- US currency fell Vs 14 out of 16 most actively traded currencies in 2007 as the Fed Reserve reduced borrowing costs three times to temper the worst housing slump since 1991.
- Auto parts supplier Delphi Corp. was spun-off from GM in 1999
- RBI permits short selling and utilizing stock lending and borrowing mechanisms (LBM) for FIIs registered with SEBI. This will lead to better price discovery and boost volumes on the exchanges and save the brokers from the bitter experience of auction of the shares against their short selling commitments.
- Delhi high court said CDMA players will have to wait for the spectrum allocation & will subject to outcome of the appeal filed by the COAI-lobby for GSM.RCOM has already paid Rs 1650cr as licencing fees for GSM services. DoT said that it will allocate spectrum to companies such as Bharti Airtel Ltd., Vodafone Essar Ltd., & Idea based on TRAI’s recommendations, which proposed that existing operators serve up to 4 times the number of subscribers required to be eligible for more spectrum.
- Reliance – ADAG plans to sell 10.1% of Reliance Power later this month ,raising around Rs 11000cr (Price band – Rs 405-450).IPOs to hit market in 2008 :
o
o Ideal Road Builders
o Wockhart Hospitals
o Oil India Ltd
o National Hydro Power Corp Ltd(NHPC)
o Rural Electrification Corp.
o Lodha Builders(FPO)
o Sterlite
o Jaiprakash Power Ventures(FPO)
o Coal
- TATAs clinch Jaguar and Land Rover deals from Ford in
- Allowing sht selling from next month by Institutional Investors is considered a significant move after intro of derivatives in 2001(part of Asia trend).Initially SS will be allowed in only 5% of the publically traded securities, which happen to be stocks in which investors express –ve view by either buying put options or selling futures
- BSNL-Largest telecom comp by revenues plans to start a tower comp.It as most of the towers in tier 2 towns/villages. Idea/Spice and others will rent out those towers to have pan
Total revenues : Rs 39715cr
Bharti Infratel sold 9% stake for $1bn to a consortium led by
BSNL : 31000 GSM towers
7500 CDMA towers
Plans to add 30000 towers this year
CDMA can have 5-6 tenants where GSM can only have 1-2
On 26th Dec Spice sold around 875 towers for RS 600cr to Quipo Tele com Infrastructure Ltd
In Aug, RCOM sold 5% of RTIL to investors for $337m (13000 towers)
In Dec, Bharti(42%), Vodafone Essar(42%) and Idea Cellular(16%) formed JV called
Jan18,2008
- Last week spectrum was distributed to small players but it invited almost no protest presuming without spectrum ,companies posed little threat and they will be invisible w/o spectrum. DoT,s spectrum distribution policy has been not transparent & that includes the RCOM deal. DoT abandoned the competitive process has charged companies to get spectrum at 2001 prices. For Ex Idea got Mumbai licence for only Rs203cr but is valued several thousand crores. The decision to distribute license w/o an auction is slap in the face.
Jan21,2008
- Rights Issue : Company gives shared to only existing share holders. shares are typically offered at 30-50 % discount, hence company’s market price rises just before the rights issue.
- Follow on Public Issue(FPO) : When a listed company makes a public offer -> Secondary issue
- Simple Moving Average (SMA) : A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.
In other words, this is the average stock price over a certain period of time. Keep in mind that equal weighting is given to each daily price. As shown in the chart above, many traders watch for short-term averages to cross above longer-term averages to signal the beginning of an uptrend. As shown by the blue arrows, short-term averages (e.g. 15-period SMA) act as levels of support when the price experiences a pullback. Support levels become stronger and more significant as the number of time periods used in the calculations increases.
Generally, when you hear the term "moving average", it is in reference to a simple moving average. This can be important, especially when comparing to an exponential moving average (EMA).
- Moving Average(MA) : An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or "noise", that can confuse interpretation. Typically, upward momentum is confirmed when a short-term average (e.g.15-day) crosses above a longer-term average (e.g. 50-day). Downward momentum is confirmed when a short-term average crosses below a long-term average
- Exponential Moving Average (EMA) : A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. Also known as "exponentially weighted moving average".This type of moving average reacts faster to recent price changes than a simple moving average.
·One way to judge the fair market value of
if the M-cap/GDP ratio is greater than 100%, it is a sign that the market is overvalued. A value of around 50%, or a value that’s lower than the historical average of the market, is said to indicate undervaluation. According to Warren Buffet, if this ratio rises to unprecedented levels, it is a strong warning signal and if it approaches 200%, one is playing with fire. This rule of thumb has been proved to be true in the past. In 2000, M-cap/GDP ratio touched a historical high level of 153% in the
- Foreign capital comes to
- FIIs who buy shares of Indian companies
- FDI
- NRI deposits which are done to take advantage of higher interest rates in
- By Indian companies buying abroad- External commercial borrowing(ECB) to benefit from lower interest rates in intln market
- the fed reduced the discount rate from 4.25 down to 3.5 per cent, the interest it charges to make direct loans to banks. Commercial banks responded to the Fed's action on the funds rate by announcing similar cuts of three-quarter of a percent on its prime lending rate, the benchmark for millions of business and consumer loans.
Parameters to look out for:
o P/E
o How much away from 52 week high and low
o much away from 200 DMA
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