Bull stop

As we have been predicting, a correction has set in

The market fell sharply today with financial stocks taking a beating, due to concerns over a possible rate hike by the Reserve Bank of India. The Sensex closed at 17,639, lower by 182 points (1%) and the Nifty closed the day at 5,273, lower by 49 points (1%).

In the morning, the market started off on a strong note, taking a cue from Asian bourses. However, it soon pared its gains and started falling. The plunge continued throughout the day. 

Asian stocks rose on Thursday, as China’s economic growth accelerated and bellwether US technology and financial firms reported strong results, boosting the appetite for riskier assets. Key benchmark indices in South Korea, Hong Kong, Indonesia, Japan and Taiwan were up by 0.16% to 0.92%. Key indices in China and Singapore fell 0.04% and 0.01% respectively.

US stocks rallied for a fifth straight session to a new 18-month high on Wednesday, 14 April 2010, after some strong earnings reports from major industry players and encouraging consumer spending data. The S&P 500 crossed 1,200 points for the first time since September 2008. The Dow rose 103.69 points (0.94%) to 11,123. The Nasdaq rose 38 points (1.58%) to 2,504 and the S&P 500 rose 13 points (1.12%) to 1,210.

Closer home, a normal monsoon is expected this season. This announcement came from the Indian Metrological Department after a discussion with the World Meteorological Organisation and representatives from Pakistan, Sri Lanka, Bangladesh, Nepal and Maldives at the three-day ‘South Asia Climate Outlook Forum’ at Pune. The finance minister said that inflationary pressure would remain till June. The wholesale price index (WPI) rose an annual 9.9% in March, the fastest pace in 17 months, driven by higher food and fuel prices. The food articles’ index rose an annual 16.65% in March and the fuel price index rose 12.71%. In the 12 months to 3rd April, the food price index rose 17.22% and the fuel index was up 12.43%.

Foreign institutional investors were net buyers on Tuesday (Rs128 crore). Domestic institutional investors were more active then their foreign counterparts. They bought stocks worth Rs252 crore. The rupee weakened today after the slide in the equity market and the strengthening of the dollar against major currencies.

Hindustan Zinc (down 1.4%) is looking at acquiring Anglo American’s zinc operations. Anglo American operates in Namibia, Ireland and South Africa. Reports indicate that the Comptroller and Auditor General will hire specialised private consultants to audit capital spending by Reliance Industries (down 2.7%) and Cairn India (up 1.6%) on exploration and development of the Krishna-Godavari oil & gas block and Rajasthan’s Barmer fields.

Areva T&D (up 0.28%) has received three major turnkey project orders from Chhattisgarh State Power Transmission Company (CSPTCL) and West Bengal State Electricity Transmission Company (WBSETCL). Two of the orders are from CSPTCL, one for the manufacture and installation of a 132-kilowatt air-insulated substation (AIS) at its Patan plant and the other for a 220-kilowatt AIS at its Vishrampur plant. The West Bengal State utility contract is for the supply and installation of a 132-kilowatt AIS at the Nazipur plant in Pirojpur, as well as two bay extension projects for the 132-kilowatt AIS at Amtola, Kolkata. Teledata Technology Solutions (down 9.5%), has launched a next generation real-time data collection and delivery solution platform, enabling intelligent integration of distribution and customer operations. Northgate Technologies (down 4.4%) has approved a plan for raising funds through equity offerings up to Rs25 crore. 

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    Gmail goofs up, sends regular emails into spam folders

    The spam filters on Gmail have become hyperactive lately—sending regular, legitimate mails into the spam folder

    Recently, I found that many of my regular emails in my Gmail account are being delivered to the spam folder. I have been using Gmail since many years and never had any complaints on the way the system was being handled by the search engine giant. I do check my spam folder on a regular basis—just to check if some important message has reached the wrong destination.

    But since the past two-three weeks, I have noticed that some of my regular emails, including those sent by friends and colleagues from work, are being marked as ‘spam’. This forces you to keep a tab on the spam folder as well, just to make sure that you receive all your legitimate mails.

    According to messaging software developer and provider, Commtouch, during the first quarter of 2010, spam levels averaged 83% of all email traffic throughout the period, peaking at nearly 92% at the end of March. Assuming worldwide email traffic of around 220 billion emails per day, this would equate to an average of around 183 billion spam messages per day, Commtouch said in its quarterly ‘Internet Threats Trend’ report.

    During the first three months of this year, medicinal spam, advertising Viagra and other types of medications, represented 81% of all spam messages, about the same average as the previous quarter, the report said.

    Usually, free email service providers like Gmail, Hotmail and Yahoo have a mechanism in place that automatically filters mass mails or mails sent with malicious intention or spam messages.

    However, according to the Commtouch report, spammers are using well-known Web names to give a deceptive legitimacy to their mails. Spammers are using fake Gmail accounts to clog up inboxes, making 'Gmail.com' the most abused domain name. Overall, 5%-10% of all spam appears to originate from Gmail accounts, Commtouch said.

    The report said that Gmail’s message style, as well as those of PayPal and Facebook, is frequently used by spammers and phishers as standard templates to prompt action by targets of spam or phishing. This quarter, a phishing attack directed at Blogger and Google users was based on a template using techniques effectively downplaying the fraudulent content of the email.

    What Commtouch has reported may be noticed by Gmail as well and it might have tightened the norms for spam mails. But there is no official word from Google yet. Just last month, Google came out with a feature to detect ‘suspicious’ activity in Gmail accounts.

    In January 2009, there was a problem with Gmail's spam filters and a problem similar to the one mentioned above occurred. That time, Google had admitted that Gmail's spam engine uses those filters (among hundreds of other signals) to help protect users from malware, and it mistakenly sent some legitimate mail to spam folders. This problem was sorted out later. However, there still is no solution for this recent problem.

    You cannot control Google’s spam filters. Ergo, do check your spam folder regularly.

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    nisha saifi

    10 years ago



    1 decade ago

    I'm sick to tears of Google's spam filters. I use pro gmail to send mail to my Outlook via IMAP. You see the title of the message. When you click on it, it disappears into the junk folder. Many of these are newsletters I want. Google should be considering which messages I spend time with to decide if in the future they are spam. Setting filters is clumsy and does not seem to work. Also, they should let the user decide which are not junk/spam interactively. I'm getting ready to "fire" gmail.


    1 decade ago

    daily i got many scam emails from Nigeria. So decided to alert the people from this scammers. I created a blog on scam 419. This blog deals with scam information .

    Madhur Kotharay

    1 decade ago

    I faced the same problem since Oct 2009. Since I am a moderator for 3 IIT Alumni mailing lists, I send out a lot of emails and hence got branded as a spammer, with my mails reaching spam folders on Gmail accounts.

    I tried my higher up contacts in Google but they could not do anything. The only solution I have is to ask my friends with gmail account to add my email ID in their gmail address book.

    Or create a new email ID for sending mails :-((

    Madhur Kotharay



    In Reply to Madhur Kotharay 1 decade ago

    Hey Madhur

    Drop me a line

    High Court passes strictures against NSE & dismisses its appeal in the Sebastin case

    As things stand, NSE and its top brass will face a criminal case in a lower court. But before that, the Exchange may approach the Supreme Court for relief

    The Bombay High Court has dismissed a criminal application filed by the National Stock Exchange (NSE) for quashing and setting aside proceedings pending before the Mumbai Metropolitan Magistrate in the matter of A Sebastin. Mr Sebastin, a former employee of NSE, had filed a defamation case against NSE and its managing director Ravi Narain in the Mumbai Metropolitan Court over alleged character assassination. NSE, the Exchange with loads of funds at its disposal, had moved the High Court seeking a stay on the proceedings pending before the Metropolitan Magistrate.

    Mr Sebastin, a compliance officer at the National Stock Exchange (NSE) who resigned in October 2008 to switch to the Multi Commodity Exchange (MCX), became a victim of the NSE’s wrath. The High Court, in its order issued on 25 March 2010, said: "… since the matter appears to be nothing but the result of an ego clash between the applicants and the respondent no.1, if an apology is published in the same newspapers in the same manner, it will give an end to the criminal litigation. While Mr Sebastin was ready to accept an apology and consequently to end the criminal litigation, the Exchange, on the other hand was not ready for the same.

    On 25th March, the NSE filed an affidavit in the court stating that it is not possible for them to publish a fresh apology. Senior counsel Shirish Gupte, appearing for the NSE, reiterated the contentions which were made earlier and added that NSE had no intention to make any imputations on the character or efficiency of the complainant.

    The Court specifically asked the Exchange whether it had published the clarification by way of an advertisement, as was done with the notice which is the subject-matter of the complaint, and also whether such a prominent notice, along with the photograph, has also been published in case of other employees who have either resigned or who are terminated from the services of NSE. The Exchange replied in the negative.

    The Court order then said: "At least prima facie, the very fact that the complainant has been singled out for issuing such an advertisement along with a photograph and, further, the fact that the applicants themselves received various queries with respect to the said advertisement, would prima facie establish that the said advertisement has adversely affected the reputation of the present complainant."

    The Court, while dismissing the criminal application filed by the NSE, said:"From a bare perusal of the complaint and from the documents placed on record by the applicants themselves, I am of the view that the ingredients so as to constitute an offence under Section 500 are prima facie made out in the present case and, as such, no case is made out for interference in the extraordinary jurisdiction of this Court under Section 482 of the Cr.P.C. Accordingly, the Criminal Application is dismissed." The High Court has extended the ad-interim relief granted to the NSE for a period of four weeks, starting 25th March.

    According to sources, the NSE is planning to move the Supreme Court and will file an appeal soon. Since the Exchange is flush with funds, it can afford to fight a case of 'ego clash' (as mentioned by the High Court order). But the question is whether this is necessary. The NSE has, over the years, created a perception of being a government entity with its virtual monopoly. {break}

    The Exchange's non-promoter executives, managing director Ravi Narain and deputy managing director Chitra Ramakrishna, had a gross annual income of Rs6.89 crore and Rs4.21 crore, respectively, besides other perks in 2008-09. The salary of Mr Narain was more than that of the London Stock Exchange (LSE) chief, Xavier Roulet (around Rs5.6 crore), and equal to that of the NYSE Euronext chief, Jean-Françoise Theodore (around Rs7 crore). Comparatively, NSE’s supposed competitor Bombay Stock Exchange’s (BSE) chief executive Madhu Kannan earned a gross income of Rs1.6 crore in the same period.

    The Sebastin Case
    On 6 April 2009, the NSE issued a ’public notice‘ in all leading business newspapers with the employee’s photograph announcing that anyone dealing with the “said Mr A Sebastin” would do so at their own risk.

    Normally, such notices are published only if an employee is guilty of financial fraud or a serious betrayal of trust. However, there is no such mention. Instead, the NSE issued a clarification in response to media queries, saying that Mr Sebastin’s “services were terminated” because he ”had not met the company’s requirements.” It also indicated, without being specific, that the employee had failed to complete “severance” formalities.

    Mr Sebastin, however, has evidence of a formal handover of charge, an exit interview and an email assurance that he would be relieved. He says that the public notice was issued after he sent a legal notice to the NSE on 4 April 2009, demanding severance benefits like Provident Fund (PF) and gratuity.

    Holding back PF is illegal, so the NSE reportedly credited his PF account immediately after he served the legal notice but simultaneously issued him a termination letter followed by the public notice, almost six months after he had quit the Exchange.

    When we published the case under the title of "Vindictive Action?" on our website www.suchetadalal.com, it received (so far) 28 comments from readers. One reader, Mr Golak, said: "NSE should try to find out why NSE ex-employees are willing to join MCX-SX and sort out the problems rather than take this kind of vindictive action. As an organisation, it has failed to come out of the whims of a few people who run the exchange on their own sweet terms."

    Another reader, Satish Swaminathan, commented, "If there is attrition, then the HR should be pulled up for explanations and probably try to get to the root cause and address it. I also fail to understand how the NSE is proposing to beat its competition by stopping people and being vindictive when they join a competing firm."

    "It is highly unethical behaviour by a highly professional company like NSE. Such a step by any company cannot be justifiable as employees are a company’s human assets and not physical assets," said SS, another reader.

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    1 decade ago

    At the moment I will not comment on the case or its outcome but will prefer to wait till end of 4 week period. But in all fairness, such cases complaining officer shud pay for the legal expenses
    from his personal funds. It is my experience, that even the employee's stand is vindicated, his life in all respect is ruined totally ruined. I will give just 1 example of famous MAKALU case of Air India. There are scores of such individual cases where headstrong executives of mighty organisations have victimised individual employee. More some other time.


    1 decade ago

    It is surprising that the media has not even bothered to mention this news. It is typical of how when competition come nearer in the form of MCX (equity trading), the top management (NSE) will not be able to withstand market forces. NSE has turned themselves into a monopoly, which is dangerous and before it is too late, i think the govt should bring out the competition of multi exchanges in commodity, currency and equity, which will be fulfilled by MCX.

    K B Patil

    1 decade ago

    No organisation with such an arrogant head can continue to prosper for a long time. If BSE spruces up its act, market participants will gravitate to it without any persuasion. Hope BSE wil use this opportunity to come up a worthy competitor to NSE.


    1 decade ago

    People with the exchange fraternity are aware that the NSE is run by some autocratic management. Attrition is quite and runs across all levels. Current management is almost NAZIsque and need to be replaced soo otherwise the second rung leadership will never develop. Several top level people have gone to MCX, NMCE, Dubai Exchange & even Singapore Exchange. Surprising that the foreign investors in NSE are also playing ball with this arrogant management


    1 decade ago

    Money and more Money makes you arrogant and Egoistic.
    The action of NSE in this case is nothing but arragance and Ego related.


    1 decade ago

    Money corrupts. BIG MONEY corrupts absolutely. The court should direct the NSE to pay the costs from the pocket of the people responsible for the case. But it is peanuts for those earning Crores, by over charging the Indian public! These same people sell the space near the NSE servers for Crores, to the highest bidders.


    1 decade ago

    These guys should not be allowed to use the Institution's funds to fight their own ego battles.This is happening regularly with Govt. and semi Govt. Organisations as well.

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