Rising stock markets - Rising interest rates where would investor go

When a company raises its dividend, its stock becomes more attractive to investors. Its share price rises. When a bank raises interest rates on its savings accounts, people deposit more money in the bank. It's the same way in the currency markets. Rising interest rates make a currency more attractive and it rises against other currencies with stable interest rates. Central banks around the world have been cutting rates for two years, and interest rates are as low now as they've ever been.

The governor of Australia's central bank hinted there would be more interest rate rises on the way. This could be the start of a new trend of rising interest rates around the world. If this is the start of a new trend of rising world interest rates, you can expect big new trends in the currency exchange markets, too. That's because interest rates are the single most important driver of exchange rates in the currency markets.

So how do we make money from a new global trend of rising interest rates?

While other central banks are considering raising rates, the Fed has so far refused to join the party. The dollar is the worst-performing major currency in the world this year as a result.

The recent unemployment report showed that somewhere close to 6 million jobs have vanished from the American economy in the last 18 months. The employment situation hasn't been this bad. With the ongoing unemployment, rate hikes in America are unlikely until next year.

First, this gives us a great opportunity to buy the dollar right now, while it's cheap and no one is anticipating rate hikes from the Fed. By the time Bernanke announces his first rate hike next year, the dollar will have already rallied 10% or more.
Second, a trend of rising interest rates on currencies is great for people looking to buy gold at lower prices. Gold has no interest rate. So when interest rates rise on world currencies, they become more attractive – and they rise – relative to gold. This is especially true with the dollar. It's the world's reserve currency and gold is incredibly sensitive to movements in its interest and exchange rates.

As long as unemployment keeps rising, there's no way the Fed raises interest rates and gold prices will stay high. But next year is a different story. The first hint of rate increases by the Fed will send shockwaves into the gold market.

RBI's credit policy review brings bears on Dalal Street

(posted under - BSE live, Nifty closing 27/10) - Indian Stock markets and major indices like SENSEX and NSE's NIFTY closed in deep red after news from RBI came. The notable thing about today's close is that all the sectors were down at closing today. The Reserve Bank of India increased provisioning for commercial real estate loans to 1 percent from 0.4 percent for standard assets.
Market breadth was negative with 2274 declines and mere 453 advances.

NSE's Nifty closed at 4841.40, down 129.50 points or 2.61 per cent. The NIFTY index touched a low of 4829.50 and high of 4970.55 during intraday trading.

The 30 share benchmark index Sensex closed at 16330.60 and was down by 409.90 points which is a whopping 2.45 percent down. The BSE's SENSEX touched a low of 16311.50 and high of 16699.09 during intraday trading.

The closing of Sectoral indices is as follows :

BSE Realty Index closed down 6.11 percent.
BSE Metal Index fell 5.76 percent.
BSE Bankex Index was down by 3.97 percent.

INDIAN STOCK MARKETS CLOSES IN RED - 26/10

Major indian stock indices like BSE's SENSEX and NSE's NIFTY closed in red as banking stocks and Realty stocks were sold by investors. Market breadth on BSE was negative with 1707 declines against 1015 advances.

The 50 share Nifty closed at 4964.55, down 32.50 points or 0.65 per cent. It touched a high of 5033.75 and low of 4961.35.

30 share benchmark index Sensex ended at 16711.97, down 98.84 points or 0.59 per cent. The index touched a low of 16706.08 and high of 16938.88.

BSE Midcap Index was down 1.79 percent.
BSE Smallcap Index declined 1.33 percent.
BSE Realty Index was down 4.44 percent.
BSE Bankex fell 1.64 percent.
BSE Oil&gas Index was also down 1.48 percent.

However the following indices closed in green today:

BSE Healthcare Index was up 0.94 percent.
BSE FMCG Index was also up by 0.87 percent.
BSE IT Index was up 0.46 percent.

BSE SENSEX | NIFTY closes in deep red

Indian stock markets closed in red today thus following global trends and heavy profit booking by investor's Bombay Stock Exchange’s Sensex ended at 16789.74, down 219.43 points.

National Stock Exchange’s Nifty closed at 4988.60, down 75 points, BSE Midcap Index was down 2.12 percent and BSE Smallcap Index declined 1.96 percent. BSE Realty Index fell 4.59 percent, BSE Capital Goods Index declined 2.69 per cent and BSE Bankex slipped 2.05 percent. The BSE IT Index closed up 1.21 per cent and BSE FMCG Index moved 1.15 percent higher.

SENSEX | NIFTY closes in red due to profit booking -21/10

(posted under - BSE live rates, NSE rates) - Indian Stock markets closed in red today as profit booking took it's effect during the end sessions at BSE and NSE, major indexes like SENSEX and NIFTY closed in red today.

National Stock Exchange’s Nifty ended at 5058.75, down 55.70 points

Bombay Stock Exchange’s Sensex closed at 17023, down 199.83 points, BSE Midcap Index was down 1.06 per cent however BSE Smallcap Index edged 0.21 per cent. BSE IT Index moved up 0.45 percent higher and BSE Realty Index gained 0.21 percent.

BSE Bankex fell 2.16 percent, BSE Auto Index also fell 2.12 percent and BSE FMCG Index was down by 2.01 per cent.

BSE | NSE closes down as telecom stocks fall - 15/10

(posted under - BSE rates, NSE rates, BSE closing) - Indian Stock Markets and major indices like BSE's SENSEX, NSE's NIFTY closed little lower today as some partial profit bookings weighed and telecom stocks fell today.

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The closing rates of SENSEX NIFTY for today are as follows :

Nifty closed at 5108.85, down 9.35 points. The broader index touched a high of 5152.25 and low of 5077.10.

Sensex ended at 17,195.20, down 35.91 points. The 30-share index hit a high of 17350.39 and low of 17092.83 in today’s trade.

Sectoral closing rates of BSE :

BSE Midcap Index was up 0.55 per cent and BSE Smallcap Index gained 0.87 per cent. BSE IT Index fell by 1.37 per cent, BSE Healthcare Index was also down by 1.26 per cent and BSE FMCG Index was down 0.6 per cent. However BSE Metal Index moved up 1.72 percent and BSE Bankex gained by 1.58 per cent.