Comments on: Carnage on Wall Street http://www.sinletter.com/2007/02/carnage-on-wall-street/ Tue, 03 Jan 2012 14:45:43 +0000 http://wordpress.org/?v=abc hourly 1 By: Anis Haroon http://www.sinletter.com/2007/02/carnage-on-wall-street/comment-page-1/#comment-148 Anis Haroon Wed, 30 Nov -0001 00:00:00 +0000 http://www.sinletter.com.php5-6.dfw1-2.websitetestlink.com/?p=460#comment-148 It was carnage on <a href="http://en.wikipedia.org/wiki/Dalal_Street">Dalal Street</a> as well. After losing almost 9% until yesterday, today the market started weekly in response to the week conditions prevailing in world markets especially in china (which actually finally reversed the downtrend and gained 4% at the time I wrote this) and to top that off, today being budget day, the Finance Minister of India did not help much with his budget by announcing a few negative measures, like hiking Dividend distribution tax to 15% and introduction of Minimum Alternative Tax (<a href="http://budgetwithet.economictimes.indiatimes.com/MAT_drives_software_hard/articleshow/1700461.cms">MAT</a>) for IT companies, which proved fatal to multiple sectors like IT, Cement and Pharma. Though economists feel the budget was not overtly bad and in continuation of the Governments policies, the industry and the Markets were not very pleased. The pros and cons of this budget are highlighted well <a href="http://budgetwithet.economictimes.indiatimes.com/">here</a>. The BSE finally closed at 12,938.09 down -540.74 pts (-4.01%). It was carnage on Dalal Street as well. After losing almost 9% until yesterday, today the market started weekly in response to the week conditions prevailing in world markets especially in china (which actually finally reversed the downtrend and gained 4% at the time I wrote this) and to top that off, today being budget day, the Finance Minister of India did not help much with his budget by announcing a few negative measures, like hiking Dividend distribution tax to 15% and introduction of Minimum Alternative Tax (MAT) for IT companies, which proved fatal to multiple sectors like IT, Cement and Pharma. Though economists feel the budget was not overtly bad and in continuation of the Governments policies, the industry and the Markets were not very pleased. The pros and cons of this budget are highlighted well here. The BSE finally closed at 12,938.09 down -540.74 pts (-4.01%).

]]> By: Asif http://www.sinletter.com/2007/02/carnage-on-wall-street/comment-page-1/#comment-149 Asif Wed, 30 Nov -0001 00:00:00 +0000 http://www.sinletter.com.php5-6.dfw1-2.websitetestlink.com/?p=460#comment-149 <p>Your input about the Indian market is appreciated Anis. I like the focus on agricultural and rural infrastructure in this budget but cannot say I am happy about the increase in the dividend tax.</p> <p>I think a key development is the proposal to allow individual investors in India to invest outside the country through mutual funds. The restriction on investing abroad did not make any sense and I am glad to hear that they are lifting it as investors can now diversify their portfolios globally and reduce their risk. I am sure there is going to be scramble amongst mutual fund providers in India to come up with new funds.  </p> <p>I am very surprised to see that even though Tata Motors (<a target="_blank" href="http://finance.yahoo.com/q?s=TTM">TTM</a>) dropped 4.59% on the Bombay Stock Exchange, the ADRs are up more than 2% on the NYSE today. Maybe it is just rebounding along with the rest of the US market after dropping 18% since Jan 16th. </p> Your input about the Indian market is appreciated Anis. I like the focus on agricultural and rural infrastructure in this budget but cannot say I am happy about the increase in the dividend tax.

I think a key development is the proposal to allow individual investors in India to invest outside the country through mutual funds. The restriction on investing abroad did not make any sense and I am glad to hear that they are lifting it as investors can now diversify their portfolios globally and reduce their risk. I am sure there is going to be scramble amongst mutual fund providers in India to come up with new funds.  

I am very surprised to see that even though Tata Motors (TTM) dropped 4.59% on the Bombay Stock Exchange, the ADRs are up more than 2% on the NYSE today. Maybe it is just rebounding along with the rest of the US market after dropping 18% since Jan 16th.

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