Sensex

Thursday, July 03, 2008

DG - FW: Pl help to circulate among DreamGain members -- Please write to this address....It may help us.

 

 

From: ravindra bapat [mailto:ravibapat@yahoo.com]
Sent: 03 July 2008 18:04
To: justrohit@gmail.com
Subject: Pl help to circulate among DreamGain members -- Please write to this address....It may help us.

 

Dear DreamGain Members

 

Please go thro the following link and lodge complaint about BAD road between SEEPZ and Kanjurmarg Bridge. Do write that this area is in Mumbai city and its 4km Long from where atlest 4Lakh commuters travell everyday to reach their offices. Send it to the Department of Road Transport and Highways and another to the Department of Industrial policy and promotion as bad infrastructure will not help to develope Industries and also to the Department of Urban Development.

 

If you have enough time then there is one more option to inform to Government of Maharashtra........ But will that help????... dont know but lets give one TRY.

 

Please spend few minutes to do this exercise which MAY save our FEW travelling hours in future.

I think we can atleast mail our complaint to the right AUTHORITIES.

 

Please forward this information to those who are travelling thro this road everyday and request them to register our complaint.In INDIA volume matters...................

 

Take care

Ravi 


 

Government of India has an online Grievance
Can you imagine this happening in INDIA ?

Government of India has an online Grievance forum at http://darpg-grievance.nic.in/
The government wants people to use this tool to highlight the problems they faced while dealing with Government officials or departments like Passport Office, Electricity board, BSNL/MTNL, Railways etc etc.

I know many people will say that these things don't work in! India , but this actually works as one of our colleague in CSC found. The guy I'm talking about lives in Faridabad . Couple of months back, the Faridabad Municipal Corporation laid new roads in his area and the residents were very happy about it. But 2 weeks later, BSNL dugged up the newly laid roads to install new cables which annoyed all the residents including this guy. But it was only this guy! Who used the above listed grievance forum to highlight his concern. And to his surprise, BSNL and Municipal Corporation of faridabad was served a show cause notice and the guy received a copy of the notice in one week. Government has asked the MC and BSNL about the goof up as it's clear that both the government departments were not in sync at all.

So use this grievance forum and educate others who don't know about this facility.
This way we can at least raise our concerns instead of just talking about the ' System' in India . Invite your friends to contribute for many such happenings.

SPREAD THIS MESSAGE IF U WANT OUR INDIA TO CHANGE
 
 

 

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DG - Grappling with rising prices of crude oil

Grappling with rising prices of crude oil

http://www.hindu.com/2008/07/03/stories/2008070351271100.htm

Atul Aneja


The exact role played by speculators in pushing up oil prices has come under greater scrutiny after the Jeddah conference.


The Jeddah conference of oil producers and consumers, which concluded on June 22, brought into sharp focus the role of speculators behind the recent surge in oil prices. The conference exposed deep divisions between oil producers and leading industrialised nations over the causes behind what has been described as the third oil shock. King Abdullah bin Abdul al Aziz of Saudi Arabia was outspoken in his criticism of oil speculators at the conference. Following the lead of the world’s largest oil producer, the rest of the members of the Organisation of Petroleum Exporting Countries (OPEC) amplified its line of argument.

The United States aggressively countered the assertion by oil producers. Ahead of the meeting, U.S. Energy Secretary Samuel Bodman stressed that it was not speculation, but the supply shortages in the wake of surging demand that had pushed up the prices to their present highs. Key western allies such as Germany backed Washington’s position. It was evident that the industrialised world wanted to steer the global energy debate on soaring prices from the role that speculators had played to expansion of output, from which western oil companies could stand to benefit.

Without adopting a confrontational stance, India’s position on the price increase stood out for its clarity, forthrightness and pragmatism. Finance Minister P. Chidambaram targeted speculators for causing the recent spurt in prices. “Respectfully, we reject the suggestion that rising demand is the cause of spiralling oil prices. Surely, demand and supply dynamics cannot explain what has happened over the last 12 months. How is it that the oil prices were $70 a barrel in August 2007 and how is it that they have doubled when there has been no dramatic change in demand?” Mr. Chidambaram added that the current pandemonium in oil prices lay in “unregulated over-the-counter (OTC) markets and futures trading in oil.”

Notwithstanding the rift between the OPEC and buyers in the West, the exact role played by speculators in pushing up prices has come under greater scrutiny after the Jeddah conference. While the entire picture on the modus operandi of speculators is still being pieced together, there is sufficient information to conclude that they have played a key role in escalating prices dramatically in just over a year.

Speculators neither own nor use oil. Instead they provide capital which is used for trading in oil futures in the hope of making a profit at a later date. The speculator enters into a contract in the “futures market” for the purchase of oil on a specified future date. The implications of this practice over the last one year have been enormous.

Leading players

Billions of dollars have been pouring into the commodity futures markets lately. Large financial institutions, hedge funds and pension funds have pumped huge volumes of capital in these markets. Goldman Sachs, Citigroup, J.P. Morgan Chase, and Morgan Stanley are some leading firms in the U.S. that have been involved in the oil trade.

Money has also been flowing into what are called commodity index funds. These funds are linked to a basket of several commodity futures. According to Goldman Sachs, nearly $85 billion pension funds and mutual funds have been invested in the commodity index funds. Not surprisingly, the communiqué issued at the end of the Jeddah conference singled out the need for greater transparency in the functioning of index fund activity.

The large inflow of funds into oil futures has coincided with the fall in the value of the dollar. As the dollar tumbled and the housing mortgage crisis in the U.S. began to bite, investment in oil emerged as a favourite avenue for securing speculative gains. With the influx of massive amounts of capital, oil in the futures market rose higher than current prices. This increased the demand for oil in current trading. Oil companies began to purchase extra oil at current prices. The surge in demand, linked to perceived trends in the futures market, generated an upward pressure on current prices.

It is not surprising that despite high oil prices, the demand for oil is continuing to rise. Fearing even higher prices, oil companies have begun to hoard oil. Crude oil inventories in the U.S. are at their highest in eight years.

Despite its obvious impact, the exact measure of escalation in oil prices caused by speculation in the futures market has been hard to gauge. It is estimated that speculation is behind nearly 60 per cent increase in the price of oil. A U.S. Senate subcommittee report of June 2006, “The role of market speculation in rising oil and gas prices,” observed that “there is substantial evidence supporting the conclusion that large amount of speculation in the current market has significantly increased prices.”

In the past, U.S. energy futures were traded exclusively through regulated exchanges such as the New York Mercantile Exchange. The Commodity Futures Trading Commission (CFTC) — a regulatory authority established by Congress on financial futures — monitored the transactions to prevent excessive speculation and other manipulative practices.

However, the Senate report made a significant observation. It noted that, “in recent years, however, there has been a tremendous growth in the trading of contracts that look like futures contracts, but which are traded on unregulated OTC electronic markets.” The removal of the OTC electronic exchanges from monitoring by the CFTC was anchored in the Commodity Futures Modernisation Act of 2000. It is alleged that large energy traders were the driving force behind this legislation. Another provision was added by the Bush administration in January 2006, which further removed oil futures trading from the CFTC’s surveillance ambit. It allowed U.S. crude oil futures to be traded on the Intercontinental Exchange futures. A leading operator of electronic energy exchanges, ICE is based in London.

Consequently, it is not CFTC, but the U.K. Financial Services Authority which, so far, has exercised exclusive authority over the functioning of the ICE Futures exchange. As a result, speculators in the U.S. trading in crude oil, gasoline and heating oil futures can bypass the U.S. regulatory mechanisms, by avoiding trading through NYMEX. Instead, they can route their transactions through the ICE Futures exchange.

It is evident that geopolitical tensions in West Asia have been overplayed as a factor behind the recent surge in prices. The fear of a possible war in the world’s energy heartland has coincided with excessive speculation, causing prices to gallop. The prospects of a war in the region, and the possible disruption it would cause to global oil supplies, have been used for expanding production capacity significantly. It has been said that already the gap between the total current supply potential, including the spare production capacity that countries like Saudi Arabia possess, and the growing energy demand in the world has been narrowing down alarmingly.

However, at the Jeddah conference, Saudi Arabia’s Oil Minister Ali Al Naimi emphasised that the expansion of supplies was not a problem. He pointed out that from July, the Kingdom would produce 9.7 million barrels a day. Production capacity would be raised to 12.5 million barrels by the end of 2009. A further 2.5 million barrels could be added through production in some of the new giant fields, raising capacity to a mammoth 15 million barrels a day.

As the role of unbridled speculation in the surge in oil prices becomes more evident, the international energy community has begun to consider ways to tackle it. At the Jeddah conference, Mr. Chidambaram called upon “producers — especially OPEC — and consumers to wrest control over oil trading from the hands of speculators.” He advocated the adoption of a “price band mechanism” that would work with the direct involvement of producers and consumers. OPEC, however, rejected the call on Monday saying the market is the best judge.

The pernicious impact of speculation on oil has also become part of the U.S. domestic debate. Members of the campaign team of U.S. Presidential hopeful Barack Obama have criticised the law which prevents the CFTC from fully overseeing the oil futures market and investigating cases of excessive speculation.

Despite some glimmer of hope, achieving lasting success will not be easy as powerful vested interests are involved in keeping alive speculative trading in oil.

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DG - FW: Sharekhan Post-Market Report dated July 03, 2008

 

 

From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: 03 July 2008 16:36
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated July 03, 2008

 

 Sharekhan's daily newsletter

Visit us at www.sharekhan.com

 

July 03, 2008

 

Index Performance

Index

Sensex

Nifty

Open

13,530.68

4,094.60

High

13,530.68

4,097.35

Low

12,934.92

3,874.85

Today's Cls

13,094.11

3,925.75

Prev Cls

13,664.62

4,093.35

Change

-570.51

-167.60

% Change

-4.18

-4.09

 

Market Indicators

Top Movers (Group A)

Company

Price 
(Rs)

%
chg

Gainers

Union Bank

112.45

6.19

Indian Oil Corporation

340.70

5.43

Triveni Engineering

78.60

4.59

i-flex

1,418.30

4.21

Indian Hotels

84.05

4.09

Losers

Gujarat NRE Coke

107.95

-13.47

United Breweries

234.80

-12.91

Tata Steel

657.45

-11.30

Kotak Bank

429.20

-11.02

Adlabs Films

355.95

-10.67

Market Statistics

-

BSE

NSE

Advances

750

261

Declines

1,876

938

Unchanged

59

18

Volume(Nos)

35.77cr

63.14cr

 Market Commentary 

Market sinks on bear hammering

The Sensex plummets 571 points on across-the-board selling pressure.

The market went into a complete tailspin, as the  correction shaved nearly 571 points off the Sensex during the intra-day trades.  

 

Negative global cues like weak asian markets and hike in crude oil prices also contributed to the fall. 

After resuming on a weak note at 13,531, the market continued to remain negative and remained under the bear hug for the rest of the session. The Sensex nearly slipped below 13,000 towards the close as a wave of selling in heavyweights, realty, metal, power and banking stocks saw it slump to an intra-day low of 12,935. The Sensex finally ended 4.18% or 571 points lower at 13,094, while Nifty crashed 168 points to close at 3,926. Among the Asian indices, Nikkei tanked 0.16% (down 21 points) at 13,265, Hang Seng dropped 2.13% (down 462 points) at 21,243 and Kospi was down 1.05% (down 17 points) at 1,607.

Movers & Shakers

  • GEI Industrial Systems declined, despite receiving Rs50-crore order from oil & gas sector.
  • Gujarat NRE Coke ended lower, in spite of the announcement that the company will consider Q1 results, bonus issue and rights issue on July 18, 2008.
  • Dolphin Offshore Enterprises ended lower, despite receiving a contract for providing diving services in Malaysia/South East Asia on DI/DSV by M/s Offshore Subsea Works BDN BHD, Malaysia for a period of two months with effect from July 04, 2008.


The market breadth was extremely negative, Of the 2,685 stocks traded on the BSE, 1,876 stocks declined, 750 stocks advanced and 59 stocks ended unchanged. All the sectoral indices took sharp beatings. The BSE Realty index bore the major brunt and crashed 9.21% at 4,295, while the BSE Metal index, the BSE Power index, the BSE Bankex index, the BSE Teck index and the BSE FMCG index dropped over 4-8% each.

Except SBI & ONGC, all the other 28 stocks in the Sensex pack ended in the red. Among the major losers Tata Steel tumbled 11.30% at Rs650.10, DLF slumped 9.93% at Rs375.05, Reliance Infrastructure crumbled 8.72% at Rs695, ICICI Bank plunged 7.89% at Rs555.55, Reliance Communications dropped 6.91% at Rs381.05, ACC declined 5.94% at Rs470 and ITC fell 5.71% at Rs168. Other frontline stocks also dropped over 2-5% each.

Over 3.59 crore Avon Weigh shares changed hands on the BSE followed by Reliance Natural Resources (2.93 crore shares), IFCI (1.36 crore shares), Reliance Petroleum (1.34 crore shares) and Ispat Industries (1.32 crore shares).

Valuewise, Reliance Capital clocked a turnover of Rs432 crore followed by Reliance Industries (Rs354 crore), Reliance Energy (Rs291 crore), Reliance Petroleum (Rs226 crore) and Reliance Natural Resources (Rs181 crore).

European Indices at 16:04 IST on 03-07-2008

Index

Level

Change (pts)

Change (%)

FTSE 100 Index

5397.00

-2930.00

-0.54

CAC 40 Index

4270.04

-26.44

-0.62

DAX Index

6257.63

-47.79

-0.76

Asian Indices at close on 03-07-2008

Index

Level

Change (pts)

Change (%)

Nikkei 225

13265.40

-20.97

-0.16

Hang Seng Index

21242.78

-461.67

-2.13

Kospi Index

1606.54

-17.06

-1.05

Straits Times Index

2880.45

-25.78

-0.89

Jakarta Composite Index

2286.61

-91.86

-3.86

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