Bullish News
No Oil Price HikeThe oil ministry has decided to postpone the oil price hike, citing trouble to the "common man". Under-recoveries stay high at PSU oil companies, which obviously means stay away from HPCL, BPCL and IOC. On the other hand, how much more can they fall?
Another bullish part of this is: If oil prices aren't being raised, and inflation is below 3%, we could see interest rates being reduced. This is a huge trigger for banks and auto, which will see a run in the stocks - late today, many banks moved fast into the positive zone. Watch Axis bank, ICICI Bank and HDFC Bank. Also watch Hero Honda and Maruti.
Bearish News
September Industrial and Infra Growth - lower than expected.It seems that industrial and infrastructure growth in September was muted compared to last year. Not good, but no cause for worry - wait a couple months at least before you make a decision. July was low, but August was high again, so this may just be an aberration.
Arbitrary news
Sensex will list in the USSo the BSE plans to list Sensex futures in the US Futures Exchange (Chicago). This is not a big deal, as Nifty futures have been listed in SGX (Singapore) for a while, but as you can see, volumes are abysmal. Only the near month contract was traded today and that too, just 507 contracts. Any hedge fund that was feeling deprived of a PN could jump on to this, but I think they want the real thing.
Disclosure: Short the Nifty, Long RIL.
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>Changes in the S&P CNX Nifty
As per the announcement by National Stock Exchange on 30/10/2007, there will be two changes in the S&P CNX Nifty w.e.f. 12/12/2007.
New Entrants: Idea Cellular and Cairn India
Outgoing scrips: MTNL and HPCL.
Changes in the BSE Sensex
As per A BSE circular there will be one change in the Sensex w.e.f. 19/11/2007.
New Entrant: DLF Ltd.
Outgoing scrip: Dr Reddy’s
11.16.07 at 9:54 AM
>nice article, i really enjoy reading ur blog,what i want to know is that y do u say to long a company lik RIL when they are involved in bwloe the line practices.. RPL for eg. its a nice blog, but how abt getting out the facts there to the public. like the rpl scam..
RPL under SEBI Scanner.. the drop from 290 to 195 has been completely operated. thats the news all over.. check this link of financial express and live mint
http://www.financialexpress.com/news/Smart-operators-in-RPL-futures-make-a-cool-Rs-1-000-cr/244312/
Between November 1 and November 6, 2007, a particular group made short sales of 10crore shares of Reliance Petroleum in the futures segment of National Stock Exchange costing Rs.3,000 crores approximately. they made a cool Rs 1,000 crores in less than a month, because the Reliance Petroleum shares have now crashed from Rs.295 to Rs 195 per share!. These guys have made Rs.100 per share.
isnt it ironic that someone knew that RIL was going to sell a huge quantity of shares and the prices were bound to come down?
My 2nd question is Who financed these traders for their margins? Where has this profit gone? and who bore the loss???
Its innocent small investors who bought Reliance Petroleum shares at the high prices, not knowing that this unholy alliance was indulging in insider trading and making illegal profits while Mukesh Ambani’s own company RIL was selling shares without disclosing this to investors!!
12.05.07 at 10:40 AM