Market 2nd Nov

A dreadful week for stocks(Round-Up)

All major markets the world over fell like a set of bowling pins this week. India too was not spared, and in fact headed the list of losers. The BSE Sensex fell 5.4% during the week. A host of reasons led this fall. Weakness in commodity prices, poor results by some large companies, skepticism about the recovery being only liquidity driven, fears about the stimulus packages being withdrawn, rising inflation, and expectations of an impending exit by the government of its loose fiscal stimulus were some overshadowing factors.
Markets in the rest of the world had a similar story to tell. Apart from India, Germany (down 5.7%), Brazil (down 5.4%), and France (down 5.3%) led the fall. The US ended the week lower

by 2.6%, while China fell by 3.6%. Some disappointing results from large companies like PetroChina and National Australian Bank weighed down on Asian markets, further fueling concerns that markets may have gotten ahead of fundamentals and that stocks may have risen faster than the pace at which earnings will perhaps rise going forward.

CAG sets up high profile team to audit RIL this month

Government auditor Comptroller and Auditor General (CAG) has reportedly set up a high-level team for auditing Reliance Industries' (RIL) expenses on eastern offshore KG D-6 fields to be started from this month.
Apart from RILâ??s offshore KG D-6 fields, the CAG has also been asked to do special audit of Cairn India's Rajasthan block and British energy firm BG Group- operated Panna/Mukta and Tapti fields.
The special high profile audit team will comprise P K Mishra, principal director, A K Awasthi, additional deputy director, and Dharamendra Kumar, director.
The scope of the audit will be above the normal course of audit by CAG. The main objective of the audit would be to detect fraud, if any, by the operator (RIL) allegedly in collusion with oil regulator DGH and Ministry of Petroleum and Natural Gas.