The Indian Warren Buffet!

Not Every Indian knows about him, India too has its own Warren Buffet - Rakesh Jhunjhunwala - Who started of as a retail investor, now owns an investment company named RARE Enterprise. First two letters of his name and the first two letters of his wife's name - Rekha have been coined together to name it as RARE Enterprises. He made it big during all the rallies, However he too witnessed the various downturns of the Indian stock Markets, The year 2006 which saw the Sensex zooming from 6000 levels to 12600 levels in a year witnessed a downturn where his portfolio became poorer by around 700 crores. There is not much news about his current portfolio especially after the deathblow of sensex post january 2008.
He is the poster boy of the Indian Stock market who successfully survived the Harshad Mehta scam and the Ketan parekh Scam which hit the stock markets on the early nineties and in the early twentieth century respectively. Like Warren Buffet he too believes in Value Investing and very long term investing. Lets wait and watch as to what's in store for him in the future.

Balanced US Dollar favoured!

A WEAK dollar policy won't help revive the US economy, and currency fluctuations are best left up to the marketplace, the head of a top American business lobby said on Friday.

The dollar has sunk to a 13-year low recently against the Japanese yen, trading at below 90 yen, a decline that could help US exporters by boosting their competitiveness in world markets. A weak dollar makes American products cheaper overseas.

Mr Thomas Donohue, president and chief executive of the US Chamber of Commerce, said that view was one-sided.

A weak dollar can hurt other parts of the economy in discouraging capital inflows and eroding the purchasing power of American businesses.

'If you leave it to the market, it goes up and down,' he told reporters, adding that governments and central banks don't need to intervene. 'If you start to manage currencies, it creates more difficulties than it creates benefits.'

Mr Donohue's visit to Japan is part of a trip to Asia, including China and South Korea, to exchange views with political and business leaders on the global recession, the fight against protectionism and efforts to boost world trade.

He said he will urge Japanese Prime Minister Taro Aso to make sure Japan, along with alliance partner the US, does its part with stimulus packages and efforts to open trade to battle the downturn.

Striking an optimistic note, Mr Donohue said the US economy will begin to rebound by the middle of the year and a recovery can be expected by 2010, although it will contract through the first quarter. Source - ST.

SATYAM FIASCO- ITS LIKELY IMPLICATIONS ON INDIA!

The Satyam fiasco has unwinded a new chapter in the History of Corporate fraud in India, doubting the effectiveness of the watchdog of the Indian Stock markets- SEBI- The Official regulator of the Indian Stock markets.
SEBI(Securities & Exchange Board of India) which was formed in 1992 to check the scandals and to prevent the likelyhood of further scandals came up with Corporate Governance to improve the transparency and the investor confidence. The intensity of the fraud was such that Satyam;s market cap shred from 12000 crore to 2705 crore thus shredding off 9295 crore of investor wealth in a single trading session.
The incident is likely to worsen the investor sentiments, jeopardising the lives of 53000 employees of Satyam,Affecting INDIA Inc Financially, The FII's will like to play even more safer now, With no direct bad news- Sensex shed around 60% of its all time high, If news like this evolves, Sensex will have to breach its all time low, The recessionary tendencies might end up paving way for Depressionary tendencies, Any Job Loss will affect the economy as a whole,Prominent clientelle of IT Cos. might end up hunting for a safer haven, This incident might provoke SEBI to go on a investigation spree of various companies, where there is a probability of similar frauds paving in, Satyam might end up being aquired at a dirt-cheap Price thus further ruining Investor Wealth.NSE has already confirmed dat SATYAM shall be delisted w.e.f. 12th Jan. All these events will end up leaving an Indelible patch on India Inc. nationally and Internationally.
All and All the sentiments will be very weak and Investors will be over-Cautious to observe the likelyhood of further events.

2008 - The Year that wasn't.

The Year 2008 had been an year of agony and sorrow for the Investors worldwide-An Year which was characterised by over projected growth estimates,Galloping inflation, High stock market volatility, Housing Bubble burst, global financial Meltdown , death of many organisations,Burgeoning Unemployment rate, economic slowdow, recessionary tendencies and the steep slip of the Giant economies.Its time for Fortune magazine to replace its "Fortune-500" with "MISFORTUNE-500" as most of its so called Fortune 500 companies have been the ones highly affected by the Crisis Storm.Companies like Lehmann Brothers, CITI Group, GM, Ford, Daimler Chrysler, Fannie Mae,Freddie Mac, AIG,Wachovia Corp,Bank of America, Washington Mutual ,Bear Stearns, Bank of Newyork, Goldman Sachs etc had been victims of the Crisis.Chapter-11 has been the most heard buzz word in the recent times.
Terrorism,Madoff scam,Credit card Crisis,Floods & Hurricanes, The never ending israel-palestinian Crisis, Tensed Borders of Ind-Pak,Automobile Industry Debacle, Aviation sector slowdown have been other matters of concern in 2008.
One significant event being the emergence of Barack Obama as the President of America. Though Governments of various countries have come up with stimulus packages to fight the recessionary pressures, The World is awaiting for the moves of Barack Obama to help the world from the clutches of Recession.
From the Indian Perspective, the Year 2008 started off on a high note with Sensex touching 21K in Mid-Jan, Reliance Power going for an IPO , with news round the corner that Sensex is likely to reach 25K by the end of the Year. However all those who were a part of this frenzy had to eat a humble pie when sensex started to fall as if its time to pack up. Sensex reached an all year low of around 7800 points losing almost 60% of its all time high, Research houses have come up with projections of slight decline in India's economic growth due to the global slowdown, IT and Realty sector are the worst hit due to the recession.RBI had been taking all the possible steps to muster confidence in the minds of the investors.

Hope 2009 reverses the downtrends of 2008 and paves way for an Year Full of prosperity for the investors and the country.