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The proposal to realign NSE indices on the basis of free-float market capitalisation will put index funds and exchange-traded funds in a spot of bother. According to mutual fund analysts, the exchange-proposed changes in stock weightages will result in widening of tracking error in index funds.
Index funds are passively-managed funds, wherein the fund manager attempts to mirror the performance of a benchmark index, by investing the corpus in the index components in proportion to their weightage in the index.
Also Read :
-G20 summit updates 2009
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
Tracking error is the difference between returns from the index fund to that of the index. Lower the tracking error, closer are the returns of the fund to that of the target index.
Funds with tracking error lower than 1% are considered good performers, according to mutual fund analysts. The NSE-proposed shift in stock weightages could deviate fund returns (from index returns) in the range of 6-10%, industry sources said.
"There could be some tracking error as weightage realignment of the whole index would mean a lot of buying and selling of shares," said an index fund manager.
Also Read :
-G20 summit updates 2009
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
"Unlike in other times when one stock is excluded from the index, the whole benchmark is being revamped this time round. However, the realignment process won’t take long as net AUM in index funds and ETFs are just over Rs 1,300 crore," the fund manager said.
According to analysts, stocks that were heavyweights, but had low floating stock will be adversely impacted because of the realignment. HDFC (+2.7%), ITC (+5.2%), Infosys (3.8%) and ICICI Bank (+2.8%) would be the major beneficiaries while NTPC (-6.7%), ONGC (-3.5) and Bharti Airtel (-1.7) would lose their weightage in the index. Sector-wise, a positive shift in weightage would be witnessed in banking and FMCG while power and oil & gas would be major losers.
posted under - NSE updates, NSE realignment, NSE stocks realignment, Nifty updates, Nifty stocks updates, National Stock exchange, NSE stocks updates
Tuesday, April 7, 2009
Realignment of NSE indices to widen index funds' tracking errors
Saturday, April 4, 2009
BSE and NASDAQ OMX war takes legal turn
A bitter battle seems to be brewing between Asia’s oldest equity bourse and one of the world’s largest exchange technology providers. While it is already known that an agreement signed between the Bombay Stock Exchange (BSE) and OMX — now known as Nasdaq OMX — in January 2008 has gone sour, an arbitration process is being explored now. ET has learnt that BSE has already sent a legal notice to OMX.
According to people familiar with the development, BSE has sent a legal notice to OMX recently, asking for a compensation of around $137 million by way of lost business opportunity. It has also charged the technology provider with not honouring its commitments.
Also Read :
-G20 summit updates 2009
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
It is believed that both parties, accompanied by their legal advisors, met in Mumbai about two weeks ago, but couldn’t reach any settlement. “The board has taken a call to get out of the contract with OMX as they have not kept their commitments,” said a BSE board member.
In January 2008, BSE and OMX signed an agreement, under which OMX was to provide trading and clearing systems to strengthen BSE’s derivatives and securities trading capabilities. The new platform would also have allowed BSE to clear a wider range of products, as well as offer a new set of clearing services to its members. Further, the first phase of the system rollout was scheduled for launch by mid-2008.
Also Read :
-G20 summit updates 2009
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
However, the deal was called off later that year. BSE had already paid $5 million as the first tranche to OMX for the contract valued at $37.5 mn. OMX, incidentally, is a technology supplier to more than 70 exchanges globally.
In an emailed reply, the BSE spokesperson said: “The agreement has been terminated and as per the provision of the agreement, there is an arbitration mechanism, which is being explored.”
OMX, on the other hand, refused to comment. “Our policy is to not give detailed comments about our customers. Therefore, we will unfortunately not be able to provide you with any comment,” it said via email. Interestingly, people familiar with the development also say there is a likelihood of OMX filing a counter-suit against BSE in London.
posted under - BSE news, BSE stocks updates, BSE v/s nasdaq, BSE nasdaq OMX battle, BSE latest updates, bse and nasdaq news, Nasdaq news and updates, BSE news and updates
source - www.economictimes.com
Thursday, April 2, 2009
BSE | NSE | DJIA | NASDAQ stock rates at closing
Hi all the esteemed visitor's to my blog, this post would show the closing stock rates of Indian Stock markets like the Bombay Stock Exchange(BSE) NIFTY(national Stock exchange as well as the closing rates of Dow Jones Industrial Average(DJIA) and Nasdaq last two are both from USA. How ever all the rates are according to indian standard calendar and time (please check the US timings for corresponding DJIA and nasdaq closing rates.
Normally for eg - 21st april 2009 in this post would correspond to 20th april 2009 and so on.
This post provides closing indices rates for the month of April 2009
the format for display would be as follows :
Stock index name Closing rate change Remarks wrto previous close
NIFTY - 3473.95 - 111.60 - Up^111.60
NASDAQ - 1711.94 - 38.13 - Up^38.13
DJIA - 8185.73 - 168.78 - Up^168.78
SENSEX - 11001.75 - (-370.10) - Down(-370.10)
NIFTY - 3362.35 - (-107.65) - Down(-107.65)
NASDAQ - 1679.41 - (-14.88) - Down(-14.88)
DJIA - 8025.00 - (-51.29) - Down(-51.29)
April 27/09 BSE - NSE - NASDAQ - DJIA Closing stock rates
SENSEX - 11371.85 - 42.80 - Up^42.80 pts
NIFTY - 3470.00 - (-10.75) - Down(-10.75)
NASDAQ - 1694.29 - 42.08 - Up^42.08 pts
DJIA - 8076.29 - 119.23 - Up^119.23 pts
April 23/09 BSE - NSE - NASDAQ - DJIA Closing stock rates
SENSEX - 11134.99 - 317.45 - Up^317.45 pts
NIFTY - 3423.70 - 93.40 - Up 93.40 pts
NASDAQ - 1646.12 - 2.27 - Up 2.27 pts
DJIA - 7886.57 - (-82.99) - Down(-82.99) pts
April 9/09 BSE - NSE - NASDAQ - DJIA Closing stock rates
SENSEX - 10803.86 - 61.52 - Up^61.52 pts
NIFTY - 3342.05 -(-0.90) - Down(-0.90) pts
NASDAQ - 1590.66 - 29.05 - Up^29.05 pts
DJIA - 7837.11 - 47.55 - Up^47.55 pts
April 7/09 BSE - NSE - NASDAQ - DJIA Closing rates
SENSEX - 10742.34 - 207.47 - Up^207.47 pts
NIFTY - 3342.95 - 86.35 - Up^86.35
NASDAQ - 1561.61 -(-45.10) - Down(-45.10)
DJIA - 7789.56 - (-186.29) - Down(-186.29)
April 6/09 BSE - NSE - NASDAQ - DJIA Closing rates
SENSEX - 10534.87 - 186.04 - Up^186.04 pts
NIFTY - 3256.60 - 45.55 - Up^45.55
NASDAQ - 1621.87 - 19.24 - Up^19.24
DJIA - 8017.59 - 39.51 - up^39.51
April 3/09 BSE - NSE - NASDAQ - DJIA Closing rates
SENSEX - 10348.83 - 446.84 - Up^446.84 pts
NIFTY - 3211.05 - 150.70 - Up^150.70 pts
NASDAQ - 1602.63 - 51.03 - Up^51.03 pts
DJIA - 7978.08 - 216.48 - Up^216.48 pts
April 2/09 BSE - NSE - NASDAQ - DJIA closing rates
SENSEX - 10348.83 - 446.84 - Up^446.84 pts
NIFTY - 3211.05 - 150.70 - Up^150.70 pts
NASDAQ - 1551.60 - 23.01 - Up^23.01 pts
DJIA - 7761.60 - 152.68 - Up^152.68 pts
posted under - BSE stocks updates, NSE rates, BSE rates, DJIA closing, Nasdaq closing, BSE closing, NSE closing , April 2009 stock closing
Wednesday, April 1, 2009
BSE | NIFTY looks @ Lok Sabha elections hoping of turnaround
The stock market is riding a global rally and is hoping a major party wins a strong hand at coming elections, but could be beaten back if a One out of six stocks beat Sensex fractious group of parties including Communists gains influence at the polls.
Investors are pricing victory for a coalition led by either the ruling Congress or Bharatiya Janata Party (BJP) when the world's largest democracy goes to polls between April 16 and May 13 against a backdrop of slowing growth.
Also Read :
-G20 summit updates 2009
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
But cracks in the two main national coalitions have raised fears that a "Third Front" could tip the balance of power, which market watchers believe could pull down stocks by between 15 to 30 per cent from current levels.
"Developments in politics seem to be increasing the probability of very fragmented parliament, which could spoil chances for a post-election recovery in markets as well," Morgan Stanley analyst Ridham Desai said in a recent note.
The benchmark 30-share BSE index fell more than 52 per cent in 2008, a record fall, and lost ground at the start of 2009. The index looks to have found a footing since early March, rising 9 per cent in the month on hopes the worst may have passed for the world economy.
Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
That was enough to see the market finish the March quarter up 0.6 per cent, its first quarterly rise since the end of 2007. It rose another 2 per cent on Wednesday to close at 9,901.99
posted under - BSE updates, NSE updates, NSE stocks, BSE stocks, Sensex updates, BSE, BSE latest updates, nifty, Nifty updates
Tuesday, March 31, 2009
Indian Stock Markets eroded nearly rs 20 trillion in fiscal year 2008-09
Investors witnessed an erosion of close to Rs 20 trillion from their wealth in the financial year 2008-09, with the Dalal Street crumbling
under the pressure of the global economic downturn, while Reliance Industries emerged as the biggest loser in the period.
The combined market valuation of all the listed companies in the country dropped to Rs 30,86,075 crore on the last day of this fiscal as against Rs 49,72,953.37 crore on March 31, 2008, leading to a loss of over Rs 18,86,000 crore during the period.
Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
The country's most valued firm corporate behemoth ,Reliance Industries, saw an erosion of close to Rs 89,460 crore from its market valuation during the fiscal ended March 31, 2009.
Interestingly, the Bombay Stock Exchange's benchmark index Sensex, which accounts for around 48 per cent of the market capitalisation of all the listed companies, has suffered a loss of nearly Rs 10,00,000 crore for the fiscal ending March 31, 2009.
Besides, in dollar terms the total loss of market valuation comes out be significantly more as the Rupee has depreciated from Rs 40.02 per dollar on March 31, 2008 to about Rs 50.86 at present. The loss calculated in terms of the respective conversion rates at the two particular dates comes out to be as much as USD 636 billion.
Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
Further, Foreign Institutional Investors have also played spoilsport for Indian equity markets as they have pulled out a whopping Rs 50,000 crore in FY' 2008-09 due to the liquidity crunch back home.
However, analysts predict elections are going to be the deciding factor for the way the domestic stock market would move forward in the next financial year as a stable government could prove positive for the Dalal Street.
we'll i m keeping my fingures crossed for atleast next 6 months or so.....
posted under - Indian stocks, indian markets updates, BSE updates, indian share markets, 2008-09 year, recession effect on market, indian markets and recession
Tuesday, March 24, 2009
BSE | NSE Stocks closing rates - March 2009
This post consists of daily closing rates of BSE (Bombay Stock Exchange) and NSE (Nifty) for the month of march 2009 all the enteries are in indian calendar year dates.
PS - green color of the entry shows market going up & red color shows that corresponding index closed lower when compared with previous day close
Index Name Closing Price Change wrto previous day close Remarks
March 31/09 BSE NSE NASDAQ DJIA closing stock rates :
SENSEX 9708.50 140.36 Up^140.36
NIFTY 3020.95 42.80 Up^42.80
NASDAQ 1501.80 -43.40 Down(-43.40)
DJIA 7522.02 -254.16 Down(-254.16)
March 30/09 BSE NSE NASDAQ DJIA closing rates :
SENSEX 9568.14 -480.35 Down(-480.35)
NIFTY 2978.15 -130.50 Down(-130.50)
NASDAQ 1545.20 -41.80 Down(-41.80)
DJIA 7776.18 -148.38 Down(-148.38)
March 25/09 BSE NSE NASDAQ DJIA closing rates
SENSEX 9667.90 196.86 UP^196.86 pts
NIFTY 2984.35 45.65 UP^45.65 pts
NASDAQ 1516.52 -39.25 DOWN(-39.25)
DJIA 7659.97 -115.89 DOWN(-115.89)
March 24/09 BSE NSE NASDAQ DJIA closing rates
SENSEX 9471.04 47.02 Up^47.04 pts
NIFTY 2938.70 -1.20 Down (-1.20) pts
NASDAQ 1555.77 98.50 Up^98.50 pts
DJIA 7775.86 497.48 Up^497.48 pts
posted under - BSE stocks, NSE stocks, DJIA stocks, Nasdaq stocks, S and P stocks news, BSE closing Rates, djia closing, sensex closing, Nifty closing, dow jones closing, indian markets updates
Monday, March 23, 2009
Foriegn Inst. Investors buy shares worth Rs 376.23 crore
Foreign institutional investors (FIIs) on Monday continued their investment in Indian stocks and bought shares worth Rs 376.23 crore even
as the BSE's sensitive index gained over five per cent in a single day.
FIIs were the gross buyer of equities worth Rs 1,466.95 crore, whereas they sold equities worth Rs 1,090.72 crore resulting in a net investment of Rs 376.23 crore, according to the provisional data available with the Bombay Stock Exchange website.
On Friday, FIIs were the net buyer of Indian shares worth Rs 49.40 crore, the latest data available with the market regulator Securities and Exchange Board of India showed.
Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
Domestic institutional investors also extended their confidence and were the net purchaser of stocks worth Rs 376.51 crore.
Similar trend was witnessed among proprietors and non-resident Indians (NRIs). The two categories of market participant made a combined net investment of Rs 16.94 crore. However, brokers on the behalf of their clients followed opposite trend and were the net seller of equities worth Rs 164.49 crore.
posted in - indian markets updates, BSE updates, NSE updates, indian stocks, BSE rates, NSE rates, indian share markets
Sebi asks 11 cos to resolve investor issues within 30 days
Market regulator Securities and Exchange Board of India on Monday asked 11 companies to resolve investor issues in a month or face penalty.
"If any of these companies fails to redress the grievances and submit the status report ... within 30 days from the date of this advertisement, SEBI shall be constrained to take actions against these companies and their directors," it said in a statement.
Also Read :
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-Indian Economic Summit Updates
-World's Strongest economies list
-Trouble in Indian Forex
-US Economic recession-how it started
The companies include Aashi Industries, Beta Naphthol, Indo American Optics, Jayant Vitamins, Motorol Enterprise, Ojas Technochem Products, Indo American Credit Corp, Hindustan Industrial Chemicals, Topline Shoes, Panjwani Packaging and Pankaj Agro Protinex.
SEBI said it has received a large number of complaints against these companies from investors and that these firms have not responded to the regulator's letter sent along with the list if complaints to them for resolution.
The regulator said, as per the SEBI Act, "such companies shall be liable to a penalty of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less."
posted in - SEBI updates, indian markets updates, SEBI latest news, BSE updates, NSE updates, SEBI