Market mayhem: Hedgers running for cover

Mayhem all around! That’s the only way to describe the carnage in commodity and equity markets over the last few days. And we are not talking just India here. There is not a single player left unhurt. The shorts have been killed by margin calls. The longs are caught by surprise. They have no option but to hold their positions. Hedgers are scurrying for cover.

Realistically, there is no way you can anticipate a double-digit rally in fuel, food, fibre and metals within three weeks. Even the most bullish trader didn’t bargain for a 43% jump in coal, or a 23% leap in rice, or a 13% spurt in sugar.

The spikes are baffling. Non-oil commodity prices surged 9% in February due to supply tightness and strong investment demand. There were substantial increases in a number of commodities, particularly for coal and fertilisers, the latter partly due to strong demand fuelled by high agriculture prices.

Crude rose 3% to average $93.4/bbl, and reached $100/bbl in early March, with WTI reaching nearly $106/bbl. Coal prices soared 43% to $131/t, due to a supply squeeze.

Agriculture prices jumped 8.5% in February, led by a 15% gain in grains. Vegetable oil prices were up sharply on strong demand for food and bio-diesel. Beverage prices jumped 12%. Metals and minerals prices climbed 7%, with large gains in lead, aluminium and copper. Silver increased 10% on strong investment demand and as a hedge against inflation and the weakening dollar. But before anyone could catch their breath, US markets in grains and veg oils plummeted. The losses in corn and soya bean defy belief.

When prices show such extreme movements, exchanges have no choice but to collect special margins. For those caught unawares, the sky fell. How do you find a few lakhs in spare (and tax-paid) cash at a day’s notice? That became a huge issue for many. There were unconfirmed reports of some punters on NBoT threatening to commit suicide. Brokerages dealing with small retail investors were equally hit. (source: ET)

However, if you are an indian trader or investor for longer period (I'm talking atleast 2 years here) , this is "the" right time to go for it!! Patience is the key. One thing's for sure, markets have really taken a flip towards short to medium term bearish phase.

Taste Buds - Paneer Pasanda

Enjoy sunday with your family and a rich dish of Paneer Pasanda with rice or tandoori. Here's how to make this fabulous dish.



Ingredients:

• 400 gms Cottage Cheese (Paneer)


• 5 Onion (Pyaj)


• 4 big Tomatoes (Tamatar)


• 1 " long piece Ginger (Adrak)


• 4 Green Chilly (Hari Mirch)


• 1 cup Cream (Malai)


• 1 cup Curd (Dahi)


• 1 big tsp Butter


• 1/2 tsp Red Chili Powder (Lal Mirchi)


• 1/4 tsp Turmeric (Haldi)


• 1 tsp Dried Pudina Leaves


• 1/2 tsp Garam Masala


• 1/2 cup Milk


• some roaster dry fruits (almonds, cashews etc.)


• coriander leaves to garnish

Method:

• Cut cottage cheese in samll square pieces.


• Chop onion very finely.


• Grind tomato, ginger, green chilly.


• Heat butter or ghee in a pan.


• Saute onions till reddish pink in color.


• Then add tomato paste.


• Continue cooking it on medium flame till ghee/oil begins to separate. Put off the flame.


• Let the mixture cool and then grind the mixture and make a thick paste.


• Take a bit of butter in the pan and add the past.


• Add cottage cheese, cream , curd, salt, red chili powder, turmeric, garam masala, dried poudina leaves and mix well. Keep it aside for an hour.


• Put the pan on the flame and then add milk to the mixture.


• Simmer for 5 minutes and then finally put off the gas.


• Take off the fire and serve hot with rice or tandoori.

NASA's space shuttle to carry out experiments in space!!

Washington, March 16 : The space shuttle Endeavour, which was launched on March 14, is carrying with it a set of experiments designed and constructed in the laboratory of Dennis Jacobs, a University of Notre Dame professor of chemistry and biochemistry.

The experiments are part of the Materials International Space Station Experiment (MISSE), a multi-institutional collaboration to explore how materials degrade in the low-earth orbit spacecraft environment.

The 16-day mission will be NASA's longest space station trip and will include five space walks by the crew of seven, the most ever while a shuttle is docked to a station. (extracts from a news portal)