Market Crashes After Politics Takes Centre Stage
The Nifty closed below the psychological 5,000 mark. The benchmark indices opened flat and tumbled in the second half of trade. The sell-off was seen across all the sectors; realty, oil & gas, technology, telecom and metal were the major losers in today's trade.
SUGAR Turned Astringent!
The first day of Parliament's winter session on Thursday was rocked by protests from Opposition parties against Centre's sugarcane price move that discourages states from fixing higher prices. The entire Opposition raised the sugarcane price issue. Lok Sabha was first adjourned till 1200 hrs IST after Opposition parties and even some United Progressive Alliance (UPA) constituents came out against the Union Government's new ordinance to replace statutory minimum price for sugarcane.
The ordinance fixes the fair remunerative price for sugarcane at Rs 130 per quintal, much below the Rs 280 per quintal that farmers have been demanding. Earlier, thousands of sugarcane farmers launched massive protests in Delhi to coincide with the opening day of the Winter Session of Parliament.
Sugar stocks fell massively after the commotion in Parliament about Sugarcane prices -
Farmer protest, delay in crushing pull sugar stocks down http://www.moneycontrol.com/news/market-edge/farmer-protest-delaycrushing-pull-sugar-stocks-down_425949.html
Insurance Bill Makes Market Players Nervous
A bill to reform the insurance sector is unlikely to be cleared by the parliament's winter session, a finance ministry official said on Thursday. "The insurance bill is unlikely to be passed in the current short session," the official, who did not wished to be named, said. The winter session began on Thursday. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 percent to 49 percent.
The positive sentiment in stocks quickly turned negative - HDFC, ICICI BANK, DABUR, EXIDE, MAX are having tie-ups with foreign Insurance players.
HDFC Standard Life - HDFC holds 72.43% and Standard Life holds 26%
ICICI holds 74% and Prudential Plc 26%
Max holds 74% while New York Life holds 26%
Dabur has 74% stake and Aviva has 26%
Exide 50% shareholding in ING Vysya Life Insurance Company
Parliament nod unlikely for insurance bill http://in.reuters.com/article/businessNews/idINIndia-44087720091119
JSW-JFE deal adds to the market panic
JSW STEEL saw profit-taking after deal between JFE of Japan and JSW STEEL was announced, initially many news reports suggested that JFE would be buying 10% stake in JSW but tie-up announcement led to panic sale in Metal stocks.
JSW Steel Ltd has informed BSE regarding a Press Release dated November 19, 2009 titled "JFE Steel Corporation & JSW Steel Limited come together in a strategic collaboration" http://www.bseindia.com/xml-data/corpfiling/announcement/JSW_Steel_Ltd_191109.pdf
India may take steps to slow capital inflows if foreign investments surge, Finance Secretary Ashok Chawla said amid exporter concerns of a stronger currency reducing their competitiveness abroad. “As the situation evolves we’ll see what needs to be done,” Chawla told reporters in New Delhi today. “As of now, inflows are not a cause for serious concern.” Foreign funds purchased a net 732.5 billion rupees ($15.77 billion) of Indian stocks this year, after being net sellers in 2008, sending the rupee higher by 4.8 percent and hurting sales at exporters including Gokaldas Exports Ltd. Over the past month, Brazil and Taiwan imposed capital controls to check appreciation in their currencies. http://www.bloomberg.com/apps/news?pid=20601091&sid=aa7xKpqe_PA4