Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Markets: Ringing in the new - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jun 30, 2001

    Markets: Ringing in the new

    The next week marks the beginning of a new trading system, which is expected to reduce the speculation in the cash markets. The bourses seem to be hopeful, as they bid the old system farewell with the BSE Sensex and NSE Nifty rising by 2.2% and 1.9% respectively for the week.

    Under the new system the cash and forward markets will be segregated. The Securities & Exchange Board of India (SEBI) has announced the list of scrips in which stock options will be permitted. The list includes 31 stocks of which 24 are part of the Sensex. The scrips, which are part of the Sensex but not included for options are Castrol, Colgate, Glaxo, Nestle, NIIT and Zee. The close link between the Sensex and option scrips could signify a close correlation between the cash and options market. Therefore, any volatility in the options market could get reflected onto the cash markets. The SEBI has also announced a new set of circuit filters applicable to stocks. As per the latest announcement, stocks, which are part of the options list or indices, which offer index derivatives, will not have any circuits. There will be index-based circuits. Stocks not part of this list included in rolling settlement will have a circuit filter of 20%. For stocks not included in any of the above categories, the current filters of 8% and 16% will apply. More on circuit filters.

    The net outstanding position on the BSE has declined to Rs 2.4 bn from Rs 3.2 bn in the previous week. These outstanding positions are to be closed by September 2, 2001. In other news, the Central Statistical Organization (CSO) has released the revised estimates for the Indian economy. However, the numbers do not portray a pretty picture.

    Nothing to cheer about
      FY01* FY01** FY00
    GDP 6.0% 5.2% 6.4%
    Agriculture 0.9% 0.2% 0.7%
    Manufacturing 6.4% 5.6% 6.8%
    Services 9.6% 9.1% 10.1%
    * Priliminary estimates
    ** Revised estimates

    Key sectors have registered lower growth rates in FY01. In fact, growth in most sectors has decelerated further in 4QFY01 and in the new fiscal, as the slowdown takes a tighter grip on the economy. Industrial output grew by only 2.7% in April '01 as compared to 7.2% in April '00. Growth in the manufacturing and services sector for 4QFY01 was 3.5% and 9.3% respectively, which is lower compared to 4QFY00. Estimated GDP growth in the fourth quarter was 3.8% compared to 6% in the same period of the previous year. The slowdown has gained momentum in 4QFY01 and has permeated into FY02. Consequently, performance of Corporate India could remain subdued, at least in the first half of the current fiscal, as a revival does not seem to be in sight. As a result markets may not have a reason to cheer.



    Equitymaster requests your view! Post a comment on "Markets: Ringing in the new". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)