MFF – 090103 – 23:19 Hrs

+ The Supreme Court has finally granted SEBI the permission to interrogate the Raju brothers of Satyam. It is the worst thing an investor can imagine that can happen in India. SEBI by virtue of its function must have got the first chance to question all the people involved but its only almost after three weeks they will get their right to do so. Will something serious come out now? One can assume it’s already too late and SEBI questioning them is only going to be a formality.

 

+ One does not require extra ordinary intelligence to presume that lot of cover up must have been completed by now on the issues involving politicians in the case, specially the Congress CM Rajasekara Reddy. The way Raju confessed and then went into police custody and how the Congress government deployed the CID of Andhra, points towards lot of hidden agenda. Raju definitely must have got assurances from the Andhra CM before the confession, involvement of Congress from Delhi cant be ruled out as CM getting caught could have damaged the UPA prospects in the coming elections. Lets wait and watch what new SEBI finds now.

 

+ SEBI directive to all companies, to disclose all the information on promoters pledged shares, that too within Seven days spooked the market on Monday. Tuesday was no better baring the late recovery. Realty stocks for obvious reasons got butchered at the hands of sellers, as this is the most probable sector wherein promoters may have pledged shares for raising capital. Infact we should support SEBI on this directive as things are only going to get more transparent once the data’s start flowing out.

 

+ After Satyam one cannot believe even auditors! PWC will be a permanent black spot to the profession for times to come. Directives like these can help investors. Read the article “The investor always gets hurt” which reflects the apathy with which thousands of Indian companies work. We investors have to raise our voice, no third person will ever be interested in safeguarding our money!

 

+ The election commissioner has already announced the likely time when Lok Sabha elections will be held. April/8 – May/15 would be the most likely dates, hence expect big developments to unfold in the days to come. Weird things like DMK pulling out of UPA can’t be ruled out either (DMK has done such things in past also). By saying expect big developments I mean only on the political front and nothing major would happen to Stock Market (unless and otherwise corrupt people like Mayawati gets onto PM’s chair)

 

+ Markets wont make any major move till elections, this has been maintained by MFF since April’08, many questioned due to such long period involved, but now MFF has been proven right. Nifty has a support at 2740 – 2750 that’s why we saw it bounce today. The resistance comes at 2900 – 2920, but Nifty is falling every time it tries to climb over 2850 range. Negative trend starts if it falls below 2700. Dow is at the support levels and the next support comes at 7830 – 7780 (Obama craze has died down now). Vivek Karwa’s views on REC had been published in Nanaya Vikatan magazine, its largest circulating personal finance magazine in a vernacular language. Mentioned it since the stock is up since then.

 

+ Some people are spreading rumors that Wednesday would be a lower circuit. Time will, like always prove them to be wrong. Also a very useful file All abt Recession has been uploaded on the site under “Knowledge VRIDHI”, do not forget to enroll for MFF under the “Save – Win – Earn” offer.

 

Jai Hind

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