The boot or a boost for the agriculture?

The Indian economy is one of the most resurgent economies of this world and one can say that the whole world was watching the Indian budget showdown yesterday. One of the highlights or should I say that the whole budget was about was the loan waiver that was being offered to all the farmers in India.
What has come as a surprise to one and many is this waiver of loans as they are bound to have negative effects on the economy as a whole. What one is worried about is the impact on the banks as they already have enough on their plates. 2007 was one bad year for the banks worldwide and the announcement of the waiver has made things even worse for the Indian banks.
But all is not gold yet as the farmers in the Vidarbha region are yet to get any relief as a result of these new policies.

Visa soon to go public!

Visa has announced its plans top go public and this may well turn out to be the largest IPO offering by a card processor. This may not be the best of times to go public with the economy being as it is, but with Visa, its presence in the markets worldwide should increase the demand for Visa shares , if not by American consumers then by international ones.

Visa has made its plans and its announcement is bound to shake up the market a bit. Maybe, even a bit of the optimism that is reflected in the Visa’s offering could spill over onto the market at large and perhaps, that is a big perhaps, we may well see the Dollar do well in the coming days. Visa is planning to offer upwards of 400 million shares at the $30-$40 range with a neat option for the underwriters for some handy stock of the ‘Visa magic’.

At the moment, consumer confidence has hit some choppy waters and it is going to take something for the consumers to purchase the Visa shares. Even if the Visa IPO were to hit the low ranges, it could still surpass the target area left by its arch rival Mastercard a couple of years back when it went IPO. What is the outlook for investors as far as Visa goes? If the investors cop a loss on the Visa IPO, then in all probability the company would introduce ‘bonus shares’ to offset any loss that may have been incurred by an investor and also this way, the company can maintain customer confidence in the company. This seems to be the most popular route that is taken by IPO’s that end up getting priced lower as a result of economic pressures. All eyes are on the IPO especially to see who are going to be the underwriters on this one.

Oil rebounds again inspite of fears of recession!

Oil rebounded today in spite of the fears of the U.S recession. It is the fear that a recession hit United states, may no longer demand that much of the 'Liquid gold' and may also start rationing the fuel out as it did in the past. It was that fear that drove the price tag down and gave a breather for the rest of us.
But now, that breather is all gone and it is back to business as usual. Of course, the recession danger is still not over and with Wall street taking a real hit today, come Monday, the Oil may start to slide all over again. This Tango over the prices and the recession fears looks set to continue for some time as the Dollar goes from weak to weaker still. With Oil going up, the metal markets especially the Gold will respond by going up a few notches itself!

How quickly do the rich fall!

It seems that it was only yesterday that the Indian share market touched the 20,000 mark creating a history of sorts. That by itself was a bit of remarkable news. But soon the media picked on another bit of 'juicy news' in the making. They started announcing that the recent surge in the Reliance holdings in the share market has made Mukesh Ambani the richest man in the world. That bit of news was not exactly a shocker since the whole Ambani family have a fortune of somewhere around 100 million$.

But soon Reliance came out with a press release telling the whole world that the piece of Juicy news that Mukesh Ambani was the richest man in the world is all a case of 'jumping the gun'. The fact of the matter is that Mukesh Ambani is not yet the richest man in the world but with the way that the intra day trades are taking place in the share market, it is only a matter of time before that becomes a formality!

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Stocks 'bull ahead' past the 16.5 K mark!

The sentiments in the Indian stock markets is still very much 'bullish' all the way and today was no exception.the stocks zoomed past the 16,500 mark to end the day at 16,564 levels before which they actually crossed the 16,600 levels.of course the question in every traders mind is where is the new bottom and when is ti going to bottom out?
Given the current trends and the current political and economic news it seems that the 16,000 mark may well be the new base for the stocks.the Indian stocks have been seeing a lot of action in the last 2-3 years and they have been growing in scrips and investors at a very rapid pace.if you were to take a day off and go to the actual trading floor at the Bombay stock exchange,it will e total chaos but you would be able to feel the vibrancy of the Indian economy which is on the move.my expectations are that the Indian stocks will at least see the 20 K levels before the end of 2008!lets see!

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