Category: Your Money

The changing landscape of India’s equity markets – the bots are here

About 60% of orders into the country’s main exchange are coming from co-located servers shows that high-frequency trading has come onshore in a big way. High-frequency traders tend to stick to liquid stocks and liquid derivatives contracts. Hence, they haven’t yet contributed meaningfully in enhancing liquidity of the other stocks and illiquid derivatives contracts such as stock options while greatly increasing the volatility of the most liquid names.

Combined with the dismantling of SEBI’s existing team, the market is at risk of being swarmed by the bots.

via The changing landscape of India’s equity markets – livemint.com.

BRIC Stocks’ Rally Seen Doomed as Interest Rates Rise

Rising commodity prices are “triggering second-round effects via higher wages,” Alain Bokobza, the head of asset allocation strategy at Paris-based SocGen, wrote in an April 11 report titled “The EM Party Is Over.” He recommends switching to developed-nation equities from emerging markets.

“In most emerging markets, you do have these margin pressures building,” Michael Shaoul, the chairman of Marketfield Asset Management in New York, who has been shifting investments to the U.S. from emerging markets, said in an interview. “We’re fairly convinced that this monetary cycle will end in some distress.”

via BRIC Stocks’ Longest Rally Since 1997 Seen Doomed as Interest Rates Rise – Bloomberg.

Shockwaves from Saudi’s crude statistics

Saudi Arabia is seriously trying to talk down the oil market. But in doing so, it is setting the stage for another oil price rally. Ali Naimi, the kingdom’s oil minister, has revealed that Saudi Arabia sharply reduced sharply its oil production last month – by a hefty 800,000 barrels a day – because of lack of demand.

via FT.com / The Commodities note – Shockwaves from Saudi’s crude statistics.

Realtors fail to repay bank loans

Realtors bank loans
Bank Loans

Around Rs20,000 crore of repayments were due by real estate companies by 31 March after loans were restructured by banks following the 2008-09 slump, but at least half a dozen of them have been unable to meet this deadline.“They are likely to default,” the chairman of a large public sector bank said, adding that some of these firms already have overdue interest repayments.

via Realtors fail to repay bank loans – Home – livemint.com.