Saturday, July 19, 2008

"MarKET"AN Parekh Watch

I would introduce to you one of the biggest speculator ever produced by Indian Stock Exchange -->None other than Ketan Parekh.......

Ketan formed a network of brokers from smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and used benami, or share purchases, in the name of poor people living in the shanty towns of Mumbai. Ketan rose to fame at the same time as the worldwide dot-com boom (1999-2000) and he relied primarily on the shares of ten companies for his dealings (now known infamously as the K-10 scrips).

Ketan's modus operandi was to ramp up the shares of select firms in collusion with promoters. Interestingly, around the time when Ketan started taking long positions in his favorite K-10 scrips, SEBI concluded a 3-year old case against Harshad Mehta, who had colluded with the managements of BPL, Sterlite and Videocon to ramp up their shares.

At the time, a group of traders known as the Bear Cartel (Shankar Sharma, Anand Rathi, Nirmal Bang) were making money from falling stock prices. Bears sell stocks at high prices and buy back at low prices. Around February end in 2000, this cartel placed sell orders on the K-10 stocks and crushed their inflated prices. All of Ketan's borrowings could not rescue his scrips.

He was arrested in 2000........for gambling in more than 25 scrips...

The Supreme Court directed the application of Ketan Parekh, seeking exemption from surrender, to be listed before a chamber judge.

On 15th July, the apex court had refused to extend time for Ketan Parekh to pay Rs 26 crore to Madhavpura Cooperative Bank, which was defrauded by him in connivance with the CMD of the Bank to the tune of Rs 1000 crore.

Market professional once said

"Market Bears for its own essence"

It would be my pleasure to get comments on this topic as the last line has the essence of the blog and needs to be understood nicely.........If my friends have the perfect answer to the q asked they are free to comment!!!

Wednesday, July 16, 2008

N-Deal Uncertainity Continues

Many of economic experts have provided their review, reports arising as a consequence of the Nuclear-deal. I would like to provide my view on the effect of this deal.

According to me, this deal needs to be translated into economics, commerce, trade, development, FDI and mutual admiration. At the moment, Indian Opposition politicians think that the country’s independence and prestige has been sold out. The US politicians are thinking a bit differently but much worst (according to my opinion). They are thinking that a gapping hole has been punched into the NPT regime. Yes, both are right, although the Indian side is stretching it a bit. In US, the Nuclear Lobby Group has gained an upper hand. They confidently are predicting to scuttle the deal. These few former US State Department officials are idealists. They wish to remove all nuclear weapons from India’s hands, hence will precipitate a crisis prior to the deal’s approval(This is a true saying by a Senate in during an Interview at BBC).

When Manmohan – Bush finalized this deal in July of 2005, the Lobby Group mounted an instantaneous opposition. Unable to persuade the Bush administration to renege the deal, they changed tactics and started a campaign against it with the US Congress (the elected body). This resulted in US sending a tough negotiator in Nicholas Burn to negotiate further details and possible concessions to salvage the deal in the US Congress. He did well and ended up in getting ironclad concessions prior to President Bush’s visit to India. The opposition to this agreement is not dead yet. The Nuclear Lobby Group is making a last ditch effort to scuttle the deal in the Congress. But full backing of the President Bush and his able Secretary of State Condi Rice will ultimately help to get this deal through.