The serious knock was a surprise to many who are bullish above 3080 level, every reason to be so except the fear of “dark devil FII selling may occur, so let’s get the early bird opportunity to withdraw the money” is the kind of selling happened when the Asian counterparts start melting. The Nikki was down by 280 odd points when opened in the morning and the Hang Seng held no faith to hold the stocks put pressure on our markets.
The support technicals though lost some ground at the bottom but still a reason to smile for those who can average at the lower levels at 2630-21 level. The markets are under selling pressure for this day but the wipe out today posed a serious question to Bulls.
The developments across the globe are forcing the financial markets to look for bail out packages, now the auto-mobile sector is in the queue back at home the MF are looking for FMPs trouble and the growth slow down may demand a lower Nifty level. The correction is an adjustment as an answer to the demands.
The ONGC and RIL are still in good shape as they can rebound as ONGC is still above 711-20 level and the RIL is above 1115-20 level, until these levels taken out with vengeance, bull have every reason to smile to average the purchases. The real challenge for Nifty, has to cross the 3040 level tomorrow and shall try to close above 2860 even it is a negative close.
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Bank trader charged over $750m loss
The bank now says that the losses may be larger than the €600m it initially announced [EPA]
A French judge has filed preliminary charges against a trader suspected of losing more than €600m ($751.5m) in complex derivative trades at French mutual bank Caisse d'Epargne.
The trader, Boris Picano-Nacci, was placed under judicial supervision by investigating magistrate Xaviere Simeoni after spending 36 hours being questioned by financial police, the judicial official said on Thursday.
The move bans Picano-Nacci from leaving the country or having any contact with employees of the bank and gives the judge time to investigate before ordering a trial or dropping "breach of trust" charges.
The bank's top three executives quit after the losses became known on October 17.
A Caisse d'Epargne spokesman said the bank now calculates the loss was larger than the €600m it initially announced, and although he declined to provide a new estimate, the prosecutor's office said the loss would amount to €751m.
Christine Lagarde, the French finance minister, said last week that an initial investigation discovered "serious holes" in the bank's system of controls.
The bank's own internal investigation found a large number of breakdowns in internal controls and said alerts had been disregarded, French news magazine Nouvel Observateur reported on its website on Wednesday, citing a copy of the investigator's report.
The losses drew comparisons with the much larger trading scandal suffered by another French bank, Societe Generale, earlier this year.
Societe Generale took a €4.9bn hit closing what it says were unauthorised positions by former trader Jerome Kerviel.
Insiders’ take advantage of low stock prices
Management, promoter groups step in to buy in select companies.
Srividhya Sivakumar
BL Research Bureau If the frantic selling by foreign institutional investors in October has left you worried about how much lower valuations will go, here is a quantum of solace, for the month also saw many ‘insiders’ step in to buy stocks in their companies.
Enticed by the ‘attractive’ valuations after the market meltdown, insiders appear to have indulged in buying in select companies even as the markets hit successive new lows throughout last month. Be it large companies such as L&T, Suzlon Energy and Hindalco, or the mid and small-cap ones such as Edelweiss, Gitanjali Gems and IVRCL Infrastructure, buying by insiders has been quite significant.
Insiders, according to SEBI’s Regulations (Prohibition of Insider Trading), are those investors who are in the know of that company’s unpublished price-sensitive information.
While in the case of L&T, it was the company’s Chairman and Managing Director, Mr A.M Naik, who bought a substantial number of shares in end-October, it was the promoter group IGH Holdings that bought into Hindalco. Among other companies that saw a considerable buying interest by either the management or the promoter were CCL Products, Blue Bird, Gati, IPCA Labs and Patel Engineering.
In the case of Reliance Power, the insider buying of 6.15 crore shares by Reliance Infrastructure was matched by selling by another insider – AAA Project Ventures – an entity fully owned and controlled by Mr Anil Ambani.
That said, not all insiders have been on a buying spree. Companies such as ITC and Dabur India registered sale transactions by their respective CEOs, of a small portion of their holdings.
Insider transactions, which are required to be disclosed to the stock exchanges, assume significance in these markets, as stock prices have fallen to new lows.
The fact that company insiders see value in their shares despite all the talk of an economic slowdown underpins their optimistic view that prices may have bottomed out.
How it works: possible mechanisms underlying the beneficial effects of alcohol
In the other articles here, we’ve seen that alcohol has a number of beneficial effects on health. Most importantly, drinking decreases the risk of cardiovascular disease (in particular coronary heart disease). How does it have this effect? This is one of the key unanswered questions in research on the health effects of alcohol, and is currently a key area of research. There are no clear-cut answers yet, but there are three potential mechanisms that have been identified.
Antioxidants
Time for some biochemistry. There are some bad molecules circulating in the body called free radicals. These cause oxidative damage to the sort of cholesterol known as low density lipoproteins (LDLs), making them more likely to damage the walls of arteries -- and it is this atherosclerotic damage that increases the probability of heart attacks. Red wine contains compounds called polyphenols, which have antioxidant activity. That is, when you put them in a test-tube (in vitro), they have antioxidant activity: as yet, no one has been able to show that the antioxidants in red wines work in the body (in vivo), despite many attempts. But the antioxidant hypothesis is immensely attractive and intuitive, and has received a lot of publicity because of this. It is quite possible that the dominant pro-oxidant effect of alcohol itself may outweigh the potential benefits of any antioxidants that wine contains. In addition, several studies comparing the health effects of different alcoholic drinks have shown that beer and white wine, which lack the antioxidants that red wines possess, have the same beneficial effects.
Blood lipid fractions
This is currently the most likely looking mechanism for the alcohol's positive effect on cardiovascular disease. It's a story of two different sorts of cholesterol, low density lipoprotein (LDL) and high density lipoprotein (LDL). LDL is the bad guy: it's the lipid that, when oxidised, plays a potent role in atherosclerosis, which leads to heart disease. Alcohol itself, rather than any particular component of it has been shown to cause elevated levels of the good cholesterol, HDL, compared with LDL. Exactly how alcohol has this effect is not known, but it seems to be quite a robust finding.
Platelets
Platelets are small cells that circulate in the bloodstream that play a vital role in initiating the process of blood clotting. The control of blood clotting is crucial, and our bodies have to maintain a delicate balance. If you cut yourself, clotting must take place rapidly, or you will lose a lot of blood from the damaged vessels. However, if the clotting process is initiated inappropriately, the consequences can be equally disastrous. Some studies have suggested that alcohol has the effect of increasing bleeding time and reducing clotting, possibly by reducing the stickiness of platelets. The jury is still out on this one
good to know about the trading losses of a bank, the insider/close to promotors are buying to increase their holding capacity.Above all the bad effects of alcohol far less when we take it as a medical need than than a drunked monkey. It is good to read other than the regular stuff.
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