Indian equity markets rang in the New Year 2009 with a bang amid expectation of a second economic stimulus package. The opening week of 2009 raised some hopes for worried investors who are so shaken from the violent market swings in the past year. However, the magnitude and the breadth of the declines was staggering with worldwide investors losing over $30 trillion in market cap during the year, which is by far the largest ever for world equities. In a fairly good week (December 29 – January 2), the BSE 30-share Sensex touched an intra-week high of 10,070.28 points and gained 629 points or 6.75 per cent in the week. The week was also good in terms of performance by madcap and small cap stocks, with both outperforming the market. In Sensex today, the top moves included: Satyam Computer Services, Reliance Communications, Jaiprakash Associates, Reliance Infrastructure, Hindalco, Ranbaxy Laboratories, ICICI Bank and Tata Motors.
In Indian Sensex, the government and the Reserve Bank of India in a coordinated response to spur demand unveiled the second economic stimulus package in less than a month for the Indian industry reeling under the deepening recession. With focus on providing relief to various slackening sectors, the government eased the external commercial borrowing norms particularly doing away with interest cap on ECBs. The step indicates that companies will now be able to borrow money
from overseas markets much more easily. The second significant step taken by the government is liquidity support for PSU banks and NBFCs which will enthuse them to lend more. The package has doled out enough for the real estate and infrastructure sectors. In one of its kind package in the current fiscal, it would aim to launch infra projects worth Rs 100,000 crore in 18 months. The package has also given special provision to Indian Infrastructure Finance Company (IIFCL) to raise an additional amount of Rs 30,000 crore through tax free bonds.
In BSE Sensex news, in a New Year gift to the loan borrowers, the RBI announced reduction in repo and reverse repo rates by one percentage point each to 5.50 per cent and 4 per cent, respectively. The apex bank also trimmed the cash reserve ratio, the ratio of money that banks have to keep with the RBI as an emergency measure, by half a percentage point to 5 per cent. The CRR cut would infuse an additional Rs 20,000 crore into the system apart from Rs 300,000 crore pumped into the system since October 2008. Following the January 2 move, repo and reverse repo rates have touched record low last seen eight years ago, similarly CRR is at 2-year low.
In India Sensex news, the market authorities have channelised most of the instruments in its kitty to ensure that the year proves to be smoother year for the economy. The apex bank has been pretty much active throughout the 2008 in its attempt to tackle the downturn. It would be fair to say that most these measures are in line with what the market has been demanding from the regulator. The move means is that there is confidence on the fact that the inflation has come under control. This also means that clearly this would lead to lower interest rate regime and in the current scenario the lower rate regime can act as a big stimulus for spur consumption. The cost of fund for developers apart from financing cost would also come down – a move that is sure to bring down property cost.
Read more: http://www.articlesbase.com/investing-articles/indian-markets-off-to-a-good-start-for-2009-713421.html#ixzz0sOInQ7wm
Under Creative Commons License: Attribution
In Indian Sensex, the government and the Reserve Bank of India in a coordinated response to spur demand unveiled the second economic stimulus package in less than a month for the Indian industry reeling under the deepening recession. With focus on providing relief to various slackening sectors, the government eased the external commercial borrowing norms particularly doing away with interest cap on ECBs. The step indicates that companies will now be able to borrow money
from overseas markets much more easily. The second significant step taken by the government is liquidity support for PSU banks and NBFCs which will enthuse them to lend more. The package has doled out enough for the real estate and infrastructure sectors. In one of its kind package in the current fiscal, it would aim to launch infra projects worth Rs 100,000 crore in 18 months. The package has also given special provision to Indian Infrastructure Finance Company (IIFCL) to raise an additional amount of Rs 30,000 crore through tax free bonds.
In BSE Sensex news, in a New Year gift to the loan borrowers, the RBI announced reduction in repo and reverse repo rates by one percentage point each to 5.50 per cent and 4 per cent, respectively. The apex bank also trimmed the cash reserve ratio, the ratio of money that banks have to keep with the RBI as an emergency measure, by half a percentage point to 5 per cent. The CRR cut would infuse an additional Rs 20,000 crore into the system apart from Rs 300,000 crore pumped into the system since October 2008. Following the January 2 move, repo and reverse repo rates have touched record low last seen eight years ago, similarly CRR is at 2-year low.
In India Sensex news, the market authorities have channelised most of the instruments in its kitty to ensure that the year proves to be smoother year for the economy. The apex bank has been pretty much active throughout the 2008 in its attempt to tackle the downturn. It would be fair to say that most these measures are in line with what the market has been demanding from the regulator. The move means is that there is confidence on the fact that the inflation has come under control. This also means that clearly this would lead to lower interest rate regime and in the current scenario the lower rate regime can act as a big stimulus for spur consumption. The cost of fund for developers apart from financing cost would also come down – a move that is sure to bring down property cost.
Read more: http://www.articlesbase.com/investing-articles/indian-markets-off-to-a-good-start-for-2009-713421.html#ixzz0sOInQ7wm
Under Creative Commons License: Attribution
