to broaden and deepen markets include screen based trading system, dematerialization of securities, corporatization and demutualization of exchanges, settlement through clearing corporation and trading in of derivatives. Many investors are thinking that they have almost faced the shocks of current crisis. Frankly to tell, Indian economy has still not faced even 25% of crisis effect. We will feel the “real shocks” in the next 2-3 months as it is slowly spreading to India. It will be a surprise if Indian main economy escapes from this global crisis. But stock markets already discounted 70% of credit crisis effects on our businesses. That’s the only hope for stock market investors.

“What’s the 26-year low for BSE Sensex?” Japan’s “Nikkei” touched 1982 levels during intraday trading on this Monday. Markets expect fresh steps by global authorities this week to try to stabilize shaky markets.

The US Federal Reserve is expected to cut interest rates Wednesday from the current level of 1.5 per cent. Investors are also waiting for Thursday’s US gross domestic product figures for the third quarter, which are expected to show a contraction. A slew of economic indicators and corporate results are also due this week in the United States, Europe and Japan, which analysts said are unlikely to give much cause for optimism. “If the fall in markets has its origins in the fear of an international recession, then the coming week will be very bad,” said Carl Weinberg at High Frequency Economics in New York.

“The economic calendar is full of indicators that will be uniformly atrocious.”

]]> By: Saurabh Dhanuka http://www.grmtech.com/blog/the-recent-stock-market-depression/comment-page-1/#comment-9 Saurabh Dhanuka Sat, 25 Oct 2008 05:18:18 +0000 http://www.grmtech.com/blog/?p=13#comment-9 Will there be an Economic Recession, Depression, or Stock Market Crash in 2008 - 2010? How will the World Economy do? These questions are on minds of each and every individual today. In the light of recent financial market breakdown, the focus has been on the demise of powerful American financial institutions, such as Lehman Brothers and AIG. In 2008-2010 I think the U.S. stock market and economy will drop some, but the U.S. will do much better than the rest of the world. I think the U.S. will see economic instability in 2008-2010, but I think much of the rest of the world will see economic recession and stock market chaos 2008-2010. I personally feel that We're reached a tipping point where anxiety about the economy is pervasive. Good work all in all. Keep up the good posts coming. :) Will there be an Economic Recession, Depression, or Stock Market Crash in 2008 – 2010? How will the World Economy do? These questions are on minds of each and every individual today. In the light of recent financial market breakdown, the focus has been on the demise of powerful American financial institutions, such as Lehman Brothers and AIG. In 2008-2010 I think the U.S. stock market and economy will drop some, but the U.S. will do much better than the rest of the world. I think the U.S. will see economic instability in 2008-2010, but I think much of the rest of the world will see economic recession and stock market chaos 2008-2010. I personally feel that We’re reached a tipping point where anxiety about the economy is pervasive.

Good work all in all. Keep up the good posts coming. :)

]]> By: The recent stock market depression | Bookmarks URL http://www.grmtech.com/blog/the-recent-stock-market-depression/comment-page-1/#comment-2 The recent stock market depression | Bookmarks URL Fri, 24 Oct 2008 14:51:15 +0000 http://www.grmtech.com/blog/?p=13#comment-2 [...] The recent stock market depression The recent stock market depression [...] [...] The recent stock market depression The recent stock market depression [...]

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