ICICI bank acted as the main stock in the index leading other bank stock to gain and finally having the sensex go to this place.Yesterday ICICI Bank clarified that 98% of ICICI Bank UK PLC’s non-India investment book is rated investment grade and above and today Reserver Bank of India said that ICICI Bank, They have sufficient liquidity and also ssured that its subsidiary banks abroad are well capitalized. Central Bank added to the exisiting worries that it was monitoring the developments and has arranged to provide adequate cash to ICICI Bank to meet the demands of its customers at its branches/ ATMs.
Bharat Heavy Electricals informed the market that it has bagged an order worth Rs 990 crore for setting up a thermal power plant in Rajasthan.The Stock is quoting at 1580 at 4.00 clock just 15 minutes before closing .
Bhel’s net profit went up by 33.1 percent to Rs 384.41 crore on 33.9 Percent increase in net sales to Rs 4329.24 crore in Q1 June 2008 compared to Q1 June 2007.
Dow Jones falls by more 777 points biggest ever fall in the history of Dow Jones ,It most looses 1.2 trillion dollar in Market Value.The market started in Red after hearing to Wachovia’s buy by citibank and also after hearing to troubles European mortgage company the market started falling down more after they heard that the house as rejected the Bailout plan.
What crashed the market
>House of Representatives rejects $700 billion financial plan; Stocks plummet most since 1987
>Wachovia banking operations acquired by Citigroup for roughly $2 billion in deal facilitated by FDIC
>Several European financial firms bailed out
>Credit markets remain tight; Investors flock to Treasuries in a flight-to-safety
SUMMARY OF THE “EMERGENCY ECONOMIC STABILIZATION ACT OF 2008”
I. Stabilizing the Economy
The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion
to the Secretary of the Treasury to buy mortgages and other assets that are clogging the
balance sheets of financial institutions and making it difficult for working families, small
businesses, and other companies to access credit, which is vital to a strong and stable
economy. EESA also establishes a program that would allow companies to insure their
II. Homeownership Preservation
EESA requires the Treasury to modify troubled loans – many the result of predatory
lending practices – wherever possible to help American families keep their homes. It
also directs other federal agencies to modify loans that they own or control. Finally, it
improves the HOPE for Homeowners program by expanding eligibility and increasing
the tools available to the Department of Housing and Urban Development to help more
families keep their homes.
III. Taxpayer Protection
Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation
requires companies that sell some of their bad assets to the government to provide
warrants so that taxpayers will benefit from any future growth these companies may
experience as a result of participation in this program. The legislation also requires the
President to submit legislation that would cover any losses to taxpayers resulting from
this program from financial institutions.
IV. No Windfalls for Executives
Executives who made bad decisions should not be allowed to dump their bad assets on
the government, and then walk away with millions of dollars in bonuses. In order to
participate in this program, companies will lose certain tax benefits and, in some cases,
must limit executive pay. In addition, the bill limits “golden parachutes” and requires
that unearned bonuses be returned.
V. Strong Oversight
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury
$250 billion immediately, then requires the President to certify that additional funds are
needed ($100 billion, then $350 billion subject to Congressional disapproval). The
Treasury must report on the use of the funds and the progress in addressing the crisis.
EESA also establishes an Oversight Board so that the Treasury cannot act in an arbitrary
manner. It also establishes a special inspector general to protect against waste, fraud and
So after a long weekend work US Congressional leaders informed and also released the text of a proposed bill which was the one they had been fighting in congress to approve ,This will help to provide up to $700 billion to clean up the US financial System. The bill which was officially named as the Emergency Economic Stabilization Act of 2008, As detailed that it will allow the Treasury to buy mortgages and other assets that are there in the troubled balance sheets of financial institutions.This not only safeguards company they have added provision that way It will help families avoid foreclosure of their homes. This also talks abt reducing tax benefits for the company and also limits executive pay.Most of the senate members dint really like the Executives taking golden parachutes even though the company is deep trouble , so they have made sure they are doing something about that when you use tax payers dollars.So finally the bill is ready and it has to come to vote in congress and then has to get signed in the Senate .Think its might happen between Monday to Wednesday.
Kernex Microsystems (India) informed the market that they have won order worth $16.5 million from the Egyptian railway for 136 automatic gates.The company was not doing good in previous qtr , but think we are expecting more orders from Indian railways.One of the best company or may be one of the best known company for Railway Automatic Signalling.
Kernex Microsystem reported a net profit fall of 26.7 percent to Rs 1.07 crore on 8.8 percent rise in sales to Rs 5.08 crore in Q1 June 2008 compared to Q1 June 2007.
Coming week we have lot of stock going EX Bonus which include larsen toubro and Valecha engineering and more .
Scrip Code Scrip Name Ex-Date Purpose Rs. 513729 ARO GRANIT I 26-Sep-08 BONUS 1:2 - 532668 AURIONPRO SO 26-Sep-08 Dividend 1.75 506197 BLISSGVS PH 26-Sep-08 BONUS 3:5 - 504084 KAYCEE IND 26-Sep-08 Final Dividend 10 522241 M M FORGINGS 26-Sep-08 BONUS 1:1 - 519260 SANWAR AG OI 26-Sep-08 BONUS 1:1 - 500405 SUPREME PET 26-Sep-08 Dividend 1 590085 GLOSTER JUTE 29-Sep-08 BONUS 1:1 - 502335 JOLLY BOARDS 29-Sep-08 BONUS 4:1 - 511618 JIK INDUSTR 1-Oct-08 Reduction of Capital - 500510 LARSEN & TOU 1-Oct-08 BONUS 1:1 - 500260 MADRAS CEMNT 1-Oct-08 Stock Split from Rs. 10/- to Re. 1/- - 500260 MADRAS CEMNT 1-Oct-08 BONUS 1:1 - 501343 MOT GEN FINA 1-Oct-08 Interim Dividend 2 532478 UNITED BREW 1-Oct-08 Interim Dividend 0.15 532389 VALECHA ENGI 1-Oct-08 BONUS 1:2 - 532647 PROVOGUE IND 3-Oct-08 Stock Split from Rs. 10/- to Rs. 2/- - 509930 SUPREM IND 3-Oct-08 Final Dividend 4.5 532155 GAIL INDIA 6-Oct-08 BONUS 1:2 - 504036 HIND RECTIFI 6-Oct-08 BONUS 1:1 - 501061 S BK BIKANER 7-Oct-08 Stock Split from Rs. 100/- to Rs. 10/- - 500125 EID PARRY 8-Oct-08 Dividend 4 507815 GILLETTE IND 8-Oct-08 Dividend 12.5
I was almost awake until 4 in the morning to know if the nuclear deal is passed or not and now i hear that the Deal has been passed in the US House of Representatives.which almost ends the three-decade ban on US nuclear trade with India.It passed in the Us congress by a margin of 298-117.The Bill has finally reached Us senate for Approval which might happen coming week only.
Aban Offshore infromed the market that they have won order worth 178 crore for 180 days worth projects with Husky Oil China for multiple well-drilling program , The stock closed almost down by 10 percent down to almost 2100 rs .
On the Financial side Aban offshore gave a mind blowing profit surge of 152 percent to Rs 71.51 crore on a 93.5 percent increase in net sales to Rs 246.95 crore in Q1 June 2008 compared to Q1 June 2007.
McNally Bharat Engineering Company infromed the bourses that it had bagged an order worth almost 115 crore from BHEL Bangalore , The stock almost surged 3.75% to Rs 108.05 after the news came out but on closing it was down by 2.15 percent at 102 rs.
McNally Bharat announced a not so good result as its net profit fell 7.1 percent to Rs 4.07 crore on 18.6 percent increase in net sales to Rs 131.80 crore in Q1 June 2008 compared to Q1 June 2007.
United Phosphorus informed the market yesterday that they have fixed the record date for the 1:1 Bonus issue that they have proposed. The stock has dropped by 3 percent or so after the announcement .
On the financial side United Phosphorus announced a net profit surge of 57.9 percent to Rs 46.63 crore on 51.7 percent increase in net sales to Rs 509.85 crore in Q1 June 2008 compared to Q1 June 2007.
Inflation is unchanged at 12.14% for the week ended September 13 , analyst was expecting to raise to 12.23 percent .
JPMorgan Chase infomred yesterday that it bought into the banking assets of Washington Mutual on late thursday evening , Washington Mutual was declared as the biggest ever bank failure of the Nation , they had been seized by federal regulators, Think this saves another 2 billion from US tax payers money.
About the Deal:
There are lot of Depositers who are not sure of there money , think there is nothing to worry , JPMorgan Chase will acquire all the banking operations of WaMu, including $307 billion in assets and $188 billion in deposits.Which means the deposit is in safe hand now.
What is the cost of the Deal
As the bank is seized by federal reserve JPMorgan Chase will pay approximately $1.9 billion to the Federal Deposit Insurance Corporation.They are also in a plan to raise $8 billion in additional capital through the sale of stock as part of the deal.
After 3 day of loosing points finally Us market enjoyed the day yesterday by closing in green , because Congress has essentially agreed on the terms of the $700 billion bank bailout plan.Some are saying they might start with 250 billion dollars and slowly raise may be .When there is more dollars in market then dollars would fall which it did yesterday against major currencies and oil and gold prices fell.
What moved the market
>August new home sales, August durable goods orders,
>Weekly jobless claims worse than expected
>General Electric cuts outlook, suspends stock repurchase plan
>Investors assess stream of earnings results from non financial firms
Simplex Infrastructure which is one of the indias many available infrastructure solution company informed the company that it has bagged order worth AE$ 525 million which is almost like 630 crore in rs.The project is to construct the 2nd tower of the Twin-Tower Complex “G-Emporium” in the city of Arabia, Dubai. Execution time of the project is 30 months.The project is executable over next 30 months.
Shriram EPC informed the market today that they have won two orders worth Rs 315 crore for SAIL Both the orders are having almost duration of 24 and 18 months.Shriram EPC is a leading integrated engineering service provider for renewable energy projects.The first order is won with Hutni Project Frydek-Mistek a. s., Czech Republic which is one of the company in the consortium that won the order.
Larsen and Toubro informed the market about its development that happening on one of its newly formed company which is formed to concentrate on buildings & factories operating company which is considered to be one of the part of its construction vertical, They updated that that company has bagged more than 5000 crore worth project in the second quarter of 2008-09
NESCO, Godrej Properties, PBEL Property Development (India), Om Prakash Jindal Grahmin Jan Kalyan Sansthan and Mahi Cement.
Core Projects informed the market today that it has won the contract for implementing FAIM which is its flagship product used across the worls and the same will be implemented for Karnataka State Open University, This is for Admissions and Examinations Management System,to Karnataka State Open University (KSOU).
Goldman Sachs is in look out for funding and finally they have some good news from oracle of omaha , It will receive a $5 billion funding from Warren Buffett’s Berkshire Hathaway, an investment that could also raise confidence in the venerable Wall Street firm.Then its going to do sale of common stock to raise 2.5 billion dollar.
Dow Jones down again on 2nd day of the week after by 161 points , Nothing was sure on the bailout plan which they are still arguing in the Congress.There was a swing from red to green to again finally closing in red.
What was moving the market.
>Chairman Bernanke, Treasury Secretary Paulson, and SEC Chairman Cox testified on financial market turmoil before Senate Banking Committee
>Paulson, Bernanke defend plan to buy up to $700 billion in illiquid assets from financial institutions
>Oil prices fall 2%
>Berkshire to invest 5 billion dollar in Goldman Sachs.
Punj Lloyd, which had won some order yesterday again is blessed with some more order this one is too big , they informed the market that it has been awarded the engineering, procurement, installation, and commissioning of strategic gas transmission project worth US$ 800 million (Rs 3636 crore), from Qatar Petroleum. The project Includes laying of 211 km of pipeline with associated stations and infrastructure.The order Execution time is 32 months.
Nagarjuna Construction informed the market that they have secured four new orders totaling around 413 crore.
> 1st order which is worth around Rs 229 crores is secured from the Chief Engineer, MSEDCL, Mumbai Execution time for this order is 2 years.
> 2nd order which is worth around 73 crore from the engineer-in-chief public health, Hyderabad for design and execution of Eluru water supply scheme ,The Execution time for the same is 18 Months.
> 3rd order is valued at Rs 61 crore is from the Info Park, Thapasya, Kusumagiri, Kochi for construction of 5.5 lakhs sq. ft. software development buildings ,the execution time for this is also 18 months.
> 4th order is worth around Rs 50 crores from the APIICL, Hyderabad ,Execution time is 1 year.
Geodesic Information Systems informed the market that it had changed its name from Geodesic Information System to Geodesic with effect from 19 September 2008. It is a leading software products company focusing on content, communication & collaboration space across desktops and mobile devices
Us market was down from the starting session and dint ever turn back to green , Dow jones mainly down by 372 points or so .
What was Moving the Market
> As you had saw in my earlier post Goldman Sachs, Morgan Stanley was converted to traditional banking structure
>The Bailout Plan that the Treasury wants to buy up to $700 billion in bad mortgage assets from financial institutions , This was not yet clear to the investors which led in the market to bow down.
>Microsoft announces $40 billion share buyback plan, raises quarterly dividend by 18%; Hewlett-Packard authorized additional $8 billion for share repurchases
>Oil prices rally roughly 15% for October delivery; Prices gain roughly 6% for November delivery
> Gold is getting stronger in the international market.
Lanco Infratech infromed the market today that they have secured order worth 308.98 crores today , in Breifing about the order they informed that it got the order from Andhra Pradesh Health & Medical Housing & Infrastructure Dev. Corporation (APHMHIDC) for the construction of buildings for Rajiv Gandhi University of Knowledge Technologies IIIT at Basara in Adilabad District in Andhra Pradesh .