The Week That Was:- 22nd Nov to 29th Nov

Sunday, November 29, 2009 , Posted by Team Niveshak at Sunday, November 29, 2009

Market Watch
It has been a turbulent month with respect to the stock markets globally. The current trend is in confused state and needs to get a clear direction to determine the market conditions. It is difficult to sustain any upside on the market due to these fluctuations.
Though the last week started on a positive note and touched a high of 17,290 but due to Dubai debt fear and derivatives expiry, the markets crashed to a low of 16210 at Sensex. Yet the markets recovered and closed at 16,632 points. It was down by 2.3 per cent as compared to previous week’s closing, a fall of 390 points.
The affected stocks included majors like TCS, ICICI Bank, Rel Com, and NTPC by 3-5 per cent each.
The another major index of India, Nifty soared up to a high of 5,138, and fell down to a low of 4,807 in past one week. The week end saw Nifty settling at 4,942, a loss of 111 points.

Satyam lies yet again
The CBI claimed yet another incident of fraud at Satyam Computers on Tuesday, November 24, almost two years after Raju, the founder of Stayam, had admitted to fraud in his company. This time it was a scam of around Rs 5000 crore. As per CBI, people indicted for Satyam fraud case had pledged their share in the stock at an inflated price. Also, they forged the board resolutions to raise loans and divested stocks at a higher value. These new fraud charges are different from the previous Rs 7000 crore fraud.

TATA plans to buy out Actis’ stake in Swaraj
Tata Motors seem to be planning to extend its hold in the automobile industry as it eyes the equity shares of Actis in Swaraj Mazda, CV and bus maker. Actis currently owns 17% share in Swaraj, out of which 7.7% is is own and 9.3% through unit CDC. These were bought at Rs 370 crores in 2004. Tatas’ took notice of this when Actis, the private equity major, indicated that it may divest from Swaraj Mazda. But there are other auto majors and new entrants also who have shown their interest in this deal.

Debt-laden Dubai stirs world
This week Dubai stirred the entire world as its debt problems raised concerns about corporate exposure. It also stands a major risk of the repatriating funds by its foreign investors.
Dubai’s economic growth depends largely on its Dubai world. Hence the creditors of Dubai world and Nakheel property group have been asked to consent on a debt standstill.
India reacted as the gold lost its shine, stocks collapsed, rupee weakened and the returns on bonds dropped. Though, India would not be affected much by this crisis.
In this scenario of predicament, Abu Dhabi has agreed to help Dubai come out of its debts but it clearly said that it will not write-off their debts. Abu Dhabi has already given $15 billion to Dubai indirectly through 2 private banks and UAE central bank.

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