Equity market update: June 25, 2010
Jun 26th
Markets started the week on a positive note with Sensex rising 305 points or 1.7% to close at 17,876.55 on Monday on positive global cues due to China announcing that it will take measures to make yuan float more freely against dollar and other foreign currencies (Click here for MB update).
After that, index moved in a [...]
India to move to market movement based oil prices
Jun 25th
The Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, have decided in the meeting just now that India oil prices such as petrol and diesel prices will be determined by market.
Details of the same, as to how this exactly will be carried out will be disclosed later and we will update you [...]
Book Review – When Genius Failed
Jun 24th
When Genius Failed: The Rise and fall of Long Term Capital Management by Roger Lowenstein, is a short biography and chronology of an infamous hedge fund.
Background
So before getting into the review of this excellent read we need to understand, what does hedge fund means?
Investopedia defines the term hedge funds as “An aggressively managed portfolio of investments that [...]
Overnight Index Swap 2 – Pricing of OIS
Jun 23rd
This article is part 2 of the series on Overnight Index Swap. To see first part of Overnight Index Swap series click
Overnight Index Swap – 1
Pricing of OIS
Pricing involves calculating the fixed rate of interest for a given floating rate benchmark. This pricing can be done on the basis of term money rates [...]
Should I invest in real estate now?
Jun 22nd
With the improvement in economic conditions, property price have picked up in some metros, Tier-I and Tier-II cities across India. The global slowdown brought the focus of the developers back to quality of construction and delivery timelines. The real estate market is rapidly becoming brand conscious. Developers with strong execution capability command premium over their [...]
China decides on ending Yuan peg
Jun 21st
Facing growing pressure from around the world, The People’s Bank of China (PBOC) announced on Saturday that it is prepared to allow the country’s currency to float more freely against the dollar and other foreign currencies. The bank said that “this step is in view of the recent economic situation and financial market developments at [...]
Weekly G-Sec update:June19, 2010
Jun 20th
High inflation released on Monday set the tone for the week. As expected, with the release of inflation above 10% mark, yields on benchmark 7.80% 2020 bond rose 8 bps to close at 7.69% on Monday under fears that RBI might be forced to raise rates to tame inflation. Rates also rose after comments from [...]
Weekly Equity update:June 19, 2010
Jun 19th
Moved by strong IIP numbers last week, Sensex continued its upward journey, rising 273 points on the first day of the week. Equity markets almost ignored the high inflation number.
The buoyancy continued for the week and markets touched a high of 17,616 on Thursday, its highest since April 27. This was the 7th consecutive day of [...]
European Crisis
Jun 19th
European Crisis: Snow Ball Effect
The phrase Snow Ball effect draws its analogy with the rolling of a small snow ball down a snow-covered hillside. As it rolls the ball will pick up more snow, gaining more mass and surface area, and picking up even more snow and momentum as it rolls along.
This is precisely what [...]
