News Behaviour Prices

Virendra Verma, Group Head- Investor Relations

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The Information Whirpool

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Newspapers

TV

Research Reports

Whats App

Social Media

The Illusion of Information

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• Is more information better information?

• What does more information leads to• Increased Confidence• But not better accuracy

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• How to get out of information trap

• Get Accuracy

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News Analysis based on what is reported on various types of media platforms

Market Sentiment

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May 26, 2014 March 23, 2015

Market Sentiment

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Shares sink as Fed minutes suggest QE3 rift

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NEW YORK, Feb 20 (Reuters) - Global equity markets fell on Wednesday after some Federal Reserve policymakers said last month the central bank may have to stop or slow its bond-buying program before hiring picks up, while oil slid on the prospect of a boost in Saudi supply (February 20, 2013)

Dow Jones Industrial Average

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U.S. stocks end lower after Fed ends QE

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NEW YORK (MarketWatch) — The Dow Jones Industrial Average snapped a four-day winning streak on Thursday, after the Federal Reserve made official its plans to end the last round of its recession-era stimulus program.

Most major stock benchmarks slipped lower, after an initial knee-jerk bout of panic, in the wake of the Fed’s policy decision, which came just after 2 p.m. Eastern time. Stocks did recover somewhat, but still ended Wednesday’s trading session in the red

( 29th October , 2014)

Dow Jones Industrial Average

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Goldman's Murti Says Oil `Likely' to Reach $150-$200

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May 6 (Bloomberg) -- Crude oil may rise to between $150 and $200 a barrel within two years as growth in supply fails to keep pace with increased demand from developing nations, Goldman Sachs Group Inc. analysts led by Arjun N. Murti said in a report

(6th May, 2008)

Brent Crude

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With OPEC keeping output steady, oil may trade at $40: Goldman Sachs

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SINGAPORE: Goldman Sachs said US oil prices need to trade near $40 a barrel in the first half of this year to curb shale investments as it gave up on OPEC cutting output to balance the market.

The bank reduced its forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year

(13th January, 2015)

Brent Crude

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Gold Set for Biggest Annual Gain in 32 Years

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Gold may climb the most in more than three decades this year as investors and central banks boost their holdings on concern that global economic growth may stall amid a worsening sovereign-debt crisis in the US and Europe. Gold for immediate delivery may reach $2,000 an ounce by the year- end, extending this years gain to 41%,according to the median forecast in a Bloomberg survey of 13 traders and analysts at a conference in Kovalam in South India on August 20.

(Source: Bloomberg, Aug 20, 2011)

Gold

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$1895

Wockhardt promoter Khorakiwala struggles

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Mumbai: Last year, Habil Fakhruddin Khorakiwala, who controls India’s sixth largest publicly traded drug maker by sales, Wockhardt Ltd, pulled a Rs700 crore initial public offering for Wockhardt Hospitals Ltd, the country’s second largest hospital chain. Now, fighting a severe liquidity crunch, he has not only pledged 43.11% of his stake in Wockhardt with Infrastructure Leasing and Financial Services Ltd (IL&FS) and IDBI Bank Ltd to raise money, but also the 150,000 sq. ft company headquarters at Mumbai’s Bandra Kurla Complex. (Source: MINT, 12th Feb, 2009)

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95

Wockhardt: from debt debacle to stock rocket

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Indian drugmaker Wockhardt is proving there is life after debt restructuring. After defaulting on $110 million in overseas bonds in 2009 and renegotiating payment on 13 billion rupees in loans, the generics maker is nearly free from a sometimes bitter process of debt recast and is enjoying a furious stock rally

(Reuters, 16th August, 2012)

Can Suzlon do a Wockhardt?

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Suzlon Energy Limited's recent Rs 9,500 crore debt restructuring (CDR) exercise has bought the company some breathing room to turn its business around. The world's fifth-largest turbine maker (by installed capacity) has had no trouble bagging orders. However, it has been roiled by a grave shortage of working capital to implement those orders.

(Source: Business Today, 29th January, 2013)

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1300

1775

95

Wockhardt tanks over 40% post US FDA warning letter

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Wockhardt is locked in lower circuit of 10% at Rs 575, extending its past six days fall, after the US Food and Drug Administration (USFDA) on July 18, issued a warning letter to the company for its manufacturing facility in Maharashtra.

The pharmaceutical stock, currently trading at its lowest level since April 2012, has underperformed falling 41% in past seven trading days from Rs 975 on July 17, as compared to 0.57% fall in S&P BSE Sensex

(Source: Business Standard online, 26th July , 2013)

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95

1300

1775

575

Why it happens?

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• News creates views, opinions among the people

• People act more based on their surroundings

• True for individual, decision makers and companies

Conclusion

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More positive the news, price of the asset class falls and vice versa

Thank you