Equities likely to remain volatile on Fed cut (The Economic Times 31th Jan 2008)The mood in the Indian stock market is likely to be volatile following a 50 bps cut in the interest rate by the US Federal Reserve and expiry of January futures. The US Federal Reserve has cut rates to 3 per cent and also hinted that rate cuts were possible in the near future. Dow Jones Industrial Average, which moved up over 100 points after the announcement, settled 37.47 points or 0.30 per cent lower at 12,442.83 and Nasdaq Composite closed 0.38 per cent or 9.06 points down to 2,349.00. Equities will also be taking cues from subdued Asian markets which remained mixed after Federal Reserve’s announcement couldn’t lift bearish sentiments. Japan’s Nikkei Average was 0.55 per cent higher at 13,417.98, China’s Shanghai Composite was 0.34 per cent up at 4,432.932 and South Korea’s KOSPI was up 0.58 per cent at 1598.35. More
Interest rates unlikely to go down (The Economic Times 4th Jan 2008)Interest rates are unlikely to fall in near future as it was expected with the State Bank of India raising the fixed deposit rate of various maturities up to 1.5 percentage points. Other banks are also planning to raise deposit rates. After SBI increasing deposit rates, other banks have no choice but to raise the rates to mobilize resources in the domestic market, chairman of a public sector bank said. As the cost of funds for banks will increase, they will resort to raising the lending rates. A senior banker said banks would announce the increased rates in near future. More Gold zooms past Rs 11,000 per 10 gm (The Hindu Businessline 4th Jan 2008)Gold prices made history as they soared to a record $ 865.35 an ounce in the London A.M fixing on Thursday, tracking which the domestic gold surged to Rs. 11,000 per 10 gm. On Wednesday, gold was fixed at $ 840.75/oz in London while in the Indian market it quoted at Rs 10,70
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