Category: Your Money

Sunder’s List

Europe closed sharply lower: Stoxx 50 -2%, Germany -1.9%, France -2.8%, Italy -2.2%, Spain -0.8%, U.K. -1.8%. The Dow bounced back from -1.38% to end at -0.53%.

Gold prices tumbled below $1,600 an ounce for the first time in four months. Demand in India, dented by the weakness of the rupee, has made the metal more costly for the country’s large jewellery industry. (FT)

HSBC and Standard Charted to benefit from French banks’ hasty retreat from Asia? (FT)

There are a few stock specific stories, but the overall tone of the market is likely to be negative till the Europe mess gets sorted out one way or the other or an additional burst of QE is announced in the US.

Good luck!

Sunder’s List

Old map of Europe in the shape of a queen hold...

(Photo credit: Wikipedia)

US ended flat: S&P -0.03%, while Europe ended mostly positive: Stoxx 50 +1.6%, Germany +0.1%, France +1.6%, Italy +2.3%, Spain +2.8%

Multiple good news for India: Oil prices are down 6.6% month-to-date. This should ease the pressure on under-recoveries. (WSJ) And the government finally backtracked on their ill-advised adventure on GAAR: GAAR will now be implemented from next year and government agencies now will have to prove wrongdoing, reversing an earlier proposal that placed the onus on companies to prove their innocence. (WSJ) In fact, most of the uptick in the last hour of yesterday’s market action can be attributed to this “roll-back.”

Spain may pump public funds into its banking system to revive lending and its recessionary economy. This may stem the bloodletting in European markets for a while. (WSJ)

Meanwhile, in America, anywhere between 200,000 and one million consumers are estimated to be unable to afford bankruptcy this year. (Yahoo)

Sunder’s List

148126275213925153_3TTwSFS4_fThis Monday morning: Hong Kong (-2.3%), Japan (-2.5%), Australia (-1.5%), S&P futures -1.1%, Crude –$10/barrel since Tuesday. A knee-jerk reaction to election results in Greece and France.

Since the announcement of Budget 2012 on March 16, net FII inflows have slowed dramatically, showing an effective daily average drop of 95% since March 16. (StockViz, ET)

Channeling Benjamin Graham: 10 things.

Sometimes the best thing to do is liquidate and move on. The story of Yell (Yellow Books publisher), HMV, and many others. (FT)

Rent vs. Buy: Owning anything comes with its own set of headaches. Americans are headed towards a “rentership” society after getting badly burnt from George Bush’s “ownership” society. Rent everything: homes, text books, cars, temporary accommodations, fashion. (WSJ

Weekly Recap

NIFTY 50.2012-04-30.2012-05-04

The NIFTY ended on a negative tone, drifting down -0.67% for the week.
Biggest losers were AXISBANK (-9.87%), HEROMOTOCO (-9.44%) and BANKBARODA (-8.77%).
And the biggest winners were TCS (+6.05%), CIPLA (+4.86%) and HINDUNILVR (+4.13%).
Decliners eclipsed advancers 39 vs 10
Gold: -1.71%, Infrastructure: +6.76%, Banks: -0.47%.

Slowing growth in the US and Europe’s resurgent problems caused a massive selloff on Friday: NIFTY tanked 101 points (-1.96%) to 5,087. The bloodbath looked something like this:

Heat Map

Basically, the market has gone nowhere since the last couple of years:

NIFTYBEES technical analysis charts

Buy and Hold just became Buy and Hold forever.

Daily news summaries are here.

Sunder’s List

The US economy remains tepid. Which means no QE3 until it gets worse and no “off to the races” bullishness either. Apr. ISM Non-Manufacturing Index: 53.5 vs. 56.0 expected and 56.0 prior.

S&P -0.76%, Nasdaq -1.16%. European shares close mostly lower: Stoxx 50 -0.2%, Germany -0.3%, France -0.1%, Italy -0.7%, Spain +0.3%, U.K. +0.2%.

 

The Rupee might go all the way down to 55/$. When the Brazilian Real is making new lows, how can the Indian Rupee stand idly by? And I have people come up to me and say that they are buying IT outsourcers’ since their income is in USD so the Rupee depreciating means that their share prices are going higher. My opinion: dumbest trade ever. If you want to speculate on the direction of currencies, trade FX. Don’t use equities as a proxy.

 

 

Is Australia in a credit bubble? Yes & Yes.

The Economist does a number on Spain.