2008: Biggest Business House Failures

2008 is the year which brought changes, both at the political and economical front, but it also saw some of the biggest wealth meltdown. Reliance Anil Dhirubhai Ambani Group (RADAG) forayed into number of diverse businesses from Telecom, UMPP, Media erc. saw the stock prces of its flagship companies raised to greater heights during 206-2007 . The launch of RelPower IPO marked a history in Indian bourses, and maded him one of the richest man in the Indian soil just behind his elder brother Mukesh Ambani. But just after the IPO launch the Indian bourses faced a greater meltdown in history, and all companies pionered under ADAG groups suffered great losses, with some its companies lost more than 80% of its peak valuation price, thus making Anil Dhirubahi Ambani pauper by multi million dollars, thus also made him one of the biggest business house failure in recent time.

Thanks&Regards,
Mohit

2009 : Astrologers Prediction..

Its the end time of the year, the year full of turbulence, be it financial turbulence(in form of Subprime Crisis, Stock market meltdown across the globe ), political turbulence(a black man, taking over the World Top most job, End of peace talk between Indian and Pakistan after 26/11 Mumbai Attacks) . But as the year close by, the astrologers across every circle are carrying out prediction for the next year 2009.Several astrolgers predict that 2009 may bring a sigh of relief to financial markets, and markets may experience little bit of rebound by next year. There total analysis is based on the position of stars, and based on their analysis, these stars will be in favorable position to support market upward movement. While economists worldwide have a totally a contradictory point of view, according to them 2009 may to be a smooth year, the aftermath of 2008 will be feel in 2009, with substantial job losses across all sectors. Lets see whose analysis work ahead in next year.

Thanks&Regards,
Mohit

Satyam in a jittery !!

Satyam Technology Solutions, India's fourth largest Information technology company was in a state of jittery last week. Apart from feeling heat from global meltdown and loosing some of its biggest clients, it faced an allegation under Corporate governance. Last week, Satyam management decided to take over Maytas Infrastructure and Maytas Properties the companies manged by 54 year old Satyam CEO Mr. B. Ramlinga Raju sons.

The Satyam Maytas deal was valued arround 1.6Bn$, and investors doubt that due to economic gloom Satyam wants to shift its interest from Information Technology to infrastructre business.

The announcement of the deal results in the 55% drop in the value of the ADR in NYSE in US. Within an hour Satyam Investors lost about 2Bn$ at NY bourses, even at BSE Satyam shared suffered a huge hit.

After govt. ordered an investigation in Satyam decision, the Satyam mangement retracted their decsion and cancelled their decision for the bid. At the same time in order to improve the investor sentiments, Satyam CEO decided to go for a buyback or a higher dividend.

This decision certainly hurt investors sentiments, not only toward the Satyam company, but towards the entire Indian IT sector.

So the real question is Will other IT companies will use their cash reserve in doing acquistion in their own sphere, or will their diversify in different sectors to improve their revenue options ?

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Thanks&Regards,
Mohit

Oil : 200 $ to 25 $

In this financial meltdown one commodities which is greatly hit is the Oil. During mid year, analyst involved in Oil and other commodity research pointed out that Oil will reach 200$ mark by ear end. But as the year approaches to an end, scenario is totally changed. Now the same commodity is trading below 50 $ mark and some analyst are predicting the it may fall in the range of 25-30 $ mark.

But the question is why there is a pendulum shift in the Oil prices? Is it the speculators who brought the Oil prices at that level ? Or is the speculators now who are bringing the oil level in submissive level. So certainly seems that economic parameters of demand and supply did not fit in determining the price of the oil, rather it was traders who won the race. This may be applicable for other commodities also, but certainly it fit well for Oil.

Lets see at what level the Oil will go in the coming week.

Thanks&Regards,
Mohit

Madoff Havoc on Wall Street..

Bernard Madoff, the 70 year Wall Street Veteran will be known as the one of the biggest fraudster in the years to come. The guy which was one of the renowned figure in the US banking Industry had created a mess and hurt the reputation of US financial firms which will take years to rectify it. According to market analyst, the investors who had invested into Madoff's so called Ponzi schemes may be ripped up of more than 5obn$, thus making this as one of the biggest financial fraud of its time.

Some of the biggest names which burnt their hands in this fraud are, HSBC , BNP Paribas, Royal Bank of Scotland. Even the Banco Santander, the largest bank in the euro zone, lost a fare amount of money in this fraud.

In this difficult financial year, which saw some of the greatest banking failure, this is the last thing which investors expected.

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Thanks&Regards,
Mohit Kumar

No respite for the ailing market..

Its often said, if bad thing started.. it will not be ended easily. This is something what is happening with the global markets worldwide. Even though every govt. are taking sufficient measures, from declaring multi billion dollar packages, by opening special lending windows for banks, by reducing cash reserve ratio and statutory liquidity ratio, in order to increase liquidity in the market, and relieve global economy from global recession cover.

But somehow it seems that these measures are short lived, and when the markets tries to recover, the next big fraud or disaster comes into picture which subdued the effects of financial relieve packages.

Latest fraud which added fuel to fire is the 50bn$ fraud carried out by Bernie Madoff, a 78 year old Wall Street Veteran.

It now seems that market respite will surely a distant dream.

Thanks&Regards,
Mohit

NRI groom faces the heat of a Market Gloom....

Recent market recession which caused the meltdown of some of the major sectors from Auto, Banking, IT, but this recession also caused meltdown of demand of NRI groom.

In Indian marriage Industry, the so called Non-Resident Indian, abbreviated as NRI, are the hot pancakes always in demand. But things are not more the same, with regular job cut in the developed market and with no sign of early respite from recession, Indian bride would certainly like to look out for their soul mate at their soil itself.

Though marriage analyst says that this may be the temporary face and NRI grooms will be again in the limelight. But till that time comes this market gloom will certainly deprived NRI groom in finding the right bride. :-)

Thanks&Regards,
Mohit

Week After Mumbai Terror Attack

26/11 , Mumbai will never forgot this dates for a very long time. The day when terrorist just barged into into Indian Financial capital and left Indian Cosmopolitan City standstill for more than 60 hours.


During the week Indian govt. tried to appease Indian Citizens, which can be seen from the early exodus of inept Home Minister, Shivraj Patil. Constant allegation against Pakistan for promoting terrorism, shown respect to officers who were killed during the mission. Indian defense minister called some highlevel defense meeting and asked for better coordination among the Country defense forces and intelligence agencies. Even the terror strucked Mumbai Citizens paid homage to all those dead and carried out peaceful rallies near the Gateway.

But the question is are they enough? Or even if they are enough, will it last longer ? Will India retaliate more aggressively this time? How will Country put its strategies against terrorism?
The list of question with What, How and When is endless.....

Now there are no question of Wait and See but its now the time for some sporadic actions.

Thanks&Regards,
Mohit

US big 3 meet again

Last month, 3 US auto giant GM, Ford and Chrysler approached Congress begging for 25Bn$ bailout package for their package. But somehow Congress were not pleased by the request of 3 auto makers, but they were shown the door and asked to come again, but with some concrete plan. Plan containing Company's future vision, company strategies to curb revenue.

Today, 3 US makers come again to meet US congress with their plans. The plan includes salary cut of top executives, sale of corporate jets, while at the same time GM also proposed to sell off its two brands- Pontiac and Saturn.

But at the same time, the auto makers also raised their request for bailout package. GM demanded somewhere around 18Bn$ while Ford demanded somewhere around 9Bn$.

Though in order to maintain desirable employment level in the country, it seems that Congress may sanction the bailout amount to ailing US auto firms. But before they sanction the money they should ask these auto giants for somewhat more concrete plans, and also raise the question how these firms will return the tax payers money, which they are demanding for. Until and unless, these questions are answered Congress should hold their decision of bailing out these firms.

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Thanks&Regards,
Mohit