RBI infuses over Rs 4,00,000 cr in last 4 months

Be prepared to see a smart rally in the Indian Bourses in the next few days after the infusion of such huge sums of money. Moreover, if this money starts to get into the Indian Bourses, I will not be surprised if the Sensex scales above 15, 000 in the next 6 to 7 months time frame.

Those who are short on the markets might lose their shirts in the days to come as there are chances that the Sensex could move above 12, 500 in the next couple of months time frame.

The latest Sunday/Monday Report (26th January, 2009) recommended Hanung Toys and Textiles Ltd hit the 20% buyer freeze today. The research report on the company, which was sent to the Paid Groups yesterday (26-01-09), has already been placed in SumanSpeaksPlus.

I think you have seen the price of Satyam Computer Services Ltd today which touched Rs.49.9 today. I have mentioned a number of times in this blog that I started accumulating Satyam Computer Services Ltd from Rs.18.5 onwards much to the displeasure of many great market participants,.....

If you remember Shankar Sharma (and many so called experts who proliferate TV Channels these days) said that the stock of Satyam Computer Services Ltd would go below Rs.10 and has no value.

But then these TV Channels, (especially I am stunned by the unadulterated love of Udayan Mukherjee toward this fellow, due to some strange reasons) cannot forgo the bad habit of bringing this man and confuse everybody.

He does not even know why L & T is acquiring Satyam Computer Services Ltd!!?? What an expert.....??!!

I think I have mentioned almost 20 days back in this blog and to the Paid Groups, why it would be beneficial for L & T to acquire Satyam Computer Services Ltd---ditto happened........

Today I slammed an important functionary of a New Delhi based brokerage house when he tried to defend this "confused guy".

Moreover, the average American household is already too much in debt and this scares banks from lending any money. Giving $700B to these banks without proper checks and balance will bring to light the fact that lending to bad debtors is a risky venture. Thus, according to some analysts, it is safer for banks at the moment to invest this money in commodities (oil and gold) which do keep up with inflation than to issue loans that cannot be repaid. The Gold price is already moving up and according to a Reasearch Head of a brokerage houses, with whom I spoke today, said, "Invest in Gold even now to get maximum benefits; the next in the line is Crude Oil". So expect this bailout package to give a speculative boost to Crude Oil prices.

If you remember last time I was right in predicting the Crude Oil prices in the downward direction and this time I will also be correct in predicting an upward swing in the Crude Oil prices to around $72 per barrel. Just wait and watch....

A pre-budget (or Vote-on-Accounts) RALLY is about to begin and hence keep some cash to invest in the same.....

But then where to invest and what to invest?? These to the Paid Groups only...

MUMBAI: The Reserve Bank on Tuesday said it has infused over Rs 4,00,000 crore into the system through series of monetary easing measures taken since mid-September, 2008.

"The actions of the Reserve Bank since mid-September 2008 have resulted in augmentation of actual or potential liquidity of over Rs 3,88,000 crore," the central bank said in its third quarter review of the Monetary Policy for 2008-09.

In addition, the permanent cut in statutory liquidity ratio, percentage of deposit required to be parked in government securities, by one per cent has resulted in injection of funds of the order of Rs 40,000 crore for the purpose of credit expansion. In all, RBI has infused Rs 4,28,000 crore in the last four months.

The statement noted that the liquidity situation has improved significantly following several measures taken by the RBI. Since mid-September, the cumulative reduction in the cash reverse ratio (CRR), released Rs 1,60,000 crore into the banking system.

The apex bank also released over Rs 63,000 crore through unwinding of market stabilisation schemes (MSS) in the period.

Through various refinance facilities windows to banks and financial institutions, the potential liquidity of Rs 80,000 crore was made available and through the repo window liquidity of Rs 60,000 crore was infused, the bank said.

The Reserve Bank added that the special purpose vehicle for non-banking financial companies (NBFCs) will augment potential liquidity by another Rs 25,000 crore.

Note: The discount package to the Paid Groups ends 31st January, 2009. Hence interested parties should rush in for the details.

Moreover, I am having fever and hence may not be able to update the other blogs in time....