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'Ketan Parekh accepted making mistakes'
The upmarket White House, 91, Walkeshwar Road address - with a spectacular view of the Arabian Sea - is hardly the place one would expect the offices of the Central Bureau of Investigation to be located.
The CBI's Bank Securities and Fraud Cell, headed by joint director J C Davas, operates out of this magnificent setting. On Friday, ace broker Ketan Parekh was brought to the office for interrogation.
For all its splendorous locale, the office itself wears a sarkari looks, until, that is, you enter the cabin occupied by Davas and Hemant Nagrale, Superintendent of Police, CBI, who is also investigating the failed financial dreams of Ketan Parekh.
In an exclusive interview with Sheela Bhatt, Nagrale claims that Ketan Parekh is 'co-operating'and that the big bull is also admitted to having committed mistakes.
How would you describe this case in a nutshell?
In simple terms, when you purchase something from me, you'll give me a cheque or a draft, if not cash. And, if your bank refuses to pay up, it's a criminal act.
Here, the Bank of India sold credit to Ketan Parekh and his bank Madhavpura Mercantile Co-op Bank refused to honor it. Bank of India is a complainant.
So where did the buck stop…?
In the second week of March, when Bank of India sent the pay-orders to the Reserve Bank of India, which is a clearing house for transactions between banks, the Madhavpura bank stopped appearing in clearing house. They simply didn't have the money.
The bank's money had been diverted to many of Ketan Parekh's companies -- like Panther Fincap and others.
How did Ketan Parekh operate?
It seems that when the fall of the share market started his stocks were in the doldrums. To clear up his liabilities with the stock exchange and the banks, he needed money. So he started taking credit.
We do not know yet for how long was he doing this. But apparently, this had been going on for quite some time.
He started using overdraft facility offered by the Madhavpura bank and with the help of the pay-orders he got from Madhavpura bank, he took money from Bank of India and invested in share bazaar.
On the face of it, he had been doing this for at least the last 6 months or so.
How did he get trapped into the authorities' net?
Ketan Parekh says he was incurring losses since last 5-6 months. Recently, the market hit him really hard. His money, acquired through the way just explained, was in circulation. When his stocks dipped, the chain snapped and it created a big hole in Madhavpura's kitty. This eventually led to his arrest.
Are there any other banks involved?
We don't know yet. We have yet to investigate that aspect. That's the reason we wanted the court to remand him to our custody for a few days.
Ketan Parekh says that the Bank of India was the only nationalised bank with which he held an account, and that the rest were private banks or multinationals.
For instance, he had accounts with Global Trust Bank… We will not probe that angle. CBI looks only into frauds involving nationalized or co-operative banks.
We are investigating into Ketan Parekh's links, if any, into the bullion scandal of Ahmedabad, too. In case of Classic Co-operative Bank, one of the directors could not honor the pay-orders.
It is possible that some funds from Classic were also transferred to Madhavpura Mercantile Co-op Bank and ultimately found their way into Ketan Parekh's bag.
In that case, why have the top brass of Madhavpura bank not been arrested yet?
We are trying to. Our team is looking for Ramesh Parekh (chairman of Madhavpura Mercantile Co-operative Bank), but he is absconding.
Will the CBI be arresting anyone else?
May be. We are interrogating Ketan Parekh's cousin and partner Kartik Parekh. (Kartik Parekh was arrested soon thereafter)
Do you think the scam might exceed the projected sum of Rs 8.43 billion?
It may not.
How did you arrive at this figure of Rs 8.43 billion?
From the Madhavpura bank's sources. Parekh took credit from the co-operative bank, as he was enjoying an overdraft facility. With this facility, he raised his liabilities with the Bank of India. Finally, a situation arrived when Madhavpura could not pay back Bank of India simply because it didn't have the money. Ketan Parekh's eight to ten companies had created a huge hole in the bank.
Will you be attaching any of Parekh's properties?
Too premature to say. We will have to check if the proceeds of the crime have gone in acquiring property. We have not yet investigated the case to that extent.
Are there any signs of some Bank of India employee having been involved in the scam?
We have mentioned it in the FIR that an 'unknown officer' from the BoI was involved. We have not yet identified him. But we do think that someone from the Bank of India too may be involved.
Is this scam a replica of the 1992 securities scam involving another big bull Harshad Mehta?
No, I would not say that. Harshad Mehta was using the monies differently. Cheques raised by one bank in favour of other were deposited in his own account and he was using that public money in the stock market.
Here, Ketan Parekh's credit with banks exceeded to such an extent that he could not pay up in the end.
Some brokers argue that the Madhavpura bank's top brass are the prime culprits and not Ketan Parekh. Do you think so?
How can you say that? Who is the beneficiary of the failed transactions? Since the last several months, Bank of India discounted pay-orders out of Ketan Parekh's bank accounts with Madhavpura bank.
This is a case of dual liability. If Ketan Parekh was genuinely concerned, he should have returned the amount to Bank of India when Madhavpura refused to honour the pay-orders.
Since Friday evening, Ketan Parekh has been in your custody. What has he said?
He is a soft-spoken man. He is accepting his mistakes. He says he took money from the banks, traded in share market with those funds and that he lost.
READ CHOTTUS VIEWS:WHITE COLLAR WALLAS WILL ACCEPT ANY MISTAKES WITHIN MINUTES WHEN THEY COME TO FACE POLICE...BECASUE UNLIKE OTHER HARD CORE CRIMINALS ,WHOM EVEN THIRD DEGREE TREATMENT CAN NOT HELP TO SAY THE TRUTH...THESE WHILE COLLARWALLS ARE FINDING POLICE FOR THE FIRST TIME IN LIFE AND THEY WILL COLLAPSE WITHIN MINUTES...SO NOTHING NEW IN INSPECTOR SAYING HE IS CO OPERATING...AND SAID HE ACCEPTED HIS MISTAKES...BANK OFFICIALS HAVE NOT BEEN ARRESTED ...NOT EVEN CHARGED IN FIR....SO IS KETAN A SCAPE GOAT FOR BEAR CARTEL..AN EYEWASH BY GOVERNMENT AND SEBI TO CHANGE THE ATTENTION FROM BEAR HAMMERING.."
had Ketan been arrested before 2 months when we got the first news of him getting arrested ,
market would have lost some points on index point of view,,,but the stocks would not have lost too much as what they lost now...
ALso poor ketan would not have run in to trouble because he had he been arrested early he would not have purchased more stocks...even on budget day which broke his back bone....
when first arrest news came...HFCL was hovering around 1000 . HAd he been arrested these scripts would have hit 5 cirucits ...or 6 circuits....but how may circuits it have hit?
Had he been arrested earlier, there would have been chaos, panic....still when he was not, we were having the same atmostphere which only helped bears to make more and more moneis....
Government should come out why did not they arrest him early on connection with Bharat Shah or underworld...
IF they did not want to arrest himwhy did not any spokeperson came and cleared the point when every day markt used to tank on Kps arrest roumours...? where were Finace ministry and sebit that time to put an end to roumous saying there was no plan to arrest him...
IF they wanted to arrest him...why they kept for getting some other charge like pay order scam...? is it not a well prepared game.? is pay order dated 12th March dishonoured before 2-3 days..yesterday it was 30th of March..it took 18 days for bank to find out the pay order dishonoured....?
one thing is sure....When a player let it be cricketer , footballer or athlete in peak form ....he is the king...news papers will sing for him....
when he is out of form...every one tries to attack him for not keeping in company of him
Here also every politician is aware including the ruling party and opposition....Ketan is a sinking ship...rathi and company is un sinkbale...so ultimately the position will be there where money is....EVERY ONE FORGET THERE WAS A MAN WHO HAD KEPT OPENED A BOOK OF HIS EXPERIMENT OF TRUTH WITH THIS NATION....EVERY BODY NOT ONLY FORGOT HIS BOOKS BUT ALSO HIS NAME...MOHANDAS KARAMCHAND GANDHI, THE FATHER OF NATION...
rise and fall of Ketan the bull...who killed him...read on...
by chottu (no login)
The man who started as pentafour bull before 3 years, made everything gold whatever he touched.
Even those who do not have any connection with him used his name to rig the prices of the desired script even without ketan knowing any thing about the company.
It was like any imported brand being used by copy cats here without knowledge of original owner.
He helped Indian stock market to revive and brought back the confidence in Indian investors and showed the world indian stock market is the best in emerging markets…with the kind of upward movements even fiis who had run away from Indian market came back with a bang and lined up to buy the stocks which he had cornered for them.
IT was the new bull in full form…..Even big daddy used to buy stocks like BPL, only it hit the uppercircuits continously for 5 trading sessions and bt heavily whenever he took it to new heights..
When he started the new role as a hard core bull, he made every bear including the bear cartel, silent operator etc who were had kept short position in all stocks and made them heavy losses.
For his luck, international market helped our market and sentiment improved every day and even kargil affair could not pull down the market when every thing looked set for a crash.
Also it is understood for operation he used his money in the beginning as his firm NH Secutirites had a history of being a brokerage firm for more than 75 years.
His stock selection was accurate…and the stocks were called k10 which was liked by both fiss and indian mutal funds..everyfund manager from big brokerage house used to ask his advice on selection of the stofcks…yes he was the main driving force of new look Indian markt…
Part 2
When he made money by trapping every bear at that time for his bad luck or over confidence he started buying stocks like Padmini poly, and took it to 300 levels when there was no fundas but only speculative interest to support him…it was one of the big mistakes he did ….yes it was his over confidence….he was forced to keep all the stock with him and even he is holding a large chunk of shares…
There after he started trading and every share namely, aptech,niit,vikas,nirma,reliance ind,
And this forced him to give attention to more scripts instead of early 10 and he needed more money to control all this stocks….Bears were waiting to suck his bloood….but his over confidence deceived him…if he was controlling on script to trap a bear….they used to go short on another script…Also change in International market helped bears to take sweet revenge and with sentiment getting worse he could not stand against the bear cartel….and he started booking profit at everylevel taking advantage of the international market….this time international market could not help him but help bears..
Part 3
With international market falling down, he tried to reduce the position and most of his stocks were beated down due to bear attack and fund selling…With new year he expected fiis to come with a bang and had warehoused stocks in anticipation of rally…Fiis came , bought but ahead of him funds and bears sold and
He was again forced to keep the position with him… bear cartel led by MR……was aware of the total delivery and exposure taken by him and his group including calcutta brokers…
Then came the Much better than expected budget…He again br stocks worth 200 crore and forced most ice stocks to hit uppercircuits the same day….every one thought of markt touching 5000 on the back of the one of the best market friendly budget…had market gone up…ketan would not have any problem as he would have got the havala to pay off every thing….
Bears led by Rathi…the …..put panic button even before some one could understand what was going on and market crashed…..again ketan tried to lift the market and Rathi and group was afraid of making further loss if market went UP.
Fearing some genuine buying may be led by FIIS due to the charisma of Budget a worried Rathi telephoned Surveleience depart ment and enquired of the purchases…when he understood it was only
Ketan who is buying he informed the bear cartel…and they were aware that ketan is not going to last if they further pull down the market…
They used every thing to hammer down the market and making a panic situtaion…they were aware that ketan was not cash rich….they did only one thing….if ketan could have managed cash worth 200 crores these bastards sold worth 500 crores and put an end to this injured bull.
No doubt ketan has rigged up the price….but he was not responsible for the crash
He had been helping the market to revive….Unlike Harshad Mehta who used public money to prop up the market in all ways…ketan did use his money…I think if he did anything now it was because of these combined bears which forced him to…
Though I had never praised ketan parekh early,now I understand he did not do any thing to crash market…but was trying to revive the confidence…
Before arresting Ketan the government should have arrested the bear carels Anand rathi , nirmal bhange,
Shankar sharma, rakesh junjunwala and other bastards who used their office to hammer down a revived market and broke the back bone of Indian economy . Remember if no operator in markt there will be no fiis interest…because these operators are actually giving descent valuation to stocks…
I still can not understand why did not government arrest Ketan Parekh when there was new of arresting him even before 2 months….? There were talk of his connection with underworld( through Bharat shas)
But what was government doing till now…
I am sure ketan had connection withou all bearucreauts, politicians, including f.m, and all big funds,,but with ketan already in problem( if he has become bankrupt) as always those politicians ( GUESS)
Who were singing for him will start attacking him in open because no one want to be in a sinking ship…
Better they will go to cash rich bear cartel and at the expense of Ketan every investigations will have an end….Now they will put all cases on Ketan and say there was no evidence on Bear cartel….watch out….
I feel really sorry for Ketan , I am sure even after 10 years our law could not do anything to Harshad Mehta what will they do with Ketan…nothing will happened to Ketan…But sure our markt will lose the confidence and without a driving force market will be directionless. If no driving force, I don’t think fiis will invest here…because on a news of 500 crores fiis buying nothing happends to markt..if fiis sell 15 crores worth share it is a big negative news..
What our funds say…they sell to fiis…
When fiis start selling they also start selling tobe ahead of fiis.
So what do they think fiis will do with the stocks they buy here..if they want to sell whom will they sell…our funds are worried about the fiis selling….at that time operator is the one who is helping both fiis and funds to liquidate their positions….if you are a watcher of market…there are a lot of time market have fallen though fiis were net buyers…also market have gone up even when fiis were selling….this the charisma of Operator.
If government who has taken a challenge to arrest Ketan parekh, have guts they should arrest the bear cartel within 2 days led by Rathi the bastard…then only we will have justice….
Remember friends…every one make money on bull market….its because of bullls……
Every one lose more than 5 times of what they earned in bull market, in bear market…..
I hope its time to put an end to insider trading and leakage of inside information….
Market may find bottom at 3200…with not too much position in market I don’t expect market to go below 3200 at this stage….but with big bears out there with the help of stock exchanges and sebi, who check clientwise details who has shorted 200 shares of NIIt after closure of market, they can do any thing…its us poor small timers who are in trishanku….we can not go short to cover at low….we can not book loss as market can bonce back as it has corrected more than 40 percent from its peak..even During harsha Mehatas time marke had lost 40 percent…so I don’t think too much worry as others are speaking…let us keep fingers crosse…
Ur commets are welcome…..
Who are at fault ? Not really Ketan, he misused the defective system R/o
by MYs (no login)
Every time the some persons take ride on Indian Banking system and ended in scam. It is not the share scam but it is bank scam. Those who know working knowledge of banks are aware the existence weak points which can be exploited even to-day.
SEBI, RBI and Income Tax Dept. are main culprit in the present scam.
SEBI is always anxious to see that payment crisis should not happen forgetting who brings money from where?
RBI should have checked at the earliest when several crores starting pouring into the share market?
RBI should have kept vigilant eye on loans of pledge of shares. It should have prohibited the loans against pledge of shares by Co-Op. banks. It would be even better to prohibit the private sector banks from lending on shares. Naturally it is only Nationalised banks should have been allowed to lend on shares. RBI has not taken these simple steps.
Income tax Dept slept over the matter to find out how the brokers or operators are bringing money.
Low CRR result in surplus money in the hands of banks which in turn lead to these type of lending. It is not healthy to allow surplus money in the hands of banks. Those unscrupulous banks in their eager to earn money started to resort to loose way of lending.
CRR should be fixed on individual banks depending upon the health of the bank. If any particular bank is not healthy, higher CRR should be imposed to ensure safety to the depositors.
For the last 2 days i could get the network..what is the reason....
by chottu (no login)
but i found some postings by others...
was problem only for me ....
Market is again found the southward journey.....
there may be more arrests of other brokers....
whatever may it be...it should be done simultaneously...evey thing should be discounted...together...
on 10 th and 11 th april- target q-o-q of satyam and infosys
by ****** (no login)
satyam- 140% rise on q-o-q
infy - 125% rise on q-o-q
wait and watch,do not panic and buy infy between 3000-3200 in small lot and satyam anywhere between 170-185.remember k.p is NOT involved in above two scripts.
You sell a scrip that you have.
You short sell a scrip that you don’t have.
Now tell me how you ‘naked’ short sell a scrip.
All market players are traders of varying degrees – investors are a subset that plays only the long side of the market cycle and perhaps hope to catch the longer harmonic.( here I don’t mean that endangered species whom everybody is out to protect – those lotus eaters who are eternally after that pot of gold at the end of the rainbow and put in all their life’s worth into NBFCs,plantation schemes, dotcoms, or the market at the tops and wishing for the mother of all booms to start tomorrow and ever after – no they are just incorrigible gamblers).For someone who follows a trading philosophy ( be it trend tracking,support/resistance,pattern recognition,elliot wave or plain vanilla astrology) ,it just doesn’t matter whether it is bull cartel or the bear cartel or any other manipulators who create havoc in the market because he can earn a decent profit in any type of market if he has the discipline to stick to the chosen philosophy.Afterall the mayhem in the market is what gives you swings to profitably trade on.Of late when I scan through various BBs I am surprised to see otherwise very reasonable people saying so and so should be shot etc.Why do people get worked up over events that you cannot hope to influence in any way ? If you have lost money in the markets you may need to work on your discipline or perhaps look at your trading philosophy once again.You may curse,cry and kick around to get some relief but it is likely to be temporary.Well who am I to say all these,but if you develop a better perspective it would do your health (both fiscal and physical) a world of good !
Naked short sales may be banned but that does not prevent a day trader from shorting. Look, most broking
firms have clients who would ideally buy, therefore the firm would be having good volume of long position.
And so..if u were to short then it would just get deducted from broker's plus position. Its absolutely possible and happening..
Even Congress says there is no alternative in centre if BJP falls...
by chottu (no login)
and they dont want election....is it going on back foot , or due to vincent George episode or stalling the parliament functioning boomeranged...
One thing is sure no one want an election....apart from regional parties who want to use this opportunity to grab anti bjp votes at the expense of country....like Jaya, Mulayam and communists...
For communists...they are going to pack up from Kerala and West Bengal....Congress, Thrinamool,Bjp combine front in West bengal will show Communists this way...Mamata is likely to be the chief minister....
0nce the election is over Mamta will be back here to support the governemnt...She has still not withdrawn supports....If she endorse the views of NDA at this stage she will lost votes in WB.Communists will say Mamta has joined hands with those who accept bribes without taking consideration of national safety...well done Mamta didi, at first we could not accept it now we understood....ALso we have one kolkattian Mr. bharat...lol
Mamta is directly from the constituency where i cast my vote and even i voted for her last time
i thought she with or without bjp combine can chuck out CPM from bangal and start an indutrialisation wave back again after god knows how many years in kolkatta
but off late i see that she is typical like a spoil sport who likes the fight with the drop of a hat
she has been a put off as far as i am concerned
now i feel hat in the CPM raj atleast till now kolkata has lowest crime rate
i woudl rather stamp my ballot twice and waste my vote now or vote of BJP if they dont have seat sharing with mamta...this is how much i am put off
some how she is also not clean fully as her name was taken in the tehelka tapes and im sure others in her party are taking bribes and in her personal capacity she may be clean as her one point agenda was to remove Jyoti Basu and he has retired now and she too must take a break
Mamta is quite clear it seems that she wants to be CM of Bangal if she able to remove CPM
and im sure she will be worse as she behaves like an illiterate person and fights like a villager.
she is the first to shout and wail if anything happens
This Shankar Sharma of First Global was advising like..
by MYs (no login)
professor and predicting index to 3200 level in front of that giggling Sentil and others on CNBC. And got himself into some course on mkt in Newyork or London and did not forget that to mention that he got good marks. A full rascal 420.
u bet, his snaps in the papers with his eyes bulging out and fingers riased is worse than PC
by ways2gain.com (no login)
Prem Chopra infact had a personality with people remember PREM NAAM HAI MERA PREM CHOPRA.
was it in the money Do Anjaane of Amitabh and Rekha shot in Kolkatta i mean then it was Calcutta.
Consider this selection from the writings of the market observer Joseph de la Vega from the late 1600s about the Amsterdam stock exchanges of his day, in the style of a tongue-in-cheek dialogue between a merchant and an investor:
Merchant: These stock-exchange people are quite silly, full of instability, insanity, pride and foolishness. They will sell without knowing the motive; they will buy without reason.
Investor: They are very clever in inventing reasons for a rise in the price of the shares on occasions when there is a declining tendency, or for a fall in the midst of a boom. It is particularly worth remarking that in this gambling hell there are two classes of speculators. The first class consists of the bulls. The second faction consists of the bears. The bulls are like the giraffe which is scared by nothing. They love everything, they praise everything, they exaggerate everything. They are not impressed by a fire or disturbed by a debacle. The bears, on the contrary, are completely ruled by fear, trepidation, and nervousness. Rabbits become elephants , brawls in a tavern becomes rebellions, faint shadows appear to them as signs of chaos. The fall of prices need not have a limit, and there are also unlimited possibilities for the rise. Therefore the excessively high values need not alarm you.
-------
bears have a field day.
In my view, banning of "naked" short sells is correct remedy(though short term).
Rolling settlement shall be still more correct remedy..
hopefully it should come about in July this year.
READ ON....
I AGREE WITH UR VIEWS ON ALL SUBJECTS EXCEPT SHORT SELLING....
FOR A MARKET WHICH CONSISTS OF 90% SPECULATION ONLY BEAR AND BULLS CAN MAKE MARKET MORE ATTRACTIVE....
iF ONLY BEARS SELL WHEN SENTIMENT IS BAD...BULLS CAN TAKE ADVANTAGE OF THE POSITIVE SENTIMENT WITH ARTIFICIAL RALLY WHICH WILL KEEP THE BEARS TO COVER AT HIGHER LEVELS....
ALSO AS WE ARE AWARE WHEN EVER A SCRIP IS RIGGED....NO INSTITUTIONS COME TO SELL, THEY SELL ONLY WHEN THEY UNDERSTAND THE GAME IS OVER OR IT STARTS FALLING....
PROBLEM WITH KETAN WAS THAT THIS STUPID CU...PLAYED WITH MORE SCRIPTS THAN HE SHOULD HAVE...
APART FROM K10..HE BT FROM GLOBAL TRUST TO NIRMA, VIKAS, LIST GOES ON....
HE WANTED TO MAKE MONEY ON EVERY SCRIPT...WHICH MADE GRAVE YARD FOR HIM..
HAD HE PLAYED WITH 5-6 SCRIPS THE BEARS WOULD NOT HAVE THE COURAGE TO TOUCH HIS SCRIPTS..BECAUSE FULL MARKET BT WHAT HE BT...ITS HIS DOUBLE HOSHYARI WHICH MADE HIM MAKE LOSSES( THOUGH CALCUTTA BROKERS LOST MONEY, FOR HIS WORK)
THOUGH I LIKE BEARS ALSO IN MARKT ...WHAT EVER HAPPEND THIS TIME IS OUT OF IMAGINATION...
THIS COULD BE DONE WITH THE HELP OF SEBI AND BSE AUTHORITIES LED BY RATHI THE GREATEST BASTARD....
D.R.MEHTA IS ALSO HAND IN GLOVE WITH THEM..OR HOW SCRIPS HITTING UPPERCIRCUITS 5 DAYS BEFORE ANNOUNCEMENT....
ALL THESE RATHI, NIRMAL BHANG, RAKESH JUNJUNWALA ALL THESE ARE DOING THIS WORK SINCE HARSHAD TIME AND THEY WILL BE THER FOR EVER...NOTHING WILL COME OUT OF THIS EYE WASH OPERATION....WHEN MARKET HIT 4000 LEVELS EVERYONE WILL FORGET ABOUT THE INCIDENT AND WE WILL HAVE MORE SHANKAR SHARMAS, RATHIS AND JUNJUNWALS IN CNBC PREDICTING NEVER ENDING BEAR MARKET...
ITS HIGH TIME INVESTORS WHO LOST MONEY BECAUSE OF THESE BASTARDS MAKE A FORUM AND FORCING GOVERNEMNT NOT TO GO THEIR OPERATION WASTED....LET US SEE....
EVEN WITHIN DAYS MEDIA WILL FORGET IT....KITANA GOTALA AYA HAI...KITANA GAYA HAI...
WIth Rathi and company out....market shows strength even...
by chottu (no login)
without investor participation..
Payment crisis could not make any impacton markt with funds buying aggressively.
Though Market has rallied with more than 90 points voloumes dried up due to the absence of speculative activity...
some feel Most Mutual funds have started buying on both old and new economy stocks due to the Year end...for keeping better NAV...As these funds are taking NAV every day unlike earlier , i dont think this buying has much to do with NAV...may be iam wrong... Whatever may the reason be one positive thing in this market is even though there are negative factors like Tahelka.exposure and payment crisis...FIIS are still very much active on buying side...It looks they will buy everything at lower levels and investors and Indian Mutual funds will be left to buy at higher levels when they start selling when every thing looks bullish...My congratulations to fiis for helping the market from falling further like some prophets of doom said and finding valuation at every level..
No clear trend is visible due to ongoing problems of brokers which can destroy the sentiment any time...
Hold ur positions atleast till JUne...as we have been discussing....
Tech stocks will be again depending up on the movement of nasdaq....
It is completely beyond my comprehension what some people say these days about
short selling.As I understand it,it is a perfectly legitimate and legal trading position.
(Right now it is like playing football with out a goal post on one side – one only hopes
the umpire would stop playing with one side and return that goal post soon ! ).
I do not know about insider trading and other malpractices but I respect Mr Shankar Sharma for having the courage of conviction to come on TV and express his bearish
views even when markets were on short term uptrends.As for the markets - those
who have the least bit of exposure to Technical Analysis ( of whatever school) knew
the markets to be in a Sell position from 16th of Feb and would have been short on
many scrips.To say that all those were in a criminal conspiracy to bring down the market
is just naïve.I am sure the very same people would turn bullish and go long on various
scrips the moment charts warrant such a position.Well that is a trader’s life.
Let us hope for the sanity of the powers that be and that they would let go of their
stranglehold on the markets so that the poor trader could resume his profession to
earn an honest buck .
-when u know the precarious long positions of bulls (courtesy Rathi),its easier to short sell.
-when u know what tehelka is about to divulge(first global of shankar sharma fame is having significant stake in buffalo i.e. the company controlling tehelka), it becomes still easier to short sell.
In indian conditions, big bears never take risk.
They know they are winners.
They killed HM.
They killed KP.
Its bulls who are forced to default.
Bears(the big ones-ajay cayan, bang, ss and cohorts)
distort the price discovery process easily in Indian market conditions.
was it
-honest buck
or
-honest **** of
poor investors ?
-bulls have to pay margins,arrange funds,pay badla for carrying forward
-bears thrive on rumours, inside information regarding bulls' long position, and by spreading baseless rumours about market-movers systematically.
-occasionally they pay undha,for a change.
why ?
India lacks big players(pension funds,PF funds, Big MFs)
Nobody to stop a falling market.
FIIs are greedy. they know they can buy still cheaper.
At the cost of poor janta.
I dont blame them.they have muscle to buck the trend.
why should they ?
As they say, nobody should catch the falling knife.
knife is falling, but the poor investors cannot stem the fall.
knife gets deeper into the chest of poor investor.
he is fearful. he is devastated.utterly hopeless.
The big funds with strong financial muscle are just not there who can buy.
who can stem the fall.
therefore market lacks depth.
In such an envronment,Bulls and bears have a field day.
Systemically and in a quite and cool manner deprive the poor donkeys(i.e. petty and ignorant investors, greedy short term over-leveraged trader too) of their meagre savings.
In my view, banning of "naked" short sells is correct remedy(though short term).
Rolling settlement shall be still more correct remedy..
hopefully it should come about in July this year.
Better less liquidity than deceptive liquidity.
Hoping against hope that BJP will keep its promise. The promise as promised in manifesto.
of releasing the locked rupees in garangutan PF kitties of govt of india.
for equity market.
even 20% of that PF kitty will let loose so much rupees.
so much chasing so less quality companies.
falling interest regime gives a chance.
if its is done, nobody can stop the market to zoom to 8000 levels in a jiffy.
but market, technically poised for biggest bull run in the history of india.
Since 1990s index is in trading zone.
time has come for a real breakout.
Foreign institutional investors have turned the saviours of the market with non-stop buying. This time over, it looks as if they would emerge winners thanks to their holding capacity and deep pockets.
The leader is back
Infosys Technologies struck back in a manner which only it could. In spite of rumours about the company issuing a profit-warning, Cap-it-all is consistently adding the stock to its portfolio.
With most of the negative factors already having surfaced, the stock price seems to have adequately discounted most of them.
With limited downside and a portfolio underweight on the stock, the fund can afford to average out in a reasonable period of time.
The fund picked up around one lakh shares today and almost four lakh shares in the past few days.
Other favourite
If Cap-it-all has zeroed in on Infosys, Jan Fund, another mega fund, has narrowed down on Satyam Computer.
The fund, which had bought around 50 lakh shares in the past few days, resumed its buying operations and bought around eight lakh shares today.
An interesting feature in most of the buying that has been taking place is that the funds have not been chasing the stocks but buying it at a limit price.
It looks like the funds have run-up the counter only after accumulating a good portion of their quantities.
Shifting focus
There is an observable shift towards software stocks from old economy shares if the buying pattern is anything to go by.
With most of these stocks recording abysmal price-to-earing multiples, it was inevitable that relative valuations would be factored in sooner than later.
In keeping with this trend, 75,000 shares of Wipro was bought today but the identity of the fund could not be confirmed.
The Simple Simon Brokerage purchased 50,000 shares of SSI, while it picked seven lakh shares of Himachal Futuristic.
*******
The bear cartel, which drove the markets down post the budget, may also have been guilty of tax evasion. Stating this in an exclusive interview to NDTV, Revenue Secretary Dr S Narayanan pointed out that raids on brokers had unearthed Rs. 20,000 crore worth of transactions and these were being examined.
Tax authorities say it is too early to say whether the six brokers raided on Friday were involved in insider trading but it is certain that they evaded taxes after booking profits. "The total volume of transactions run into Rs. 20,000 crore, so unless these transactions are analyzed carefully we would not know if there is insider information of collusive trading. But we do suspect certainly an attempt to avoid tax," informed the Revenue Secretary.
The raids have now clearly shown that the bear cartel, a group responsible for beating share prices down, was the focus of the raids. And once the evidence from the raids is analyzed there may be a link established between the stock price crash and the bear cartel. "Definitely there was an expectation that people who had been driving the markets down would be those who would be benefiting most during this period from income earned out of this bear exercise. So its quite natural that we would be looking at evasion amongst this group," maintained the Revenue Secretary.
If the figures which the tax authorities claim are true, it will clearly establish that a select group of brokers have affected the markets to an extent that they are now out of control. And in the coming days one will only see more evidence of how these brokers have influenced the markets to make personal gains.
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fiis are very bullish but our local funds does not think so....
by chottu (no login)
again fiis buying helped market not only stop its journey towards south also helped to close with gains...
Payment crisis is still there....along with raids and the outcome of the raid on main players....
operators are in no mood to take new exposure....
INdian institutions do not want to buy even at this levels....they are waiting for market to further come down which should be used for bargain buying....
retail investors are waiting for some bullish signals...
Everything now depends up on Nasdaq....
Untill payemnt crisis is over...no rally can sustain at higer levels....
Those falling are falling everyday....even without consideration of the cheap valuation...
WIth outstanding only about 1100 crore, from this level market could have gone more than 1000 points due to the outstanding position had bulls taken control of the market...but they do not think so...like us they are also keeping a wait and watch formula...
Let us also have the same....
Laxman hits a ball to M.Beaven and sachin compleates one run...
Again sachin attempting a run saying to Laxman.....
y....e....s..
Laxman says.....N.........O.........N.........o
Sachin.....Y -----e---------s
with sachin out of the crease throw from m.beaven reaches to Gilchrist and gilchrist makes sachin out...
By getting angry..saching says....
c--------o---------m-----------e
( the one of the best ad i have seen in recent times by Indiya.com)
Once again it shows why Indian ads are treated as tbe best in world.