The "statistics" are not even of any significance. Based on one day’s data, the BSE yesterday claimed to be the No. 1 exchange! Today it is back to reality
The Bombay Stock Exchange's (BSE) turnover in the cash segment yesterday suddenly hit a record-breaking high of around Rs12,832 crore, "the highest amongst all Indian stock exchanges," the BSE claimed in a press release. All exchanges? There is only one more -- the National Stock Exchange -- which has beaten the BSE hollow in every way over the past decade. And how durable is thisone day lead of the BSE? Just a day earlier, the BSE's volumes stood at Rs3,391.27 crore, a fraction of that of the NSE. Can one day's data lead us to any conclusion?
For months together, the BSE's cash market turnover has been under Rs4,000 crore. A turnover of Rs5,000 crore-Rs6,000 crore has been rare. The sudden jump in turnover yesterday was obviously a one-off situation. Indeed, it was entirely caused by a block deal of Cairn India shares valued at $2.1 billion. So, the BSE set off on a major self-congratulatory binge.
It was so mighty pleased with the one-day wonder that it issued a press release where it hinted at the source of this sudden volume growth on Tuesday: "The exchange initiated several innovative initiatives such as mobile trading (currently being promoted by several broking firms), BSE's NEW BOLT trading terminal features, Fast Cast, E-Cast (allowing greater visibility on depth of market) and pre-open trading in common scrips and also in scrips listed only on the BSE. Implementation of faster processing systems has led to an increased response time of less than 10 ms from the earlier speed of 200 ms. Order-trade ratio has also gone up from 5:1 to 19:1 in the last one year. There has also been an increase in capacity from 1,000 orders per second to 20,000 orders per second."
This elaborate gibberish would have made sense if only the BSE's claimed leadership had lasted even for a day. The turnover on the BSE today slumped back to Rs3,747 crore, whereas the turnover on the NSE was four times that number, which is the daily norm.
In fact, the BSE was not number one even yesterday, if one judges on the basis of the volume of shares traded. For while the BSE clocked a volume of about 59 crore shares, the volume on the NSE was 60.59 crore shares. It is said that one can twist data in any way to peddle a lie. But the BSE has not bothered to twist a fact. Its leadership claim was a complete hoax. What the whole episode really reveals is the mindset of the top leadership at the exchange, which is struggling to stay relevant.
More importantly, the stock exchanges are the first line of regulation. If they indulge in such obfuscation, merely as an act of oneupmanship, can they be expected to discharge their regulatory functions with maturity? Also, how much more devious will they get if they are allowed to list and are under pressure to protect their stock price with a continuous improvement in financial performance quarter on quarter.
This ought to be a wake up call for the Securities and Exchange Board of India (SEBI) which ought to come down hard on the BSE's mischievous one-upmanship, where it falsely attributed a one day jump in turnover to various actions initiated by the bourse's expensive top management team.
Renault-Nissan Automotive India has appointed Kou Kimura as the new chief executive officer & managing director for its manufacturing facility at Oragadam, near Chennai with effect from 1 April 2011
Renault-Nissan Automotive India Pvt Ltd (RNAIPL) said that it has appointed Kou Kimura as the new chief executive officer & managing director for its manufacturing facility at Oragadam, near Chennai with effect from 1 April 2011.
Mr Kimura was promoted to CEO & MD from his previous position of senior vice president-plant operations of the Oragadam facility, which he held since 2008. He replaces Akira Sakurai who successfully steered RNAIPL operations in the initial phase of production. After two years as CEO & MD of RNAIPL, Mr Sakurai has now been appointed as SVP, manufacturing & industrial engineering division at the corporate headquarters in Japan.
Mr Kimura is a graduate in mechanical engineering from Touhoku University in Japan. He started his career in Nissan Motor Ltd's (NML) Oppama plant in Japan in the year 1977. Prior coming to India, Mr Kimura has held various positions in Nissan head quarters in Japan and in the United Kingdom.
Net interest margin stood at 2.9% at the end of March 2011while Capital Adequacy Ratio of the bank was 16.5%
Mumbai: Private sector lender Yes Bank today posted 45% jump in net profit at Rs203.4 crore for the fourth quarter ended 31 March 2011 compared to Rs140 crore in the corresponding quarter of the previous fiscal, led by growth in advances, reports PTI.
Total income of the bank soared by 70.89% to Rs1,409.3 crore in the January-March quarter as compared to Rs824.7 crore in the same period of the previous fiscal.
Net interest income (NII) improved by 42.7% to Rs348.8 crore as against Rs244.2 crore in the same quarter a year ago.
The bank proposed a dividend of 25%, or Rs2.50 per share, for 2010-2011.
For the entire fiscal ended March 2011, the bank's net profit grew by 52.2% at Rs727.1 crore compared to Rs477.7 crore in the corresponding fiscal.
Total income increased to Rs4,665 crore during the year, compared to Rs2,945.2 crore in the previous fiscal.
Net Interest Margin (NIM) was 2.9% at the end of March 2011. At the same time, Capital Adequacy Ratio of the bank stood at 16.5%.
Total advances rose by 54.8% Rs34,363.6 crore during the year, as compared to Rs22,193.1 crore in the previous fiscal.