Tuesday, October 16, 2007

Indian Stocks, Rupee Slump; Regulator Proposes Equity Bet Curbs

HUH! Looks like some "hot money" is reversing course. But maybe this is just another buying opportunity. You must give the Indian regulators credit for at least trying to fight a possible "overheating" & rampant speculation.

Oh! Sieht ganz danach aus als wenn einiges an "Hot Money" auf dem falschen Fuß erwischt worden ist..... Aber evtl. stellt sich auch dieser Rückschlag als gute Kaufgelegenheit heraus. Ich finde es extrem lobenswert das der indische Regulierer zumindest probiert einem möglichen "überhitzen" sowie der ausufernden Spekulationswut etwas entgegenzusetzen.

this story tells that even back in Feb some segments have easily qualified for the label "rampant speculation"....

Ich denke das Nachrichten wie diese vom Februar zeigen das bereits seit Monaten zumindest sich einige Segmente die Bezeichnung "Spekulationsblase" redlich verdient haben....

Shares of Unitech Ltd., India's largest real-estate developer by market value, soared 26,869 percent during the past three years. Anant Raj Industries Ltd., a competitor, leapt 39,548 percent
Indian Stocks, Rupee Slump; Regulator Proposes Equity Bet Curbs
India's stocks plunged, triggering a trading halt, and the rupee fell the most in two months after regulators proposed investment controls targeting global funds.

The benchmark Sensex index dropped 9.2 ( Update: Sensex recovery on regulator's clarification on fund inflows, India's Sensex's recovers from lows, last down 1.4% Sensex Real Time Data) percent after the Securities & Exchange Board of India late yesterday said it plans to limit trading by investors who purchase derivatives linked to Indian stocks, hiding their identity

The rout wiped more than $100 billion off the value of Indian stocks, led by ICICI Bank Ltd. and Reliance Industries Ltd. The planned clampdown raises concern more Asian regulators will consider restrictions to strengthen market oversight and head off investment bubbles that are fueling inflation.

The Bombay Stock Exchange Sensitive Index of 30 companies, or Sensex, fell as much as 1,743.96 to 17,307.90. It reopened and pared its decline to 6.6 percent.

The rupee fell as much as 1.6 percent to 39.97 per dollar before trading at 39.855 as of 10:36 a.m. in Mumbai, according to data compiled by Bloomberg. The currency reached 39.27 on Oct. 11, the highest since February 1998.

More than half of the $17 billion of the net purchases of Indian stocks this year may have been through the use of derivatives known as participatory notes, JPMorgan Chase & Co. estimates. The notes, which change in value depending on the performance of the underlying securities, provide hedge funds anonymity in their investment.

Overseas investors bought $8.2 billion more of Indian stocks than they sold since the Fed's decision, compared with $1.4 billion in the month preceding that, according to data provided by the Securities & Exchange Board of India. Their net purchases this year was a record $17 billion.

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