Rama Krishna Vadlamudi, BOMBAY March 12, 2010

www.scribd.com/vrk100 vrk_100@yahoo.co.in

As students of financial markets, every day we’re confronted with a host of

possibilities and wild scenarios like an Alfred Hitchcock movie pumping up the
adrenalin. Even though the capacity of our brain is rather limited (but, there’re no
such limits for human spirit!), day in and day out, we’re forced to assimilate an
overload of information, opinions or biases. With increased globalization, we’re
impacted, on a minute-by-minute basis, by the movements in prices/indices of
commodities, stocks and currencies; flows of liquidity across a wide swathe of
countries/continents/oceans; economic data; and actions/inactions of central
banks and governments of several important countries. All the markets are now
truly and fully integrated!

THE BEST OF MY STUFF ON Reads

In this background, it’s vital for us to
watch, on a regular basis, several
indices, actions and various policy rates.
Below is an indicative list of some indices
and rates for the benefit of all students of
financial markets – be it a bond trader, an
equity dealer, a currency speculator or an
investor. Such data is to be blended with
your rich experience and judgment; then
you're surely going to be a winner in the
markets; depending on your risk appetite
and ability to absorb paper losses for a
considerable period of time. The previous
reports on the above subject are dated
25.12.09, 23.10.09, 9.10.09 & 25.9.09
and are accessible for reading and
downloading on the following websites.
http://www.scribd.com/vrk100
1. Goods and Services Tax-GST-an 4 822
introduction
2. Income Tax Slabs 2009-10 for
3 919
Individuals, HUFs, etc
3. Direct Taxes Code-DTC Bill 2009- 2 057
impact on salaried class/individuals
4. Public Provident Fund PPF account-
1 779
some little known facts
5. Currency Futures in India-NSE,
1 691
MCX-SX add 3 new currency pairs
6. Government Securities Market in 1 343
India Bond Duration Management

FOR AUTHOR'S ARTICLES, just click:

http://www.scribd.com/vrk100
or
http://groups.google.co.in/group/random-thoughts-on-
investments/files?hl=en&&sort=date
 Rama Krishna Vadlamudi, BOMBAY March 12, 2010
www.scribd.com/vrk100 vrk_100@yahoo.co.in
MY BLOG: www.ramakrishnavadlamudi.blogspot.com

Three-month MAJOR MOVEMENTS IN RATES AND INDICES

This tells you the movement between Dec.25, 2009 and Mar.12, 2010
1. RBI raised CRR by 75 basis points wef Feb.27, 2010
2. India's inflation based on WPI is up by almost 380 basis points
3. 10-year G-Sec yield is up more than 30 bp indicating rising interest rates
4. Dollar gains around 5% against GBP and Eruo; while gaining a little bit against Yen
5. CBOE VIX and India VIX-volatility indices-have dropped by more than 10%
6. India's Oct-Dec09 qtr GDP growth is down to 6% vs 7.9% in Jul-Sep09 qtr

INDIA'S MACRO INDICATORS RATE % Effective Date

RESERVE RATIOS
Cash Reserve Ratio (CRR) 5.75 27-Feb-10
Statutory Liquidity Ratio (SLR) 25.00 7-Nov-09
POLICY RATES
LAF - Repo Rate* 4.75 21-Apr-09
LAF - Reverse Repo Rate* 3.25 21-Apr-09
Bank Rate 6.00 30-Apr-03
* LAF - RBI's Liquidity Adjustment Facility
OTHERS As On
Savings Bank Interest Rate % 3.50 1-Mar-03
G-Sec 10-year yield % (Benchmark 6.90%
Maturity Jul. 17th, 2019) 8.01 12-Mar-10
US Dollar-Rupee exchange rate 45.43 12-Mar-10
Call Money Rate % (Range) 3.25 to 3.60 12-Mar-10
CBLO % (Collaterised Borrowing & Lending Mechanism) 2.00 to 3.20 12-Mar-10
BSE - SENSEX Level 17 167 12-Mar-10
NSE - S&P CNX NIFTY Level 5 137 12-Mar-10
India VIX (from NSE) 19.73 12-Mar-10
India's Foreign Exchange Reserves (Rs lakh crore) 12.75 5-Mar-10
India's Foreign Exchange Reserves (USD Billion) 278.43 5-Mar-10
Inflation Rate (based on WPI) % 8.56 28-Feb-10
Credit-Deposit Ratio % 70.80 26-Feb-10
India's Real GDP Growth % FY 2008-09 6.70 26-Feb-10
India's Real GDP Growth % Oct-Dec.09 Qtr 6.00 26-Feb-10

CENTRAL BANKS-KEY INTEREST RATES RATE % Effective Date

US Fed Funds Rate (US Federal Reserve) 0 to 0.25 16-Dec-08
UK Bank Rate (Bank of England) 0.50 5-Mar-09
Eurozone Refinancing Rate (European Central Bank) 1.00 13-May-09

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 Rama Krishna Vadlamudi, BOMBAY March 12, 2010
www.scribd.com/vrk100 vrk_100@yahoo.co.in
MY BLOG: www.ramakrishnavadlamudi.blogspot.com

WORLD INDICES, ETC. LEVEL As on

Dow (DJIA30) 10 625 12-Mar-10
S&P 500 1 150 12-Mar-10
FTSE 100 5 626 12-Mar-10
NIKKEI 225 10 751 12-Mar-10
HANG SENG (now, 42 stocks) 21 210 12-Mar-10
Light, Sweet, Crude Oil - NYMEX (USD/barrel) 81.24 12-Mar-10
GOLD - NYMEX (USD/ounce) 1 102 12-Mar-10
CBOE VIX Volatility Index 17.58 12-Mar-10
US Dollar Index 79.83 12-Mar-10
US Treasury 2-year yield % 0.97 12-Mar-10
US Treasury 10-year yield % 3.71 12-Mar-10

EXCHANGE RATES As On
GBP-USD 1.5162 12-Mar-10
EURO-USD 1.3767 12-Mar-10
USD-YEN 90.6000 12-Mar-10
USD-Chinese Yuan 6.8255 12-Mar-10

NOTES: (See Disclaimer below and act based on your certified advisor only)
1. US Fed Funds Rate is the lowest since 1954
2. BOE's Bank Rate is its lowest since the bank founded in 1694
3. ECB's Refinancing Rate is its lowest in its 10-year history
Data Source: RBI, US FED, BOE, ECB, etc. Disclaimer: This is purely for information purpose only.

FINALLY, NEW-YEAR (Ugadi, Bihu and Gudi Padwa) GREETINGS

TO ALL MY READERS!

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