RBI hikes CRR to 7.5%; other key rates unchanged
The
RBI Governor,
YV Reddy announced the credit policy in Mumbai today.
RBI has hiked the CRR by 50 bps to to 7.5% from 5%. However, the other key rates including the repo and reverse repo rates have remained unchanged.
The RBI's has raised the cash reserve ratio given the persistent rise in capital flows, but has otherwise left other policy rates unchanged. The central bank's main message is that the economy is in fine shape – agriculture is above trend, industry and services may slacken just a bit. So the GDP target remains at 8.5% and inflation at 5%
crr is cash reserve ratio...rbi "takes away" a certain amount of capital reserve from the banks....which means the banks will now have 0.5% cash less to work with.
Investor Tips
Investor Tips : Do not invest all your savings in the share market. As long as general economy is strong one should not panic if the market falls. Try to accumulate more if the share belongs to a good company and wait for the market to rise. Never invest everything on one company or one sector. Distribute your investments on good sectors and on different companies. Never buy shares of very lowly priced shares unless there is a positive news about it. Never buy a share which is near 52weeks high as at any time it may fall.
relax and be rich
A year back, a friend of mine sold some ancestral property and hit the jackpot. She asked me to help her invest it in stocks.Being totally new to the
stock market, she thought she would need to watch a business channel throughout the day, and carry a laptop, so that she could trade all the time!
Now here's the surprise bit. I didn’t allow her to do any of that, and told her to pursue a hobby, take a holiday, meet her family, start a business, or do just about anything -- except trade. Invest and waitI strongly believe that investments aren’t meant to keep you busy; they are meant to make you rich.
She took my advice and invested her money in a few companies that had strong fundamentals and a visible growth. I wanted her to stop worrying about fluctuating prices every day. It was better to let her indulge in other things than get paranoid at every move in the market. This would help her stay invested for a longer time and let the money grow along with the invested company. By doing nothing, her investments fetched around 95% returns in a single year itself. Within a span of seven years she will surely be much richer than what she is today.Get rich, not busyBy doing nothing, she saved time and also the cost involved in the form of brokerage. This helped her stay put despite the temporary falls in
stock prices. She did not fret when her stocks fell by 10%, nor was she greedy when it rose by 30%.
All this can be achieved only if she doesn’t do anything, and avoids constantly buying and selling her shares. Many people make the mistake of looking at stock prices every 30 minutes. And with the slightest rise of 10% they begin to sell and panic with even a fall of 5%. These people won’t get rich. They will just be busy.
Relax like Warren BuffetInvestments in the stock market are like seeds. They will grow into trees only if you give them time. If you keep removing your seed and changing soils every other day, your seed will remain a seed.
Don’t get carried away by brokers and people telling you about ‘smart’
trading constantly. A large part of your money should be invested and not touched. One of the world’s richest investors Warren Buffet doesn’t care if the stock markets were to be closed for the next year, because daily stock prices don’t influence his investment in any way.
If you want to be rich, just stick to a fundamentally strong company which has growth potential ahead, and then, do nothing.
Now I don't want husbands, wives, teachers, parents, children or your boss suing me for telling people to do nothing. So, here's my disclaimer: My advice about nothing refers very specifically to your investments and not other areas of life!
........................Yogesh Chabria, an investor and trader, runs GSIFS.com. He is also an author & educator and is presently working on a book on success, happiness and motivation
AC Milan 4-1 Shaktar Donetsk: Four star display
MILAN (AFP) - Doubles from Alberto Gilardino and Clarence Seedorf helped ease the sense of crisis enveloping AC Milan as the European titleholders beat Shakhtar Donetsk 4-1 in the Champions League here on Wednesday.
This was only Milan's second home victory this season in any competition and it lifted them up from third to head Group D on goal difference from Shakhtar.
One familar name missing from the AC Milan teamsheet was Dida, the Brazilian international goalkeeper who was handed a two match ban for his theatrical collapse after a brush with a spectator in their 2-1 loss to Celtic at Hampden Park.
Australian Zeljko Kalac replaced Dida for this must win game if Milan were to put the wheels back on their Champions League defence bid.
Italian World Cup winner Gilardino gave the unsettled San Siro fans the perfect start, heading in Andrea Pirlo's sixth minute corner to the far post.
Kaka, favourite in most quarters to be named FIFA's World footballer Of The Year, had an effort saved by Andriy Pyatov keeping goal for Shakhtar, but two minutes later Gilardino had put AC Milan further ahead.
This time it was the turn of Seedorf to fill the role of provider, sending the ball in from the left for Gilardino to head in to leave Shakhtar with an uphill task of taking anything out of the game.
Shakhtar manager Mircea Lucescu then made the first substitution in defence, bringing on Tomas Hubschman for Alexandr Kucher.
The Ukrainian visitors came out for the second half in feisty mood and in the 51st minute they were rewarded by the quick thinking of striker Cristiano Lucarelli, back in Italy for the first time since leaving Serie A side Livorno in the summer.
Kalac, proving an able replacement to Dida, was up to saving Brandao's shot after a fluffed clearance from Milan defender Massimo Oddo but the ball was deflected into the path of Lucarelli who volleyed into an empty net.
But Seedorf then extinguished Shakhtar's hopes of drawing level when killing off the tie with his own double in the 63rd and 69th minutes.
His first goal, a pinpoint left-footed volley, came off a corner from Pirlo and the second, a fine 45-metre volley after a spineless Kalac punch.
Champions League Wednesday: Woe for former British European champions
Two former British European Cup winners Liverpool and Celtic suffered another blow to staying in the competition after both lost in the latest round of Champions League matches on Wednesday.
Liverpool have just a point after three matches having gone down 2-1 to Besiktas in Istanbul - the scene of their epic win in 2005 over AC Milan - while Celtic have three points following a 1-0 reverse away to Benfica.
Reliance Power IPO
Reliance Power IPo - ANIL clarifies the Court order
Even as the red herring draft prospectus of the Rs 11,000 crore Reliance Power touted to be the biggest IPO in the country is still being vetted by the
Securities and Exchange Board of India, the document has raised the hackles within certain sections that are purportedly against the two-year-old Reliance ADA group led by Anil Ambani.
October 23, 2007 bullish market
Market rose by 878 points
After SEBI's explanation about the doubts on P-NOTES to FII market touched single day high ,Media reports in mid-afternoon trade that the Sebi has cleared proposals allowing FII to
invest on Indian Bourses helped the index to gallop again on the end of the session. The minimum networth criteria for a FII who intends to invest directly is set at $50 million, says CNBC.
BSE 30-share Sensex posted its biggest ever-single day point gain of 878.85 points, or 4.90%, . It opened 296.31 points higher at 17,910.30 and kept on increasing . It struck an intra-day high of 18,542.41 in late trade. The Sensex’s previous biggest single day point gain was 788.85 on october 9th i think.Nifty was up 288.30 points, or 5.56%, to 5,472.30, as per provisional close.
Reliance industries which had shown a very good result but was down for some time was in strong demand.RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.
> Reliance energy was up by 12.28% to Rs 1538.25 on 26.78 lakh
shares. > Bharti Airtel gained 7.08% to Rs 993. > Reliance Communications rose 4.80% to Rs 755. On Friday.Capital Goods shares was the one which took the market to this hieght today.>Bharat Heavy Electricals (Bhel) jumped 11.82% to Rs 2300.Waiting for results which was postponed from 22nd to 29th .>Larsen & Toubro (L&T) surged 7.69% to Rs 3336. > NTPC (up 9.36% to Rs 218.40)>Hindustan unilever (up 4.15% to Rs 215)>Cipla (up 7.30% to Rs 193.40), >Tata Steel (up 6.97% to Rs 895.70), were the other gainers from Sensex pack. Banking sector was the next which ahd huge gains .> ICICI
Bank (up 3.36% to Rs 1098), > HDFC Bank (up 6.75% to Rs 1465), and >State Bank of India (up 5.27% to Rs 1803).Yo knw which secgtor was not performing it was the IT if it had raised the market would have been up by 1000 points , but as you knw this market would have not gone up without FII's helop which means dollar came in heavily , so Rupee firmed up and so IT sector dint go up because of that
Gambhir, Yuvraj star in India's win
Mumbai: Opener Gautam Gambhir’s hurricane half-century and some responsible batting by Robin Uthappa and Yuvraj Singh helped Twenty20 world champions India crush the mighty Australians by seven wickets in the first ever Twenty20 International in India at the Brabourne Stadium here on Saturday.
It was indeed a Saturday night fever for the packed stadium at the Cricket Club of India as the Indians went about their task of taming the Kangaroos on a humid night with clinical precision.
Set to get 167 for victory, the hosts never looked in any kind of trouble from the word go as their young brigade marched authoritatively towards the victory to keep their slate clean against the Aussies in the Twenty20 format of the game.
Despite losing Virender Sehwag early, the Indians got to fifty in just five overs. The fifth over of the Indian innings, bowled by Brett Lee, yielded as many as 20 runs with the left-right batting combination of Gautam Gambhir and Robin Uthappa going all out to decimate the Australian bowling.
In the very next over the Indian batsmen plundered 18 runs.
Gambhir and Uthappa added 50 runs for the second wicket off just 27 balls, which set the tone for the run chase by the home team.
After adding 82 runs off 52 balls for the second wicket with Gambhir, Uthappa was caught by Gilchrist off Michael Clarke for a well-made 35 off 26 balls with six hits to the fence.
Gambhir, after his marathon effort in the Twenty20 final against Pakistan less than a month ago, scored 63 off 52 balls with six fours and a six, before being caught by Ponting off rookie fast bowler Ben Hilfenhaus. He added 41 runs for the third wicket with Yuvraj Singh.
Yuvraj contributed with a fine unbeaten 31 off just 25 balls with a four and three sixes while skipper Mahendra Singh Dhoni scored nine off five balls with a single six that got the winning runs for the hosts.
Earlier, Ponting, too, scored a superb half-century after electing to bat first at Mumbai.
