• This forum contains old posts that have been closed. New threads and replies may not be made here. Please navigate to the relevant forum to create a new thread or post a reply.
  • Welcome to Tamil Brahmins forums.

    You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our Free Brahmin Community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

    If you have any problems with the registration process or your account login, please contact contact us.

Is the party over for Indian stock markets?

Status
Not open for further replies.

prasad1

Active member
Benchmark equity indices tumbled on Wednesday to their lowest closing levels in almost five months, hit by strong selling on algorithmic trading platforms, as investors fretted over rising oil prices, a decline in industrial activity and tax demands slapped on foreign funds.

The 30-share BSE Sensex closed 2.63%, or 722.77 points, lower at 26,717.37 points. The National Stock Exchange’s broader 50-share Nifty shed 2.74%, or 227.80 points, to close at 8,097 points. It was the lowest close since 17 December for both indices.


The immediate trigger, dealers said, was a slump in Nifty futures on the Singapore exchange, where they are trading at a discount to the domestic NSE index futures.


That sparked heavy selling in domestic shares, especially in algorithmic trades, which account for a third of the total volume in Indian cash shares and almost half the volume in the derivatives segment, analysts said.


“Nifty was already below 200-day average and today it also broke Tuesday’s low, which generated strong selling on algo platforms,” said Nilesh Dedhia, founder of NTD Trading, which specializes in providing algorithm-based trading platforms.


http://www.livemint.com/Money/vWsga6iQAT4aUUfHCEEEAP/Is-the-party-over-for-Indian-markets.html
 
Last edited:
The sharp fall in indices comes at a time the National Democratic Alliance (NDA) government is facing questions about its ability to push key reforms through Parliament and manage the economy, its handling of an ongoing agrarian crisis and the tax dispute with foreign investors.

The Bharatiya Janata Party-led NDA rode to power on a governance and reforms platform last year, replacing the United Progressive Alliance (UPA), which was voted out after 10 years for its mishandling of the economy and the involvement of some of its key functionaries in corruption scandals.


The Sensex rose 55.6% between September 2013—when the BJP named Narendra Modi as its prime ministerial candidate—and 4 March, and has since fallen 9.1% .


“It is very difficult for anyone to match such high expectations, and such over-hyped trades end badly. We saw that to an extent in 2011, two years after the UPA won the 2009 elections, and a similar thing is happening now,” Shankar Sharma, vice-chairman and joint managing director of First Global Securities Pvt. Ltd, said in a phone interview from Dubai.


“The impact is huge simply because people are now saying, ‘We gave you (BJP) 282 seats, what did you give us?’.”


Sharma isn’t alone.


“So far, the new government has done nothing but talk, and it is a shame because Modi had experience, he said he knew what needs to be done—he campaigned for many months saying he knows how to fix India, but he has done very little,” commodities trading guru and hedge fund manager Jim Rogers said in an April interview to Mint Asia.

http://www.livemint.com/Money/vWsga6iQAT4aUUfHCEEEAP/Is-the-party-over-for-Indian-markets.html
 
That sparked heavy selling in domestic shares, especially in algorithmic trades, which account for a third of the total volume in Indian cash shares and almost half the volume in the derivatives segment, analysts said. (# Post1)

My elder son has created a software for Algorithmic Trading This start up has funding by Mohandoss Pai. He explained about this to me but I cannot understand what it really is - Can you tell me about this in simple language so people can understand & how is it different?
 
That sparked heavy selling in domestic shares, especially in algorithmic trades, which account for a third of the total volume in Indian cash shares and almost half the volume in the derivatives segment, analysts said. (# Post1)

My elder son has created a software for Algorithmic Trading This start up has funding by Mohandoss Pai. He explained about this to me but I cannot understand what it really is - Can you tell me about this in simple language so people can understand & how is it different?


Please try this link..
http://www.investopedia.com/article...algorithmic-trading-concepts-and-examples.asp
 
Dear Smt.JJ,

Algorithmic trading is basically using machines to automate stock market trading. You devise rules on which an order has to be executed and write the rules as a program for the computer to implement.

There are advantages unique to automating trading, which manually is not possible such as speed, displaying no emotions etc.
 
My understanding :
Conventional trading - கடலங்குடி ஜாேசியம்
Algorithmic - கம்புயுடர் ஜாே சியம்!
 
Normal small investors should leave algo trading to big sharks.

They can do conventional trading in small lots and still make good money.

Chiru thuli peru vellam
 
Algorithmic trading has got nothing to do with wealth or investment. It is a way of skimming money off the movement of money.

Prasadji: If the party is over, does the hangover start now?
 
Algorithmic trading has got nothing to do with wealth or investment. It is a way of skimming money off the movement of money.

Prasadji: If the party is over, does the hangover start now?

I do not know that the party is over yet.


Indian stocks fell for the seventh session on Wednesday, logging their biggest losing streak since December, on mounting concerns over expensive valuations and economic growth. With an earnings recovery still not in sight, the pain in the markets may continue for a while, said analysts.
BSE’s 30-share Sensex closed 439.95 points, or 1.39%, lower at 31,159.81 points, its lowest close since 30 June. The National Stock Exchange’s 50-share Nifty shed 135.75 points, or 1.38%, to close at 9,735.75 points, its lowest close since 11 August.

“All the three markets—bonds, rupee and equities—are seeing a correction simultaneously. This hints there could be more pain in the offing,” said Ritesh Jain, chief investment officer at BNP Paribas Mutual Fund.
http://www.livemint.com/Money/MhSOu...ex-Nifty-open-higher-Divis-Labs-shares-f.html
 
Well as they say, somebody has to take away the punch bowl.

Perhaps it will be the US Federal Reserve when they raise interest rates. That will drain the global money supply.
 
My elder son and family has just left for Ashtamudi Kollam after an overnight stay here and I asked about algorithmic trading and if it is effective when the market is sliding - Explained and honestly I did not understand the technicalities - He said it invoves lot of statistical anaylsis and updates about the Companies and it will work in both market condition UP or Down He has already given me an article he hs publised in technical magzine (20pages) which I think is beyond my comprehension!

He showed me how Jio Hotspot (Rs999 till 30) works and my smarphone my husbands smartphone and laptop all connected to that and could make phone calls through Jio4G voice app downloaded from Playstore - 1 gb DATA AND VOICE FREE - works fine I think I will get one it is portable can carry it along tarrif he said 300 for 3 months We can throw away our land line Airtel or Bsnl along with their router and wifi modams Any experiance with Jio hotspot? feed back requested

Vahin my G son phoned me at 12 noon before leaving Banglore to get him Ashtalakshmi Kollu dolls I went to Kadikraft and got that and another Alagar doll for Uddish - another G son who is in DLF Chennai This is a huge show room - they give computerised bills but will accept only cash - not even POS swipe Govt Suppoted intitution doesnot support digital payments! really funny!

Vahin will take his Ashtalakshmi on his way back from Ashtamudi!

My 2nd son will be here day after tomorrow on his way to Munar Both my D in Laws have Golu in their home But not for 9 nights! Reason ? wht I call Demons of Navarathiri - Their Cooks and House Maids - they go on leave and force these families dependent on them to Club Mahendra - forced holidays!
 
Sensex, Nifty clock fresh record highs; 5 factors fuelling the rally

Banks recap, infra push and strong global cues, among others, seen as reasons behind the rally.

ByMoneycontrol News



sensex_NSE_BSE_Stocks_Stock_market1-770x433.jpg

Moneycontrol News
The Indian market soared to a fresh record high on Wednesday as investors cheered multiple factors such as bank recapitalisation plan, a few other global and technical factors.
The 30-share BSE Sensex saw a gap-up opening of 456.55 points, or 1.40 percent, at 33,063.89 and the 50-share NSE Nifty rose 104.80 points, or 1.03 percent, to 10,312.50. But investors have looked to book profits from that point, as indices have cooled off from the record highs.
Sundaram Mutual Fund believes that the bank recapitalisation plan of the government is a very long awaited step by the government. “They had to take the bull by the horns and it has taken the massive step to put this capital. This changes the framework with which an investor would look at banking and financial space. Structurally, they are back in the game,” S Krishna Kumar, CIO Equity, Sundaram Mutual Fund told CNBC-TV18 in an interview, adding that the risk profile of PSU banks will get a lot better.

Moneycontrol lists out five factors that is driving the markets today.
Bank recapitalisation
PSU banks reacted very strongly to the government’s decision to infuse capital in them. The Centre on Tuesday announced Rs 2.11 lakh crore recapitalisation plan for public sector banks spread over two years in a bid to shore up their finances, boost private investment and revive the economy.
At a press conference held by Finance Minister Arun Jaitley, Banking Secretary Rajiv Kumar said the government will infuse Rs 1.35 lakh crore through recapitalisation bonds and Rs 76,000 crore through budgetary support and market raising.


The move comes following a 2015 announcement in which the government had sanctioned a Rs 70,000-crore capital infusion under the Indradhanush banking reform scheme, 80 percent of which has already been paid out, and which was dismissed by analysts as being too little.
Bharatmala push
The Street reacted positively to the government’s infrastructure push after it approved Rs 7 lakh crore worth highway projects including the ambitious Bharatmala.
The development comes barely few months after Union Minister Nitin Gadkari said that the government will soon launch the Bharatmala project to build over 20,000 km of highways in the first phase.
The Cabinet gave the go ahead to highway projects worth about Rs 7 lakh crore for development of over 80,000 km of highways including Bharatmala project in the next five years, an official who did not wish to be quoted, told PTI.
Bharatmala is a mega plan of the government and the second-largest highways project after NHDP that saw development of about 50,000 km, and aims at improving connectivity in border and other areas.
Stable global cues
A steady move on the global markets also aided the rally back home. Both US and Asian markets have been trading on a strong note on the back of good earnings and positive handover.
The Dow Jones industrial average rose sharply on Tuesday on the back of strong quarterly results from 3M and Caterpillar. The 30-stock index closed 167.80 points higher at 23,441.76, hitting intraday and closing record highs. JPMorgan Chase shares rose 1.6 percent to break above $100 for the first time. The S&P 500 gained 0.2 percent to finish at 2,569.13, with financials rising to their highest level in 10 years. Corning and 3M were the best performers on the index. The Nasdaq composite advanced 0.2 percent to end at 6,598.43.
The Nikkei 225 rose 0.17 percent as the dollar held onto overnight gains. The benchmark index is rising high after notching its 16th straight winning session on Tuesday — its longest ever win streak. Across the Korean Strait, the Kospi was little changed, edging down 0.01 percent as markets digested the release of quarterly earnings. The index had set a record high in the last session on expectations for strong corporate earnings.
Broader market leading the charge
Another factor fuelling the rally is the rise in broader markets. The S&P BSE Smallcap index rose over 40 percent so far in the year 2017 compared to a little over 22 percent gain in the S&P BSE Sensex.
Investors who have invested in smallcap stocks in the beginning of the year 2017, chances are they might be sitting on huge pile of profits. As many as 133 stocks rose in the range of 100-1000 percent so far in the year 2017.
Smallcaps enjoyed a lot of limelight thanks to pro-growth policies initiated by the Modi government, low-interest rates scenario, a gush of domestic liquidity from into mutual funds which have been big buyers of smallcaps, and midcap stocks.
Technical take
Experts highlight that increased short covering could be one of the reasons for the rally, adding that the market undertone remained bullish with the support of consistent FII buying and short covering.
Derivative data indicates bullish scenario will continue in Nifty with multiple strong supports at lower levels. Various supports on the downside lie at 10,150, 10,100 & 10,050 spot levels.
Currently, Nifty is moving higher with a decent addition in open interest which suggests strength in the current trend as option writers were active in the recent rally.

http://www.moneycontrol.com/news/bu...ghs-5-factors-fuelling-the-rally-2419173.html
 
Status
Not open for further replies.

Latest ads

Back
Top