STOCK BUZZ

Source : Indianeconomy What is the biggest lesson from the Great Depression? In my view, it is that monetary policy and the financial sector play a crucial role in economic development. Let me put it more precisely: good monetary policy is unlikely to accelerate the speed of economic growth – after all we have more income year after year because mankind comes up with new ideas, with new products, with more efficient ways of producing output. However, bad monetary policy can easily derail economic development. It is true for rich and poor countries alike. Why are financial markets and the banking sector so important? Banks fulfill a very important role in the economy by matching borrowers and lenders. When we deposit $100 in a bank, the bank keeps, at most, two to three dollars in its vaults (in fact the money is often in the central bank), the remaining $98 or so is lent to a borrower. Most businesses require loans for their normal operations. When the banking sector does not work p...

Buy Indiabulls Securities Ltd. 27, 35, 40.... Sl 15. At these prices this stock is a good buy

Upending the government's relationship with the financial sector, the Bush administration outlined a plan Tuesday to prop up banks by injecting $250 billion into U.S. financial institutions, including nine of the nation's largest banks, and to guarantee new debt issues and deposit accounts used by businesses. The sweeping steps create a thicket of issues, most pressingly whether the banks will step up lending. The government is making clear it expects banks to lend out the funds it gets from Uncle Sam. Further exercising its clout, Treasury also extracted a promise that the financial firms would help struggling homeowners, continue lending and would sign up for loan guarantees offered by the Federal Deposit Insurance Corp. "What we're doing is making clear to the banks how important it is to deploy the capital," Treasury Secretary Henry Paulson said in an interview. Analysts, investors and some bankers applauded the government rescue. They said it would help rebu...

Last week's gloom turned into euphoria as investors sent the Dow Jones Industrial Average up 11%, the biggest one-day gain since 1933. It was the fifth-largest percentage gain ever, and it came immediately after an 18% weekly decline, the worst such drop in the Dow's 112-year history. The head-snapping shift in sentiment, spurred by global plans for governments to rescue banks through direct capital injections, left investors debating whether this marked the end of the past year's frightening bear market, or just a temporary respite. History tells a mixed story of rallies like Monday's. Of the five past one-day gains of 10% or more, two marked the end of bear markets, in 1987 and 1933. But three -- in 1929, 1931 and 1932 -- proved short-lived, and were followed by further declines. Because of that, market historians were reluctant to make definitive judgments about the one-day event. "We don't know yet whether the bear market is over, but we do know about the ...

Buy for Oct 14th 2008 : Buy Power grid >94.1,100 sl 90.5 Buy Axis bank >675.1,700 sl 669.5 Buy Tata Steel >316.1,327 sl 313

KINGFISHER AND JET DEAL : Breaking news as 2 big giants have joined hands together for domestic and International routes. This will create big competition for rival airlines on same route.

Market Recap : Short selling lead to world wide crash. This is really good time for Long term investment. If you can invest for 5 yrs, then enter todays market.  Buy Gitanjali gems> 124.1,134,140 sl 119.5 Buy Escorts>44.5,45.5,46,47.25 sl 43 Buy M&M>473.1,480,490,499 sl 467.5 Buy Tata Chem>163.1,172 sl 159.8 Buy Union bank>147.1,149.5,155.9 sl 143.5

Source : Times of India Nano to be rolled out from GUJARAT It is a huge gift for Narendra Modi as he completes seven years in office as Gujarat chief minister on Tuesday. The air was thick with anticipation as top Tata Motors honchos flew down from Mumbai late on Monday evening to take one final look at the site near Sanand, 25 kms from the western fringes of Ahmedabad, which has been identified for relocation of the Nano plant. Sources said the decks have been cleared for transfer of 1,000 acres of land to the Tatas. Modi's council of ministers will meet at 10 am before the Tata team arrives. The land which the Tatas have to finally select is located within a 2200-acre campus owned by the Anand Agriculture University which serves as a cattle and seed farm. The university has already transferred 1,000 acres back to the government which went into an overdrive to woo Tata Motors ever since the situation started worsening at Singur in West Bengal. Government officials we...

Market Recap :  However the direction is likely to be clearer for Indian stock market with in a fortnight as crucial nuclear deal is likely to be signed on 08 Oct. Watch Nifty crossing 4071 level which will indicate bullish strength in the share market. Buy Hero Honda>891.1,898,900,905,920 sl 886.8 Buy Neyveli lignite>92.1,94,98 sl 88.9 (keep an eye on this stock whenever it crosses suggested level). Buy Ranbaxy>266.1,274 sl 263 Buy Bank of India>291.1,297,300 sl 287.9

Sensex support exists at 12599-11899 and the resistance for the Sensex is seen at 13451-13551 levels. Nifty has to cross the level of 4032 to commence slow and steady upward journey. If Nifty breaks 3749 than market will crash. Sell Reliance 90.5,92,94 sl 87.7 Buy Purvankara>180.5,183,190 sl 178 Buy Bank of India>291.1,297,300 sl 287.9

It was really good day for Indian Stock Market. Rally will continue for thru out the week.