Indian Stock Exchange News, Indian Stock Market News, IPO News, BSE, NSE Tips, Sensex

RBI to conduct Rs 600 bn special repo auction today

noreply@blogger.com (Saurabh Tank) — Mon, 07 Sep 2009 02:24:14 PDT

The Reserve Bank of India (RBI) will be conducting a special fixed rate term repo auction at 4.75% per annum (p.a.) against eligible securities for Rs 600 billion on Monday, Sep. 7, 2009.

The move will provide liquidity to mutual funds (MF), non-banking financial companies (NBFC) and housing finance companies (HFC) either on incremental or on rollover basis.

The reversal of the auction will take place on Sep. 22, 2009. There is no amount outstanding under this facility as on Aug. 31, 2009.

The apex bank had increased the daily liquidity adjustment facility (LAF) till Mar. 31, 2010 up to a cumulative amount of Rs 600 billion on outstanding basis exclusively for the purpose of meeting requirements of MFs, NBFCs and HFCs.

Trading strategies, stock picks for next week

noreply@blogger.com (Saurabh Tank) — Sun, 21 Jun 2009 04:43:40 PDT

It was bad week for the Indian equity markets , but there was a glimmer of hope seen towards the end of the week. After two days of downfall, the markets saw smart recovery. However, for the week, the markets closed in the red. The Nifty and Sensex ended down 5.7% and 4.5% respectively.

Experts’ views on the road ahead for the markets:

Andrew Holland of Ambit Capital:

If global markets do take a hasty retreat than what we have seen more measured falls recently so I think the risk to that is higher than the more recent fall that we have been seeing in global markets. I could easily make a case for 12,000 but if things are more measured then 13,000-13,500 on the Sensex can be a short term base.

I think we will be buying on dips partly because with the government having the mandate it has, has changed our views in terms of the longer-term growth potential for India.

Atul Suri, Trader :

What is most important for the markets right now is for this bull market to sustain. I would not be bothered till we breach 4,100. If you look at these current moves, the post-circuit scenario when we went to 4,200-4,300, we retraced to 4,100 and then we got into a newer top, which is 4,600-4,700 on the Nifty. So essentially what has happened is that we have made a higher top at 4,100. So for this bull market to continue, I think 4,100 will hold and the market may exhaust a little bit, retrace a little bit from these levels.

Sunil Singhania, Reliance MF:

In the near-term there can always be a short-term correction but the way things are progressing and the way the scenario is emerging both fundamentally as well as technically, we don’t see a major reaction even in the short term. But from our perspective we are looking at India from a longer-term perspective and the way things are actually moving and even the government focus on infrastructure, increasing the gross domestic product (GDP), I think we are headed for some decent days ahead for India.

Trading ideas on specific stocks:

Sudarshan Sukhani, Technical Analyst:

One stock which I have been referring to is Hindalco. It has come through a very good correction, at this point there is a buying opportunity with a target of somewhere around Rs 105 or Rs 110. Now if the investment does not work out, which means there is a correction that continues downwards, you either get out with a Nifty stop loss of 4,200 or you add more to the stock, somewhere around 3,800 for the Nifty or Rs 70 for the share.

Read more....... http://www.moneycontrol.com

Banks to get stress test results Friday: report

noreply@blogger.com (Saurabh Tank) — Wed, 22 Apr 2009 07:48:31 PDT

(Reuters) - U.S. banks will be briefed by regulators as early as Friday on how they performed in government "stress tests," before the results are made public later, The Wall Street Journal reported, citing government officials.

Reuters - The Wall Street entrance to the New York Stock Exchange is pictured March 27, 2009. REUTERS/Eric Thayer ...
Some estimates of likely losses that were used in the stress tests were tougher than expected, the newspaper said.

"Under a more adverse scenario, which assumes a 10.3 percent unemployment rate at the end of 2010, banks would have to calculate two-year losses of up to 8.5 percent on their first-lien mortgage portfolios, 11 percent on home-equity lines of credit, 8 percent on commercial and industrial loans, 12 percent on commercial real estate loans, and 20 percent on credit card portfolios," the paper said, citing a confidential document from the Federal Reserve.

On Tuesday, Treasury Secretary Timothy Geithner said most U.S. banks have enough capital to keep lending, but a pile of bad debts is fostering doubts about their health and slowing a recovery.

An official at the Federal Reserve said last week that results of the tests, designed to see how the nation's 19 largest banks would fare should the U.S. recession prove unexpectedly severe, would be made public on May 4.

The official said regulators will try to prove the rigor of the tests by releasing a document on Friday that explains the underlying assumptions. The document will outline the methodologies employed and serve as a guide on how to interpret the results.

Thanks to http://finance.yahoo.com

Sensex fails to maintain initial gains, ends lower by 81 pts

noreply@blogger.com (Saurabh Tank) — Wed, 22 Apr 2009 07:43:19 PDT

Mumbai, Apr 22 (PTI) In high volatility, the Bombay Stock Exchange 30-share Sensex today failed to maintain its initial gains and ended lower by 81 points due to persistent selling pressure in view of political uncertainty and fall in US index futures.
Realty, consumer durables, capital goods and auto were the main losers despite key rate cuts by the Reserve Bank of India yesterday.

Dealers attributed the volatility in the market to investors' cautious approach as also the uncertain political situation because of no clear indication as to who will form the next government.

The Bombay Stock Exchange bellwether Sensex showed signs of recovery in the morning with a jump of 138 points in response to the Reserve Bank's rate cuts yesterday but it failed to maintain its rally in the afternoon session.

The BSE-30 share index resumed higher at 10,968.60 and hovered in a range of 11,036.24 and 10,715.66 before finishing the day at 10,817.54, showing a net loss of 80.57 points or 0.74 per cent from its previous close.

The 50-share Nifty of the National Stock Exchange also fell by 35 points or 1.04 per cent to end at 3,330.30 from its last close.

Foreign institutional investors (FIIs) pulled out Rs 191.01 crore yesterday, as per provisional figures issued by stock exchanges.

Thanks to http://www.ptinews.com

Wall Street ends mixed; Dow down 27 points

noreply@blogger.com (Saurabh Tank) — Tue, 14 Apr 2009 07:57:31 PDT

The US markets reversed early losses led by financials, after Goldman posted strong first quarter profit.

Financial stocks had been among the session's worst performing sectors in the first few minutes of action, falling as much as 2.7% as traders took profits following the strong gains that financials registered late last week. However, buyers provided support by buying the dip in financials.

The market was also buzzing about President Barack Obama's press conference on the economy later today. The president is expected to talk about government's recession-busting actions.

However, earlier in the session, shares of General Motors tumbled 16% as the treasury department instructed the auto maker to prepare for a bankruptcy filing by first June deadline. Also Read - How ADRs performed

The Dow Jones Industrial Average slipped 25.57 points, or 0.3%, to 8,057.81. The S&P 500 Index was up 2.17 points, or 0.3%, to 858.73, and the Nasdaq Composite Index rose 0.77 points, or 0.1%, to 1,653.31.

Richard Bove, Financial Strategist, Rochdale Securities said, “The reason numbers are good is because their core business, which is trading did extraordinarily well. You had a whole series of things working in Goldman’s favour. The competition is gone away; all of the firms are no longer in business. Goldman has pricing power because there are so few competitors, or weaker competitors, Goldman has doubled the price of transaction in the first quarter."

In Commodities

Crude prices slipped below USD 50/bbl mark, extending yesterday's 4.2 percent loss, after the international energy agency forecasted that 2009 demand may slump to the lowest level in five years amid the global economic recession.

Copper climbed to the highest in almost six months in London, pacing an advance in industrial metals, as investors sought to catch up on gains made in shanghai and New York.

Futures in China and the US advanced after the Chinese government said it is considering additional stimulus measures to spur economic growth. Government plans to spur growth in the US, Europe, Japan and China helped trigger a 58 percent rally in London prices this year.

Thanks to http://www.moneycontrol.com

Tech Mahindra bags Satyam: Samir Arora, Forrester react

noreply@blogger.com (Saurabh Tank) — Tue, 14 Apr 2009 07:54:38 PDT

After three months of the new board taking over Satyam, Tech Mahindra finally won the high profile race for Satyam. The company bid Rs 58 per share, beating rivals engineering major Larsen & Toubro and private equity (PE) major Wilbur Ross. Tech Mahindra will have to pay Rs 1,757 crore to buy the 31% stake in Satyam. The total acquisition cost will rise upto Rs 2,890 crore once it gets the mandated 51% stake.

Satyam's government-appointed board clarified that Tech Mahindra will take control only when the Company Law Board (CLB) gives its nod for the sale process. They also admitted that the crucial process of restatement of accounts would take a few more months.

Samir Arora, Fund Manager, Helios Capital, feels the model which the government adopted for Satyam could be an operating model for future scams in India. He credits the government for handling the situation deftly and swiftly without loss of jobs, confidence, or clients.

Arora feels the risk going forward will be on Tech Mahindra financing the deal.

However, JR Varma, Former Member, SEBI, said the deal has gone very well for everyone except Satyam's shareholder. "A preferential allotment to Tech Mahindra means the old shareholders of Satyam will receive less. Other than the open offer that is going to be there, they are not going to receive any money. It is not very clear whether they will benefit from the ongoing business as well."

Sudin Apte, Senior Analyst, Forrester, feels questions still persist on how the integration process will pan out. Clients, he feels, are also wondering how a company specializing in telecom will be able to service them. "Also, it is not exactly present in the domain and the lines of services of Satyam." He feels a Tier-I Indian company or a multinational could have been a better option to take over approximately a USD 2 billion company when this fiasco opened up. "I wish there was one top company who was trying to buy this company as it would have been much better for clients." According to Apte, there is going to be a possible 5-6% rationalization of staff at Satyam based on how its clients ramp up.

Also Read:

Restatement of co's accounts will take few months: Satyam

Continued on next page…

Thanks to http://www.moneycontrol.com

Sensex cheered by global mood amid local slump

noreply@blogger.com (Saurabh Tank) — Fri, 10 Apr 2009 09:12:45 PDT

Industrial production may be in a slump but not investor sentiment. The return of foreign institutional investors (FIIs) into the Indian markets and an improving global financial environment have been the key factors behind a stocks rally that has seen the benchmark Sensex climb 32 per cent - or 2,643 points - in the past one month.

It gained 7.6 per cent in the current week ahead of Good Friday to close at a six-month high of 10,803. That spirit contrasts some ground realities.

The Index of Industrial Production (IIP) has contracted on the year, while GDP growth projections have been lowered, with a matching shrinkage in expectations of corporate profitability. But then, there is also a "no news is good news" mood on the external front and positive announcements at the G-20 summit of elite economies.

"Overall, risk aversion has eased and investors are moving from secure assets to riskier assets," said Aseem Dhru, chief executive officer, HDFC Securities. While market discounted all the bad news on economic and corporate front, FIIs emerged as strong buyers with net equity purchases of Rs 4,042 crore since March 9.

"FII purchase in a beaten down market over the last one year has built in a positive investor sentiment," said Divyesh Shah, CEO, Indiabulls Securities. Experts, nevertheless, remain cautious, "I expect sensex to rally between 9,000 and 11,000,' said Dhru.

"Some profit booking is expected," added Shah. However, they see clarity emerging within three months.

Thanks to http://in.news.yahoo.com

Vodafone CEO sees potential in emerging mkts - paper

noreply@blogger.com (Saurabh Tank) — Fri, 10 Apr 2009 09:11:02 PDT

Vodafone Group's chief executive told a German newspaper that while emerging markets were not unscathed by the global economic crisis, they still offered opportunities to mobile phone operators.

"I'm assuming that growth will slow down in emerging markets but they still offer us vast potential," Vittorio Colao told Welt am Sonntag in an interview to be published on Sunday.

Two thirds of the world's cell phone subscriptions are in developing nations, with the highest growth rate in Africa, a United Nations agency said last month.

Other companies that have invested heavily in emerging markets include India's Bharti Airtel, Norway's Telenor, South Africa's MTN and Egypt's Orascom Telecom.

Colao also told Welt am Sonntag it was definitely time for consolidation among mobile phone operators, but declined to say whether and how Vodafone would participate in the process.

Thanks to http://in.news.yahoo.com

Sensex ends in negative; M&M plummets 7.93%

noreply@blogger.com (Saurabh Tank) — Fri, 23 Jan 2009 07:30:39 PST

The Sensex ended in the negative terrain led by banking, metal and consumer goods stocks. Sustained selling was seen across board.

Equities opened on a flat note with negative bias tracking global cues. The 30-share index, BSE Sensex opened with a loss of 9.69 points, at 8,804.15 on Friday. After few minutes of trading, Sensex moved up into the postive to trade on a flat note touching a high of 8,858.84 amid volatility. Later the index fell back into the negative and slipped further on intense selling witnessed in frontliners touching a low of 8,631.60. Banking, realty and metal sectors were the major draggers.

BSE Midcap and Smallcap index declined 1.56% and 1.50% respectively.

Among the sectoral indices, BSE Bankex tumbled 4.16%, Metal plunged 3.35%, Consumer goods shed 2.87% and Realty declined 2.45%.

Asian stocks declined after losses at Sony Corp. and Samsung Electronics Co. showed the global recession is eroding the profits.

The Sensex ended the day with a loss of 139.49 points, or 1.58% at 8,674.35 after touching a high of 8,858.84 and a low of 8,631.60. The broad-based NSE Nifty fell 35.25 points, or 1.30% at 2,678.55 after hitting a high of 2,765.55 and a low of 2,661.65.

Biggest gainers in the 30-share index were Tata Motors (1.81%), Reliance Industries (1.78%), Ranbaxy Laboratories (0.75%), and NTPC (0.28%).

On the other hand, Mahindra & Mahindra (7.93%), Tata Steel (7.17%), Jaiprakash Associates (6.95%), Reliance Communications (4.50%), State Bank Of India (4.34%), and ICICI Bank (3.71%) were the major losers in the Sensex.

Overall market breadth was extremely negative. Out of the total 2,501 stocks traded at BSE, 808 advanced, 1,600 declined while 93 remained unchanged.

Results :

JK Tyre and Industries, swung to loss for the quarter ended December 2008 on account of severe impact in the demand due to the unprecedented global economic slowdown affecting the automobile sector in no small measure.

Zee News, primarily a media company registered a rise of 18.40% in the consolidated net profit in the quarter ended December 2008.

Union Bank of India, one of the largest public sector banks reported a phenomenal rise in standalone net profit for the quarter ended December 2008 due to rise in interest income.

Edelweiss Capital, a diversified Indian financial services company registered a fall of 17.13% in the consolidated net profit in the quarter ended December 2008

Indices Trend
Sensex Nifty
Period Value % Change Value % Change
1 Week 9,046.74 (4.12) 2,736.70 (2.12)
1 Month 9,686.75 (10.45) 2,968.65 (9.77)
3 Months 8,701.07 (0.31) 2,584.00 3.66
6 Months 14,274.94 (39.23) 4,311.85 (37.88)
1 Year 18,152.78 (52.21) 5,274.10 (49.21)

Thanks to www.myiris.com

US Offers $6 Billion to Support Auto Lender GMAC

noreply@blogger.com (Saurabh Tank) — Tue, 30 Dec 2008 03:23:16 PST

The Bush administration on Monday expanded its bailout of the U.S. auto industry, saying it was buying $5 billion in equity in auto and mortgage finance company GMAC and increasing a loan to General Motors by $1 billion.
CNBC.com
The action was the latest in a lengthy series of emergency government moves aimed at easing the worst credit crisis since the 1930s and limiting the severity of a year-long recession.
The Treasury Department said it would buy $5 billion in senior preferred equity with an 8 percent dividend from GMAC as part of an effort to ensure the solvency of a company considered crucial to GM's survival.
It also said it would lend up to $1 billion to fund GM's purchase of equity in support of GMAC's reorganization as a bank holding company. That loan would come on top of assistance extended to the No. 1 U.S. automaker earlier this month. Sales Decline
The government agreed on Dec. 19 to rescue GM and Chrysler LLC with up to $17.4 billion in loans to stave off a collapse that would have cost hundreds of thousands of jobs and dealt a severe blow to an economy already in recession. Of that amount, $13.4 billion was earmarked for GM.
President George W. Bush said at the time that it would be irresponsible to let the automakers die. The White House moved on its own after Republicans in the Democratic-controlled Congress blocked a deal to provide emergency funds.
U.S. auto sales have plunged to 25-year lows in recent months and are not expected to recover substantially until after 2009 under the most optimistic of outlooks. The recent steep drop in sales, which automakers and analysts have linked to the credit crisis that took hold in September, has pushed both GM and its smaller rival Chrysler to the brink of collapse.
RELATED LINKS
Current DateTime: 02:08:23 30 Dec 2008LinksList Documentid: 28423076

The Treasury said it was dipping into a $700 billion financial bailout fund approved by Congress in early October to buy the equity in GMAC and extend the loan to GM.
GMAC won Federal Reserve approval to become a bank holding company last week, a move intended to give it freer access to emergency government funds and help it avoid bankruptcy. GMAC has had to raise additional capital to achieve bank holding company status.
The company, co-owned by GM
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and private equity firm Cerberus, has lost $7.9 billion over the last five quarters as the credit crunch raised its borrowing costs sharply and the value of many of its assets plunged. Dividend Restrictions
GMAC agreed to restrictions on dividend payments and executive pay as part of the equity injection. The bonus pool available to the top 25 executives was cut by 40 percent from 2007 levels, a Treasury official told reporters on a conference call.
GMAC said in a statement that GM and a Cerberus management affiliate have agreed to buy $1.25 billion in new GMAC shares. Previously announced separate exchange and cash tender offers have been satisfied, it said.
Representatives of GM and Cerberus could not be reached for comment.

Indian economy remains 2nd fastest growing in the world

noreply@blogger.com (Saurabh Tank) — Tue, 23 Dec 2008 06:50:47 PST

The Indian economy continues to remain the second-fastest growing economy in the world.

``India`s economic fundamentals are quite robust and its economy remains the second-fastest growing one in the world``, said Suresh Tendulkar, chairman, prime minister`s economic advisory council`s (PMEAC).

India is not experiencing a recession as other advanced economies and its economy would not be affected to the same extent as some other emerging Asian economies, he said.

On micro, small and medium enterprises (MSMEs), Tendulkar said that the present economic slowdown would test the strength of the sector.

``Rising interest rates in the recent past has further accentuated the credit crunch for MSME entrepreneurs`` he added.

According to him, the financial meltdown in advanced economies has been very serious.

He described the foreign exchange reserve position in the country as `comfortable` despite foreign institutional investors (FII) outflows triggering some depletion.

The current account deficit would be well within limits, but it might be wider than in the earlier years, he said.

Thanks to http://www.myiris.com

Markets may remain volatile on F and O expiry

noreply@blogger.com (Saurabh Tank) — Tue, 23 Dec 2008 06:48:06 PST

Alex Mathew, head - research centre, Geojit Financial Services, commenting on the market performance said, ``The markets opened weak on the back of weak cues from the global arena and traded weak all through the day amid volatility and closed for the day in red. The markets made many intraday recovery on the back of news that the Central Bank may reduce the interest rate further but could not sustain at higher levels. The US index futures were trading lower lending literally no support to the market. In the afternoon the markets slipped further to close near to the days low. The rollover figures were not so encouraging and it was around 48% showing less interest shown by the investors to rollover their positions to next month.``

He said, ``The major sectorial losers of the day on BSE were Consumer Durable down 5.81%, Realty down 4.84%, Bankex down 3.76%, Capital Goods down 3.61% and Metal down 3.07% leaving no one on the gainers side. The gainers on Nifty were RCOM, Ambuja Cement, HeroHonda, ONGC and BPCL while the losers of the day were Satyam, Unitech, Tata Motors, HCLTech, Sterlite, SAIL and GAIL.``

``Outlook for the market remains volatile as tomorrow is the December F&O contract expiry with Nifty having support at 2,950 and 2,900 while the resistance at 3,036 and 3075``, he added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Thanks to http://www.myiris.com/newsCentre/storyShownew_opt.php?fileR=20081223173834043&dir=2008/12/23

Infotech Enterprises allots equity shares

noreply@blogger.com (Saurabh Tank) — Tue, 09 Dec 2008 07:36:57 PST

The committee of Infotech Enterprises has allotted 27,24,000 equity shares of Rs 5 each at a premium of Rs 355 per share toGA Global Investments, upon exercise of the option to convert 27,24,000 compulsorily convertible preference shares into a equal number of equity shares.

The company made this announcement after nthe tradig hours on 09 December 2008.

Powered by Capital Market - Live News

Thanks to http://www.sharekhan.com

Indian Stock Market Commentary

noreply@blogger.com (Saurabh Tank) — Tue, 09 Dec 2008 07:14:13 PST

Topic :- Opening Note

Weekly newsletter updated.For today market to remain volatile.Higher levels should be used as an opportunity to exit. For today Nifty spot above if manages to
trade and sustain above 2740 then market can see some recovery in initial trade. Nifty spot below 2700 can see some profit booking in initial trade.
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Topic :- Time:10.10 A.M

Nifty support is at 2815 (spot) level.If Nifty breaks this level and does not above these levels then we can see some profit booking in the market which can take Nifty to 2790-2760 levels. If Nifty Sustain above 2815 level then we can see some recovery in the market till 2830-2850-2870 levels soon.

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Topic :- Time:11.12 A.M

Nifty spot below 2788 can see some more profit booking.Recovery expected only above 2800 level.
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Topic :- Time:11.55 A.M

Market to remain volatile. For now Nifty spot below 2790 can see some more profit booking and Nifty spot above 2805 can see some recovery.Dont expect any major movement in the market right now.

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Topic :- Time:-12:55 Pm

Update:

Tomorrow the capital market will be Remain closed for trading on Tuesday 09th December, 2008 on Account of BAKRI-ID.

www.ShareTipsInfo.com
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Topic :- Time:1.10 P.M

Nifty spot above 2822 can see some more recovery.Nifty spot below 2810 can see some profit booking.One should wait and watch until market take clear direction.

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Read more.................http://www.sharetipsinfo.com

Asian stock settles positive

noreply@blogger.com (Saurabh Tank) — Tue, 09 Dec 2008 07:00:42 PST

Asian stocks climbed for the third day, as investors predicted stimulus packages from the governments will drive growth of the global economy and earnings.

Japanese benchmark index Nikkei gained 66.82 points, or 66.82%, to end at 8,395.87. Hong Kong`s Hang Seng index declined 291.65 points, or 291.65%, to settle at 14,753.22. China`s Shanghai Composite slipped 53.03 points, or 53.03%, to close at 2,037.74.

Taiwan`s Taiex index advanced 54.33 points, or 54.33%, to settle at 4,472.66. South Korea`s Kospi index climbed 0.79 points, or 0.79%, to end at 1,105.84. Singapore`s Straits Times increased 95.41 points, or 95.41%, to close at 1,754.58.

Thanks to http://www.myiris.com

Top-10 firms lose Rs 1.5 trillion; RIL worst hit

noreply@blogger.com (Saurabh Tank) — Sun, 26 Oct 2008 00:42:39 PDT

MUMBAI: The bloodbath on the bourses has wiped off a whopping Rs 1.50 trillion from market valuations of country's of 10 most valued firms in the past week, with Reliance Industries suffering the worst blow. The meltdown at the bourse washed away a big chunk from the market valuation of corporate behemoth Reliance Industries even as others like IT major Infosys Technologies and diversified conglomerate ITC Ltd managed to swim against the tide. The combined market cap of the elite club saw an erosion of Rs 1,50,730 crore in the past week, dropping to Rs 8,94,000 crore from the previous week's Rs 10,44,000 crore. With the market going for a free-fall last week, the country's most valued firm Reliance Industries lost Rs 45,600 crore in its market value dipping below the crucial Rs 2,00,000-crore mark. RIL, which announced its second quarter results last week, registered its profit up by 7.4 per cent at Rs 4,122 crore, while its revenue rose by 39.4 per cent to Rs 44,938 crore. Shares of RIL plummeted for three days in row last week to settle at Rs 1,015.50 on BSE on Friday, wiping off as much as Rs 29,038 crore or about 16 per cent of its market value in a single day.

Can investing in land assure good returns in future?

noreply@blogger.com (Saurabh Tank) — Sun, 26 Oct 2008 00:39:47 PDT

The lucrative long-term return on land plots may tempt you to buy, even at a time when the real estate sector is reeling under the impact of a slowdown. In such a market scenario, can investing in land still assure you of good returns in the future? What is the best way to invest in this precious asset and what are the crucial determinants to assess your prospective buy?

There are various ways to invest in land. Global real estate consultancy Jones Lang LaSalle Meghraj (JLLM) shares some key factors that are necessary to consider. “Identifying a piece of land that is in close or reasonable proximity to future market drivers is important.

Next, one should inquire into the legal status of the land and establish if it is for sale. Finally, locate the owners and make a purchase proposal. For maximum future returns, its is important to make one’s investment while entry costs are low,” says Anuj Puri, chairman and country head of JLLM.

One must especially keep in mind certain aspects to avoid any legal hassles later. For instance, land may be under litigation or may be earmarked for a government project. It could be categorised as forest land or could even be in a Coastal Regulation Zone.

It may also lack basic facilities such as water and power supply or fall in a politically or socially challenged sector. Any or a combination of these factors can subtract or nullify the investment potential of land. Hence all negative possibilities should be covered before purchase.

Another aspect which cannot be neglected is the paperwork needed. A number of documents are necessary in land purchase and need to be checked. The title deed (a legal document proving a person’s right to property), the encumbrance certificate (which proves that the land is not under some sort of legal dispute), the release certificate (in case the land was previously pledged to someone else), the surveyor’s report (to establish its exact dimensions) and — if the owner is an NRI — the power of attorney that gives his representative the legal right to act on the NRI’s behalf, are all significant documents that should be given careful consideration.

But is it profitable to invest in land in the current market situation? Some advise caution. “The current economic recession is leading to unprofitable business for everyone, whether it be a company or an investor. The downturn is obviously not the right time to invest in property as it is not going to reap any positive or profitable results. To make a profitable deal, the investor should wait for at least 2-4 years,” advises Vijay Jindal, CMD of SVP Builders India.

More :- economictimes.indiatimes.com

Sensex at 8.7K: Thirty stocks that bore the brunt

noreply@blogger.com (Saurabh Tank) — Sun, 26 Oct 2008 00:33:06 PDT

Reliance Infrastructure

Jaiprakash Associates

RIL stock skids 66% in the downturn

noreply@blogger.com (Saurabh Tank) — Sun, 26 Oct 2008 00:18:00 PDT

CHENNAI: From August '07 to January '08 when stocks rallied from strength to strength, Reliance Industries was the catalyst for the the 7,000-point sensex rally. But, ever since the fall started since January 10, it is again Reliance, according to data, may be the chief reason for bringing the benchmark down in the quicker and sharper downturn.
The world may have changed for Indian stocks and Sensex may have come down substantially but the the most influential stock in the 30-share bellwether index -Reliance still remains the match-maker. While the stock price has corrected by Rs 2,000 a share, Sensex came down by 12,500 points.

Extrapolating this, it is fair to say that for every one rupee shed by Reliance stock, Sensex has fallen by close to 6 points, according to analysts. When sensex went up by 49% in just 7 months (August to January) Reliance, which carried a weightage of 15.3% in early January, witnessed its stock price outperform the benchmark index and raised by 73%.

While the DLF stock went up by over 90% in the same period, the real estate company carried a meagre sensex weightage of 2%.

The impact of Reliance's rise is significant on Sensex as blue-chip firms SBI, ITC, ADAG-controlled Reliance Comm and ONGC cumulatively held a weightage of close to Reliance"s 15% in January. "The Reliance stock is pivotal to sensex's fortunes. There has hardly been any day, when Reliance has fallen and has not pulled down sensex alongwith it. Nobody remains unaffected when the big boy falls," said a large broker at Bombay Stock Exchange.

During the downturn, the Reliance stock has fallen by 66%, again outperforming Sensex which has shed 59% in the same period.

Although Sensex constituents such as RCom, Larsen & Toubro and DLF have fallen by 75-80% in the same period, which is sharper than Reliance, the three stocks have a cumulative weightage of just under 10% (which is less than Reliance's 12% influence), data shows.

One half of all Sensex companies taken together i.e around 15 stocks have just the same influence that a single scrip has: Reliance. DLF may have corrected by over 80% but Reliance's freefloat market cap is 14 times more than it. "Sensex is calculated under free-float market capitalisation method.

This means that the influence of closely-held companies such as DLF on the index is preventing even if their stock price fall is much sharper," the research head of a foreign brokerage explained.

Repo boost: Experts hail move, want further policy steps

noreply@blogger.com (Saurabh Tank) — Mon, 20 Oct 2008 09:18:26 PDT

Experts unanimously hailed the Reserve Bank’s repo rate cut by 100 basis point as positive, but added that the impact on capital markets would not be much. Most experts felt that confidence in the market was low and decisions needed to be taken to counter short-selling and volatility.

The RBI today cut the repo rate cut — the first since 2003 — in a bid to infuse liquidity into the system. (Read: RBI cuts repo rate) After the announcement, the Sensex rose about 500 points but negated the rise later in the day to end 247 points up.

Terming the cut as a prompt move carried out in the best interests in the economy, Deven Choksey of KR Choksey Securities said this is the beginning of a cut and we may see interest rates coming down gradually.

Ajay Bagga, CEO, Lotus India Asset Management Company, feels the rate cut was a big positive that surprised the market. “After nearly three years, this is the first rate cut. It signals the resolve of the regulators to move to a pro-growth stance.”

Shashank Khade, VP, Portfolio Management Services, Kotak Securities, felt the rate cut was expected even as it came a little ahead of time. “I am not sure whether the equity markets will really have too much to cheer immediately. Given the way the volatility in the markets has been, there has to be a much higher reward to actually invest in equity.”

What ails markets now?

Ambareesh Baliga of Karvy Stock Broking said the markets have their own set of problems. “There is a lack of confidence, which will not come just because of a CRR or a repo rate cut.”

Read more........... http://www.moneycontrol.com/

Mkt to bottom at 8,800-9,800: ICICI Securities

noreply@blogger.com (Saurabh Tank) — Mon, 20 Oct 2008 09:05:47 PDT

Pankaj Pandey, Head - Research, ICICI Securities said he expects the markets to bottom at about 8,800-9,800. Going forward, Pandey does not see earnings driving the markets.

He feels investors should have a portfolio of about 40% in equities, about 20-25% in cash and the balance in fixed deposits. Pandey is bullish on PNB, Axis Bank, Indian Overseas Bank, PNB, NTPC, Power Grid, Infosys and Satyam.

Here is a verbatim transcript of the exclusive interview with Pankaj Pandey on CNBC-TV18. Also watch the accompanying video.

Q: What exactly are you advising investors at this juncture? Do you think that we may be at least close to the last 5-10% of the bottom?

A: We expect market to bottom at 8,800-9,800. After breaking the 10,000 level, from an eight-year cycle perspective we expect, about 55-58% correction. So we feel that we are closer to the bottom range. We advise investors to have a portfolio of about 40% in equities, about 20-25% in cash and the balance in FD.

Q: What have you set your eye on this results season?

A: Results, I think have more or less been a mixed bag across the sectors. second quarter may not have a significant bearing on the market because global cues continue to be bad. Going forward as well, we don’t expect results to drive the markets.

Globally as a thumb rule, I think, contraction of about 10% in US GDP can happen. Whether that happens over a period of three quarters or six quarters remains to be seen. So, we anticipate that nothing major is likely to happen until the second half of 2009. A survey by The Economist says that about three quarters is the most moderate view in terms of the contraction in GDP and probably the most pessimistic view is about 18 months.

Read more............. http://www.moneycontrol.com/

Market crash: Tips to cut losses

noreply@blogger.com (Saurabh Tank) — Sat, 18 Oct 2008 04:49:20 PDT

THE market's blows are only getting harder.

The bad news is that the worst may not be over yet. Amidst all this turbulence, only one thing can save you: The right advice.

Here’s how you can limit the damage, straight from wealth's experts.

Scenario 1: I invested in the markets for the short term; what should I do now?
Right now, the markets are driven by global sentiment. And, financial planner Arvind Rao reckons that it may take up to the fourth quarter of 2009 for the global market to pull up. On the domestic front too, things may look brighter only in the third or fourth quarter of 2009. "This is mainly because of the huge input costs and high interest rates as of now, " he says.

In such a scenario, you have 2 options:
Option 1: If you are hard pressed for money, you have no choice but to withdraw.

PV Subramanyam, financial domain trainer, says, “If you need money soon, say in a year or two, it is better to sell now even if that means booking losses. There’s no way of predicting how the markets would behave.”

Option 2: Sandeep Shanbhag, investment expert and Director, Wonderland Consultants, says, “If you initially invested for the short term but can weather the storm, then wait, provided you have fundamentally good stocks. However, if you need funds, then exit as early as possible and treat this as a mistake not to be repeated.”

Caution: Do not play the markets on a short term basis simply because of the looming uncertainty.

Read more...... www.Moneycontrol.com

Satyam cuts FY09 rev guidance due to forex fluctuation

noreply@blogger.com (Saurabh Tank) — Sat, 18 Oct 2008 04:43:53 PDT

Satyam Computer has announced its Q2 FY09 numbers. The company has reported a growth of 6.05% in net profit of Rs 580.85 crore as against Rs 547.70 crore, QoQ. Revenues were up by 7.6% at Rs 2819.29 crore versus Rs 2620.83 crore. Satyam has met its second quarter guidance; revenues went up by 2.3% to USD 652 million while guidance was USD 645 – 651.9 million. EPS stood at $0.39 per share, wherein also the company met its guidance.Rupee guidance changed only for rupee move from 43- 47 per dollar.

Satyam has cut its FY09 revenue dollar guidance to USD 2.55-2.59 billion versus USD 2.65-2.69 billion. Ramalinga Raju said that 3% was due to cross currency movement and 2% on account of reduction in volumes that he expects.

The Satyam Management including Ramalinga Raju, Founder and Chairman, Ram Mynampati, President, CHB and Srinivas Vadlamani, CFO spoke in an exclusive interview with CNBC-TV18.

The management said that the company’s dollar guidance was impacted 3% due to cross currency and 2% due to business conditions. It expects a 100-150 bps expansion in margins, which has helped in enhancing the dollar EPS guidance. It added that there had been some reduction in licences in ERP and said it was premature to quantify medium term prospects. The gross employee additions guidance of the company has been scaled down to 10000 from 14000-15000.

The management informed CNBC-TV18 that the company’s legal dispute with Upaid was status-quo and said that the hearing was slated for next year. It feels that it is too early to quantify the impact of the BFSI consolidation in the US.

Ramalinga Raju feels the near-term environment remains challenging. He added that forex fluctuations have impacted their US GAAP revenues by 3%. He does not see a dramatic slowdown and added that clients were circumspect over the 2009 budgets.

Here is a verbatim transcript of the exclusive interview with the Satyam Management on CNBC-TV18. Also watch the accompanying video.

Q: Could you start by explaining your dollar guidance, the revenue guidance- why has that been lowered? How much of it is because of cross currency issues and how much of it is because of the tough environment that you see around you?

Raju: It is a combination of factors. We have enhanced our guidance at the consolidated numbers at rupee level from 34% to about 35.4%.

At the dollar level we have reduced our revenue guidance from 26% to 21% at the upper end of the guidance. About 3% of that can be explained by the cross currency movement and 2% on account of reduction in volumes that we expect.

So under the current circumstances we believe we have done well for the quarter and we feel this is number that we are able to give confidently.

Read more......... http://www.moneycontrol.com/

ICICI Bank has healthy capital position: Chanda Kochhar

noreply@blogger.com (Saurabh Tank) — Sat, 11 Oct 2008 03:30:45 PDT

Chanda Kochhar, Joint MD and CFO, ICICI Bank, said India’s largest private sector bank has a very healthy capital position, “In the past few days there have been rumours being circulated about ICICI Bank’s financial health in certain parts of the country. These rumours are baseless. We wanted to clarify that ICICI Bank has a very healthy capital position.”

Kochhar said ICICI Bank is the second largest bank in India with an asset base of more than Rs 4,84,000 crore. “We have been proactively raising capital and have a net worth of Rs 47,000 crore. This gives us capital adequacy of 13.4%. The regulatory requirement is 9%, which means it is at least 150% more than what is required. This is one of the highest capital adequacy positions among large Indian banks. This indicates a very strong capital position and comfortable levels of leverage at which ICICI Bank operates.”

She said the bank has already clarified about its investments in the UK subsidiary. “About 98% of them are in investment grade and above category. We have also clarified that the capital adequacy not only of ICICI Bank but also of the subsidiaries are very comfortable. Today, the Reserve Bank also clarified that ICICI Bank and its subsidiaries abroad are well and sufficiently capitalized. They also clarified that we have enough liquidity to meet the requirements of our depositors.”

The Finance Minister has also clarified that the Indian banking system is well capitalized and well regulated. “In that context, I would only like to reiterate that the rumours are quite baseless. I would like to assure all our stakeholders including depositors, and investors that we continue to have a healthy capital position and financial position. We will be able to meet everybody’s requirement and there is no cause to worry at all.”

source: http://www.moneycontrol.com/

Liquidity adequate, global exposure small: ICICI Bk

noreply@blogger.com (Saurabh Tank) — Sat, 11 Oct 2008 03:25:32 PDT

Chanda Kochhar, Joint MD and CFO, ICICI Bank, said the bank has adequate rupee and global liquidity of Rs 12,000 crore. "We have no international investments, only loans on our balance sheet. We do not use rupee liquidity to fund global activities."

Kochhar said the bank has not seen a scale-down in deposit growths. "The focus this year is on current and savings accounts."

According to her, the bank has not seen an increase in NPAs, or Non Performing Assets, as the corporate sector is holding up. "About 90% of total loans are India related."

She feels the current investment pipeline is strong enough to ensure a 7.5% GDP growth.

Commenting on the banks' UK operations, Kochhar said exposures in the market there are very small given our size and profitability. "NPAs at 0% in UK subsidiary. Over 90% of investment in UK market are to companies with atleast 'A' rating."

She said there is a cash collateral of USD 45 million from the Bumi Group. "The net loan stands at USD 100 million for which there is adequate cover."

Here is a verbatim transcript of the exclusive interview with Chanda Kochhar on CNBC-TV18. Also watch the accompanying video.

Q: You have made four clarifications in the last fortnight or so. The RBI has clarified your liquidity position, but your stock is down 25% today. Is there any reason that you can think of why the stock market is hammering your stock down?

A: We have always believed that we would concentrate on our performance. The other thing we would do as a responsible bank is talk about facts. The rest of the movement if it happens is on the basis of rumours – we are on the point where we have to concentrate on our performance and on facts.

Q: You have actually spoken quite a bit about your liquidity position etc, obviously the market is worried about something. Are there any issues which might affect your performance or your balance sheets significantly in the foreseeable future – something that you’ve not had reason to report yet?

A: One of the things – the rumour that has been going around is about liquidity and as mentioned even in the morning that we have adequate and more than adequate rupee liquidity. We also have adequate global liquidity worth more than Rs 12,000 crore and also we do not use rupee liquidity to fund the growth of our international operations. So that’s one clear statement of fact and every rumour going around it which is not true has to be kind of discounted.

Secondly, in the recent past people have had questions on our international book on which we have clarified in the past. So I again clarify that in the ICICI Bank balance sheet we have no international investments as such. There are only loans which are primarily to Indian companies for their global operations. While they are foreign currency loans, they are related to the global operations on the Indian companies. As far as our UK subsidiary is concerned, yes, we do have certain amount of investments.

We have more than clarified about what the size of those investments is. Also more than 90% of those investments are still A minus and above ratings and given the context of our size of the group, having a balance sheet of Rs 4,84,000 crore and a net worth of Rs 47,000 crore – these exposures are very, very small. We have to look at them in that context. So if people have fears around that, I am only re-clarifying that these are small exposures given our size and our profitability.

Q: Have you seen a sharp increase in NPAs for ICICI Bank that you might report this quarter or in the next few?

A: No. The NPA levels continue to remain where they have been even in the last quarter. Even as we report earnings for Q2, you will not see anything untoward as far as the NPAs are concerned. In that context, even our UK subsidiary – as far as its entire loans and advances book is concerned there is actually zero NPA there.

Q: The other set of rumours doing the rounds is ICICI has lent to international companies, very clean loans at that time when they were lent with adequate collateral in terms of shares. But those shares have fallen and therefore some of those loans are now backed by inadequate collateral, and one of the names being mentioned is the Bumi Group. Are there generally fears that loans lent to global companies either from your global branches or from the Indian units are now being threatened that the stock market has fallen and not for any other reason?

A: Our total loans and advances even globally, 90% is India related. So, first of all global loans are very small even if a few of the loans exist.

The total amount of loan that Bumi Group loan has borrowed is USD 150 million. We have cash collateral against it to the extent of USD 45 million. So, the net loan amount is close to USD 100 million. Against that, we have more than adequate cover.

So, the non-India related loans are very few transactions – less than 10% of our global loans and advances, maybe a few transactions again which in some way or the other are related to India because again this is a company that exports a lot of coal to India and there is a whole lot of Indian linkage in terms of people buying coal from this company into India.

We have adequate security not just in the form of shares or other security, but in the form of pure cash collateral. Also, this is a company which has EBITDA of more than USD 500 million. So, there are underlying cash flows, there are other forms of securities, and we have a cash collateral sitting against it.

Read more........ http://www.moneycontrol.com/