DIKSHAA

S&P 500 closes above 1,800 first time

noreply@blogger.com (Anonymous) — Sat, 23 Nov 2013 14:08:00 +0000

The stock market brushed past another milestone Friday. The Standard & Poor's 500 index closed above 1,800 for the first time, capping seven straight weeks of gains. The broader index is on track for its best performance in 15 years as a combination of solid corporate earnings, a strengthening economy and easy-money policies from the Federal Reserve draw investors to stocks. Stocks have also gained because they offer an attractive alternative to bonds, where interest rates remain close to all-time lows. "You can't really get better returns other than in the stock market," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It's been a quality run-up in stocks." The S&P 500 index rose 8.91 points, or 0.5 percent, to 1,804.76. The index has advanced 26.5 percent in 2013. If it finishes at that level, it would be its strongest year since a 26.7 percent gain in 1998. The Dow Jones industrial average also continued its upward march after finishing above 16,000 for the first time Thursday. The index gained 54.78 points, or 0.3 percent, to 16,064.77. The Nasdaq composite rose 22.49 points, or 0.6 percent, to 3,991.65. On Friday, health care stocks led the market's rise. Biotechnology company Biogen Idec surged on reports that it won market exclusivity for its top-selling multiple sclerosis drug in Europe. The company's stock jumped $33.19, or 13 percent, to $285.62. Health care stocks have also led gains in the S&P 500 this year, rising 38 percent. The industry is attractive to investors. Some of its companies, including Biogen, offer the possibility of explosive growth.

Bharatiya Mahila Bank

noreply@blogger.com (Anonymous) — Sat, 23 Nov 2013 13:55:00 +0000

Union Finance Minister P. Chidambaram has given the speech at the inauguration of Bharatiya Mahila Bank in Mumbai. "I am grateful to the Chairperson of the Bharatiya Mahila Bank for the warm welcome. I am happy to add my words of welcome to the Prime Minister, the Chairperson of the UPA, the Governor, the Chief Minister, Shri Sharad Pawar, Farooq Abdullah, Ministers, Members of Parliament and this distinguished gathering. I had asked M.B.N. Rao, former Chairman, Canara Bank, to head a committee to draw the blue print for the Mahila Bank.

The report was submitted in a record time of two months and, six months later, after working FM said "Empowerment of women is one of the articles of faith of the UPA government. The Bharatiya Mahila Bank is not – I repeat, not – a symbol of empowerment of women. It is the substance of empowerment of women, along with many other measures that the Government has taken and will take in the future. Only 26% of women in India admit to having a bank account. On the other hand, four public sector banks including State Bank of India and several private sector banks have a woman at the head of the Bank, and I am glad many of them are here today. The obvious conclusion is that, despite good intentions, there is deep-seated bias, at the institutional and individual levels, against women.

Since fewer women than men have bank accounts, fewer women are able to get loans. Per capita credit in the case of women is 80 percent lower than in the case of men. Hence the need for a bank that predominantly serves women – from the self-help groups to the small business women and from the working woman to the high networth individual." "Bank credit is expected to grow at a compounded annual growth rate of 16.5 percent during the twenty year period from 2010 to 2030. That will mean a twenty-fold increase from the level of credit in 2010.

The deposit base is expected to grow at a compounded annual growth rate of 14.6 percent, that is 14 times the level of deposits in 2010. Assuming that the share of credit for women remains the same – which should not be the case and the share must increase – even at that level total credit to women will grow to Rs. 25 lakh crore. There is, therefore, an opportunity to reach more credit to more women. I am sure the Bharatiya Mahila Bank will seize the opportunity and multiply it manifold.

The government shutdown is over: Obama

noreply@blogger.com (Anonymous) — Fri, 18 Oct 2013 13:35:00 +0000

On Thursday night, US President Barack Obama signed legislation to reopen our government and pay our bills.

“Because Democrats and responsible Republicans came together, the first government shutdown in 17 years is now over,” he said on Thursday in the State Dining Room. “The first default in more than 200 years will not happen. These twin threats to our economy have been lifted.”

There was no economic rationale for all this, President Obama said: “Over the past four years, our economy has been growing, our businesses have been creating jobs, and our deficits have been cut in half,” he said, “but nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises.”

The way business is done in Washington has to change, President Obama said.

Because we’ve all got a lot of work to do on behalf of the American people – and that includes the hard work of regaining their trust. Our system of self-government doesn’t function without it. And now that the government is reopened, and this threat to our economy is removed, all of us need to stop focusing on the lobbyists, and the bloggers, and the talking heads on radio, and the professional activists who profit from conflict, and focus on what the majority of Americans sent us here to do – and that’s grow this economy, create good jobs, strengthen the middle class, lay the foundation for broad-based prosperity, and get our fiscal house in order for the long haul.

President Obama laid out three places where he believes we can make progress right now: Pursuing a budget that grows our economy faster and shrinks our long-term deficits further; fixing our broken immigration system; and passing a farm bill.

“I will look for willing partners wherever I can to get important work done,” President Obama said. “And there's no good reason why we can't govern responsibly, despite our differences, without lurching from manufactured crisis to manufactured crisis.”

Those of us who have the privilege to serve this country have an obligation to do our job as best we can. We come from different parties, but we are Americans first. And that’s why disagreement cannot mean dysfunction. It can't degenerate into hatred. The American people’s hopes and dreams are what matters, not ours. Our obligations are to them. Our regard for them compels us all, Democrats and Republicans, to cooperate, and compromise, and act in the best interests of our nation –- one nation, under God, indivisible with liberty and justice for all.

Sensex closes highest in over 2 years

noreply@blogger.com (askrakesh) — Thu, 22 Jul 2010 16:41:00 +0000

The BSE Sensex Thursday surged 136 points to breach the psychological 18,000 points level for the first time in two-and-a-half years on the back of good first quarter numbers and easing food inflation, amid positive European cues.

A sharp rally in the final hours of trade helped the 30- share barometer of the Bombay Stock Exchange extend gains for the second successive day. The Sensex closed higher by 135.9 points, or 0.76 percent, at 18,113.15, its best closing since February 15, 2008.

The wide-based 50-share Nifty index of the National Stock Exchange, too, added 0.79 percent to settle at 5,441.95 points, the highest level in 30 months.

Analysts said the Sensex, which was in the negative zone till mid-session, reversed the trend in the final hours of trade as better-than-expected European economic data ignited buying here, pushing the index to a high of 18,127.90, up 150 points.

The sentiment on Dalal Street was weak in early trade following a steep overnight fall in US markets. However, it turned bullish after the positive opening of European bourses and the firm start of US futures, market experts said.

Investors also responded positively to news that food inflation declined to 12.47 percent for the week ended July 10 from 12.81 percent in the previous week, they said.

The rally was led by consumer goods, metal, auto, FMCG and financial stocks. Barring IT, all the other 12 sectoral indices on the BSE ended with gains.

"How long people will wait for sideline trading. Good Q1 numbers have boosted the sentiment and today positive European data also helped the market to break the range-bound trade," Geojit BNP Paribas Research Head Alex Mathews said.

"I am hopeful that the market will sustain this level and, in fact, will rise further in coming sessions," he added.

M&M was the best gainer in the Sensex pack and ended 2.50 percent higher. Other auto stocks were also in demand, with Tata Motors rising 1.78 percent and Hero Honda 0.24 percent.

ITC, which today reported a 21.8 percent jump in June quarter profit, rose by 1.64 percent, while Bharti Airtel gained 2.39 percent and Jaiprakash Associates 1.95 percent.

Metal stocks rose for the second straight day, with Tata Steel surging 1.94 percent, Sterlite Industries 1.5 percent, Jindal Steel 1.49 percent and Hindalco 0.90 percent.

JSW Steel shot up 2.26 percent, after the company said it will consider raising funds.

"Our domestic fundamentals are strong and I hope markets will sustain the gains in the near-term," Aneesh Srivastava, the Chief Investment Officer of IDBI Fortis Life Insurance Co, said.

In 30-BSE index components, 25 stocks ended with gains, while five ended in the red.

Gold needs an Octopus Paul

noreply@blogger.com (askrakesh) — Mon, 19 Jul 2010 13:43:00 +0000

For the past couple of years, gold has been acting so unpredictable that investors definitely wanted to have a soothsayer to predict the fate of gold in the coming days. The situation is same now also. Nobody is certain about the ups and downs of the yellow metal.

Now, any investor would love to have an opinion from the World Cup famous octopus Paul of Germany before one puts his/her money on the yellow metal. Octopus Paul has a clean record of predicting the results of all Germany matches and the final of the World Cup Football. Paul has becomes such a famous phenomenon of the World Cup that even Spain, the Cup winner, offered a citizenship to the creature.

So, who wouldn’t want a perfect soothsayer like Paul before investing in gold. The reason for gold’s unpredictability now is that the metal is witnessing many upheavals in the world economy. After the Greece economic tragedy, the gold prices zoomed to record levels. Before that, India’s Reserve Bank bought 200 tonnes of the yellow metal, which resulted in the rise of prices in November 2009. Again, the gold ETF manipulation reports in the US also hit the gold prices.

Now, the Portugal economy’s bad phase is helping gold to rise. But, lack of demand in India and reports that central banks are pawning their gold with BIS dampened the metal a bit.

However, market analysts have been consistent in saying that there is only one way gold prices can move that is up. However, India is a big worry for bullion markets as the Indian buyers are shying away from jewellery shops and bullion market due to the high prices of the metal. Even in China, people are not enthusiastic about buying gold now. So, the dull India and China markets are dragging the gold market now.

Gold eased a touch in Europe on Friday, under pressure from lacklustre investment and jewellary demand over the seasonally soft summer months, with a further outflow from the world’s largest gold ETF undermining sentiment.

Prices remained rangebound, however, supported above $1,200 an ounce by a retreat in risk appetite which pressured equities and the dollar. The precious metal has remained in a narrow $1,195-1,215 range for much of the week, lacking clear direction from other markets and the wider macroeconomic environment.

The market is awaiting clearer signals from the equity, debt and foreign exchange markets, and fresh seasonal demand from India, where key gold-buying festivals will take place next month, for impetus.

Rupee joins elite club...gets its own symbol

noreply@blogger.com (askrakesh) — Fri, 16 Jul 2010 16:18:00 +0000

The Union Cabinet on July 15 approved the final design for the unique symbol of the Indian rupee. It has given its approval to the numerical representation for the Indian rupee, which is a mix of the Devanagri 'Ra' and Roman 'R'.

This symbol will be used by all individuals/entities within and outside India after its incorporation in `Unicode Standard’, ‘ISO/IEC 10646’ and ‘IS 13194’.

The symbol will standardize the expression for Indian Rupee in different languages, both within and outside the country. It would better distinguish the Indian currency from those countries whose currencies are also designated as Rupee or Rupiah, such as Pakistan, Nepal, Sri Lanka and Indonesia.

The Cabinet had shortlisted five designs for the new Rupee symbol following an all-India contest. IIT post-graduate D. Uday Kumar's entry has been selected out of five shortlisted designs as the new symbol for the Indian Rupee.

Kumar's entry was chosen from among 3,000 designs competing for the Indian currency's symbol. He will get an award of Rs2.5 lakhs.

"The symbol for the Rupee would lend a distinctive character and identity to the currency and further highlight the strength and robustness of the Indian economy as also a favored destination for global investments," said Minister for Information and Broadcasting Ambika Soni in New Delhi.

The new Rupee symbol will be printed or embossed on currency notes or coins, Soni told reporters after the cabinet meeting.

In February's Budget speech, Finance Minister Pranab Mukherjee said that it is proposed to formalize a symbol for the Indian Rupee to appropriately reflect and capture the Indian ethos and culture.

With this, the Indian Rupee will join the select club of currencies such as the US Dollar, British Pound Sterling, Euro and Japanese Yen with clear distinguishing identity.

Nifty futures on Chicago bourse from Monday

noreply@blogger.com (askrakesh) — Fri, 16 Jul 2010 14:31:00 +0000

Come Monday, two futures contracts on the NSE nifty and denominated in US dollar will start trading on the Chicago Mercantile Exchange (CME). While one contract, E-mini Nifty Futures, will be valued at $10 times the current value of nifty index on the NSE, the other one, E-micro nifty futures, will be valued at $2 times the nifty index value at that time.

Investors globally will have the option to trade in nifty contracts for almost 23 hours on all trading days, an NSE release said. In addition, since nifty contracts are also traded on the Singapore Exchange (SGX) and it has a mutual offset agreement with CME, investors can take a position on any of the two bourses and offset it at the other exchange, releases from CME and NSE said.

These two new contracts are intended to give global investors a more efficient means to gain exposure to India-related asset classes. They can also trade the contracts to hedge their risks from existing exposure to the Indian stock market, a release from NSE said.

SEBI revises exposure margin on equity derivatives

noreply@blogger.com (askrakesh) — Fri, 09 Jul 2010 17:52:00 +0000

Based on the feedback received from market participants, capital market regulator SEBI has decided that exposure margin shall be higher of 5% or 1.5 times the standard deviation (of daily logarithmic returns of the stock price). This circular shall come into force from July 15. This is in modification of SEBI Circular dated October 15, 2008 which specified that the exposure margin shall be higher of 10% or 1.5 times the standard deviation (of daily logarithmic returns of the stock price) of the notional value of the gross open position in single stock futures and gross short open position in stock options in a particular underlying. This measure is aimed at reducing the effect of higher costs of F&O contracts on retail traders and to lure them back. Only a reduction in the exposure margins could bring in more retail traders as the SPAM margins cannot be touched. Most retail investors have reduced their exposure to F&O stocks as the market has been volatile and range bound alternatively for quite some time now.

COAL INDIA largest IPO of Rs 15,000 cr

noreply@blogger.com (askrakesh) — Thu, 08 Jul 2010 14:12:00 +0000

State-run Coal India is likely to hit the market by the third week of October with India's largest ever public offer to raise up to Rs 15,000 crore.

The government is disinvesting 10 per cent of its stake in Coal India (CIL), the world's largest coal miner, through the IPO.

"As of now, it seems that CIL initial public offer will open on October 18 and closes on October 21. The 10 per cent disinvestment will see the government raising Rs 12,000- 15,000 crore," a person in the know of the development told PTI.

Coal ministry may cancel two linkages

The blue-print of the IPO was finalised last evening at a meeting between Finance Minister Pranab Mukherjee and Coal Minister Sriprakash Jaiswal. The meeting was also attended by Additional Secretary Coal Alok Perti and Department of Disinvestment Secretary Sumit Bose and Coal India Chairman P S Bhattacharyya, the source said.

Coal India, the largest global coal miner, sells the dry fuel 50 per cent cheaper at around USD 25 a tonne than the prices prevailing in the international market.

Although CIL's IPO was planned in August-September, it was delayed due to opposition to the government's 10 per cent stake sale move from trade unions and political parties.

CIL profit jumps 300%

"The Department of Disinvestment has finalised the issue date. The company will now file the Draft Red Herring Prospectus of the IPO by the first week of August," the source added.

The government is selling 10 per cent of its stake in CIL disinvestment. It currently holds 100 per cent equity in the coal major. CIL had earlier said it will issue over 63 crore shares in the IPO.

The Union Cabinet had last month approved to disinvest 10 per cent of the government's holding in CIL. The Centre holds 100 per cent equity in the company.

Coal India produced 431.5 million tonnes of coal in the last fiscal. The country's coal output stood at 531.5 million tonnes in 2009-10.

Anil Dhirubhai Ambani Group firm Reliance Power, in January 2008, raised Rs 11,500 crore through IPO -- the biggest in India till date.

Aiming to raise Rs 40,000 crore through disinvestment in this fiscal, so far sell off in Satluj Jal Vidyut Nigam has fetched the exchequer over Rs 1,000 crore. The government is likely to sell its stake in 10 PSUs, including MMTC, SAIL and Hindustan Copper, this fiscal.

The government in 2009-10 had raised Rs 25,000 crore through stake sales in Oil India, NMDC, REC and NTPC. NMDC 8.38 per cent stake sale had fetched the government about Rs 10,000 crore.

Wall St rallies on earnings optimism

noreply@blogger.com (askrakesh) — Thu, 08 Jul 2010 04:11:00 +0000

U.S. stocks logged their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corp fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance level.

State Street shares closed 9.9 percent higher at $36.63 after the asset manager and custody firm said quarterly earnings would far exceed expectations, providing a lifeline to investors after several weeks of dismal economic reports.

Bank stocks led the way, but investors also scooped up beaten-down industrial and technology shares.

"There is some confidence now that there will be more positive surprises than negative during the earnings season," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco.

The Dow Jones industrial average rose 274.66 points, or 2.82 percent, to 10,018.28. The Standard & Poor's 500 Index gained 32.21 points, or 3.13 percent, to 1,060.27. The Nasdaq Composite Index advanced 65.59 points, or 3.13 percent, to 2,159.47.

It was the indexes' biggest percentage advance since May 27.

The KBW bank index climbed 5.6 percent, while State Street rivals Northern Trust Corp rose 6.9 percent to $49.14 and Bank of New York Mellon Corp was up 6.4 percent to $26.32.

European banks also rallied on optimism most would pass the European banking stress tests, giving a boost to the wider market.

When the benchmark S&P 500 index broke through 1,040, it fueled more buying by those who had put on short positions. The 1,040 level was viewed as a resistance level to further gains, according to Todd Salamone, vice president of research at Schaeffer's Investment Research.

"That creates a very crowded position that is very vulnerable to an unwind, and I think we're seeing that today," he said.

The S&P 500 closed around 1,060, the next resistance level that could prevent the index from rising further on Thursday. The index has reached the 23.6 percent retracement of the move from its 2010 high in April to its year low hit last week.

Industrial and technology stocks were also among the day's gainers with General Electric up 4.7 percent at $14.62

and Cisco System up 5.3 percent at $22.48. The two stocks were the top gainers on the Dow.

Energy shares also got a boost from August crude futures that advanced 3.4 percent to $74.43 a barrel, sending the S&P energy index up 3.2 percent.

Crude climbed on the expectation that upcoming data would show a drop in U.S. inventories, a positive sign for demand, as well as weakness in the U.S. dollar.

But analysts warned that the rally may be short-lived, considering the current economic conditions.

"We may see riskier behavior heading into the next couple of days. It's not uncommon to see a short term technical rally," said Tom Schrader, managing director at Stifel Nicolaus Capital Markets in Baltimore.

"(But) I don't think it's sustainable beyond about a week. The overall economic situation is not conducive to equities."

UBS lowered its full-year forecast on the S&P to 1,150 from 1,350. The firm said the reduced view reflected modestly weaker earnings growth and longer-term secular headwinds.

In earnings news, Family Dollar Stores Inc tumbled 8 percent to $36.26 after it forecast fourth-quarter earnings below expectations.

Among its discount retailer peers, Dollar Tree Inc slipped 3.1 percent to $41.61 while BJ's Wholesale Corp was off 1.1 percent at $42.72.

BP Plc Chief Executive Tony Hayward met with officials from Abu Dhabi's investment authority as speculation mounted the sovereign fund would make a fresh investment. BP's U.S.-listed shares rose 4 percent to $33.12.

Overall volume was tepid, with about 8.95 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's estimated daily average of 9.65 billion.

Advancing stocks outnumbered declining ones on the NYSE by 2650 to 431, while on the Nasdaq, advancers beat decliners by 2080 to 588.

Gear up for 'Bharat bandh' on July 5

noreply@blogger.com (askrakesh) — Fri, 02 Jul 2010 15:10:00 +0000

The issue of fuel price hike has brought almost the entire opposition together with the Bharatiya Janata Party-led National Democratic Alliance and Left parties giving a call for a nation-wide strike on July 5 demanding a rollback.
All essential services like supply of water, milk, electricity, hospital and emergency services will be exempt from the 'hartal'.
The NDA and the Left parties made separate announcements in this regard and Janata Dal-United chief Sharad Yadav claimed that it was the first such instance of opposition unity after the "JP movement" in the mid-seventies.
Sources said the impact of the bandh is likely to be the worst in at least 10 states where the opposition was holding reins. The bandh is also expected to have total impact in states like Maharashtra, where Shiv Sena -- an ally of the BJP --has announced their support to the bandh.

RNRL, Reliance Power to consider merger on July 4

noreply@blogger.com (askrakesh) — Fri, 02 Jul 2010 15:04:00 +0000

The boards of directors of Reliance Natural Resources Ltd. (RNRL) and Reliance Power Ltd. will meet on July 4, to consider a merger of the two anil dhirubhai ambani group (ADAG) companies. Earlier, media reports had suggested that RNRL and Reliance Power could merge, sending the shares of the two companies higher. The announcement is significant as it comes close on the heels of the two Ambani siblings rescinding a long-standing non-compete agreement, allowing them to expand into each other's sectors.

Also, last week Reliance Industries Ltd. (RIL) and RNRL signed a new gas supply master agreement (GSMA) pursuant to the judgment of the Supreme Court, dated May 7. RNRL said that it would now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same. The price, quantity and the tenure of the natural gas to be supplied by RIL to RNRL from its KG basin block will be decided by the Government. However, some reports suggest that the new GSMA between the two companies entails supply of 28 mmscmd natural gas for 17 years at US$4.20 per mmbtu. RIL said that the GSMA is compliant with the Gas Utilization Policy and EGoM decisions.

Us Markets falls 2 percent after consumer data

noreply@blogger.com (askrakesh) — Tue, 29 Jun 2010 15:17:00 +0000

Stocks dropped 2 percent on Tuesday after data showed U.S. consumer confidence fell steeply in June on worries about the labor market.

The Dow Jones industrial average .DJI dropped 217.28 points, or 2.14 percent, to 9,921.24. The Standard & Poor's 500 Index .SPX fell 24.94 points, or 2.32 percent, to 1,049.63. The Nasdaq Composite Index .IXIC slid 63.75 points, or 2.87 percent, to 2,156.90.

The S&P 500 fell below its 2010 closing low of 1,050.47, leaving support near 1,040, its intraday low so far this year.

The CBOE volatility index .VIX, a gauge of investor anxiety, shot up more than 16 percent to a session high of 33.82.

MMTC declared 1:1 bonus and 10:1 stock split

noreply@blogger.com (askrakesh) — Tue, 29 Jun 2010 13:59:00 +0000

Board of Directors of the MMTC Ltd has recommended a Dividend @ 90% on the paid up equity capital of the Company for the Financial Year 2009-10. The board has also approved split of each equity share of face value Rs. 10/- each into 10 equity shares of face value Re. 1/- each. The sub-division is to be effective and simultaneous with the allotment of Bonus Shares.

The Company has declared Audited results for the Year ended March 31, 2010. It has posted a net profit of Rs 2162.40 million for the year ended March 31, 2010 as compared to Rs 1402.20 million for the year ended March 31, 2009. Total Income has increased from Rs 368738.10 million for the year ended March 31, 2009 to Rs 452138.90 million for the year ended March 31, 2010.

MMTC Ltd is quoting at CMP of Rs 32,035.00. The stock has made an intraday high of Rs 33,400.00 and low of 30,700.00 at NSE. Total traded quantity at NSE for MMTC Ltd at 15.16 IST is 14,671.

Established in 1963, MMTC, one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over US$ 7 billion. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of "five star export house" by Govt of India for long standing contribution to exports. MMTC is the largest non-oil importer in India.

EGOM approves market-linked Fuel Pricing

noreply@blogger.com (askrakesh) — Fri, 25 Jun 2010 11:51:00 +0000

The Empowered Group of Ministers (EGoM) has decided to raise petrol and diesel prices. The govt. has approved market-driven increase in fuel prices, thus freeing petrol price from government control.

But there is still uncertainty if this is complete or partial de-regulation.

Impact:

Markets recovered some losses as the news came in. Sensex cut losses by 40 points, and is curently at 17,610.

The PSU OMCs HPCL (up 5.48% ), BPCL (up 4.5% ) and IOC (up 4.1%) rose.

This move will reduce the subsidy burden on the exchequer, thereby reducing fiscal deficit. The government had set the fiscal deficit forecast for FY11 at 5.5% of GDP.

But higher fuel prices will only add to the steepening inflation, strengthening the case for the RBI to hike key policy rates before its 27^th July’10 policy meet.

Crude oil weakens

noreply@blogger.com (askrakesh) — Wed, 23 Jun 2010 06:05:00 +0000

Crude oil weakens further as investors sold crude again on worries that Eurozone crisis will curb economic recovery. It digested the positive news from Germany. Germany’ confidence index rose. Now the market reconsidered that the China’s RMB measures may not benefit commodities and so profit booking after yesterday’s rally also took place to some extent.

Fitch Ratings announced that it cut BNP Paribas’ rating to AA- stating that bank’s asset quality is deteriorated. This indicates that Europe is not yet out of woods.

Nikkei slips below 10,000 mark on weak US data

noreply@blogger.com (askrakesh) — Wed, 23 Jun 2010 04:30:00 +0000

Japan’s Nikkei fell below 10,000 mark today after Wall Street closed lower with all three major indices finishing more than one per cent lower on weak housing data. Japan’s Nikkei is currently trading down by1.67% or 168.44 points at 9945.43.

Investor’s sentiment were sluggish on fresh recurring doubts over the strength of the economic recovery in the world's largest economy and one of Japan's largest trading partners.

The shares that had climbed on the hopes that the Yuan flexibility decision would boost Chinese purchasing power like shippers and machinery shares lost ground today.

Nippon Yusen slid 3.9% to 343 yen and fellow shipper Mitsui O.S.K. Lines lost 2.9% to 640 yen. Hitachi Construction fell 2% to 1,827 yen.

US stocks trade in narrow range at open

noreply@blogger.com (askrakesh) — Tue, 22 Jun 2010 15:21:00 +0000

Fresh concerns about Europe's sovereign debt crisis are keeping the US stock market in check.

Stocks are trading in a narrow range Tuesday after Fitch Ratings cut its view on BNP Paribas, one of Europe's largest banks, and ahead of the start of the Federal Reserve's two-day rate-setting committee meeting.

The downgrade of BNP Paribas renews worries that Europe's debt problems will slow a global recovery and lead to another round of losses at banks.

The Fed is expected to keep rates at historic lows as a domestic recovery remains slow.

The Dow Jones industrial average is up 9.52, or 0.1 percent, at 10,452.15. The Standard & Poor's 500 index is up 1.11, or 0.1 percent, at 1,114.31, while the Nasdaq composite index is up 9.09, or 0.4 percent, at 2,298.18.

Silver touches record highs on industrial demand, gold drops

noreply@blogger.com (askrakesh) — Mon, 21 Jun 2010 16:48:00 +0000

Silver prices rose further to touch a new record high at the bullion market here today on sustained demand from industrial users triggered by firm global cues.

Silver ready (.999 fineness) firmed up by Rs 105 per kilo to end at Rs 30,340 from weekend's closing level of Rs 30,235.

On the other hand, gold dropped on the back of profit- taking by stockists and speculators, despite the yellow-metal hitting a record high at USD 1,264.90 an ounce in the overseas market.

Standard gold (99.5 purity) declined by Rs 60 per ten grams to close at Rs 18,790 from Rs 18,850 last Saturday.

Pure gold (99.9 purity) also dipped by Rs 55 per ten grams to settle at Rs 18,880 as against Rs 18,935.

RIL to invest $20 bn in power foray

noreply@blogger.com (askrakesh) — Mon, 21 Jun 2010 15:27:00 +0000

As per media reports, Mukesh Ambani-led Reliance Industries Ltd (RIL) may invest anywhere between $15 to $20 billion (Rs70,000- Rs90,000 crore) over the next 10 years towards its big-bang foray into the power sector, which, besides power generation, would also include transmission projects.

The funding for RIL’s power business will be through a mix of debt and equity and a new company may be floated in the next two years to undertake execution of power projects.

Since construction of a new power project takes up to five years, RIL, besides bidding for ultra mega power projects (UMPPs), may preferably look at inorganic growth (by acquisition of power plants) to establish its presence in the sector.

RIL may look at acquiring some hydel and thermal power projects besides bidding for coal based UMPPs of 4,000 mega watt (MW) capacity each.

UMPPs at Chhattisgarh, Orissa and Tamil Nadu — each of which would cost Rs16,000 crore — is already on the investment radar of RIL.

“Setting up a power project does not need any licence but takes at least a year or two for preparatory work and another 3-4 years for its execution,” said a power ministry official.

RIL will bid for transmission projects as the space has been offered for participation by the private sector.

Given the scarcity of coal in the country, sources said RIL is also considering acquisition of coal mines in Australia, Mozambique, Indonesia and South Africa. RIL already has a memorandum of understanding (MoU) with a local company in Australia for mining uranium.

Even brother Anil — who has big plans to develop 33,000MW power generation capacity with an estimated investment of over Rs1 lakh crore — had acquired the Rosa power project in 2006.

RIL’s entry in the power sector was termed as a “game changing development” by its chairman and managing director, Mukesh Ambani at the company’s AGM on Friday (June 18, 2010).

Reliance Power has commissioned 600MW capacity at Rosa and plans to add another 600MW in the next phase.

In addition, Anil’s Reliance Power has so far bagged three out of the four ultra mega power projects (coal based) announced so far by the government. No developer at a given point of time can undertake execution of more than three UMPPs.

RIL closed at Rs1,065.25, up by 0.95%, with a volume of 4.99 lakh shares on the BSE.

Government may divest up to 10 per cent of its stake in SCI

noreply@blogger.com (askrakesh) — Mon, 21 Jun 2010 15:24:00 +0000

The government may divest up to 10 per cent of its stake in Shipping Corporation of India.

"The government in their list has included Shipping Corporation (SCI) for disinvestment in this fiscal. It is likely to happen. Disinvestment could be up to 10 per cent," SCI chairman and managing director S Hajara said here on the sidelines a SCOPE conference today.

The government currently holds 80.12 per cent in SCI, while over 10 per cent is held by LIC. The remaining 3.15 per cent is already with the public.

Asked if the company could issue fresh equity, he said, "we don't know. Discussions are on...there could be some possibility but no decision has been taken as yet."

Shipping secretary K Mohandas had said last month that the government was looking at various proposals for SCI, including a follow-on-public offer.

Hajara said a part of the disinvestment proceeds will be utilised for further acquisition. Asked how much SCI plans to raise from divestment, Hajara said it will depend on the market condition.

SCI scrips today closed at Rs 165.50 per share, up 0.88 per cent from on the Bombay Stock Exchange.

SCI at present owns 76 ships of 5.1 million DWT (deadweight tonnage) and has interests in all segments of shipping trade. In addition, it mans and manages 60 vessels of 0.2 million tonnes DWT. DWT is the total weight of the ship including the cargo, crew, fuel etc.

SCI selloff is part of the government's plans to raise up to Rs 40,000 crore this fiscal through disinvestment. Besides SCI, the government is looking at divesting its stake in three shipping-related companies--Cochin Shipyard and Dredging Corp of India.

The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.

Asian Stocks climb most in seven months on China Yuan move

noreply@blogger.com (askrakesh) — Mon, 21 Jun 2010 09:08:00 +0000

Asian stocks climbed today, driving the MSCI Asia Pacific Index up the most in almost seven months, on speculation that China’s relaxing of its currency peg to the dollar will boost growth in the world’s third-largest economy.

The MSCI Asia Pacific Index gained 2.7% to 119.35, the biggest advance since 30^th November 2010. China’s Shanghai Composite Index gained 2.88% and Hong Kong’s Hang Seng Index climbed 3%. Japan’s Nikkei hit its 1-month closing high, closing higher by 2.43% today, whereas the broader Topix closed 2.02% higher at 902.49. South Korea’s Kospi Index closed higher by 1.62%, and S&P/ASX 200 Index rose 1.6% in Australia.

Yuan Policy

The Chinese central bank, People’s Bank of China, pledged on 19^th June'10 to make the yuan (renminbi) more flexible. The yuan has been pegged at about 6.83 yuan per dollar since mid-2008. The yuan today advanced 0.21% to 6.8120 per dollar, its the biggest gain since 30^th December 2008.

The global economy is “gradually recovering and the upturn in the Chinese economy has become more solid,” the People’s Bank of China said in a statement announcing its yuan action. A more flexible currency would help to curb consumer-price gains, asset bubbles and dependence on exports for growth.

Gainers

Gauges of raw-material suppliers, energy and industrial companies posted the biggest gains among the MSCI Asia Pacific Index’s 10 industry groups.

Metal shares were among the biggest gainers as China’s policy shift is supposed to be good for commodity prices. BHP Billiton Ltd, the world’s biggest mining company, increased 2.3% as investors bet commodities demand will rise.

Hongkong shares also rose on speculation the yuan’s appreciation will make the city’s real estate cheaper for mainland buyers, with Hang Lung Properties Ltd. climbing 3.9% in Hong Kong

Airlines stocks in China surged, with Air China Ltd., the world’s biggest airline, climbing 5.1% in Shanghai on optimism a stronger Chinese currency will reduce dollar-denominated costs.

ITC announces 1:1 bonus

noreply@blogger.com (askrakesh) — Fri, 18 Jun 2010 14:16:00 +0000

ITC will complete a 100 years in August. Acknowledging the unstinted support of shareholders, the Board of Directors proposed a centenary issue of Bonus shares in the ratio of 1:1, subject to shareholders’ approval at the Annual General Meeting scheduled for 23rd July. ITC has evolved into a multi-business conglomerate and is today the leading FMCG marketer in India, the second largest hotel chain, the clear market leader in the Indian Paperboard & Packaging industry and the country’s foremost Agri-business player. Additionally, its wholly owned subsidiary is one of India’s fastest growing IT companies in the mid-tier segment.

Over the last 15 years, ITC has created multiple drivers of growth by developing a portfolio of world-class businesses. During this period, the company’s post-tax profits recorded an impressive compound growth of 21.7% per annum respectively. Total Shareholder Returns, measured in terms of increase in market capitalisation and dividends, grew at a compound rate of 24.3% during this period, placing the company amongst the foremost in the country in terms of efficiency of servicing financial capital. ITC today is one of India’s most admired and valuable corporations with a market capitalisation in excess of Rs100,000 crores.

Euro hits 3-week high against the dollar

noreply@blogger.com (askrakesh) — Fri, 18 Jun 2010 12:13:00 +0000

The euro climbed to a three-week high against the dollar on Friday as a relatively successful Spanish bond auction in the previous session kept the single currency supported.

Worries over Spain’s finances were heightened earlier in the week on reports, which were subsequently denied by the European Commission, that the country was set to ask the International Monetary Fund, the European Union and the US Treasury for financial assistance.

Essar Oil plans to explore oil in Uganda

noreply@blogger.com (askrakesh) — Fri, 18 Jun 2010 12:05:00 +0000

Ruia’s led Essar Oil hopes to partner with Uganda’s government for oil exploration in the East African country, Uganda. The country is in need of a refinery since it has discovered oil reserves there. According to Tullow Oil Plc, one of the oil exploring company in the country, Uganda has an estimated 2 billion barrels of crude, with 800 million barrels already discovered.

Last year, Essar announced that it will buy a stake in Dhabi Group’s Ugandan unit known as Warid Telecom.

Essar Oil is currently quoting at Rs 124.85 down by 2.23% from its previous close. The stock hit an intraday high of Rs 128.25 and low of Rs 124.60. So far, 875,345 shares have been traded on NSE.

Essar Oil Limited (EOL), part of Essar group is an India-based company that is engaged in the exploration, production and marketing of oil and gas. The Company’s principal activities range from oil exploration to the downstream sectors of marketing oil products and petrochemicals. It is organized into three divisions: exploration and production, refinery and marketing.