Buy Voltas
Buy Voltas at Current with target 150.00
Wednesday, June 3, 2009
Markets may be correct
Markets may be correct on this 15000 level, Market will consolidate between 12500-16500.
Thursday, May 14, 2009
Today Tips - 15-05-09
Salil Sharma (Kapoor & Sharma Company)
YES Bank Ltd. Buy, stop loss Rs 75 May 14, 09 108
Nishant Jain (Tradeswift)
Essar Oil Ltd. Sell, stop loss Rs 155 May 14, 09 105
Salil Sharma (Kapoor & Sharma Company)
Zee Entertainment Enterprises Ltd. Buy, stop loss Rs 127 May 14, 09 152
Sudarshan Sukhani
Reliance Capital Ltd. Buy, stop loss Rs 560 May 14, 09 580
Ashwani Gujral
Ranbaxy Laboratories Ltd. Buy, stop loss Rs 180 May 14, 09 198
Saturday, May 2, 2009
New to Mutual Funds? Tips for a beginner
First time investors in Mutual Funds act in the face of imperfect information and often get overwhelmed by uncertainties characterizing the investment situation. But there�s more to Mutual Fund investing than market timing.
First things first..
The first thing an aspiring unit holder must do is to establish what type of portfolio he wants to build. In other words, to decide the right asset allocation. Asset allocation is a method that determines how you invest your money in different investments with the proper mix of various asset classes. Remember, the type or class of security you own i.e. equity, debt or money market, is much more important than the particular security itself.
The popular thumb rule for asset allocation says that whatever the investor�s age, he should keep that percentage of his portfolio in debt instruments. For example, if an investor is 25, he should have 25% of his investments in debt instruments and the rest in equity. However, in reality, different circumstances and financial position for each individual may require different allocation. Portfolio variable is another factor that one needs to understand to practice asset allocation. These are age, occupation, number of dependants in the family. Usually the younger you are, the more riskier the investments you can hold for getting superior returns.
How to pick the right fund/s?
Next, focus on selecting the right fund/s. The key is to select the fund/s based on their investment philosophy and consistency in terms of returns. To ensure you are selecting the right type of funds that are appropriate for your needs, consider following:
- Determine what your financial goals are.
- Are you investing for retirement? A child�s education? Or for current income?
- Consider your time frame. Do you need money in three months time or three years? The longer your time horizon, the more risk you may be able to take.
- How do you feel about risk? Are you in a position to tolerate the ups and downs of the stock market for the possibility of higher returns? It is necessary to know your own risk tolerance. It can be a guide for choosing the right schemes. Remember, regardless of the potential returns, if you are not comfortable with a particular asset class, you should consider other options.
Remember, all these factors will have a direct impact on the fund you choose and the return that you can expect to get. If you are a long-term investor with some appetite for risk and are looking for returns to beat inflation, equity funds are your best bet. MFs offer a variety of equity and equity-oriented schemes (See table �Fund Candy�). For a beginner, it makes sense to begin with a diversified fund and gradually have some exposure to sector and specialty funds.
More... click Here
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ULIPs get more transparent with IRDA move
WEALTH received many queries from readers enquiring about Unit Linked Insurance Plans (ULIPs). The common thing among these readers was that they were tricked into buying ULIPs. They were told they could earn returns that are much better than any other investment, and the premium could be paid only for three years if they wanted to. This is most common pitch for selling ULIPs. And they are classic examples of mis-selling.
If you have been a victim too, here is some relief for you. In a move to curb such malpractices of agents, Insurance Regulatory and Development Authority (IRDA) has taken some initiative. In a circular released, the regulatory body has said that the premium paid in the second year should at least be 75 per cent of the premium paid in the first year. In other words, let’s say if you have paid a premium of Rs 10,000 in the first year, the premium paid in the second year should at least be Rs 7,500 in the following year.
Why this move?
It all began in the year 2007 when IRDA had issued a norm that allowed insurers to reduce the premium in ULIPs, provided a certain amount is maintained throughout the policy term. But this norm seemed to be misused by insurance agents to sell ULIPs like single premium plans. This norm when introduced was done with the intention of bringing in more flexibility. But insurance agents misused this clause and hence IRDA has now asked them to conform to the new norm beginning April 1, 2009.
How will it work?
Agents receive commission as high as 25-30 per cent in the first year of a ULIP policy compared to single premium policies that give only 2 per cent commission. Hence, insurance agents push for regular policies and pay little attention to renewal of these policies. They concentrate more on selling new ULIP products that will get them more commission.
The reason why IRDA took this move was because of the fall in renewal premiums. Not just this, the regulator has now asked insurers to pay back the commission back to policyholders if the premium is less than 75 percent of the first year’s premium.
Example
If you pay Rs 10,000 premium in the first year, the agent will get Rs 3,000 as commission in the first year (considering the commission is 30 per cent). You reduce your premium in the second year to Rs 7,000. According to the new norm, the insurer will have to treat the difference in the first and second year premium, ie, Rs 3000 (Rs 10,000 to Rs 7,000) as single premium plan. This is because Rs 7000 is less than 75 per cent of Rs 10,000 paid in the first year. So, the insurance plan will automatically be treated as a single premium plan and the agent will be given commission that is applicable on single premium plans, ie, 2 percent.
So what happens to the 35 per cent commission paid in the first year? The insurance company will minus the charges of regular premium plan from single premium plan, ie, 35-2 percent. So, the agent will be given only 2 per cent commission and the remaining, ie, 33 per cent will be deposited back into your account.
CEO of apnainsurance.com, Harsh Roongta says, "IRDA has taken an excellent step to curb agents from mi-selling regular ULIP as a single premium plan." However, this will be applicable on new potential policyholders and not on existing ones.
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.
How will it work?
Agents receive commission as high as 25-30 per cent in the first year of a ULIP policy compared to single premium policies that give only 2 per cent commission. Hence, insurance agents push for regular policies and pay little attention to renewal of these policies. They concentrate more on selling new ULIP products that will get them more commission.
The reason why IRDA took this move was because of the fall in renewal premiums. Not just this, the regulator has now asked insurers to pay back the commission back to policyholders if the premium is less than 75 percent of the first year’s premium.
Example
If you pay Rs 10,000 premium in the first year, the agent will get Rs 3,000 as commission in the first year (considering the commission is 30 per cent). You reduce your premium in the second year to Rs 7,000. According to the new norm, the insurer will have to treat the difference in the first and second year premium, ie, Rs 3000 (Rs 10,000 to Rs 7,000) as single premium plan. This is because Rs 7000 is less than 75 per cent of Rs 10,000 paid in the first year. So, the insurance plan will automatically be treated as a single premium plan and the agent will be given commission that is applicable on single premium plans, ie, 2 percent.
So what happens to the 35 per cent commission paid in the first year? The insurance company will minus the charges of regular premium plan from single premium plan, ie, 35-2 percent. So, the agent will be given only 2 per cent commission and the remaining, ie, 33 per cent will be deposited back into your account.
CEO of apnainsurance.com, Harsh Roongta says, "IRDA has taken an excellent step to curb agents from mi-selling regular ULIP as a single premium plan." However, this will be applicable on new potential policyholders and not on existing ones.
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.
Thursday, April 2, 2009
Closing Bell
3:30 pm: The Nifty ended the day at provisional 3214.15, higher by 153.8 points or 5.03 per cent from Wednesday's close.
The 50-share index of the NSE recorded a high of 3228.75 during the day from the open of 3061.05.
2:39 pm: Piramal Healthcare Ltd, as part of consolidation of global manufacturing assets, has decided to discontinue operations at its manufacturing facility in Huddersfield, UK. This is an Intermediate/API site catering to the pharma solutions (Custom Manufacturing) business and is one of the manufacturing sites of Piramal Healthcare (UK) Ltd., the company's wholly-owned subsidiary in the UK. In 2005, Piramal Healthcare acquired Avecia Pharmaceuticals which was then renamed as NPIL Pharmaceuticals (UK) Ltd. (now known as Piramal Healthcare (UK) Ltd.). The company had manufacturing facilities in Huddersfield. Grangemouth (Scotland) and Toronto (Canada). The remaining two sites at Grangemouth and Toronto will continue to operate and drive growth for the Pharma Solutions business. The closure will result in a one time cash cost of around Rs. 70 crores which will be incurred in the year ended March 31, 2009. As a result of this closure and increased acceptance of India as a custom manufacturing destination, profitability of the Pharma Solutions business is expected to increase significantly.
Shares of Piramal Healthcare were up 4.4 per cent at Rs 202 on the NSE, after the announcement.
2:15 pm: Steel Strips Wheels Ltd produced 6.04 lakh Wheel Rims during the month of March,as against 5.65 lakh Wheel Rims same month in 2008, recording a growth of 7%. The company has also achieved a sale of 5.83 lakh wheel rims during March 2009 against 5.53 lakhs year ago, recording a growth of 5.5%.
1:45 pm: Larsen & Toubro Ltd has bagged Rs 1344 crore refinery order from MRPL, Mangalore.
12:15 pm: Bharat Seats Ltd's board of directors will meet on April 13, consider and approve the audited financial results for the year ended March 31, 2009, and to recommend the dividend, if any.
11:45 am: Jindal Saw Ltd has informed that 26,00,000 warrants were allotted to Anbeeco Investments Ltd. on preferential basis on May 22, 2008. Each of these warrants was convertible into one equity share of Rs.10 each at a price not less than Rs.819 up to March 31, 2009 at the option of the allotee. As the allottee has not exercised the option to convert the above warrants into equity shares, the amount of advance at 10% of per warrant stands forfeited .
11:30 am: Inox Leisure Ltd has informed that it has discontinued the management of a multiplex cinema theatre situated at Entertainment Paradise, Jaipur, Rajasthan from April 1, 2009.
11:00 am: Hindustan Oil Exploration Co. Ltd has been informed by operator ONGC that the Directorate General of Hydrocarbons has approved the development plan of Gulf 'A' discovery in the Block CB-OS-1. HOEC has 38.07% non-operating participating interest in the said development area. Shares of the company were higher by 4.87 per cent at Rs 71 on the NSE, on the back of this news.
10:40 am: Zydus Cadila has announced tile filing of the IND application for ZYT1 - a novel lipid lowering molecule with the UF Food & Drug Administration. Designed and developed at the Zydus Research Centre, ZYTI is a novel, anti-dyslipidemic agent which may provide an alternative to statins or be an add-on to statin therapy. Dyslipidemic is a clinical condition characterized by an elevation ofcholesterol and/or triglycerides in the bloodstream. Over 80% of patients with coronary heart disease, even those curicntly on medication, the targeted levels thr cholesterol.
Shares of the company were up 0.35 per cent at Rs 275.10 on NSE. The stock charted a high of Rs 280.
10:33 am: Maruti Suzuki India Ltd sold 792,167 vehicles in 2008-09. This marks a growth of 3.6 per cent over last year. The annual sales in 2008-09 is the highest ever by the company, in its 25 year history. The previous highest annual sales were 764,842 units in 2008-09. The company’s sales included exports of 70,023 units in 2008-09, up by 32.1 per cent over sales of 53,024 recorded in 2007-08. The 2008-09 export numbers, the highest ever by the company was led by A-star, the fuel efficient compact car launched in Europe during the year. The export tally includes around 19,000 units of A-star exported to Europe including United Kingdom, France, Germany, Italy, Netherlands, Denmark and Switzerland. 2008-09 marked Maruti Suzuki’s Silver Jubilee year in India.
Shares of the auto biggy were up 4.3 per cent at Rs 826.45 on NSE, after touching a high of Rs 829.55 earlier.
10:27 am: Larsen & Toubro Ltd has bagged two orders worth Rs 1,143 crore from Tata Steel. This comprises Rs 689 crore order for turnkey construction of Dry Crushing & Material Preparation Plant at Joda Mines and Engine-on-Load Scheme at Noamundi Mines and another Rs 454 crore order for Iron Ore & Pellet Handling System at Jamshedpur. Shares of the engineering and construction major were up over 6 per cent at Rs 713.35 on NSE, following this announcement.
10:23 am: Uco Bank has seen capital infusion of Rs. 450 crore from the Government of India. The bank board has decided to allot 45,000 Perpetual Non-Cumulative Preference Shares of Rs. 100,000 each to account for the amount. The relative fund of Rs. 450 crore has been received on March 31, 2009 and the arrangements are being made to credit the amount to the account of the President of India in the D-Mat Account with CDSL. The PNCPs are issued at annual floating coupon to be benchmarked to Repo Rate with a spread of 100 basis points to be reset annually based on prevailing Repo Rate on the relevant date. The PNCPs are not listed and are non-tradable/ non-transferable. On NSE, Uco Bank shares were up 5.74 per cent at Rs 27.65.
10:00 am: There were no losers in the 50-share NSE index.
9:59 am: The early gainers in the Nifty included ICICI Bank (6.5%), Reliance Infrastructure (6.25%), Reliance Capital (6.14%), Suzlon Energy (5.69%), Larsen & Toubro, HDFC, Axis Bank, Punjab National Bank, Tata Consultancy Services, State Bank of India.
9:58 am: The Indian stock market extended the rally Thursday, riding the gains across Asia. The Nifty opened the day at 3061.05 against the previous close of 3060.35. The broad NSE index rallied further to 3171.35, before settling at 3170.85, higher by 110.5 points or 3.61 per cent. The Indian markets will remain shut Friday for Ram Navmi celebrations.
The 50-share index of the NSE recorded a high of 3228.75 during the day from the open of 3061.05.
2:39 pm: Piramal Healthcare Ltd, as part of consolidation of global manufacturing assets, has decided to discontinue operations at its manufacturing facility in Huddersfield, UK. This is an Intermediate/API site catering to the pharma solutions (Custom Manufacturing) business and is one of the manufacturing sites of Piramal Healthcare (UK) Ltd., the company's wholly-owned subsidiary in the UK. In 2005, Piramal Healthcare acquired Avecia Pharmaceuticals which was then renamed as NPIL Pharmaceuticals (UK) Ltd. (now known as Piramal Healthcare (UK) Ltd.). The company had manufacturing facilities in Huddersfield. Grangemouth (Scotland) and Toronto (Canada). The remaining two sites at Grangemouth and Toronto will continue to operate and drive growth for the Pharma Solutions business. The closure will result in a one time cash cost of around Rs. 70 crores which will be incurred in the year ended March 31, 2009. As a result of this closure and increased acceptance of India as a custom manufacturing destination, profitability of the Pharma Solutions business is expected to increase significantly.
Shares of Piramal Healthcare were up 4.4 per cent at Rs 202 on the NSE, after the announcement.
2:15 pm: Steel Strips Wheels Ltd produced 6.04 lakh Wheel Rims during the month of March,as against 5.65 lakh Wheel Rims same month in 2008, recording a growth of 7%. The company has also achieved a sale of 5.83 lakh wheel rims during March 2009 against 5.53 lakhs year ago, recording a growth of 5.5%.
1:45 pm: Larsen & Toubro Ltd has bagged Rs 1344 crore refinery order from MRPL, Mangalore.
12:15 pm: Bharat Seats Ltd's board of directors will meet on April 13, consider and approve the audited financial results for the year ended March 31, 2009, and to recommend the dividend, if any.
11:45 am: Jindal Saw Ltd has informed that 26,00,000 warrants were allotted to Anbeeco Investments Ltd. on preferential basis on May 22, 2008. Each of these warrants was convertible into one equity share of Rs.10 each at a price not less than Rs.819 up to March 31, 2009 at the option of the allotee. As the allottee has not exercised the option to convert the above warrants into equity shares, the amount of advance at 10% of per warrant stands forfeited .
11:30 am: Inox Leisure Ltd has informed that it has discontinued the management of a multiplex cinema theatre situated at Entertainment Paradise, Jaipur, Rajasthan from April 1, 2009.
11:00 am: Hindustan Oil Exploration Co. Ltd has been informed by operator ONGC that the Directorate General of Hydrocarbons has approved the development plan of Gulf 'A' discovery in the Block CB-OS-1. HOEC has 38.07% non-operating participating interest in the said development area. Shares of the company were higher by 4.87 per cent at Rs 71 on the NSE, on the back of this news.
10:40 am: Zydus Cadila has announced tile filing of the IND application for ZYT1 - a novel lipid lowering molecule with the UF Food & Drug Administration. Designed and developed at the Zydus Research Centre, ZYTI is a novel, anti-dyslipidemic agent which may provide an alternative to statins or be an add-on to statin therapy. Dyslipidemic is a clinical condition characterized by an elevation ofcholesterol and/or triglycerides in the bloodstream. Over 80% of patients with coronary heart disease, even those curicntly on medication, the targeted levels thr cholesterol.
Shares of the company were up 0.35 per cent at Rs 275.10 on NSE. The stock charted a high of Rs 280.
10:33 am: Maruti Suzuki India Ltd sold 792,167 vehicles in 2008-09. This marks a growth of 3.6 per cent over last year. The annual sales in 2008-09 is the highest ever by the company, in its 25 year history. The previous highest annual sales were 764,842 units in 2008-09. The company’s sales included exports of 70,023 units in 2008-09, up by 32.1 per cent over sales of 53,024 recorded in 2007-08. The 2008-09 export numbers, the highest ever by the company was led by A-star, the fuel efficient compact car launched in Europe during the year. The export tally includes around 19,000 units of A-star exported to Europe including United Kingdom, France, Germany, Italy, Netherlands, Denmark and Switzerland. 2008-09 marked Maruti Suzuki’s Silver Jubilee year in India.
Shares of the auto biggy were up 4.3 per cent at Rs 826.45 on NSE, after touching a high of Rs 829.55 earlier.
10:27 am: Larsen & Toubro Ltd has bagged two orders worth Rs 1,143 crore from Tata Steel. This comprises Rs 689 crore order for turnkey construction of Dry Crushing & Material Preparation Plant at Joda Mines and Engine-on-Load Scheme at Noamundi Mines and another Rs 454 crore order for Iron Ore & Pellet Handling System at Jamshedpur. Shares of the engineering and construction major were up over 6 per cent at Rs 713.35 on NSE, following this announcement.
10:23 am: Uco Bank has seen capital infusion of Rs. 450 crore from the Government of India. The bank board has decided to allot 45,000 Perpetual Non-Cumulative Preference Shares of Rs. 100,000 each to account for the amount. The relative fund of Rs. 450 crore has been received on March 31, 2009 and the arrangements are being made to credit the amount to the account of the President of India in the D-Mat Account with CDSL. The PNCPs are issued at annual floating coupon to be benchmarked to Repo Rate with a spread of 100 basis points to be reset annually based on prevailing Repo Rate on the relevant date. The PNCPs are not listed and are non-tradable/ non-transferable. On NSE, Uco Bank shares were up 5.74 per cent at Rs 27.65.
10:00 am: There were no losers in the 50-share NSE index.
9:59 am: The early gainers in the Nifty included ICICI Bank (6.5%), Reliance Infrastructure (6.25%), Reliance Capital (6.14%), Suzlon Energy (5.69%), Larsen & Toubro, HDFC, Axis Bank, Punjab National Bank, Tata Consultancy Services, State Bank of India.
9:58 am: The Indian stock market extended the rally Thursday, riding the gains across Asia. The Nifty opened the day at 3061.05 against the previous close of 3060.35. The broad NSE index rallied further to 3171.35, before settling at 3170.85, higher by 110.5 points or 3.61 per cent. The Indian markets will remain shut Friday for Ram Navmi celebrations.
Goldman Sachs upgrades outlook for Indian stocks after 15 months
NEW DELHI: Global financial services provider Goldman Sachs has upgraded its outlook on Indian stocks, saying the country's equity market would
be in line with the overall Asian landscape as against its previous projection of under-performance.
"We are raising our long-standing underweight stance on India to market weight, because we believe that India's investment merits relative to other regional alternatives have improved," Goldman Sachs said in a latest report.
The global financial services firm has raised India's stock rating to 'market weight', the first upgrade, since it was rated 'underweight' in January 2008.
It further said that the key reasons for taking a more constructive view revolve around domestic demand, corporate profitability and stock valuation.
The report said that the financing constraints that hurt Indian corporate profitability during the global credit crisis in the fourth quarter of 2008 have eased and so the country's relative economic resilience has improved.
"While India's corporate profit growth was hit in 4Q08 (fourth quarter of 2008) and will remain under pressure in early 2009, we expect relatively better profitability and EPS (earning per share) growth than in most other markets," it added.
Dell sees slowdown in IT spending by large enterprises
NEW DELHI: Dell India is witnessing slowdown in IT hardware spends by large enterprises, its biggest customer base, and is relying on segments
such as public sector, small and medium businesses (SMBs) and individual consumers to shore up market share in India, its country head said on Thursday.
"The market is slowing down but we keep looking for areas where we can grow our market share in these times," Dell India country general manager Sameer Garde said.
In the public sector, Dell India is particularly eyeing education and healthcare segments. It has participated in some ICT programmes in states such as Andhra Pradesh, Tamil Nadu, Maharashtra and Rajasthan. i Large enterprises are looking to reduce ther maintenance costs within their reduced IT budgets, while SMBs are an untapped market, Mr Garde added. Of the 8 million SMBs in India, only one million spend on IT, he said.
Dell recently restructured its operations to focus on four business segments - large enterprises, public sector, SMBs and consumer. "We have changed our go-to-market strategy in the last 6-8 months and moved from a purely direct selling model to a mix of direct and retail," Mr Garde said. He refused to comment on whether the Indian arm is on track to achieve its target of $1 billion in revenues this year.
such as public sector, small and medium businesses (SMBs) and individual consumers to shore up market share in India, its country head said on Thursday.
"The market is slowing down but we keep looking for areas where we can grow our market share in these times," Dell India country general manager Sameer Garde said.
In the public sector, Dell India is particularly eyeing education and healthcare segments. It has participated in some ICT programmes in states such as Andhra Pradesh, Tamil Nadu, Maharashtra and Rajasthan. i Large enterprises are looking to reduce ther maintenance costs within their reduced IT budgets, while SMBs are an untapped market, Mr Garde added. Of the 8 million SMBs in India, only one million spend on IT, he said.
Dell recently restructured its operations to focus on four business segments - large enterprises, public sector, SMBs and consumer. "We have changed our go-to-market strategy in the last 6-8 months and moved from a purely direct selling model to a mix of direct and retail," Mr Garde said. He refused to comment on whether the Indian arm is on track to achieve its target of $1 billion in revenues this year.
Wednesday, February 25, 2009
TV broadcasters can’t run cable, DTH: Regulator
New Delhi, Feb. 25 The Telecom Regulatory Authority of India (TRAI) has recommended that broadcasters should not be allowed to own more than 20 per cent in TV distribution platforms such as cable and DTH.
It also suggests that the broadcaster should have no control in the distribution and vice versa. The recommendations, to ensure plurality and diversity of views, will be examined by the Ministry of Information and Broadcasting. If approved, companies such as the Sun Group, the Essel Group, and Hathway will get three years to restructure their businesses.
Although no instance of “market failure” has been found, TRAI says it would rather “put timely safeguards than look for corrective measures which become difficult for the industry to align in future”.
“The sweeping nature of such recommendations is archaic and designed to perpetuate the current positions of certain players,” says Mr Uday Shankar, CEO, Star India, whose company owns about 23 per cent stake in the cable operator Hathway.
Mr Kalanidhi Maran, Chairman and MD of Sun Network, and his family own 80 per cent of Sun Direct. The Essel Group, engaged in broadcasting, DTH, cable and HITS will also have to ensure that common promoters of its cable business WWIL and Zee Entertainment do not own more than 20 per cent.
TRAI’s recommendations will apply to any “individual, a group of persons, a public or private body corporate, a firm, a trust, or any other organisation or body and also to include ‘inter-connected undertakings’ as defined in the Monopolies and Restrictive Trade Practices Act.”
Mr A. Mohan, Essel Group’s Executive Vice-President, says that the licensing requirement in DTH ensured that it would be compliant, if and when the recommendations are accepted.
Zee Entertainment has no stake in WWIL, and owns less than 20 per cent in Dish TV, says Mr Mohan. “The Government has to still bring in licensing in the cable sector, only then can you have compliance,” he adds.
He also points out that no restrictions were imposed on telecom players such as Bharti and Reliance ADAG who have launched DTH services and could aggregate content for their IPTV platforms. TRAI says it would review the matter of cross ownerships of telecom and media businesses in two years.
Reliance Entertainment is reported to have applied for more than 20 licences for channels, with plans to launch three initially. However, a company spokesperson points out that its DTH business Big TV was owned by the group’s Reliance Communications.
While the regulator points out that certain developed countries have cross media ownership, some of which have been recently reviewed and retained, the industry has opposed the move. “India is such a diverse country; I don’t think it is possible to build cross media empires in a large scale. The only thing that needs to be regulated is concentration in a geography,” said Star’s Mr Shankar.
Star owns 20 per cent in the DTH business Tata Sky.
TRAI says, “It was clarified by the Ministry that looking at the increasing trend of the print media entering into broadcasting sector, the issue needs to be examined in its entirety”.
Source: The Hindu Business Line
Gold records fifth steepest fall in Mumbai
MUMBAI: After a historic northward climb, gold recorded one of the steepest falls in recent times in the domestic markets on Wednesday on the back
of firmer dollar and sliding crude prices. In Mumbai, the price of yellow metal (99.5) plunged by Rs 370 to Rs 15,335 per 10 gm.
With Wednesday’s fall, gold has become cheaper by nearly 3% from its life-time high of Rs 15,790 per 10 gm touched on February 21. The last time the Mumbai gold market saw the highest fall was on March 20, 2008 when it fell by Rs 905 per 10 gm.
The other major single-day falls were recorded on December 2, December 19 and January 13 when the yellow metal lost Rs 410, Rs 370 and Rs 335 per 10 gm, respectively.
The dealers said the market was overbought and a correction was in the pipeline. Signs of a recovery in equities also dampened the spirit of bulls in the bullion market, analysts said.
However, the fall wasn’t attractive enough to bring in buyers to stores. In fact, they made maximum gains by selling old ornaments, according to sources. “If prices fall below $935 an ounce in international markets or Rs 14,500 per 10 gm in domestic markets physical buying may revive,” said Prakash Jain, a leading bullion merchant in Mumbai’s Zaveri Bazaar.
A similar view was echoed by other bullion dealers. The lower demand has cast its shadow over imports. According to sources, February is yet to open accounts as regards gold imports despite the fact that India is the largest importer of yellow metal.
A similar trend was reflected in other metros too. Gold lost the most in Kolkata where prices plummeted by Rs 445 before closing the business at Rs 15,610 per 10 gm. While in Chennai, the yellow metal tumbled by Rs 390 to Rs 15,230, it plummeted by Rs 385 to Rs 15,400 per 10 gm in Delhi.
In the international market, which normally guides price trend here, gold bounced back from early lows as US, European stock markets retreated. In London, spot gold rose to $973.00/974.05 an ounce from Tuesday’s New York close of $962.45. In early trade, the metal fell to $950.00.
Silver also recorded a hefty fall in the absence of any trigger. Chennai markets saw the biggest fall, where ready silver (.999) plummeted by Rs 1,380 per kg to Rs 23,420 per kg. While in Delhi the white metal lost Rs 1,100 to Rs 22,000 per kg, the spot silver recorded a loss of 900 at Rs 22,000 per kg in Kolkata.
Mumbai markets aped the trend in other cities as the metal was down by Rs 770 to Rs 22,485 per kg.
Source: EconomicTimes
of firmer dollar and sliding crude prices. In Mumbai, the price of yellow metal (99.5) plunged by Rs 370 to Rs 15,335 per 10 gm.
With Wednesday’s fall, gold has become cheaper by nearly 3% from its life-time high of Rs 15,790 per 10 gm touched on February 21. The last time the Mumbai gold market saw the highest fall was on March 20, 2008 when it fell by Rs 905 per 10 gm.
The other major single-day falls were recorded on December 2, December 19 and January 13 when the yellow metal lost Rs 410, Rs 370 and Rs 335 per 10 gm, respectively.
The dealers said the market was overbought and a correction was in the pipeline. Signs of a recovery in equities also dampened the spirit of bulls in the bullion market, analysts said.
However, the fall wasn’t attractive enough to bring in buyers to stores. In fact, they made maximum gains by selling old ornaments, according to sources. “If prices fall below $935 an ounce in international markets or Rs 14,500 per 10 gm in domestic markets physical buying may revive,” said Prakash Jain, a leading bullion merchant in Mumbai’s Zaveri Bazaar.
A similar view was echoed by other bullion dealers. The lower demand has cast its shadow over imports. According to sources, February is yet to open accounts as regards gold imports despite the fact that India is the largest importer of yellow metal.
A similar trend was reflected in other metros too. Gold lost the most in Kolkata where prices plummeted by Rs 445 before closing the business at Rs 15,610 per 10 gm. While in Chennai, the yellow metal tumbled by Rs 390 to Rs 15,230, it plummeted by Rs 385 to Rs 15,400 per 10 gm in Delhi.
In the international market, which normally guides price trend here, gold bounced back from early lows as US, European stock markets retreated. In London, spot gold rose to $973.00/974.05 an ounce from Tuesday’s New York close of $962.45. In early trade, the metal fell to $950.00.
Silver also recorded a hefty fall in the absence of any trigger. Chennai markets saw the biggest fall, where ready silver (.999) plummeted by Rs 1,380 per kg to Rs 23,420 per kg. While in Delhi the white metal lost Rs 1,100 to Rs 22,000 per kg, the spot silver recorded a loss of 900 at Rs 22,000 per kg in Kolkata.
Mumbai markets aped the trend in other cities as the metal was down by Rs 770 to Rs 22,485 per kg.
Source: EconomicTimes
Stocks Retreat After Obama Speech
This is a transcript of the Market Update: Midday video report.
Stocks retreated on Wednesday, with the Street looking for direction from Washington. President Obama's Tuesday night speech failed to move the needle on Wall Street; meanwhile, investors are watching Fed Chairman Ben Bernanke's meeting with the House Financial Services Committee.
Regulators are expected to begin stress tests of the nation's major banks to determine how much capital, if any, they need.
The housing sector digested yet another disappointing report. Existing-home sales fell 5.3% to 4.49 million, coming in below economists' expectations.
American International Group
Citigroup
On the earnings docket, it appears the cash-strapped consumer may be avoiding pricier meals for peanut butter and jelly sandwiches. Jam-maker J.M. Smucker
Bond insurer Ambac Financial Group
Source: http://www.forbes.com
Tuesday, February 10, 2009
FIIs invested Rs 368.98 cr in Indian equities
MUMBAI: Foreign Institutional Investors (FIIs) today continued their confidence in the Indian market and invested Rs 368.98 crore in
equities.
As per the provisional data available with the Bombay Stock Exchange, FIIs were the gross buyers of equities worth Rs 1,688.12 crore, while they bought shares valued at Rs 1,319.16 crore resulting in the net purchase of equities worth Rs 368.96 crore.
On Monday, FIIs had invested Rs 289.10 crore in the Indian market, the latest data available with the Securities and Exchange Board of India (SEBI) shows.
However, in today's market, Domestic Institutional Investors (DIIs) were in weak mood and offloaded equities worth Rs 116.99 crore in the market.
Following the same trend of DIIs, brokers on the behalf of their clients and non-resident Indians (NRIs) also offloaded equities worth Rs 58.90 and 0.07 crore respectively.
Meanwhile, proprietors followed FIIs' trend and invested in equities worth Rs 17.09 crore.
BSE's benchmark index -- Sensex -- today closed at Rs 9,647.47 points, a gain of 63.58 points or 0.66 per cent.
equities.
As per the provisional data available with the Bombay Stock Exchange, FIIs were the gross buyers of equities worth Rs 1,688.12 crore, while they bought shares valued at Rs 1,319.16 crore resulting in the net purchase of equities worth Rs 368.96 crore.
On Monday, FIIs had invested Rs 289.10 crore in the Indian market, the latest data available with the Securities and Exchange Board of India (SEBI) shows.
However, in today's market, Domestic Institutional Investors (DIIs) were in weak mood and offloaded equities worth Rs 116.99 crore in the market.
Following the same trend of DIIs, brokers on the behalf of their clients and non-resident Indians (NRIs) also offloaded equities worth Rs 58.90 and 0.07 crore respectively.
Meanwhile, proprietors followed FIIs' trend and invested in equities worth Rs 17.09 crore.
BSE's benchmark index -- Sensex -- today closed at Rs 9,647.47 points, a gain of 63.58 points or 0.66 per cent.
BSE, NSE turnover jumps ahead of F&O March series
Chennai, Feb. 10 The Bombay Stock Exchange and the National Stock Exchange on Tuesday witnessed a surge in turnover, with stocks such as Unitech, GVK Power & Infrastructure, IFCI, DLF and Suzlon, Educomp Solutions attracting punters’ interest.
The BSE’s turnover jumped to Rs 3,726.87 crore from Monday’s turnover of Rs 2,836.19 crore and the number of trades went up to 23.15 lakh (18.99 lakh). The NSE saw its turnover jumping to Rs 9,723.82 crore (Rs 7,871.16 crore).
A lot of bulk deals have happened in these counters on the bourses. Ambit Securities Broking Pvt Ltd bought and sold over one crore shares of Unitech, while Morgan Stanley and Deutsche Bank were active in Educomp Solutions.
In most of these counters, Tuesday’s trading volume was much higher than their two-week average volumes.
Active counter
According to brokers, counters such as Unitech, GVK Power, IFCI, DLF, JP Associates, Suzlon, RNRL and HDIL generally traded actively in the F&O segment.
The NSE had increased the market lot for 243 stocks in the derivative segment. The upward revision ranges from two to 14 times.
Puravankara Projects saw its market lot zooming ahead 14 times to 7,000 from the current 500.
The stocks whose market lot rose 10 times are Brigade Enterprises, Development Credit Bank, IVR Prime Urban Developers, Kingfisher Airlines, Parsvanath Developers and Unitech.
IFCI’s market lot was revised upwards by eight times, while Suzlon and JP Associates lot sizes have increased six times.
“Players who built a short position in these contracts are now squaring up their positions, as from next series, they have to fork out higher margin for these contracts because of higher lot size,” said a Mumbai-based broker.
According to market participants, cross margining facility, which was available from Monday for all players on the NSE, also boosted trading volumes.
In December, SEBI allowed stock exchanges to introduce cross margining across market participants between cash and derivative markets. The facility was available only for institutional investors till recently.
Cross margining allows a market participant to reduce the margin payment required. Positions of clients in cash and derivatives segments to the extent they offset each other would be considered for cross margining.
Sensex gains on hopes RBI may cut rates
Mumbai: India’s benchmark stock index rose for a third day on Tuesday as HDFC Bank Ltd led lenders higher after a government adviser said the central bank may cut interest rates to spur the economy.
HDFC Bank climbed 3% after Prime Minister Manmohan Singh’s top economic adviser, Suresh Tendulkar, on Monday said rates may be lowered after the government announces the interim budget on 16 February. He also hinted at a new raft of stimulus measures. State Bank of India (SBI) added 1.4%.
“There are expectations of a rate cut,” said Ajay Bodke, who helps manage about $1 billion (Rs4,870 crore) in equities at IDFC Asset Management Co. Ltd in Mumbai. “We may see some stimulus measures that could be announced in the vote-on-account of the budget.”
The Bombay Stock Exchange’s (BSE) Sensex rose 63.58 points, or 0.7%, to 9,647.47. The S&P CNX Nifty index on the National Stock Exchange (NSE) climbed 14.60 points, or 0.5%, to 2,934.50.
Tax cuts would be desirable to spur demand, Tendulkar said, without elaborating. The government has already announced a $4 billion plan to invest in roads and ports, and on 2 January increased the overseas investment limit in the local corporate bond market to soften the impact of recession on India’s economy.
HDFC Bank added 3% to Rs947. SBI rose 1.4% to Rs1,164.10. The share prices are composite of BSE and NSE rates.
Sterlite Industries (India) Ltd fell 0.7% to Rs278.40. Hindalco Industries Ltd declined 2.2% to Rs44.95. Tata Steel Ltd slid 1.4% to Rs196.85.
Copper and aluminium declined in London as the global economic slowdown reduced demand for industrial metals used in buildings and cars. Copper for delivery in three months fell 1.3%, to $3,532 a tonne, as of 9.39am on the London Metal Exchange. Aluminium declined 1.2% to $1,427.25 a tonne.
Oil and Natural Gas Corp. Ltd fell 1% to Rs717.45. The company has disputed an income-tax demand for Rs6,000 crore.
Railway equipment maker Texmaco Ltd, railroad construction services company Kalindee Rail Nirman (Engineers) Ltd and Titagarh Wagons Ltd, which makes railroad cars, gained ahead of a vote on the country’s rail budget on 13 February, on expectations of winning new orders.
Texmaco gained Rs2.90, or 5.4%, to Rs56.80. Kalindee Rail added Rs10.20, or 6.9%, to Rs157.50. Titagarh Wagons rose Rs30.60, or 14%, to Rs242.10.
HDFC Bank climbed 3% after Prime Minister Manmohan Singh’s top economic adviser, Suresh Tendulkar, on Monday said rates may be lowered after the government announces the interim budget on 16 February. He also hinted at a new raft of stimulus measures. State Bank of India (SBI) added 1.4%.
“There are expectations of a rate cut,” said Ajay Bodke, who helps manage about $1 billion (Rs4,870 crore) in equities at IDFC Asset Management Co. Ltd in Mumbai. “We may see some stimulus measures that could be announced in the vote-on-account of the budget.”
The Bombay Stock Exchange’s (BSE) Sensex rose 63.58 points, or 0.7%, to 9,647.47. The S&P CNX Nifty index on the National Stock Exchange (NSE) climbed 14.60 points, or 0.5%, to 2,934.50.
Tax cuts would be desirable to spur demand, Tendulkar said, without elaborating. The government has already announced a $4 billion plan to invest in roads and ports, and on 2 January increased the overseas investment limit in the local corporate bond market to soften the impact of recession on India’s economy.
HDFC Bank added 3% to Rs947. SBI rose 1.4% to Rs1,164.10. The share prices are composite of BSE and NSE rates.
Sterlite Industries (India) Ltd fell 0.7% to Rs278.40. Hindalco Industries Ltd declined 2.2% to Rs44.95. Tata Steel Ltd slid 1.4% to Rs196.85.
Copper and aluminium declined in London as the global economic slowdown reduced demand for industrial metals used in buildings and cars. Copper for delivery in three months fell 1.3%, to $3,532 a tonne, as of 9.39am on the London Metal Exchange. Aluminium declined 1.2% to $1,427.25 a tonne.
Oil and Natural Gas Corp. Ltd fell 1% to Rs717.45. The company has disputed an income-tax demand for Rs6,000 crore.
Railway equipment maker Texmaco Ltd, railroad construction services company Kalindee Rail Nirman (Engineers) Ltd and Titagarh Wagons Ltd, which makes railroad cars, gained ahead of a vote on the country’s rail budget on 13 February, on expectations of winning new orders.
Texmaco gained Rs2.90, or 5.4%, to Rs56.80. Kalindee Rail added Rs10.20, or 6.9%, to Rs157.50. Titagarh Wagons rose Rs30.60, or 14%, to Rs242.10.
Tatas say share pledging is a routine affair
MUMBAI: Tata Sons, the main holding company of the Tata group, has pledged shares of group companies to raise funds and will continue to do so if
the need arises, as it has adequate shareholding in most companies, as well as, high credit ratings, a senior official said.
“Tata Sons has enough stock of various group companies and will pledge shares if the need arises. Companies, such as Tata Steel and Tata Motors and others, have fixed assets which they can pledge to raise funds.... in our case (Tata Sons) we have shares, which we pledge to raise money. The practice (of pledging) is as old as the hills. There is nothing new in it,” Tata Sons’ finance director Ishaat Hussain told ET .
On Tuesday, various group companies announced further details of the quantum of shares pledged by their main promoter, Tata Sons. This included a 8.1% stake in automobile firm Tata Motors and a 3.5% holding in Indian Hotels Company, which owns the Taj Group of hotels. Tata Tea, the group’s main beverage firm, disclosed to the exchanges that its entire shareholding of 57.5% in Tata Coffee has been pledged with lenders.
This follows similar disclosures by Tata group companies such as Tata Steel, Tata Power and Tata Teleservices (Maharashtra) on Monday.
Tata Sons, which is mainly controlled by two trusts — Sir Dorab Tata Trust and Sir Ratan Tata Trust — has pledged shares of various group companies over the past five years as the tenure of most of its loans haven’t been longer than five years. Given the downturn in the stock market over the past one year, Tata Sons has often been asked to top up the security it kept with lenders as the value of the pledged shares eroded.
“But I’ve always been a good boy and followed all norms... so in the event of such events, I have topped it up,” Mr Hussain explained. “But, there is a lot of difference between a corporation pledging shares and an individual doing it,” he added.
He, however, did not quantify the amount of money raised through the pledging of shares. Tata group companies, such as Tata Steel, Tata Motors, Tata Teleservices, Indian Hotels and unlisted firms, such as retailer Trent, have raised sizeable amounts of money to meet various commitments, including large funding needs for the acquisitions of Anglo-Dutch steelmaker Corus by Tata Steel and of Jaguar Land Rover by Tata Motors. Both acquisitions were initially funded by short-term bridge loans, which were later refinanced through long-term loans. The shares pledged by Tata Sons acted as collateral for these loans.
In the recent past, Tata Steel had to raise long-term debt to refinance shorter duration loans it raised to acquire Corus Group for $12 billion. A $3-billion bridge loan to Tata Motors, used to fund the JLR acquisition, has also been refinanced.
“Although there are lot of alternate opportunities for promoter holding companies, such as FCEBs, in a tight market, such options are limited,” said Mr Hussain. “For an investor company like Tata Sons, shares of group companies are like assets which can be pledged,” he added.
Tata Sons had, in the past, looked at various options, including a perpetual debt instrument, for raising resources. “In August (last year), I was on the verge of leaving for a roadshow for such a plan. But my merchant bankers stopped me saying that the markets had crashed and a meltdown had started...we couldn’t go ahead with the perpetual debt plan.”
Last year, the RBI relaxed norms on perpetual debt instruments allowing banks and non-banking finance companies to increase their capital funds by issuing perpetual debt instruments. While finance companies were allowed to float perpetual debt to shore up capital, banks were given leeway on treating defaults on forex derivatives, an accounting relaxation to reduce bad loans in banks.
the need arises, as it has adequate shareholding in most companies, as well as, high credit ratings, a senior official said.
“Tata Sons has enough stock of various group companies and will pledge shares if the need arises. Companies, such as Tata Steel and Tata Motors and others, have fixed assets which they can pledge to raise funds.... in our case (Tata Sons) we have shares, which we pledge to raise money. The practice (of pledging) is as old as the hills. There is nothing new in it,” Tata Sons’ finance director Ishaat Hussain told ET .
On Tuesday, various group companies announced further details of the quantum of shares pledged by their main promoter, Tata Sons. This included a 8.1% stake in automobile firm Tata Motors and a 3.5% holding in Indian Hotels Company, which owns the Taj Group of hotels. Tata Tea, the group’s main beverage firm, disclosed to the exchanges that its entire shareholding of 57.5% in Tata Coffee has been pledged with lenders.
This follows similar disclosures by Tata group companies such as Tata Steel, Tata Power and Tata Teleservices (Maharashtra) on Monday.
Tata Sons, which is mainly controlled by two trusts — Sir Dorab Tata Trust and Sir Ratan Tata Trust — has pledged shares of various group companies over the past five years as the tenure of most of its loans haven’t been longer than five years. Given the downturn in the stock market over the past one year, Tata Sons has often been asked to top up the security it kept with lenders as the value of the pledged shares eroded.
“But I’ve always been a good boy and followed all norms... so in the event of such events, I have topped it up,” Mr Hussain explained. “But, there is a lot of difference between a corporation pledging shares and an individual doing it,” he added.
He, however, did not quantify the amount of money raised through the pledging of shares. Tata group companies, such as Tata Steel, Tata Motors, Tata Teleservices, Indian Hotels and unlisted firms, such as retailer Trent, have raised sizeable amounts of money to meet various commitments, including large funding needs for the acquisitions of Anglo-Dutch steelmaker Corus by Tata Steel and of Jaguar Land Rover by Tata Motors. Both acquisitions were initially funded by short-term bridge loans, which were later refinanced through long-term loans. The shares pledged by Tata Sons acted as collateral for these loans.
In the recent past, Tata Steel had to raise long-term debt to refinance shorter duration loans it raised to acquire Corus Group for $12 billion. A $3-billion bridge loan to Tata Motors, used to fund the JLR acquisition, has also been refinanced.
“Although there are lot of alternate opportunities for promoter holding companies, such as FCEBs, in a tight market, such options are limited,” said Mr Hussain. “For an investor company like Tata Sons, shares of group companies are like assets which can be pledged,” he added.
Tata Sons had, in the past, looked at various options, including a perpetual debt instrument, for raising resources. “In August (last year), I was on the verge of leaving for a roadshow for such a plan. But my merchant bankers stopped me saying that the markets had crashed and a meltdown had started...we couldn’t go ahead with the perpetual debt plan.”
Last year, the RBI relaxed norms on perpetual debt instruments allowing banks and non-banking finance companies to increase their capital funds by issuing perpetual debt instruments. While finance companies were allowed to float perpetual debt to shore up capital, banks were given leeway on treating defaults on forex derivatives, an accounting relaxation to reduce bad loans in banks.
Wednesday, January 28, 2009
Satyam Computers
Satyam Computers will see cash-based selling today, says Siddharth Bhamre of Angel Broking, on CNBC Awaaz. There will be volatility in the stock in the range of Rs 10 one either side, he adds. He advises profit booking for those who bought it at lower levels. The stock is currently trading at Rs 55.45, up 17.6% on the BSE
Tuesday, January 27, 2009
Buy Reliance Comm, target of Rs 227: Angel
Angel Broking has maintained its buy rating on Reliance Communications with a target of Rs 227 in its January 23, 2009 research report. "Reliance Communications (RCOM) recorded a disappointing 18.8% yoy growth in Top-line in 3QFY2009. Owing to lower Margins, higher Depreciation and Taxes paid, RCOM�s Bottom-line grew by just 2.7% yoy. In fact, Profit before Tax fell nearly 5% yoy. On a qoq basis, Bottom-line fell 7.9%. Even as we maintain a Buy on the stock, with a revised Target Price of Rs 227 (Rs 451), including Rs 194 as the core business value (8x P/E multiple) and Rs 33 as the Towerco value, we expect stock price performance to remain muted in the short-term," says Angel Broking's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Indiabulls Securities up 15% on buyback news
MUMBAI: Shares of Indiabulls Securities rallied over 15 per cent to Rs 20 in early trade Tuesday, on the announcement that the company would
consider buyback when their board meets on Feb 2.
The company was the highest gainer on the BSE with volumes of 510,507 shares as against two week average of 31,8200 shares.
Amongst the broking firms, it would be the second firm to consider buy back of shares after Indiainfoline announced their buy back plans in December.
Source: Economic Times
consider buyback when their board meets on Feb 2.
The company was the highest gainer on the BSE with volumes of 510,507 shares as against two week average of 31,8200 shares.
Amongst the broking firms, it would be the second firm to consider buy back of shares after Indiainfoline announced their buy back plans in December.
Source: Economic Times
Metals shine in firm market
Key benchmark indices surged to day's high in afternoon trade on fresh buying in index pivotals after trading in the US index futures showed the Dow could rally 133 points at the opening bell. Index heavyweight Reliance Industries (RIL) anchored rally with over 5% surge with IT pivotals extended early gains. The BSE 30-share Sensex jumped 267.51 points or 3.08% near the day's high.
Except for an odd early afternoon hiccup which was a knee jerk reaction to the Reserve Bank of India (RBI) maintaining its status quo on interest rates, market displayed firmness throughout the day, extending early gains with positive global cues lifting sentiment.
The RBI left its repo rate, reverse repo rate and the cash reserve ratio (CRR) unchanged in its third quarter review of the Monetary Policy for 2008-09, unveiled today, 27 January 2009. However, the central bank cut its growth forecast for the fiscal year ending March 2009 on a slowdown in industry and services and assuming normal agricultural production. GDP growth projection for 2008/09 was lowered to 7% from 7.5-8% earlier. The economy has grown at 9% or more for the past three fiscal years. The central added the inflation by the end of March 2009 would be signficantly lower than the projected 7%.
Volatility may swell in the coming days as futures & options contracts for January 2009 series expire on Thursday, 29 January 2009. As per reports, rollover of Nifty positions from January 2009 series to February 2009 series was 38% while marketwide rollover of positions stood at 31%, as on Friday, 23 January 2009.
Globally, the two-day policy setting meeting of the U.S. Federal Reserve starting today, 27 January 2009 and the $825 billion US stimulus package by the Republican lawmakers which will be picked up by the Senate this week and President Barack Obama could reportedly sign the bill by mid- February 2009, will be closely watched.
Asian stocks gained today, 27 January 2009, as US economic indicators gave a hope that demand for commodities and Japanese-made goods will improve. Japanese benchmark index Nikkei jumped 4.93%. Stock markets in Hong Kong, China, Taiwan, Korea and Singapore will remain shut today, 27 and tomorrow, 28 January 2009 for the Lunar New Year holidays.
US stocks ended higher on Monday, 26 January 2009, on news that drug maker Pfizer will buy opponent Wyeth for $68 billion and on a sudden rise in sales of existing homes in December 2008. The Dow Jones industrial average increased 38.47 points, or 0.48%, to end at 8,116.03. The Standard & Poor`s 500 index climbed 4.62 points, or 0.56%, to settle at 836.57. The Nasdaq Composite index increased 12.17 points, or 0.82%, to close at 1,489.46.
Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 3950.20 crore (till 22 January 2009).
At 13:29 IST, the BSE 30-share Sensex was up 267.51 points, or 3.08%, to 8,941.20. The Sensex rose 286.99 points at the day's high of 8,961.34 in afternoon trade. The Sensex rose 114.71 points at the day's low of 8,789.06 in early trade.
The S&P CNX Nifty rose 82 points, or 3.06%, to 2,760.55.
The BSE 30-share Sensex had slipped 139.49 points, or 1.58%, to 8,674.35 on Friday, 23 January 2009. Stock markets remained shut on Monday, 26 January 2009, on account of Republic day.
The market breadth, indicating the overall health of the market, turned even on BSE with 1,133 shares advancing as compared with 1,139 that declined. 42 shares remained unchanged. The breadth was positive in early trade.
Among the 30-share Sensex pack, 28 advanced while the rest fell. Reliance Infrastructure, Jaiprakash Associates, Bharat Heavy Electricals, Bharti Airtel, Maruti Suzuki India, Grasim Industries, rose by between 4.14% to 7.37%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 5.51% to Rs 1,217. The company after market hours on Thursday, 22 January 2009 announced a lesser than expected 8.8% fall in net profit to Rs 3501.crore in Q3 December 2008 over Q3 December 2007. RIL's net profit dipped for the first time in three years, but beat forecasts as refining margins did not fall as much as expected. RIL earned $10 on every barrel of crude oil processed at its 660,000 barrel-a-day plant at Jamnagar in Gujarat, higher than other refineries in South Asia.
However India's largest oil exploration firm by revenue Oil & Natural Gas Corporation fell 2.76% on rise in crude oil prices.
Oil prices rose more than 1% on Tuesday, reversing day-ago losses as traders focused on short-term factors like cold U.S. weather and an Australian cyclone, despite forecasts of a further rise in U.S. crude stocks. U.S. light, sweet crude for March delivery rose 52 cents to $46.25 a barrel.
IT stocks rose on firm ADRs overnight in the US. India's third largest software services exporter, Wipro rose 5.94% as its ADR rose 1.66% overnight. The company forecasted a 7% fall in revenue for Q4 March 2009 on global economic downturn and pricing pressure from western clients, at the time of declaring results before market hours on 21 January 2009.
India's second largest software services exporter Infosys Technologies rose 3.84% as its ADR rose 2.46% overnight. While, India's fifth largest IT exporter by sales HCL Technologies rose 5.51% after its net profit rose 56.82% to Rs 398.01 crore on 10.97% rise in sales to Rs 1,304.85 crore in Q2 December 2008 over Q1 September 2008.
TCS, India's largest software services exporter by sales rose 4.62%.
FMCG stocks rose on defensive buying. ITC, Nestle India, Tata Tea rose by between 0.29% to 0.91%.
India's largest FMCG major by sales Hindustan Unilever rose 2.92% even after reporting a 2.48% fall in net profit in Q3 December 2008 over Q3 December 2007.
Some healthcare stocks rose on defensive buying. Cipla, Ranbaxy Laboratories, Dr. Reddy's Laboratories, Sun Pharma rose by between 2.33% to 4.57%.
Banking stocks extended gain after hiccup in midmorning trade when the Reserve Bank of India kept its key rates unchanged in its credit policy today, 27 January 2009. India's largest bank in terms of assets and branch network State Bank of India rose 3.7% after its net profit rose 37.03% to Rs 2478.42 crore in the quarter ended December 2008 as against Rs 1808.64 crore during the previous quarter ended December 2007. Total operating income rose 42.34% to Rs 18030.34 crore in the quarter ended December 2008 as against Rs 12666.82 crore during the previous quarter ended December 2007. The bank announced the result on 24 January 2008.
India's second largest private sector bank by net profit HDFC Bank rose 1.75% as its American depository receipt (ADR) rose 1.1% on Monday, 26 January 2009.
India's largest private sector bank by net profit ICICI Bank rose 2.35% even as its ADR fell 1.08% overnight. Net profit of ICICI Bank rose 3.41% to Rs 1272.15 crore in the quarter ended December 2008 as against Rs 1230.21 crore during the previous quarter ended December 2007. Total operating income declined 0.96% to Rs 7836.08 crore in the quarter ended December 2008 as against Rs 7911.77 crore during the previous quarter ended December 2007. The unexpected rise in net profit was because earnings from fees and bond trading offset slowing credit growth and rise in bad loans. The bank announced the result on Saturday, 24 January 2008.
India's largest dedicated housing finance company by total income HDFC rose 3%.
However, Federal Bank, Canara Bank, Kotak Mahindra Bank, Andhara Bank fell by between 0.53% to 1.1%.
Metal stocks surged. Hindalco Industries, Hindustan Zinc, Tata Steel, National Aluminum Company rose by between 1.72% to 9.62%.
Sterlite Industries rose 9.69% even after it reported 11.6% fall in net profit to Rs 204.01 crore on 2% fall in sales to Rs 2,583.08 crore in Q3 December 2008 over Q3 December 2007.
Steel Authority of India rose 5.45% ahead of its Q3 December 2008 result today.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.38% after it hiked stakes in Satyam Computer Services from 4.48% to 12.04%. It acquired additional 7.56% stake in open market purchases at average price of Rs 34.5per share. The company's stake hike is an attempt to secure Satyam's board seat. While Satyam Computer Services jumped 18.4%.
India's second largest telecom services provider by sales of Reliance Communication rose 2.56% even after its net profit declined 9.04% to Rs 397.04 crore in the quarter ended December 2008 as against Rs 436.48 crore during the previous quarter ended December 2007. Sales declined 2.04% to Rs 3334.22 crore in the quarter ended December 2008 as against Rs 3403.52 crore during the previous quarter ended December 2007.
NTPC rose 3.46% after its net profit rose 26.5 % to Rs 2,250.91 crore on 20.9% rise in sales to Rs 11,277.06 crore in Q3 December 2008 over Q3 December 2007.
Sun TV Network jumped 5.69% after the company reported a 9.7% rise in net profit to Rs 112.24 crore in Q3 December 2008 over Q3 December 2007.
UTV Software jumped 11.8% after its consolidated net profit jumped 29% in Q3 December 2008 over Q3 December 2007.
Source: NDTV
Except for an odd early afternoon hiccup which was a knee jerk reaction to the Reserve Bank of India (RBI) maintaining its status quo on interest rates, market displayed firmness throughout the day, extending early gains with positive global cues lifting sentiment.
The RBI left its repo rate, reverse repo rate and the cash reserve ratio (CRR) unchanged in its third quarter review of the Monetary Policy for 2008-09, unveiled today, 27 January 2009. However, the central bank cut its growth forecast for the fiscal year ending March 2009 on a slowdown in industry and services and assuming normal agricultural production. GDP growth projection for 2008/09 was lowered to 7% from 7.5-8% earlier. The economy has grown at 9% or more for the past three fiscal years. The central added the inflation by the end of March 2009 would be signficantly lower than the projected 7%.
Volatility may swell in the coming days as futures & options contracts for January 2009 series expire on Thursday, 29 January 2009. As per reports, rollover of Nifty positions from January 2009 series to February 2009 series was 38% while marketwide rollover of positions stood at 31%, as on Friday, 23 January 2009.
Globally, the two-day policy setting meeting of the U.S. Federal Reserve starting today, 27 January 2009 and the $825 billion US stimulus package by the Republican lawmakers which will be picked up by the Senate this week and President Barack Obama could reportedly sign the bill by mid- February 2009, will be closely watched.
Asian stocks gained today, 27 January 2009, as US economic indicators gave a hope that demand for commodities and Japanese-made goods will improve. Japanese benchmark index Nikkei jumped 4.93%. Stock markets in Hong Kong, China, Taiwan, Korea and Singapore will remain shut today, 27 and tomorrow, 28 January 2009 for the Lunar New Year holidays.
US stocks ended higher on Monday, 26 January 2009, on news that drug maker Pfizer will buy opponent Wyeth for $68 billion and on a sudden rise in sales of existing homes in December 2008. The Dow Jones industrial average increased 38.47 points, or 0.48%, to end at 8,116.03. The Standard & Poor`s 500 index climbed 4.62 points, or 0.56%, to settle at 836.57. The Nasdaq Composite index increased 12.17 points, or 0.82%, to close at 1,489.46.
Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 3950.20 crore (till 22 January 2009).
At 13:29 IST, the BSE 30-share Sensex was up 267.51 points, or 3.08%, to 8,941.20. The Sensex rose 286.99 points at the day's high of 8,961.34 in afternoon trade. The Sensex rose 114.71 points at the day's low of 8,789.06 in early trade.
The S&P CNX Nifty rose 82 points, or 3.06%, to 2,760.55.
The BSE 30-share Sensex had slipped 139.49 points, or 1.58%, to 8,674.35 on Friday, 23 January 2009. Stock markets remained shut on Monday, 26 January 2009, on account of Republic day.
The market breadth, indicating the overall health of the market, turned even on BSE with 1,133 shares advancing as compared with 1,139 that declined. 42 shares remained unchanged. The breadth was positive in early trade.
Among the 30-share Sensex pack, 28 advanced while the rest fell. Reliance Infrastructure, Jaiprakash Associates, Bharat Heavy Electricals, Bharti Airtel, Maruti Suzuki India, Grasim Industries, rose by between 4.14% to 7.37%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 5.51% to Rs 1,217. The company after market hours on Thursday, 22 January 2009 announced a lesser than expected 8.8% fall in net profit to Rs 3501.crore in Q3 December 2008 over Q3 December 2007. RIL's net profit dipped for the first time in three years, but beat forecasts as refining margins did not fall as much as expected. RIL earned $10 on every barrel of crude oil processed at its 660,000 barrel-a-day plant at Jamnagar in Gujarat, higher than other refineries in South Asia.
However India's largest oil exploration firm by revenue Oil & Natural Gas Corporation fell 2.76% on rise in crude oil prices.
Oil prices rose more than 1% on Tuesday, reversing day-ago losses as traders focused on short-term factors like cold U.S. weather and an Australian cyclone, despite forecasts of a further rise in U.S. crude stocks. U.S. light, sweet crude for March delivery rose 52 cents to $46.25 a barrel.
IT stocks rose on firm ADRs overnight in the US. India's third largest software services exporter, Wipro rose 5.94% as its ADR rose 1.66% overnight. The company forecasted a 7% fall in revenue for Q4 March 2009 on global economic downturn and pricing pressure from western clients, at the time of declaring results before market hours on 21 January 2009.
India's second largest software services exporter Infosys Technologies rose 3.84% as its ADR rose 2.46% overnight. While, India's fifth largest IT exporter by sales HCL Technologies rose 5.51% after its net profit rose 56.82% to Rs 398.01 crore on 10.97% rise in sales to Rs 1,304.85 crore in Q2 December 2008 over Q1 September 2008.
TCS, India's largest software services exporter by sales rose 4.62%.
FMCG stocks rose on defensive buying. ITC, Nestle India, Tata Tea rose by between 0.29% to 0.91%.
India's largest FMCG major by sales Hindustan Unilever rose 2.92% even after reporting a 2.48% fall in net profit in Q3 December 2008 over Q3 December 2007.
Some healthcare stocks rose on defensive buying. Cipla, Ranbaxy Laboratories, Dr. Reddy's Laboratories, Sun Pharma rose by between 2.33% to 4.57%.
Banking stocks extended gain after hiccup in midmorning trade when the Reserve Bank of India kept its key rates unchanged in its credit policy today, 27 January 2009. India's largest bank in terms of assets and branch network State Bank of India rose 3.7% after its net profit rose 37.03% to Rs 2478.42 crore in the quarter ended December 2008 as against Rs 1808.64 crore during the previous quarter ended December 2007. Total operating income rose 42.34% to Rs 18030.34 crore in the quarter ended December 2008 as against Rs 12666.82 crore during the previous quarter ended December 2007. The bank announced the result on 24 January 2008.
India's second largest private sector bank by net profit HDFC Bank rose 1.75% as its American depository receipt (ADR) rose 1.1% on Monday, 26 January 2009.
India's largest private sector bank by net profit ICICI Bank rose 2.35% even as its ADR fell 1.08% overnight. Net profit of ICICI Bank rose 3.41% to Rs 1272.15 crore in the quarter ended December 2008 as against Rs 1230.21 crore during the previous quarter ended December 2007. Total operating income declined 0.96% to Rs 7836.08 crore in the quarter ended December 2008 as against Rs 7911.77 crore during the previous quarter ended December 2007. The unexpected rise in net profit was because earnings from fees and bond trading offset slowing credit growth and rise in bad loans. The bank announced the result on Saturday, 24 January 2008.
India's largest dedicated housing finance company by total income HDFC rose 3%.
However, Federal Bank, Canara Bank, Kotak Mahindra Bank, Andhara Bank fell by between 0.53% to 1.1%.
Metal stocks surged. Hindalco Industries, Hindustan Zinc, Tata Steel, National Aluminum Company rose by between 1.72% to 9.62%.
Sterlite Industries rose 9.69% even after it reported 11.6% fall in net profit to Rs 204.01 crore on 2% fall in sales to Rs 2,583.08 crore in Q3 December 2008 over Q3 December 2007.
Steel Authority of India rose 5.45% ahead of its Q3 December 2008 result today.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.38% after it hiked stakes in Satyam Computer Services from 4.48% to 12.04%. It acquired additional 7.56% stake in open market purchases at average price of Rs 34.5per share. The company's stake hike is an attempt to secure Satyam's board seat. While Satyam Computer Services jumped 18.4%.
India's second largest telecom services provider by sales of Reliance Communication rose 2.56% even after its net profit declined 9.04% to Rs 397.04 crore in the quarter ended December 2008 as against Rs 436.48 crore during the previous quarter ended December 2007. Sales declined 2.04% to Rs 3334.22 crore in the quarter ended December 2008 as against Rs 3403.52 crore during the previous quarter ended December 2007.
NTPC rose 3.46% after its net profit rose 26.5 % to Rs 2,250.91 crore on 20.9% rise in sales to Rs 11,277.06 crore in Q3 December 2008 over Q3 December 2007.
Sun TV Network jumped 5.69% after the company reported a 9.7% rise in net profit to Rs 112.24 crore in Q3 December 2008 over Q3 December 2007.
UTV Software jumped 11.8% after its consolidated net profit jumped 29% in Q3 December 2008 over Q3 December 2007.
Source: NDTV
Monday, January 26, 2009
BSNL to launch 3G services in J & K by March
Srinagar (PTI): State-run Bharat Sanchar Nigam Ltd (BSNL) will launch the third generation (3-G) mobile services in the state by March this year.
"We will be launching the 3G services in Jammu and Kashmir by March this year," a K Mittal, who looks after the mobile telephony of BSNL in the state, told PTI on Wednesday.
Mittal said there would be no limit on the number of 3G connections to be given out in the state and the sole criterion will be the response of the subscribers.
"We have not set any limit on the number of connections. We will give as many connections as the demand might be," he said.
Mittal said the work on providing the 3G services in the state is in full swing and the services should be launched on the scheduled time.
Source: The Hindu
No slowdown in mobile phone connection sales
CHENNAI: The economic slowdown and the resultant lay offs in sectors such as IT and automobile have not deterred people from spending onmobile phones.
Judging by statistics produced by the Cellular Operators' Association of India, 9.75 lakh new mobile phone connections (GSM) were provided in Chennai and Tamil Nadu circles in December 2008 alone. In the last three months of 2008, about 26 lakh new connections were given across the state. While about 1.15 lakh new service connections were provided in Chennai in October, the new additions fell to 56,000 in November. For the corresponding periods in the districts, the figures were 7.7 lakh and 6.5 lakh, respectively. Significantly, for every new connection in Chennai, five new ones were added elsewhere in Tamil Nadu.
Though Tamil Nadu (4.29% growth in December) is only the third fastest (after Bihar that recorded 5.21% growth and Uttar Pradesh, 4.78%) growing telecom circle in India, in terms of actual numbers (two crore connections) it is the largest circle in the country, ahead of even the two largest metros, Delhi and Mumbai. Although Uttar Pradesh comes a relative close second with 1.77 crore mobile phone connections, Bihar is way behind with only 59 lakh subscribers.
With 23.41 lakh subscribers in Chennai and 71.69 lakh in the TN circle, Aircel is the leading player in the state. The service provider holds 34 per cent of the subscriber base in Chennai and 35 per cent in the districts. In December, Aircel added 87,123 new subscribers in Chennai and 3.98 lakh in the districts. Bharti Airtel, which has the second highest subscriber base, serves 20.5 lakh people in Chennai and 56 lakh elsewhere in the state. Vodafone Essar is third, ahead of state-owned BSNL. In December, while Vodafone added 16,000 new customers in Chennai, only 5,562 plumped for BSNL. In the TN circle, Vodafone, with 1.63 lakh subscribers, had really no competition from BSNL (40,000).
Among metros, Kolkata recorded the highest growth in terms of new subscriber base. With a 3.03% growth, it registered 70 lakh connections in December 2008, up from 68,000 the previous month. Mumbai (2.57%) recorded the second highest growth, followed by Chennai (2.21%) and Delhi (1.68%). In terms of overall numbers, Delhi led with 1.24 crore connections, followed by Mumbai with 1.12 crore.
Judging by statistics produced by the Cellular Operators' Association of India, 9.75 lakh new mobile phone connections (GSM) were provided in Chennai and Tamil Nadu circles in December 2008 alone. In the last three months of 2008, about 26 lakh new connections were given across the state. While about 1.15 lakh new service connections were provided in Chennai in October, the new additions fell to 56,000 in November. For the corresponding periods in the districts, the figures were 7.7 lakh and 6.5 lakh, respectively. Significantly, for every new connection in Chennai, five new ones were added elsewhere in Tamil Nadu.
Though Tamil Nadu (4.29% growth in December) is only the third fastest (after Bihar that recorded 5.21% growth and Uttar Pradesh, 4.78%) growing telecom circle in India, in terms of actual numbers (two crore connections) it is the largest circle in the country, ahead of even the two largest metros, Delhi and Mumbai. Although Uttar Pradesh comes a relative close second with 1.77 crore mobile phone connections, Bihar is way behind with only 59 lakh subscribers.
With 23.41 lakh subscribers in Chennai and 71.69 lakh in the TN circle, Aircel is the leading player in the state. The service provider holds 34 per cent of the subscriber base in Chennai and 35 per cent in the districts. In December, Aircel added 87,123 new subscribers in Chennai and 3.98 lakh in the districts. Bharti Airtel, which has the second highest subscriber base, serves 20.5 lakh people in Chennai and 56 lakh elsewhere in the state. Vodafone Essar is third, ahead of state-owned BSNL. In December, while Vodafone added 16,000 new customers in Chennai, only 5,562 plumped for BSNL. In the TN circle, Vodafone, with 1.63 lakh subscribers, had really no competition from BSNL (40,000).
Among metros, Kolkata recorded the highest growth in terms of new subscriber base. With a 3.03% growth, it registered 70 lakh connections in December 2008, up from 68,000 the previous month. Mumbai (2.57%) recorded the second highest growth, followed by Chennai (2.21%) and Delhi (1.68%). In terms of overall numbers, Delhi led with 1.24 crore connections, followed by Mumbai with 1.12 crore.
DoT, BSNL in MoU for rural reach
The Department of Telecommunications (DoT) has signed a memorandum of understanding (MoU) with state-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) to provide wireless broadband in rural areas.
Under the MoU, BSNL will provide wireless broadband at 29,000 rural exchanges throughout the country. Each exchange will have 31 connections along with one kiosk for public use. A DoT official said, “Out of these 31 connections, 6 will be used by institutions like schools, while the rest will be for individual users.”
The implementation of the entire project is expected to be completed by 2011. Currently, there are over 5.45 million broadband subscribers in the country. This move comes as a catalyst in the government’s aim to reach 20 million broadband subscribers by 2010.
The DoT is planning to provide funds worth around Rs 1,800 crore to BSNL for its various activities. According to sources close to the development, approximately Rs 700 crore are being provided for upgrade of the 2,700 BSNL exchanges across the country for provisioning of wireline broadband, Rs 700 crore for kiosks and Rs 400 crore for computers.
However, private telecom operators have opposed the extra funds being allotted to BSNL from the Universal Service Obligation (USO) Fund. In a letter to the Union telecom secretary, the Cellular Operators’ Association of India (GSM operators’ lobby) and Association of Unified Telecom Service Providers of India (CDMA operators’ lobby) have alleged that there is huge corpus lying unutilised under the USO Fund (approximately Rs 15,000 crore).
The USO fund is created from a 5 per cent universal service obligation levy that the government charges all telecom operators in India. The fund is meant to support extension of connectivity to areas where private operators do not enter due to lack of adequate profitability.
Private operators have asked the DoT to disburse the USO funds to all operators rather than restricting it to state-owned operators.
The letter stated: “BSNL is as much a commercial operator like any other private operator ...In fact, they are making all out efforts to aggressively roll out their networks and services across the length and breadth of the country ...any step at this stage that is aimed at advantaging only the public sector operator will be a huge blow to the principles of level playing field, natural justice and fair competition.”
The implementation of the entire project is expected to be completed by 2011. Currently, there are over 5.45 million broadband subscribers in the country. This move comes as a catalyst in the government’s aim to reach 20 million broadband subscribers by 2010.
The DoT is planning to provide funds worth around Rs 1,800 crore to BSNL for its various activities. According to sources close to the development, approximately Rs 700 crore are being provided for upgrade of the 2,700 BSNL exchanges across the country for provisioning of wireline broadband, Rs 700 crore for kiosks and Rs 400 crore for computers.
However, private telecom operators have opposed the extra funds being allotted to BSNL from the Universal Service Obligation (USO) Fund. In a letter to the Union telecom secretary, the Cellular Operators’ Association of India (GSM operators’ lobby) and Association of Unified Telecom Service Providers of India (CDMA operators’ lobby) have alleged that there is huge corpus lying unutilised under the USO Fund (approximately Rs 15,000 crore).
The USO fund is created from a 5 per cent universal service obligation levy that the government charges all telecom operators in India. The fund is meant to support extension of connectivity to areas where private operators do not enter due to lack of adequate profitability.
Private operators have asked the DoT to disburse the USO funds to all operators rather than restricting it to state-owned operators.
The letter stated: “BSNL is as much a commercial operator like any other private operator ...In fact, they are making all out efforts to aggressively roll out their networks and services across the length and breadth of the country ...any step at this stage that is aimed at advantaging only the public sector operator will be a huge blow to the principles of level playing field, natural justice and fair competition.”
Source: Business Standard
HUL, Nokia, Airtel, Maruti & Tata Motors top advertisers in 2008
ndia's top five advertisers in 2008 include only one FMCG player, Hindustan Unilever Ltd (HUL), while two telecom companies, Nokia and Airtel, also figured in the list, says a new report by a leading media buying house.In 2007, the list included two FMCG majors and just one telecom player, shows the report, compiled by one of the country's top four media buying houses, who did not wish to be named for reasons of client sensitivity. The other two top ad spenders of 2008 were Maruti Suzuki and Tata Motors.The rankings are based on total annual spends on television and print, and do not include spends on other smaller media such as outdoor, digital and radio.Reflecting the boom in the telecom sector, the study shows that Airtel's rivals, such as Vodafone and BSNL, too moved up several notches in the rankings. Bharti Airtel, which signed on a slew of celebrities for endorsements, including Saif Ali Khan, Kareena Kapoor, Madhavan and Vidya Balan, upped its ranking to second in 2008 against sixth the previous year.Vodafone moved up to the eighth slot last year from 18th in 2007, with a spend of around Rs 170 crore. Though Vodafone did not bank on celebrities, it used its 'happy to help' tag line to full impact. Nokia, another big spender, more or less maintained its ranking.Soft drink companies, traditionally one of the top advertisers, were stingy in 2008 thanks to the focus on profitability and reduction in marketing expenditure. Ad spends of PepsiCo and Coca-Cola slipped by six and four slots, respectively. PepsiCo spent close to Rs 145 crore last year on advertising and rival Coca-Cola followed with a spend of close to Rs 130 crore.HUL and Maruti, in fact, were the only ones to retain their rankings as the largest and the third-largest advertisers in 2008, similar to the previous year. HUL spent close to Rs 650 crore in the year on TV and print advertising while Bharti Airtel spent about Rs 240 crore. Maruti followed with a spend of roughly Rs 195 crore, and Tata Motors and Nokia were almost neck and neck with spends of roughly Rs 180 crore.For traditional FMCG companies, the rankings saw huge variations. This, experts say, is because companies are splitting spends more judiciously between conventional print and TV advertising and below-the-line activity to address growing rural demand. Core categories, such as hair oils, toothpaste, shampoos, skin creams and lotions, are growing faster in rural markets than urban, and overall rural demand among FMCGs is estimated at 20% against 17-18% in urban markets.Reckitt Benckiser, which was the second largest advertiser in 2007, slipped to the seventh slot last year, with a spend of roughly Rs 172 crore. In contrast, FMCG companies that rose in the rankings were P&G and ITC.P&G, marketer of Vicks, Ariel and Whisper, was the sixth-largest advertiser in 2008. The company did not figure in the top ten list last year. ITC jumped to number nine from number 16 in 2007. The cigarettes, hotels and FMCG company spend about Rs 169 crore on TV and print advertising last year. Colgate Palmolive, by and large, maintained its ranking with a spend of roughly Rs 150 crore.
Source: Televisionpoint.com Correspondent Mumbai
NZ share market opens higher
The New Zealand share market gained nearly half a per cent in the first throes of trading on Tuesday.
The benchmark NZSX-50 index was up 11.742 points, or 0.434 per cent, to 2717.488 after closing on Monday night at 2705.746.
Volumes were light for those making the best percentage gains. Goodman Fielder rose 5c to 195, Fletcher Building gained 11c, or nearly 2 per cent, to 565.
Nuplex rose 5c to 290 and Michael Hill was up 1c to 53.
Telecom and Goodman Property were the heaviest trading, rising 4c to 255 and 1c to 96 respectively.
Those losing ground were the ANZ Banking Group, down 41c, or 2.58 per cent, to $15.50 and Infratil down 2c to 163.
AMP Office lost 1c to 97 and The Warehouse lost 4c to 370.
In the United States stocks rose in choppy trade on Monday, lifted by optimism over a $US68 billion takeover in the drug industry and after a surprise rebound in housing data suggested the worst may be over.
"We haven't seen any big deals in a while (so) it's an indication that there are potentials for some deals to get done," said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia, Pennsylvania.
Tuesday, January 20, 2009
Bharti Airtel launches IPTV service
India’s Economic Times is reporting that Bharti Airtel has launched IPTV services under its ‘Airtel Digital Television Interactive’ brand. The launch makes the operator the first private player to offer triple-play services, and Bharti has announced it will offer a package offering a combination of fixed line telephony, broadband and television for INR999 (USD20.45) per month. The service will initially be available in the National Capital Region (NCR), encompassing the metropolitan area of the state of Delhi, alongside urban areas in the neighbouring states of Haryana, Uttar Pradesh and Rajasthan. The operator plans to expand to Mumbai and Bangalore in the near future.
Nikkei hits 2-mth low on financial worry, yen
TOKYO, Jan 21 (Reuters) - Japan's Nikkei average slipped 1.9 percent on Wednesday after earlier hitting a two-month low on rekindled fear about the global financial sector that sent banks such as Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) lower. Tech shares extended losses and exporters slipped as the yen remained below 90 yen, while Sony Corp (6758.T: Quote, Profile, Research) fell 2.7 percent after a newspaper said it is preparing to announce on Wednesday or Thursday details of its December restructuring plan, including where job cuts will fall. [ID:nT348951]
The benchmark Nikkei .N225 shed 155.94 points to 7,909.85 after earlier falling as far as 7,829.30, its lowest point since Nov. 21. The broader Topix .TOPX shed 1.9 percent to 789.80. (Reporting by Elaine Lies)
BSE Sensex falls 3 pct; Reliance, banks, autos drop
MUMBAI (Reuters) – The BSE Sensex fell more than 3 percent on Tuesday, rattled by concerns a deepening global economic crisis would trigger more foreign fund outflows.
Financial stocks dropped after a record loss by Britain's Royal Bank of Scotland sparked fresh worries about the global financial sector, while energy giant Reliance Industries Ltd fell as investors braced for disappointing results.
"The market sentiment has taken a beating," said Gajendra Nagpal, chief executive officer at Unicon Financial Intermediaries.
"It is natural that when FIIs are losing money in one market, they will also start selling in other markets," he said, referring to foreign institutional investors.
By 11:39 a.m., the main 30-share BSE index was down 2.67 percent at 9,080.47 points after falling as much as 3.2 percent.
Leading software services exporter Tata Consultancy Services was one of two gainers among index stocks after it announced a multi-million dollar, multi-year deal with Italian bikemaker Ducati Motor Holding.
Foreigners have pulled out about $550 million this month, following net sales of more than $13 billion in 2008 when the main index lost more than half its value.
Top lender State Bank of India dropped 3.3 percent to 1,109.50 rupees, ICICI Bank fell 4.4 percent to 395.10 rupees and mortgage lender Housing Development Finance
Corp lost 4.4 percent to 1,478.50 rupees.
On Monday, the Royal Bank of Scotland said it was on course for a 2008 loss of up to $41 billion and that further hits from bad debts were inevitable.
The disclosure sent stocks down across the world on worries about the health of the banking industry.
Reliance Industries, which is expected to post on Thursday a drop in quarterly profit for the first time in three years, fell 3.2 percent to 1,190.55 rupees.
Leading mobile operator Bharti Airtel, which also releases quarterly earnings on Thursday, shed 5 percent to 614 rupees.
Shares in auto and construction companies registered steep declines on worries over growth outlook.
Top car maker Maruti Suzuki fell 3.5 percent to 558 rupees, Tata Motors was down 2.2 percent at 146.90 rupees and utility vehicle maker Mahindra and Mahindra slipped 2.5 percent 301.60 rupees.
Engineering and construction firm Larsen & Toubro lost 2.5 percent to 709.65 rupees, Bharat Heavy Electricals fell 2.1 percent to 1,383 rupees, and utility NTPC dropped 1.6 percent to 175.15 rupees.
In the broader market, 1,070 declines led 616 advances on moderate volume of 88 million shares.
The 50-share Nifty was trading down 2.5 percent at 2,775.30 points.
STOCKS ON THE MOVE
* Software firm MindTree Ltd fell 8.8 percent to 217 rupees after it warned of pricing pressure in the coming quarters and cut its net profit and revenue forecast for 2008/09.
* Madras Aluminium Co rose by its daily limit of 5 percent to 59.15 rupees after parent Vedanta Resources Plc approved buying the remaining 20 percent stake in the
company.
MAIN TOP 3 BY VOLUME
* Satyam Computer Services on 14.5 million shares
* Unitech on 13 million shares
* Suzlon Energy on 3.8 million shares
Source: Reuters
Unitech ratings stay same despite part debt repayment
New Delhi: The ratings of Unitech Ltd, the country’s second largest real estate firm by market value, will remain unchanged although it reduced its debt obligation by March by 75%, brokers said.
Five brokerages polled by Mint said they would maintain their rating on Unitech. Two of the firms have a “sell” rating on the property developer, one has an “accumulate” rating and the remaining two have a “neutral” rating.
The company’s stock price fell 4.39% to Rs30.50 on the Bombay Stock Exchange (BSE), on a day when the exchange’s bellwether Sensex index retreated 2.45% to 9,100.55 points. The BSE Realty index that includes 14 firms, declined 3.31% on Tuesday.
The company’s stock price fell 4.39% to Rs30.50 on the Bombay Stock Exchange (BSE), on a day when the exchange’s bellwether Sensex index retreated 2.45% to 9,100.55 points. The BSE Realty index that includes 14 firms, declined 3.31% on Tuesday.
DLF Ltd, India’s largest real estate developer by market value and Unitech’s closest rival, fell by 2.95% to Rs189.40.
“We want some more substantial data from the company before changing the rating,” an analyst with an international brokerage firm said on condition of anonymity.
An analyst with a domestic brokerage, who did not want to be named, said he has been briefed by the firm and that its troubles are far from over. Unitech has repaid Rs400 crore to mutual funds (MFs) and the remaining dues by March have been rescheduled for payment in FY10, he said.
The firm said on Monday it has cut its debt obligations due by March to Rs600 crore from Rs2,500 crore, by repaying in part Rs900 crore to MFs and restructuring some bank loans.
“Rising interest costs will make debt repayment a challenge in fiscal 2010,” the second analyst said. “The company had a net debt of Rs8,300 crore as of September 2008 and out of that Rs2,000 crore is repayable in fiscal 2010. So, if you add to it an interest of Rs 1,000 crore (at 13% interest rate), the company will have to pay a total of Rs3,000 crore in fiscal 2010.”
Unitech, meanwhile, made an application to the Foreign Investment Promotion Board on 14 January to reclassify itself as a “operating cum holding company”.
Dr. Reddy’s Laboratories back in black
HYDERABAD: The NYSE-listed pharmaceutical major Dr. Reddy’s Laboratories has announced a Rs. 192.40-crore net profit during the third quarter ended December 31, 2008, largely driven by the launch of Sumatriptan in late November 2008. The company posted losses of Rs. 121.30 crore in the corresponding quarter in the previous fiscal.
Sumatriptan is an authorised generic version of GlaxoSmithKline’s Imitrex (generic version: sumatriptan succinate). Imitrex is prescribed for the treatment of migraine attack.
The revenue growth was put at 49 per cent at Rs. 1,840 crore now against Rs. 1,231 crore in the third quarter of 2007-08. However, if the revenues from Sumatriptan are excluded, the year-on-year growth is pegged at 21 per cent.
Krishna G. Palepu, a Harvard Business School professor who served on the board of Satyam Computer Services until the controversy broke out, resigned as a non-executive director of Dr. Reddy’s Lab on Tuesday.
Dr. Reddy’s, which bought 185 acres from SIFY, an erstwhile arm of Satyam Computer, received notices from the State revenue authorities contending that 134 acres of it was assigned land. It is, however, confident of retaining it, according to G. V. Prasad, Vice-Chairman and CEO.
Giving financial results at a press conference here, K. Satish Reddy, Managing Director and COO, said in spite of devaluation of the rouble and economic slowdown impacting the company’s financial performance, revenue growth in Russia was 44 per cent. Business in Germany was on a slippery note, despite the company winning tender for eight products/33 contracts from AOK health insurance funds. However, it was involved in a legal wrangle for which hearing was slated for Thursday and the result would come in four weeks.
Withdrawal of Olanzapine stocks from the market due to the company losing a case in German federal court impacted the revenues. The growth in the European markets dropped by two per cent while in India it was almost flat. The company changed the supply-chain management strategy to overcome shortage and supply of medicines.
To a query on where the company parked its funds, new CFO Uman Vohra said it was deposited in some large public sector banks and two top multinational banks. He also said that the company continued to be vigilant on the accounts due to specific issues. The CFO changed at least every three years.
Mr. Prasad quipped: “There is no fixed coterie in the company”. KPMG is the auditing firm for Dr. Reddy’s.
Educomp shares plunge amid speculation
MUMBAI: Educomp Solutions on Tuesday plunged nearly nine per cent amid reports that the firm might have fudged its accounts to boost share prices.
Shares of Educomp plunged 8.61 per cent to a low of Rs. 1,915.20 on the Bombay Stock Exchange. It was later trading at Rs. 1,942.15, down 7.80 per cent over the previous close. Over 7.46 lakh shares of Educomp had changed hands till afternoon trade on the BSE.
Media reports have surfaced about manipulation in Educomp’s accounts, which point at the rapid growth in its turnover and hefty profits made by the promoters in the company’s share trading.
On the National Stock Exchange, the scrip plunged 9.22 per cent to an intra-day low of Rs. 1,916.25. It was later quoting at Rs. 1,940, down 8.10 per cent over the last close.
Meanwhile, the company in its response to media reports said “there are no fictitious assets as all the assets are installed in the schools. It is wrong to say that intangible assets are mainly purchased from subsidiary companies. In fact, the total expense on account of intangible assets is Rs. 25.82 crore in 2007-08, whereas the purchase from subsidiaries companies (EducomP Learning Pvt. Ltd.) is Rs. 7.28 crore.”
The reports had cited Educomp booking fictitious assets to adjust bogus profits arising out of bogus sales and purchases. The company also rejected reports of promoters diluting their stake in the company to the extent of up to Rs. 250 crore at the high time of share market price.
“The promoters’ group has so far sold only about 5.07 per. The promoters still hold 55.03 per cent in the company,” Educomp said. — PTI
Centre to seek report
Sandeep Joshi writes from New Delhi
The Centre on Tuesday said it would look into the allegations regarding financial irregularities in the education-focused information technology firm Educomp Solutions, even as the company denied it as mere rumours and totally baseless.
“I am also aware of the reports floating around regarding certain alleged irregularities (in Educomp Solutions). We will seek report from the company and look into the matter,” Corporate Affairs Minister P. C. Gupta told journalists here.
Educomp Solutions termed the reports as “malicious” and aimed at “misleading the investors”.
Its Managing Director Shantanu Prakash said these rumours were being spread by people who do not understand their business model. Reports about directors quitting the company and promoters pledging stake were baseless, he added.
Source: The Hindu
Wednesday, January 14, 2009
Mkts retreat on weak global cues; Sensex tests 9K
The benchmark indices are witnessing selling pressure following negative global markets. Nortel files Chapter 11 bankruptcy protection and US retails sales reported worse than expected, all these news triggered sell-off in the US markets. All sectoral indices are trading in red.
At 9:56 am, the Sensex went down 374 points to 8,995 and the Nifty lost 117 points at 2,718. CNX Midcap 100 tanked 2.8 points at 3,428.
Fitch downgraded Unitech and said doubtful of company's repayment ability to refinance debt obligations. The stock plunged 12.5%
Nortel filed Chapter 11 bankruptcy protection, which said operations expected to continue without interruption and has sufficient cash on hand to fund ongoing operations. The company holds 9.5% stake in Sasken Communication, which locked at 20% lower circuit.
Nortel is a client of Wipro and Infosys, which lost 6% and 4%, respectively. Commenting on this development, V Balakrishnan, CFO, Infosys said Nortel contributes 0.5% of revenues. "Outstanding payment from Nortel stood at USD 4 million."
Wipro Tech's annual revenue from Nortel around USD 25 million, reports CNBC-TV18 quoting NW18.
There are reports that Maytas Infra may sell assets to raise funds and is in talks with Nagarjuna Construction and Ramky Infra. Maytas locked at 5% lower circuit.
Asian markets are trading sharply lower post US fall. Hang Seng, Nikkei, Straits Times, Kospi and Taiwan plunged 3.6-6%. Shanghai fell 1.2%.
All commodities dropped on Wednesday, as US retail sales fell for the sixth month to record lows. Euro is trading at 6-week low versus Yen ahead of the ECB meet.
Crude oil fell nearly 1% at $37.3/bbl on big jump in oil inventory; was down 4% during the day. US crude inventories are at 16 month highs and came in 10% above 5-year average. It is currently trading at USD 36.3 a barrel.
Gold declined 1.5% or $12 at $810/ounce and Silver lost 1.9% to $10.475. Copper declined 6% on Comex and was down 3% on LME.
US markets plunged as Nortel filed for bankruptcy and retails sales reported worse than expected. Deutsche Bank reported preliminary Euro 4.8 billion 4Q loss.
The Dow Jones ended down 248 points or 3% at 8,200 and the Nasdaq was down 56.8 points or 3.67% at 1,490. S&P 500 went down 29.2 points or 3.35% at 842.6.
Market cues:
FIIs net sell USD 82.9 million in equity on January 13
MFs net sell Rs 179.3 crore in equity on January 13
NSE F&O Open Int up by Rs 1,946 crore at Rs 47,878 crore
F&O cues:
Futures Open Int up by Rs 1,041 crore, Options Open Int up by Rs 905 crore
Nifty Futures shed 2 lakh shares in total Open Int, Jan Futures at 23 pt discount
Stock Futures add 3 crore shares in Open Int
Nifty Open Int Put-Call ratio at 0.94 versus 0.90
Nifty Puts add 19 lakh, Calls add 8 lakh shares in Open Int
Nifty 2800, 2700 & 2500 Puts add 6 lakh shares each in Open Int
Source: MoneyControl
Gold rebounds from 1-month low
SINGAPORE: Gold firmed in a technical rebound on Thursday ahead of a European Central Bank interest rate decision, but weak oil, a firmer US dollar and declines in stock markets weighed.
Gold was trading at $811.15 an ounce, up $0.60 from New York's notional close on Wednesday, when it dropped to a month low of $806.40, partly driven by weak stock markets that forced investors to cash in.
Japan's Nikkei average fell 4.1% after US stocks dropped to six-week lows on worries about a deepening recession and Japanese machinery orders fell a record 16.2% in November from the previous month.
The euro fell against the dollar and yen on Wednesday after a downgrade to Greece's debt rating heightened fears about the eurozone economy and a sharp slide in US retail sales suggested a deepening global slump.
Standard & Poor's move to cut Greece's sovereign debt rating also weighed on the euro, sending it at one point to a near six-week low of 116.58 yen and boosting the chances that the European Central Bank would cut interest rates on Thursday from 2.5% to 2%.
US crude futures steadied on Thursday after dipping overnight when prices were pressured by rising inventories and slumping demand in top oil consumer the United States.
Platinum was trading at $925.00 an ounce, down $8.00 from New York's notional close.
New York gold futures GCZ9 added $3.6 an ounce to $812.4 in electronic trade.
Source: UtviNews
Nikkei down over 4% on Wall St
TOKYO: Japan's Nikkei average fell 4.1% on Thursday after US stocks fell to six-week lows on worries about a deepening recession and Japanese machinery orders fell a record 16.2% in November from the previous month.
The benchmark Nikkei shed 348.61 points to 8,089.84, while the broader Topix lost 3.2% to 793.37.
Source: UtviNews
Deutsche Bank hit by Euro4.8 bn Q4 loss
FRANKFURT: Deutsche Bank has racked up a loss of about 4.8 billion euros ($6.38 billion) in the final three months of 2008 alone, the bank said in a surprise profit warning on Wednesday that sent its shares tumbling.
The bank blamed troubled markets which ruined earnings at its sales and trading business, formerly the engine room of the one-time investment banking powerhouse.
In addition, it racked up losses trying to hive off risky exposure which Deutsche said now put it on track for a net loss of roughly 3.9 billion euros for last year.
The bank, originally seen as little affected by the crisis but which has been dragged ever deeper into the markets storm, said it planned a dividend of 50 cents per share for 2008.
Its Tier 1 ratio -- an important measure of a bank's financial health -- will be in the region of the targeted 10% at the end of 2008, the bank said.
Deutsche's shares were trading down 6.6% at 22.67 euros at 1013 GMT, a far steeper fall than the 1.6% slip seen among German blue-chips.
Source: UtviNews
HDFC Bank Q3 net up 45%
MUMBAI: HDFC Bank today reported a higher-than-expected 45% increase in net profit at Rs 621 crore for the third quarter ended December 31, 2008 when compared with Rs 429 crore in Q3FY08.
Net interest income increased 38% to Rs 1,979 crore from Rs 1,437 crore in the year-ago period - in line with expectations.
Other Numbers
Interest earned up 63.87% at Rs 4,468.5cr vs Rs 2,726cr
Interest expanded up 93.07% at Rs 2,489.25cr vs Rs 1,289.32cr
Provisions up 25.68% at Rs 531.79cr vs Rs 423.13cr
Other income up 38.37% at Rs 939.39cr vs Rs 678.89cr
Interest on investment up 33.50% at Rs 1,028.21cr vs Rs 770.19cr
Gross NPAs at 1.90% - up from 1.20%
Net NPAs at 0.60% - up from 0.40%
Total deposits up 45.8% at Rs 1.44 lakh crore
Savings account deposits increased 32.5% to RS 33,081cr
Time deposits increased 79.35% to Rs 87,523cr
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