August 1, 2007
Sensex ends at 14935.77 (down 3.96%)
Nifty ends at 4345.85 (down 4.04%)
Realty index fall by 6.60%.
All major indices fall by over 3.50%.
Printable View
August 1, 2007
Sensex ends at 14935.77 (down 3.96%)
Nifty ends at 4345.85 (down 4.04%)
Realty index fall by 6.60%.
All major indices fall by over 3.50%.
Govt tightens ECB norms
http://www.ndtvprofit.com/homepage/s...010:45:27%20AM
Rupee has reacted sharply and has depreciated on account of tightening of ECB norms by the government which is expected to put check the foreign currency inflows. Rupee is trading at Rs 40.59 versus US dollar.
Dev, cn u post tat article.
NDTV site is blockd here.
Govt tightens ECB norms
Press Trust of India
Wednesday, August 8, 2007 (New Delhi):
The Government has tightened the norms for companies to borrow from overseas to check the rise in rupee value against other currencies by managing the flow of foreign funds into the country.
As per the changes, a company raising $20 million of External Commercial Borrowings (ECBs) would have to seek prior permission of RBI to remit such funds into India. The changes are with immediate effect.
"Henceforth, ECB (of) more than $20 million per borrowing company would be permitted only for foreign currency expenditure for permissible end-uses of ECB," it said.
Accordingly, companies raising ECBs of more than $20 million would have to park the proceeds overseas for use as foreign currency expenditure. This modification is applicable under both automatic and approval routes.
"The move would help the rupee to depreciate in the range of 40.50 to 40.70 against the dollar in medium term," said Abheek Barua, Chief Economist of HDFC Bank.
Foreign funds
The rupee has risen to a nine-year high, appreciating nearly 14 per cent against the US dollar since August 2006. This has been largely due to massive inflow of foreign funds as debt and equity.
The statement said a company raising ECB of up to $20 million under automatic route in a year could not remit such funds.
Borrowers proposing to avail ECB up to $20 million for rupee expenditure would require prior approval of the RBI under the approval route.
Dev, Which sector you are currently tracking?
Indians parking more money in Bank Deposits, MFs
According to the Reserve Bank of India's (RBI) latest annual report, during 2006-07, the Indian economy exhibited acceleration in growth, led by manufacturing and services sector activities. The sustained high growth since 2003-04 has been supported by increase in domestic savings and investment. But there has also been a structural shift in savings pattern. Mutual funds are preferred over equities. Bank deposits are attracting more interest than small savings schemes. Insurance schemes are increasing their share in long-term savings over provident and pension funds.
Indians are now investing more of their money in bank deposits and mutual funds. According to the data, bank deposits formed 36.5% of the total financial saving of the household sector in 2004-05, which has now increased to 55.6%. This marks a reversal in trend from the nineties, when bank deposits began losing share to debentures and small savings schemes. Also Mutual Funds have seen a four fold increase, rising from just 0.4% in 2004-05 to 4.8% in 2006-07.
The loyalty towards bank deposits can be attributed partly to the high returns offered by deposit-starved banks. Some banks were offering returns of up to 10%, for a period of one year. Also with the pace at which India is growing, the demand for credit has been really strong and the loan requirements are also rising steadily. This forced banks to raise deposit rates to attract more funds.
The central bank also has signalled higher rates to control inflation. As a result, bank deposits have become attractive and the savings that were earlier parked in government-administered small savings schemes have now started shifting to banks.
Though the equity markets have been on a dream run, the equity investments have not seen any substantial rise. On the other hand mutual funds seem to be the preference among Indians. A lot of it can also be ascribed to the fact that many mutual funds are structuring innovative schemes and for a variety of sectors which can satisfy all kinds of risk appetites.
I think except IT and Auto sector, other sectors are doing well.
Half-yearly results may bring IT sector in the race again.
Balaji, r u tracking any sectors?
SGP, I am not a tracking any sector as such. But I am tracking few companies.IT is flat for the past few months . Talking about MF , few MF`s are doing Phenomenally well like
1. HDFC Sensex fund , the portfolio of this fund is extremly good.
2. Relaince diversified power ... Extremly good
3. Principal personal tax saver : I was :shock: to see their previous performance
Sry for the late reply... ippo thaan unga Q-va paarthen... :oops:Quote:
Originally Posted by great
En portfolio konjam diversified... have invested in sectors like s/w, telecom, media, consu.durables, textiles, automobiles,tyre,finance etc... So ellam konjam paarppen...:) :P
great, GP,
2 peril yaaravadhu icici-la trading account vechu irukeengala?...