dkishore
24-01-2008, 07:04 AM
Market abuzz with talk of NSE margin hike
The market was agog with speculation on Wednesday that the NSE has hiked margins requirements for around 45-50 scrips in the futures and options segment. The talk was that the exchange has hiked margins in some shares by as much as 50-100%. Such speculation is not without reason.
Volatility has been around record levels in the last few days. Margins are altered as per the volatility in the market i.e., when volatility rises, there is a corresponding revision in margins derived from the SPAN software. Higher margins mean investors need to set aside additional funds to keep an open position.
The exchanges hike margins in stock or index derivatives to check excess speculative activity. When contacted, NSE said that margins always vary on a daily basis since it is based on ‘Value at Risk’ (VAR). The exchange clarified it has not changed any margin computations and continues to follow the same systems and procedures consistently. It also said that NSE has not called for any additional margins.
RPL up on heavy buying by European broking firm
The Asian sub-account of a European broking outfit was seen purchasing Reliance Petroleum (RPL) shares in large numbers on Wednesday. According to brokers, ‘Debit Lie-on-us, Asia’ was aggressively buying RPL shares on behalf of a US-based oil refining giant. RPL ended 15% higher at Rs 169 on strong volumes.
The stock has depreciated 23% over the past one week. In another instance of institutional buying, two domestic mutual funds (Cutie and Amen)were said to be actively bottom fishing in the counter of Ranbaxy. The stock of Ranbaxy closed at Rs 350.30 up almost 3% at end of trade on Wednesday. The scrip has lost ground by almost 8% over the past week.
RIL exec director feels mkt fall is occupational hazard
It is always difficult to get a senior official from Reliance Industries, India’s largest private sector company, to comment on the mood in the stockmarkets. But Tuesday turned out to be a lucky day, with reporters getting a peek into the mind of Hital Meswani, executive director at Reliance Industries (RIL).
Delivering the key note address at the 58th National Conference of Indian Association of Occupational Health, he said the market falling over 2000 points should be seen as an ‘occupational hazard’ for people in the stockmarkets. Lot of them are naturally under stress and in panic.
The market was agog with speculation on Wednesday that the NSE has hiked margins requirements for around 45-50 scrips in the futures and options segment. The talk was that the exchange has hiked margins in some shares by as much as 50-100%. Such speculation is not without reason.
Volatility has been around record levels in the last few days. Margins are altered as per the volatility in the market i.e., when volatility rises, there is a corresponding revision in margins derived from the SPAN software. Higher margins mean investors need to set aside additional funds to keep an open position.
The exchanges hike margins in stock or index derivatives to check excess speculative activity. When contacted, NSE said that margins always vary on a daily basis since it is based on ‘Value at Risk’ (VAR). The exchange clarified it has not changed any margin computations and continues to follow the same systems and procedures consistently. It also said that NSE has not called for any additional margins.
RPL up on heavy buying by European broking firm
The Asian sub-account of a European broking outfit was seen purchasing Reliance Petroleum (RPL) shares in large numbers on Wednesday. According to brokers, ‘Debit Lie-on-us, Asia’ was aggressively buying RPL shares on behalf of a US-based oil refining giant. RPL ended 15% higher at Rs 169 on strong volumes.
The stock has depreciated 23% over the past one week. In another instance of institutional buying, two domestic mutual funds (Cutie and Amen)were said to be actively bottom fishing in the counter of Ranbaxy. The stock of Ranbaxy closed at Rs 350.30 up almost 3% at end of trade on Wednesday. The scrip has lost ground by almost 8% over the past week.
RIL exec director feels mkt fall is occupational hazard
It is always difficult to get a senior official from Reliance Industries, India’s largest private sector company, to comment on the mood in the stockmarkets. But Tuesday turned out to be a lucky day, with reporters getting a peek into the mind of Hital Meswani, executive director at Reliance Industries (RIL).
Delivering the key note address at the 58th National Conference of Indian Association of Occupational Health, he said the market falling over 2000 points should be seen as an ‘occupational hazard’ for people in the stockmarkets. Lot of them are naturally under stress and in panic.