Saturday, September 27, 2008

Unforgettable September 2008...financial turmoil erruption!

The crisis in the US financial sector took its toll on the Indian market as it raised fears of further outflow by foreign funds. On 15 September 2008, US investment bank Lehman Brothers filed for bankruptcy protection, making it the largest and highest-profile casualty of the global credit crisis arising from financial institutions’ exposure to securities backed by subprime mortgages. Defaults by borrowers and falling housing prices have made these holdings worthless.

The financial sector upheaval also involved other US institutions. Bank of America agreed to acquire Merrill Lynch & Company for $50 billion in an all-stock deal that will give the US bank the world’s largest brokerage. The US Federal Reserve pumped in US$ 85 billion into the struggling insurer American International Group.

On 7 September 2008, the US government took control of troubled mortgage firms Fannie Mae and Freddie Mac. On 10 September 2008, Lehman Brothers had posted a record quarterly loss of $3.9 billion, reminding investors that pains from the year-long global credit crisis was yet to be over.

The US markets collapsed on 15 September 2008, falling the most since 11 September 2001 as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profit. The Dow Jones Industrial Average plunged 4.42%. The Nasdaq Composite index dropped 3.60% and the Standard & Poor’s 500 index 4.71%.

In Europe, financials led the sharp fall on the bourses. Britain’s FTSE declined 3.9%, Germany’s DAX 2.7%, and the French CAC 40 3.8% on 15 September 2008.

Stock markets in Hong Kong, Japan, China and South Korea were closed for public holidays when news of Lehman bankruptcy first broke out on 15 September 2008.

In Hong Kong, the benchmark Hang Seng Index lost 5.44% on 16 September 2008, dragged down by steep losses in finance, energy, and telecom plays. The Nikkei average shed 4.95% on 16 September 2008 — to its lowest close since July 2005. In South Korea, the Korea Composite Stock Price Index ended down 6.10% on 16 September 2008 — the lowest since early March 2007 and the biggest daily percentage fall since 16 August 2007, when it had dipped 6.93%.

With the crisis in the US financial sector deepening, the Bombay Stock Exchagne (BSE) Sensex settled down 469.54, or 3.35%, to 13,531.27 on 15 September 2008. The market rebounded after panic selling had shaved 850 points off the Sensex in mid-morning trade. Buying by domestic funds and news that China had cut lending rate by 27 basis points capped the slide.

Realty shares were the hardest hit, with the BSE Realty index tumbling 359.20 points, or 7.65%, to 4,334.52 on 15 September 2008, on concerns of possible fire-sales of Lehman’s assets after it filed for bankruptcy. Lehman has investments of $500 million in Indian realty firms including DLF and Unitech. Lehman’s collapse will also deprive realty firms of fresh funding.

Another casualty was the IT sector, with the BSE IT index tumbling 209.91 points, or 5.51%, to 3,596.83, on 15 September 2008. Indian IT firms Infosys Technologies, Wipro, Tata Consultancy Services and Satyam Computer Services count the US financial services firms among their top clients.

The National Stock Exchange (NSE) announced on 16 September 2008 there were no outstanding open positions/settlement obligations of Lehman Brothers Securities currently in the cash market segment and derivatives segment of the NSE. Lehman Brothers Securities can operate only in the cash market segment on pre-funding of their trades, the NSE said.

The Reserve Bank of India (RBI) on late 16 September 2008 stepped in with measures to support the rupee — which had been battered to almost 47 against the dollar on foreign fund outflow — and supply cash in the money market. The move will increase dollar supply and lower banks’ borrowing cost in the overnight call money market. The RBI has hiked the maximum interest that banks can pay on NRI deposits by 50 basis points for dollar as well as rupee deposits.

Bank shares led the intra-day rebound on 16 September 2008 on expectations that the meltdown in US market may prompt US Federal Reserve to cut interest rate to 1.75% from 2%. (The Fed kept the rates steady.) The Sensex lost 12.47 points, or 0.09% to settle at 13,518.80. It had opened with a huge downward gap of 479.54 at 13,051.73, which was also its lowest level of the day.

ICICI Bank, India’s biggest private sector bank by net profit, lost 9.4% to Rs 591.35 in two trading sessions to 16 September 2008 from its close of Rs 652.85 on 12 September 2008 on concerns it might incur losses tied to the US credit market turmoil. ICICI Bank said on 16 September 2008 it had exposure to 57 million euros ($81 million) to Lehman Brothers senior bonds, adding the potential losses were not material.

Metal shares dipped on sinking metals prices on the London Metal Exchange as investors dumped positions to seek refuge in safer assets due to the US financial sector turmoil. The BSE Metal index tanked 490.58 points, or 4.5%, to 10,390.84 on 15 September 2008. Metals were already under pressure after copper and aluminium touched record highs earlier this year. Lack of demand from China, rising inventories and worries over the health of the global economy have depressed metals.

Foreign funds have been persistent sellers in Indian equities since the past few months. They sold shares worth a net Rs 3792.30 crore in September 2008 till 12 September. Their cumulative outflow reached Rs 32306.10 crore in calendar year 2008.

Amid the unfolding US financial sector crisis, the Indian market had pared earlier gains. From 14,944.97 on 8 September 2008, the Sensex had shed 944.16 points, or 6.3%, to 14,000.81 on 12 September 2008.

Nuclear Deal

The boost the bourses got from the landmark victory for India at the Nuclear Suppliers’ Group (NSG) on 6 September 2008 and the sharp fall in global crude oil prices proved shortlived due to volatile global markets and concerns about global economic slowdown. A slide in Reliance Industries (RIL), India’s biggest private sector firm and oil refiner, weighed on the key benchmark indices. RIL is a heavyweight in the two key indices: the BSE Sensex and the S&P CNX Nifty.

World stocks slumped amid choppy trade as troubles in the US financial sector depressed risk appetite. The MSCI main world equity index dropped to its lowest level since July 2006 on 11 September 2008. US investment bank Lehman Brothers posted a record quarterly loss of $3.9 billion on 10 September 2008, reminding investors that pains from the year-long global credit crisis was yet to be over. The US government took control of troubled mortgage firms Fannie Mae and Freddie Mac on 7 September 2008.

Back home, shares of oil marketing firms and airlines surged as crude hit a five-month trough due to concerns about global economic slowdown. Bank shares witnessed alternate bouts of buying and selling. A view that India’s interest rate hike cycle is on the last lap was offset by poor sentiment for financial stocks globally.

A sharp fall in rupee to its lowest in nearly two years against the dollar failed to bolster shares of export-driven outsourcing companies in a big way because of the financial sector turmoil in the US — their biggest market. Shipping shares faced rough seas due to falling Baltic Dry Index, a measure of commodity-shipping costs.

Shares of potential beneficiaries from supply of equipment to nuclear power plants such as L&T, Bharat Heavy Electricals and Areva T&D got a temporary boost from NSG’s nod on 6 September 2008 to nuclear commerce with India, paving the way for new sources of power.

Saturday, September 6, 2008

After an year, Go ahead chase your dreams! Its yours!!

Dear Friends,

After an year today I touched my blog, I wish I could write every day!!

Go Ahead!!! Chase your Dreams

Look back over your life up to now and notice all the times and all the situations or things that didn't work out the way you'd wanted. Notice the areas in which you struggle and then associate the thoughts and feelings that come up for you around those events. What do you notice? Are the thoughts and feelings positive or negative? Most likely, the thoughts and feelings are negative: fearful, sad, angry, frustrated, hopeless, upsetting, or simply resigned.

Now, think back over your life to areas that have always seemed to come easily to you, or times when you were happy. What were the thoughts and feelings associated with those times? You are probably noticing it felt easy, effortless, exciting, fun, pleasant, joyful, loving, peaceful, natural, or maybe even just a non-issue!
This all points to The Universal Law of Attraction: Whatever you think about and the emotions behind those thoughts are what you are flowing to you in your life.
Look back over your life once again and notice the correlation between what you were thinking and feeling, and what you were getting in life. Now, look at your life today and notice the correlation between what you are thinking and feeling, and what you are getting in life. Are there areas in your life that you are getting what you do not want? Have the dreams you've been dreaming up to now still not manifested? Are you noticing that they aren't here yet? Are you thinking it's really been hard up to now? Then how do you change all that in order to truly have what you want right NOW? How do you break through those barriers?

You begin to break through those barriers, first, by understanding that whatever you are focused on and the emotion behind it is what you've been flowing to you. Think about this. There is no exception to this law anywhere in the Universe! ABSOLUTELY NONE! It is a law of physics.

Once you understand the Law of Attraction and its existence in your life, you can begin to DELIBERATELY and CONSCIOUSLY change any limiting belief or thoughts! The great news is you are in control!

Seem simple enough? Well it is!

Seem too good to be true? Hmm. Notice where you are putting your focus with THAT question. Flip it back around.

The fact is, it is simple! It is so simple that sometimes we have a difficult time getting our minds wrapped around it! The good news is once we begin to play with this LAW and see it working in our lives, it becomes easier and easier to grasp.

Step One: Become aware of your limiting thoughts and beliefs as they come up.

Step Two: Deliberately change the thoughts from what you don't want to what you DO want.