The rise and rise of BSE SENSEX | NIFTY and Indian Share Markets

hmm long time since i posted the analysis of indian share markets particularly benchmark indices like 30 share index SENSEX and NSE's NIFTY,

Have anyone noticed the trends of growth of indian share markets especially BSE's SENSEX??

i was noticing the trend this time(when US Stocks are reeling under reign of bears from last one year (oficially..) the reason for growth of BSE SENSEX this time(at the levels of 16700..presently) is cent percent indian ie this time indian stock markets have increased because of pure indian investor's.

ok let me explain this with respect to FDI's last time when indian share markets were hovering at 16000 levels the conversion price of US $ was at 45 IN|R for one US $ (if i am not wrong) and when SENSEX touched the 21000 levels US $ was at 39 INR/$ which clearly depicts that previous year's stock rally was due to increased Foreign direct investments in indian businesses and Stocks how ever this is not the case this time around

I may also strengthen this by comparing the US $ price wrto INR this time, SENSEX has crossed 16700 levels but still US $ is hovering about 48.48INR/$ so indian investors have invested a lot of their hard earned money into indian share markets this time around and that too from long term investment point of view may be investor's are waiting for the time when US institutional investors would come back to indian markets and this would be time when indian investor's would sell off their shares and earned huge profits from it. and if US$ starts weakening then it is clear indicaion about foreign currency flowing into indian markets.

So long term investor's can buy realty stocks, IT stocks or banking stocks and may sell them when FDI starts coming into BSE SENSEX or NIFTY or any other regional stock markets of india. and according to my prediction indian markets will touch new highs when US $ would come again at INR40 levels.

Currency Derivatives at BSE

CURRENCY DERIVATIVES AT BSE (Bombay Stock Exchange Limited)

RBI and SEBI jointly constituted a Standing Technical Committee to analyze the Currency Forward and Future market around the world and lay down the guidelines to introduce Exchange Traded Currency Future in Indian Market. The Committee submitted its report on Exchange Traded Currency Futures on May 29, 2008. Further RBI and SEBI also issued circulars in this regard on August 06, 2008.Currently India is a USD 34 billion OTC market, where all the major currencies like USD, EURO, YEN, Pound, Swiss Franc etc. are trading in OTC market. With the help of electronic trading and efficient risk management systems, Exchange traded currency future will help to get transparency and efficiency in price discovery, elimination of counterparty credit risk, access to all types of market participants, standardized products and transparent trading platform. Banks are also allowed to become members of this segment on the Exchange and this provides them new opportunity in this market segment.BSE is offering Currency Futures (US Dollar- Indian Rupee contract only at present) through its Currency Derivatives Segment christened BSE-CDX.Currency hedging in India will no longer be limited to the over-the-counter (OTC) products, such as forwards, swaps and options. As this market has huge potential. of integration of the Indian economy with the rest of the world, with the ongoing development of financial markets, introducing currency derivatives will provide one more platform alongside the OTC currency markets.

Other important BSE updates -
Currency Derivatives at BSE
international Programme on Demat and Depositories
What is BSE -ASBA- explained
BSE's certification on currency futures

Members
By having wider membership and bringing together a large number of interested parties, the futures market provides liquidity, making transactions possible and providing immediate information on prices. As per RBI guidelines, currency futures shall have the following features :
Only USD-INR contracts are allowed to be traded.
The size of each contract shall be USD 1000.
The contracts shall be quoted and settled in Indian Rupees.
The maturity of the contracts shall not exceed 12 months.
The settlement price shall be the Reserve Bank's Reference Rate on the last trading day.

Membership
The membership of the currency futures market shall be separate from the membership of the equity derivative segment or the cash segment. Membership for both trading and clearing, in the currency futures market shall be subject to the guidelines issued by the SEBI.
Banks authorized by the Reserve Bank of India under section 10 of the Foreign Exchange Management Act, 1999 as 'AD Category - I bank' are permitted to become trading and clearing members of the currency futures market, on their own account and on behalf of their clients, subject to fulfilling the following minimum prudential requirements:
Minimum net worth of Rs. 500 crores.
Minimum CRAR of 10 per cent.
Net NPA should not exceed 3 per cent.
Made net profit for last 3 years.
For more details refer to RBI guidelines.

for membership of CDX - click HERE

Other important BSE updates -
Currency Derivatives at BSE
international Programme on Demat and Depositories
What is BSE -ASBA- explained
BSE's certification on currency futures

Investors
Many investors internationally use futures more than the cash market to manage the duration of their portfolio or asset allocation because of the low upfront payments and faster transactions. They also trade in futures with the hope of making profit with arbitrage opportunity between the futures market and the underlying market. As the profits or losses in the futures market are collected and paid on a daily basis, the scope for building up of mark to market losses in the books of participants gets limited. In short, currency futures benefits to investors as :
Importers/Exporters may have some obligations in Forex market, trading in Currency Futures will help them hedge their positions. Similarly, any investor can trade in Currency Futures with or with no obligations.
The counter-party risk is eliminated as the clearing corporation guarantees the trades.
By ensuring that the best price is available to all categories of market participants, transactions are executed on a price time priority
In Currency Futures, mark to market obligations are settled on a daily basis, unlike a forward contract, which is an agreement to transact at a forward price on a future date and no money changes hands except on the maturity date.

More Faq's - click here

published under - Currency derivatives, BSE updates, latest BSE news, BSE currency derivatives, latest BSE updates, currency derivatives at BSE, BSE limited, indian stock markets updates

Oct 24 - Blood Bath at SENSEX - Down 1070 pts

Investors will remember October 24, 2008 as the bloody Friday as Indian stock markets were seen all in red through out the day.

In one of the worst trading sessions, investors helplessly saw their Investments being wiped out. Those who were praying for a pull-back were left in the lurch as determined bears tore the market apart.
The gains of the four-year bull-run were lost in just eight months. The biggest damage being suffered in last one month, with the indices losing over 36 per cent

Also read:
How to insulate yourself from Stock market crashes
Daily BSE, NSE, NASDAQ, DJIA Closing rates

For traders, it was a nightmare as red blips flashed on their terminals. The bear onslaught saw their stop-losses getting triggered. The party on the Dalal Street is over, but few would have expected such a savage end where share prices of blue-eyed large cap companies were reduced to that of smallcaps. Reliance Industries and ONGC were down 16.44 per cent and 15.01 per cent respectively.

Indian equities were the worst performers. Bombay Stock Exchange’s Sensex plunged 11 per cent or 1070.63 points to close at 8,701.07. The index touched a low of 8566.82.

National Stock Exchange’s Nifty ended at 2584, down 12.20 per cent or 359.15 points. The broader index touched a low of 2525.05.

Also read:
How to insulate yourself from Stock market crashes
Daily BSE, NSE, NASDAQ, DJIA Closing rates

DLF (-23.96%), Ranbaxy Laboratories (-17.83%), Hindalco Industries (-17.82%), Tata Motors (-16.54%), Reliance Industries (-16.44%) and Mahindra & Mahindra (-16.04%) were the worst hit.

BSE Midcap closed 8.38 per cent lower and BSE Smallcap Index ended 7.66 per cent down. The BSE Realty Index slumped 24.39 per cent and BSE Oil & Gas Index lost 14.97 per cent.

Market breadth on BSE collapsed with 1835 declines against 247 advances.

“Markets have fallen too much and moving up will take some time. It can’t be said as of now whether the correction is over. Though we are in an oversold zone, news from the US markets and liquidity flows will govern the market,” said Dipen Shah, vice-president, private client group of Kotak Securities.


Also read:
How to insulate yourself from Stock market crashes
Daily BSE, NSE, NASDAQ, DJIA Closing rates

However, this doesn’t seem to be the end of catastrophic fall on the Indian bourses. US stock futures hit lower circuit Friday an hour and half before the market opens. The Dow Jones Industrial Average futures slipped 550 points, or 6.27 percent and Standard & Poor's 500 futures shed 60 points or 6.56 per cent.

Earlier in the day, Japan’s Nikkei 225 ended -9.60 per cent lower, Kospi fell 10.57 per cent and Hang Seng declined 8.30 per cent.

European markets also witnessed sharp correction. FTSE 100 was down 8.96 per cent, CAC 40 was down 8.90 per cent and DAX plunged 9.58 per cent.

Shah’s advice to investors is to not panic and sell out everything. “There are still fundamentally sound stocks available at attractive levels. Good quality stocks in largecaps should not be sold and must be accumulated with medium to long term view.


Also read:
How to insulate yourself from Stock market crashes
Daily BSE, NSE, NASDAQ, DJIA Closing rates


Markets opened with a sharp cut but caved in after the Reserve Bank of India announced its half-yearly economic policy review, wherein it left policy rates and reserve ratios unchanged.

The central bank revised lower GDP growth target to 7.5-8.0 per cent from 8.0 per cent earlier but maintained the inflation target at 7 per cent for FY09.
The revision in GDP growth forecasts led to panic among investors, already shaken by the relentless sell-off by foreign funds. There were market reports that long only funds and domestic institutions were too on sell-side.