NSE HOLIDAYS-2011

1 26-Jan-11    Wednesday        Republic Day

2 02-Mar-11   Wednesday       Mahashivratri

3 12-Apr-11     Tuesday           Ram Navmi

4 14-Apr-11 Thursday              Dr. Ambedkar Jayanti

5 22-Apr-11 Friday                  Good Friday

6 15-Aug-11 Monday               Independence Day

7 31-Aug-11 Wednesday         Ramzan ID

8 01-Sep-11 Thursday             Ganesh Chaturthi 

9 06-Oct-11 Thursday             Dasara

10 26-Oct-11 Wednesday       Laxmi Puja*

11 27-Oct-11 Thursday           Diwali - Balipratipada

12 07-Nov-11 Monday           Bakri Id

13 10-Nov-11 Thursday          Gurunanak Jayanti

14 06-Dec-11 Tuesday            Moharum

The holidays falling on Saturday / Sunday are as follows: 

S No Date Day Description

1 01-Jan-11 Saturday New Year

2 20-Mar-11 Sunday Holi

3 16-Apr-11 Saturday Mahavir Jayanti

4 01-May-11 Sunday May Day

5 02-Oct-11 Sunday Gandhi Jayanti

6 25-Dec-11 Sunday Christmas

*Muhurat Trading will be conducted. 

CASH available...????

Govt makes 2010 record year for public floats BS Reporter / Mumbai December 25, 2010, 0:40 IST 59 firms launch IPOs in 2010 to raise a total of Rs 36,017 crore. With the government tapping the capital market at regular intervals, 2010 proved to be a record year in terms of money mobilised through initial public offers (IPOs) and follow-on offers (FPOs).The year saw Rs 67,595 crore being raised from the primary market, the highest ever in a calendar year. According to PRIME Database, 59 companies launched IPOs in 2010 to raise a total of Rs 36,017.4 crore, more than the earlier record of Rs 34,179.1 crore in 2007. The year saw 100 unlisted companies entering the capital market. Investment bankers said the mood was buoyant as a number of fundamentally good companies entered the market and there was enough demand from investors. “Investors are always ready to back good quality companies that are appropriately priced,” says A Murugappan, executive director, ICICI Securities. “If an issue is fundamentally driven and backed by a good story, there are enough takers. One needs to remember that investors are sensitive to valuations. I also expect India allocations (of foreign institutional investors) to go up in the coming year.” The year also saw India’s largest-ever IPO hit the market. Public sector heavyweight Coal India raised Rs 15,199.44 crore through a primary offering in October. In all, there were 14 issues (IPOs and FPOs) with a size of more than Rs 1,000 crore each. The year was also witness to the country’s first issue of Indian Depository Receipts, when Standard Chartered Plc entered the market with an issue of nearly Rs 2,500 crore. Between all the mega issues, there were 19 offerings with an issue size of less than Rs 100 crore. Gravita India, Sea TV Networks, Talwalkar Fitness, Technofab Engineering, Bedmutha Industries and Thangamayil Jewellery were among the smaller companies that listed on the bourses. FPO high While IPOs touched a new high, FPOs created a record too. The year saw eight FPOs collectively mopping up a record Rs 31,577.25 crore, nearly twice the earlier record. It is also more than the cumulative amount raised through FPOs in the previous five years. The earlier record was Rs 17,389.4 crore raised in 2004. Six government-owned companies and a couple of private entities launched their FPOs this year. The two largest FPOs during the year, of NTPC and REC, were also those that experimented with the auction mechanism approved by the market regulator early this year. In this system, an issuer has to announce only a floor price (instead of a price band) and institutional investors can bid at any price above this. Retail investors can bid at the floor price. THANKS TO BUSINESS-STANDARD ------------------------------------------------------------------------------------------ So long as the Govt. makes the IPO or FPO on regular basis, the markets likely to float above 5800 level.The major follow-up action at the high value profit generating stocks on block, the FII and the investors maintains the premium in the market. The only concern of the market players and the possible threat to the Govt is the SURVIVAL. The scams and rising of bare minimum food prices like Aloo and Onions and unveiling sugar price rise. The essential commodity price rise in BJP regime gave power to Congress and now it is likely that the developments are favouring the opposition.

THE POSITIVE SIGNS....

 THE POSITIVE NEWS IS THE HOPE TO THE BULLS AS THE ECONOMY IS DOING GOOD AND THE GOING ALSO GOOD........THE NIFTY 20% RISE FROM THESE LEVELS IS 7200+...EVERY THING NOW LOOKS ROSY AS WE ARE LOOKING THE POSITIVE SIDE.......????????

BSE Sensex seen rising 20 percent by end-2011 - poll

On Friday 24 December 2010, 11:44 PM

By Sumeet Chatterjee and Devidutta Tripathy

MUMBAI (Reuters) - The BSE Sensex is likely to rise nearly 20 percent by the end of next year, as a fast-growing economy and strong corporate earnings boost overseas portfolio inflows, a Reuters poll found.

The main 30-share Bombay Stock Exchange index will rise to 23,350 by end-2011 from close of 19,696.48 on December 8, according to the median response from 18 market participants, which include investment banks and brokerage firms.

The index in Asia's third-largest economy should rise 12 percent by mid-2011 to 22,000, the poll taken over the past week showed, higher than the 21,500 level seen in a September poll.

"The optimism on economic growth forecast, hopes of good earnings would continue to attract investors to India," said Neeraj Dewan, a director at brokerage Quantum Securities in New Delhi.

India, a member of the BRIC group of rapidly developing countries, is forecast to see economic growth of almost 9 percent in this fiscal year to March, with it accelerating further in following years, levels rivalled only by China.

Hopes of strong economic growth in India have led foreign funds to pump more than $29 billion into Indian equities so far in 2010, the highest ever, on top of the $17.5 billion purchased last year.

The overseas inflows have driven the main index almost 13 percent higher this year. Russia 's benchmark RTS index is up 11 percent this year, while Brazil is up about 1 percent and China is down 13 percent.

"They have poured in huge money this year. They might not match the same inflow next year, but a pullout is not likely," Quantum Securities Dewan said, referring to foreign institutional investors.

Analysts said that foreign investments in Indian shares were unlikely to be severely impacted by a string of corruption scandals that the government is currently mired in, though it could impact sentiment in the near term.

"The scandals will have a short-term sentiment impact and there will be greater scrutiny of corporate governance issues, but in the long run investors will focus on economy and company earnings," R.K. Gupta, fund manager at Taurus Mutual Fund, said.

Seven out of eight respondents in the poll said they did not think the current scandals would tarnish India's image as an investment destination.

PREMIUM VALUATION

Surging interest rates and global economic uncertainties as Europe struggles to contain its debt crisis are likely to be the main concerns for the Indian markets in the year ahead, analysts said.

The Mumbai stock index rose 81 percent in 2009 after the economy was spared the worst of the global economic downturn. It had posted its worst yearly loss in 2008, when it slumped by more than half.

The forecast for the BSE's Sensex index at the end of 2011 ranged from 17,500 to 26,600.

The index trades at 18.9 times forward earnings, higher than China's Shanghai Composite Index that trades at 15.4 times and Japan 's 16.9 percent.

(Additional reporting by Ami Shah; Polling by Bangalore Polling Unit; Editing by Jon Loades-Carter)

THANKS TO THE TEAM ......

Nifty Future Northwards...

Now the index trades at 18.9 times forward earnings, higher than China's Shanghai Composite Index that trades at 15.4 times and Japan 's 16.9 percent........If we considered the same logic Nifty at 5850, with 20% rise from this level make sense to see a high 7000-7100. But I have given a 5% down grade factor due to some or other unforeseen negative reasons. This view is supporting to my earlier prediction/projection of Nifty to 6780 level as an achievable target. The earning likely to rise more than 30% for big companies like automobiles, bank, FMCG, Pharma and metals may catch up.

The market for now in severe bear grip. The Nifty has to cross 5935 for sure as first step and stay above it. But the real strength will be achieved only when the Nifty crosses 5781 level in the next 3 trading sessions. The next level of fall likely to lead the Nifty to touch 5550 in case the Nifty fails to cross 6017-20 level.

The scam intensity is very serious as of now and the Govt is facing a serious challenge on corruption allegation and the markets are nervous on the out come. As of now there is a serious selling happened on Thursday but the recovery on Friday covered a bit by the positive IIP numbers. The sentiment is now favouring the bears and China supported them by tightening the liquidity. The Govt is also considering a tight monetary policy to curb inflation. The taming of inflation can offer relief to Bulls to build their portfolios for future rally.

=============================================

BSE Sensex seen rising 20 percent by end-2011 - POLL

 On Sunday 12 December 2010, 10:42 AM, By Sumeet Chatterjee and Devidutta Tripathy

MUMBAI (Reuters) - The BSE Sensex is likely to rise nearly 20 percent by the end of next year, as a fast-growing economy and strong corporate earnings boost overseas portfolio inflows, a Reuters poll found.

The main 30-share Bombay Stock Exchange index will rise to 23,350 by end-2011 from Wednesday's close of 19,696.48, according to the median response from 18 market participants, which include investment banks and brokerage firms.

The index in Asia's third-largest economy should rise 12 percent by mid-2011 to 22,000, the poll taken over the past week showed, higher than the 21,500 level seen in a September poll.

"The optimism on economic growth forecast, hopes of good earnings would continue to attract investors to India," said Neeraj Dewan, a director at brokerage Quantum Securities in New Delhi.

India, a member of the BRIC group of rapidly developing countries, is forecast to see economic growth of almost 9 percent in this fiscal year to March, with it accelerating further in following years, levels rivalled only by China.

Hopes of strong economic growth in India have led foreign funds to pump more than $29 billion into Indian equities so far in 2010, the highest ever, on top of the $17.5 billion purchased last year.

The overseas inflows have driven the main index almost 13 percent higher this year. Russia 's benchmark RTS index is up 11 percent this year, while Brazil is up about 1 percent and China is down 13 percent.

"They have poured in huge money this year. They might not match the same inflow next year, but a pullout is not likely," Quantum Securities Dewan said, referring to foreign institutional investors.

Analysts said that foreign investments in Indian shares were unlikely to be severely impacted by a string of corruption scandals that the government is currently mired in, though it could impact sentiment in the near term.

"The scandals will have a short-term sentiment impact and there will be greater scrutiny of corporate governance issues, but in the long run investors will focus on economy and company earnings," R.K. Gupta, fund manager at Taurus Mutual Fund, said.

Seven out of eight respondents in the poll said they did not think the current scandals would tarnish India's image as an investment destination.

PREMIUM VALUATION

Surging interest rates and global economic uncertainties as Europe struggles to contain its debt crisis are likely to be the main concerns for the Indian markets in the year ahead, analysts said.

The Mumbai stock index rose 81 percent in 2009 after the economy was spared the worst of the global economic downturn. It had posted its worst yearly loss in 2008, when it slumped by more than half.

The forecast for the BSE's Sensex index at the end of 2011 ranged from 17,500 to 26,600.

The index trades at 18.9 times forward earnings, higher than China's Shanghai Composite Index that trades at 15.4 times and Japan 's 16.9 percent.

(Additional reporting by Ami Shah; Polling by Bangalore Polling Unit; Editing by Jon Loades-Carter)....------Thanks to Reuters team and to to Yahoo finance for providing such a positive hope to Bulls.

The FIRST-TIME…

The story of First time goes like this…

My M.Sc. Psychology is the first exam I wrote with out preparing well, with a give up reason. It is the first exam I came out in the first half an hour. It is the first exam I am happy of not writing my exam well. For all this the answer is simple, I want FIRST class to get eligibility to my next level of Phd persuasion.

It takes little time, looks simple to dream but practically many hurdles and determinants to progress. Here on wards I am left with one option- have to focus, rededicate myself to my goals and plans of achievement. I have to first apply my study into practice – “Theory to Application” be it in the Psychology or in my hand on experience in Stock Market. I worked hard to know, I continued to study despite of repeated mistakes driven failures but accumulated and acquired lots of principles. The skill sets are worth to reap the benefits but the implicational use has become limited due to various reasons.

I can elicit different reasons why I didn’t write my Psychology exams but the examiner asked exactly what I should not to write the exam. The same rule is applicable to my Stock Market theory and my expertises are questioned by my position. I can debate and explain how it goes, workout and happen but the rewards are limited.

So the rule is simple- I have to integrate my various skills for a dedicated time bound application. I publicly announced that I will write some 3 to 5 books and my books should carry a name of Dr. NageswaraRao Bammidi having wide spread of multidimensional knowledge and experience….and so on. 

I developed a ROPE-Theory for Success - Result Oriented Planning and Execution. Nothing less than that is not acceptable. The practice shall start from today. 

Personality test….

I literally failed to pass the personality test….an exam I wrote for my MSc-Psychology.

The story goes like this….My life time dream and a long drawn waiting to get a Psychology degree provided me an opportunity to understand the personality..especially mine first. Today be it a genuine reason on not but studied till the last minute. I planned to start by 1pm to reach hall and exam starts at 2pm.I was on duty for some reason continued my study up to 1.30 then upto 1.50.I was under the impression that I can make my journey in 10min.

The influence of External environment.-I forgot my keys to my Suzuki bike and the engine is on …result...the battery got discharged. When I was in hurry, it gave an empty support by not starting despite of several attempts. So my whole plan went drain.

I ran like a student to reach my exam hall. I went to my same hall where I wrote my earlier paper. The same examiner, both exchanged greets, took my paper, registered my self on the answer sheet, then the examiner noticed that my seat number was not in that hall but on the other side of the next building.

He was nervous because I attempted, wrote the answer sheet and cannot let me carry the question paper& answer sheet to reach my new hall. When I suggested, he agreed to send those with the watchman, requested my support to get him available.Now it is my turn to request that guy, expressed his dislike and furious on the incident. He not willing to play a responsible role but yielded to my request. The time is running, and then I got internal tension when he went into the principals’ room. I waited impatiently and nervous.

I read the question paper, my last minute study didn’t help me anyway, mind is working on the challenges, followed the attendant reached the hall in the next building at 3^rd floor. I lost the rhythm of my heart beat, got sweating and could not manage felt guilty of the situation.

Now coming back to the “Personality” exam: though planned but the external environment can spoke the calmness.

I have decided to prepare well for the exams because I need to get first-class not the pass marks. I have second year to go and in between, can avail a supplementary. 

There is a lot more I need to do and I will.

I regularly dedicate my time to work on the book about        

“The Psychology & Price movements in Stock Market".

========================The markets are devoid of positive news, bundled with the scams and involvements. The opposition is lobbying the industrialists, so is the ruling party. The party is spoiled for now until….the last published levels are honored.

.............The markets favourite scrips now are Bharti, Coal India, Rpower, Tata power, Pharma and FMCG. At this juncture Nifty is at cross roads despite a 700 points dive from a peak of 6340 level. The bears may exert press if Nifty fails to bounce now to and stay above 5980 level.

The banks will get a breather in beating when SBI stays above 2846 level and the Reality get relief when DLF stay above 306-08 level.

Rallies and Manipulations

As a matter of fact we have to co-relate the Political rallies and the STOCK-MARKET  Rallies both are SPONSORED.We normally accept the first one which we see and was so indulged in our life that they are there and they have to be.
The second one we consider as sacrosanct and may people believe that the economy is driving the markets up or down ignoring or giving less importance to sponsorship.I too accept that the good economy drives the market but it won't derive RALLIES IN DUDS.
The facet of the market is always hidden and specially decorated to attract.......

All Rallies demand "MONEY" to make it happen and Manipulations manifest when money is "PLACED".

--------------------------------------------------------------------

IB report spooks markets; small, midcaps take a hit

BS Reporter / Mumbai December 9, 2010, 0:05 IST

BSE smallcap index has lost 7.5% in one week

The share prices of many small and mid-cap companies are sliding in anticipation of a crackdown by regulators on stock market operators named in an alleged Intelligence Bureau (IB) report.

The report has been in circulation in the markets for nearly a week. Stocks in the Bombay Stock Exchange (BSE) small-cap index that have fallen a little over 45 per cent over this period include Parekh Aluminex, Midfield Industries and Comfort Intech. In the BSE mid-cap index, Ruchi Soya, K S Oil and Shree Ashtavinayak have fallen around 26 per cent.

During the period, the BSE smallcap index has fallen 7.5 per cent while the BSE midcap index has lost 4.8 per cent.

The report, dated September 20, and said to be prepared by outgoing IB chief Rajiv Mathur, apparently named stock market operators like Ketan Parekh, Vimal Rathod, Sanjay Dangi, Raju Barter, Ashok Poddar, Manish Marwah, Dinesh Singhania, Raj Agarwal and C Sivasankaran, the last a non-resident Indian.


As usual Thanks to BS.

MULTI BAGGER RETURNS

The multi bagger returns 

Jhunjhunwala may make 30-fold profit from A2Z IPO

Bloomberg / Mumbai December 7, 2010, 0:38 IST

The price band for the issue has been fixed at Rs 400-410.

Billionaire investor Rakesh Jhunjhunwala may make a 30-fold profit from his investment in A2Z Maintenance & Engineering Services Ltd should the company sell shares at the top-end of the range during its initial public offer (IPO).

The public offer of A2Z Maintenance & Engineering, in which Jhunjhunwala has 21.03 per cent stake, will remain open for subscription between December 8 and December 10. The price band for the issue is fixed at Rs 400-410.

Jhunjhunwala, named India’s Warren Buffett by Forbes magazine, paid about Rs 23 crore to purchase a 30 per cent stake in the company in 2006. A2Z, which provides services to power generation and transmission companies, and existing investors plan to sell as much as Rs 862 crore of stock in public offer, with Jhunjhunwala selling 500,000 shares.

A2Z is raising money to tap increasing demand for electricity transmission lines and renewable energy projects to feed companies in Asia’s second-fastest growing major economy. Prime Minister Manmohan Singh’s government plans to invest about $1.5 trillion in the 10 years to 2017 to improve transport and power networks, which are ranked below those of Sri Lanka and war-ravaged Ivory Coast.

“India needs infrastructure” as economic growth accelerates, Jhunjhunwala said at a briefing today. The country’s gross domestic product climbed 8.9 per cent for a second straight quarter in July to September.

Jhujhunwala said he paid “below” Rs 14 apiece to buy stake in the company in 2006. He sold a nine per cent stake to a private equity firm before the IPO. A2Z and its investors plan to sell shares for Rs 400-410 each, according to a statement from the company today.

 Thanks to BusinessStandard for the article today.

====================================================================

I am also amazed to see that the DCM and SuryaLakshmi cotton when I recommended to my friend in Visakhapatnam on railway platform while seeing off. I asked to buy at around Rs 30 now touched at Rs168 and Rs146 respectively. A pity-I have no position.

He was also very eager to buy Venkeys at 125 range now above 850+.

Just nostalgic left over dreams recollection.................................... 

===================================================================

Scams at top….

The regular readers might have noticed the levels suggested and people close to me understood that the Nifty touched 5780 the number suggested earlier when the Nifty was at 6300 level. As a matter of fact this support came with lots of riders attached to it like the Banking scam and the reality malpractices with thousands of crores involved in the process.

 The Nifty is taken a sharp cut with bad news but the consoling point is that the volumes during fall are not high. This could be good news to Bulls. The Nifty is has maintained a good support at the current levels may offer a bounce to 6070 or even upto 6130-40 level.

The markets may see a long time before it forgets the taste of bad news and the sleepless nights to bulls. It is surprising that might have again recognized that the tops carry scams. So many analysts said that the markets are going to top and likely to go even higher as there is no malpractice involved in the system but shear FII money is driving the markets up. This is some extent true that the liquidity pour in emerging markets especially countries like India are attracting large chunk of share.

The readers might have noticed the choppy days in these days coupled with the scam news are the symbols of market sentiment the behavior at the top and the bottom which may offer a chance to bargain hunters.

The quality stocks are maintaining their values despite the erosion in the Nifty levels, the classic example of HDFC and the HDFC bank. Now the ICICI is making its entry. 

Now the challenge left to bears to see these get tainted by fall or the Bulls shall paint a rosy picture by taking the HDFC above 728 level and HDFCBank above 2440 level. The bad news may get diluted and Nifty gain strength once ITC trades above 183 level. The Infy has given a classic u shape formation in IT space, Wipro is in reverse to Infy. The TCS has to trade above 1079 level to see the positive news for Bulls. The Nifty is having good support at the bottom level below 100 points to 5800 level.

The markets favourite scrips now are Bharti, Coal India, Rpower, Tata power, Pharma and FMCG. At this juncture Nifty is at cross roads despite a 700 points dive from a peak of 6340 level. The bears may exert press if Nifty fails to bounce now to and stay above 5980 level. 

Few scrips building....

The one time leader now by sales Arvind seems to be coming out of woods. The 3 long years of consolidation is making some snese to investors and has a potential to cross 90 odd level. The Nagrjuna is also doing well for some time but the Govt. support and good rails can increase the agricultural acreage, create demand for fertilisers. The scrip has good potential to cross 60 odd levels. The new power play and power drive "Go Green" can auger well to MoserBaer once it stabilises over 73-75 level and the current results are disappointing. The new solar power projects planed by Areva can make it more profitable and sustained income flow.But technicall the stock is limited potential to go up. The GVKPIL is in long consolidating mode and huge investments are coming into the company but the stock is hovering arround 41-44 level may wait for a longer period to cross the barriers. The markets as a whole are in Bull grip and likely to touch 6540-75 range but need some triggers.The Bulls tired for now as SBI dented the hopes and so is Bharati and DLF.But the economy is doing well can sell the story for some time. =================================================================== ------Investors caught in currency war crossfire

Reuters / New York October 8, 2010, 18:10 IST

Investors looking to defend their portfolios while a global currency war brews are bringing the equivalent of a knife to a bazooka battle, and the best hope for survival is to duck and cover.

A sampling of top performing US fund managers shows a penchant for holding euros over the US dollar, for lack of a better alternative, with managers admitting there are few foxholes to find refuge from idiosyncratic government action. Government efforts to weaken their currencies in a "beggar-thy-neighbor" fashion in order to protect local industries are not a long-term solution to weak global economic conditions, World Bank President Robert Zoellick said on Thursday.

James Melcher, founder and president of macro-global hedge fund Balestra Capital Ltd in New York, said a currency war is already underway, but so far it is being conducted in a "gentlemanly" manner.

"I think the gloves may come off. As long as it is central bankers talking, they go back and forth and can usually work things out... Except you get the voters or the guys running the manufacturing plants or the workers and unions and they start screaming, and the politicians cave in," he said.

"That's why I am worried about trade wars. I think there is a very good chance that you'll find, in effect, trade wars, competitive devaluations, tariff barriers and other restraints of trade," said Melcher, one of the few investors who correctly forecast the housing and sovereign debt crises.

CEASE-FIRE

There is an unspoken cease-fire underway while the world's finance ministers and central bankers meet in Washington Oct 8-10 for the meetings of the International Monetary Fund and World Bank, as they hash out possible solutions.

In the developed markets, the accepted wisdom on Wall Street is the U.S. Federal Reserve will soon unveil new quantitative easing measures because interest rates are already at zero. Japan intervened last month for the first time in six years to weaken the export-crimping strength of the yen.

In the emerging markets, China is perpetually accused of keeping its currency artificially weak, and Brazil doubled the tax foreign investors pay to buy local fixed income assets to slow the real's appreciation. Vietnam has devalued its currency several times in the past year.

Melcher, long a fan of gold, says holding it may be an effective way to protect "against some of the coming global turmoil, although it may be technically overbought right now."

Spot gold is off a record high $1,364.60 set on Thursday, but up 15.5 percent since late August.

"In the past, when we enter periods where there do seem to be unusual events like competitive devaluations or quantitative easing, we tend to put less emphasis or reliance on our models and just take some risk off the table," said Bill Nemerever, co-manager of the GMO global fixed income group.

Nemerever, who eschews gold, said the model-driven investment style changes daily but points to "a bit" of an underweight in the U.S. dollar and an overweight of the euro.

"Things have gotten a little more difficult and in a sense more political than financial." he said, adding that what keeps him up at night is the political risk of countries doing "something dramatic and sudden," which cannot be modeled.

Investors had as of Sept 28 made a massive move against the U.S. dollar, lifting the net short position, which bets on further greenback weakness, to $22 billion, the biggest since at least mid-2008, according to Thomson Reuters data.

Daily foreign exchange trading volumes are close to $4 trillion, according to the Bank of International Settlements.

GMO's international bond fund rose 11.99 percent last quarter, among the top five in the category, according to Lipper, a Thomson Reuters company.

EURO POLICY

The Fed is prepared to put money into the U.S. economy by buying up bonds and other assets. That has depressed the U.S. dollar to 15-year lows versus the yen and an all-time low against the Swiss franc.

In contrast, the European Central Bank is removing economic stimulus while leaving interest rates steady at 1 percent.

ECB President Jean-Claude Trichet on Thursday said exchange rates should reflect economic fundamentals and that sudden swings were harmful to growth, in a pointed reference to countries intervening to keep their currencies low.

"I think there is a lot of value in currencies like the euro, which is unlikely to devalue... Trichet has been very vocal in saying one of the risks is the taking of protectionist measures," said Kieran Osborne, co-portfolio manager of the Merk Absolute Return Currency fund, based in Mountain View, California.

Merk's fund rose 9.05 percent last quarter.

"From an investor standpoint it is harder and harder to find an asset that holds intrinsic value," Osborne said, highlighting why gold continues to rise.

Some fund managers don't bother to place currency hedges.

"It is accepted industry practice that nobody hedges," said Ralf Scherschmidt, international equity portfolio manager at Oberweis Asset Management in Chicago.

Scherschmidt, whose fund was a top performer last quarter in the international small-cap and mid-cap growth category with a 25 percent return, said hedging a portfolio with tens, if not hundreds, of stocks is not cost-effective.

"I'm guessing here it would reduce portfolio returns three to four percent a year just through the cost of constantly hedging," he said, adding the hedging takes away from stock selection.

But if there was a full-blown war, he said, "you would probably have to ride it out in the long run because it is nearly impossible to predict which country would do it and by how much."

Covered in BS, Thanks to contribution of enrichment of knowledge

Common but new story.

Now India is inviting new investors with natural resource rich country and ..............is...........


11 NOV, 2010, 08.42AM IST,PTI 

India has above ground gold stocks worth $800 billion: WGC

BANGALORE: India owns over 18,000 tonnes of above ground gold stocks worth approximately $ 800 billion and representing at least 11 per cent of global stock, according to estimates of World Gold Council. 

"This is equivalent to nearly half an ounce of gold ownership per capita, a figure which is significantly below consumption in Western markets, representing scope for additional future growth", says a WGC research paper entitled 'India: Heart of Gold'. 

In 2009, total Indian gold demand reached $ 19 billion, or Rs 974 billion, which accounts for 15 per cent of the global gold market, according to WGC. 

Over the past ten years, the value of gold demand in India has increased at an average rate of 13 per cent per year, outpacing the country's real GDP , inflation and population growth by six per cent, eight per cent and 12 per cent respectively. 

The country currently has one of the highest saving rates in the world, estimated at around 30 per cent of total income, of which 10 per cent is already invested in gold. 

Eily Ong, Investment Research Manager at the WGC, said: "India is the largest gold market in the world and, as such, the likely recovery of local gold demand to pre-crisis levels is of considerable strategic importance to the wider gold market. 

"Gold is an integral part of Indian society and a foundation of wealth and savings in India. As consumers have adjusted their price expectations upwards, a further rise in gold jewellery and investment demand is anticipated and this trend is projected to continue over the long-run as local investors are buying gold driven by wealth accumulation motives," Ong said.

Thanks to EconomicTimes

INTERESTING ......

Wednesday November 10, 08:30 AM

Goldman lost money on two trading days -- filing

Click to enlarge photo

By Maria Aspan

NEW YORK (Reuters) - Goldman Sachs Group Inc lost money on only two trading days during the third quarter, despite an industry-wide slump in trading volumes, according to a regulatory filing published on Tuesday.

The Wall Street firm lost no more than $25 million on two separate days, it said in a filing with the U.S. Securities and Exchange Commission. It made between $75 million and $100 million in net trading revenue on 24 different days and made over $100 million on seven days.

Rival Bank of America Corp said in a filing last week it turned a profit during every trading day during the third quarter -- but on more than 25 of those days, it was making between $25 million and $50 million. It recorded more than $100 million in net trading revenue on less than five days in the quarter.

JPMorgan Chase & Co also reported a quarter without trading losses. The bank said it had only eight days of trading losses in the first nine months of the year, according to a filing on Tuesday, and earlier filings show those eight days of losses were all in the second quarter.

Over the first nine months of the year, the second-largest U.S. bank said it had trading profits of more than $200 million on 12 days.

Goldman's daily results were another sign of the firm's ability to weather severe business conditions, including weak trading conditions and increasing regulation.

The "Volcker rule" provision of the U.S. Dodd-Frank financial reform law, which limits the extent to which banks can bet with their own capital, prompted Goldman to start closing its proprietary trading business.

It said in the filing it has "liquidated substantially all of the positions that had been held within Principal Strategies" as of Tuesday.

Goldman also has been reviewing the practices of its Litton Loan Servicing unit after regulators and state attorneys general asked for information about its practices as part of an industry-wide probe into the foreclosure practices of banks, the firm said.

Its mortgage servicing unit has "temporarily suspended evictions and foreclosure and real estate owned sales in a number of states, including those with judicial foreclosure procedures," Goldman said in the filing.

The firm said it has not found evidence of any foreclosures that were unwarranted and that it does not expect its foreclosure suspension "to lead to a material increase in its mortgage servicing-related advances."

Goldman's shares closed down 1.6 percent at $166.55 in trading on the New York Stock Exchange. Bank of America shares were down 2.6 percent at $12.27 and JPMorgan shares were down 1.5 percent at $39.90.

(Reporting by Maria Aspan; additional reporting by Elinor Comlay; editing by Maureen Bavdek and Robert MacMillan)

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