Money on the markets
A maturing market amid the mayhem
from India Insight:
Can central bankers play god to the markets? India's central bank chief Duvvuri Subbarao does not believe so. In doing so, the Reserve Bank of India governor, a physics student, has taken refuge in quantum mechanics.
Einstein famously said - "God does not play dice". Less known perhaps is the retort of his friend and mentor Niels Bohr who said - "Albert, stop telling God what he can or cannot do".
Subbarao draws this parallel in arguing that a central bank cannot tell markets what to do. "We have to take market signals as given," Subbarao said in New York at a recent IMF meeting.
from India Insight:
It's widely acknowledged that cricket is something of a religion in India but could it be a market-mover too?
According to research by two Australian economists, India's performance in one-day cricket matches can have a significant impact on the fortunes of the country's stock market, the Indian Express reports.
The RBI on Tuesday asked banks to increase the minimum provision ratio for bad debts to 70 percent from 10 percent by September 2010.
The BSE Sensex seesawed today, mainly on account of profit-booking after the benchmark closed at an almost nine-month high yesterday.
The 30-share sensitive index of the Bombay Stock Exchange swung from an intra-day high of 14,994 to an intra-day low of 14,608, and finally closed 34 points up at 14,874. The fifty-share Nifty ended 0.10 percent down at 4525.
The main contributors to the benchmark’s rise were HDFC, Tata Steel, ICICI Bank and SBI.
The coalition government, which faces general elections by May, is likely to focus on measures to shore up the flagging economy and stem job losses in the interim budget.
The BSE Sensex broke a two-day climb and fell marginally to 0.2 percent on Thursday as investors squared their position on the last day of expiry.
The BSE auto index gained 1.3 percent as autos bucked the trend. The rise was led by buying in Maruti Suzuki, Mahindra & Mahindra and Bharat Forge as the government cut state-set fuel prices, a move that could help in slowing down inflation.
FIIs remained net buyers of $6.2 million in equity and $0.5 million in debt, as against net sellers of $59.4 million yesterday and $85.3 million on January 27.
It was another bright day for Indian investors as gains across world markets allayed concerns over risk aversion and triggered short covering ahead of the expiry of monthly derivatives contracts on Thursday.