Friday 30 March 2012
IVRCL stock jumps 8% on takeover
On the back of media mogul Subhash Chandra's Essel Group increasing its stake in Hyderabad-based infrastructure company IVRCL to over 10% through market operations, the company's stock jumped nearly 8% in Thursday's weak market to Rs 65 on BSE. The rise in stock price is being attributed to the group's stated intentions of increasing its stake in the company.
In a statement to the bourses, IVRCL informed that its board of directors had approved the extension of its financial year 2011-12 by three months up to June 30, 2012. According to Balarami Reddy, CFO, IVRCL, the extension had been sought because the merger of IVRCL Assets & Holdings with IVRCL was still under way and would not be over before the full year financial result of IVRCL.
Currently, at 10.2%, Essel Group's holding is very close to the promoters' holding in the Rs 5,600-crore company, which is at 11.2%. Industry observers said that the chances of IVRCL changing hands are high. Himanshu Modi, head, finance and strategy, Essel Group, told ET Now, "We have clearly stated that we want to increase our stake. But it is too early to judge this as a hostile takeover." According to the new Indian takeover guidelines, the trigger limit is at 25%. Since its December 27 low at Rs 27, the IVRCL stock has gained nearly two-and-half times.
In a statement to the bourses, IVRCL informed that its board of directors had approved the extension of its financial year 2011-12 by three months up to June 30, 2012. According to Balarami Reddy, CFO, IVRCL, the extension had been sought because the merger of IVRCL Assets & Holdings with IVRCL was still under way and would not be over before the full year financial result of IVRCL.
Currently, at 10.2%, Essel Group's holding is very close to the promoters' holding in the Rs 5,600-crore company, which is at 11.2%. Industry observers said that the chances of IVRCL changing hands are high. Himanshu Modi, head, finance and strategy, Essel Group, told ET Now, "We have clearly stated that we want to increase our stake. But it is too early to judge this as a hostile takeover." According to the new Indian takeover guidelines, the trigger limit is at 25%. Since its December 27 low at Rs 27, the IVRCL stock has gained nearly two-and-half times.
Government plans to bailout power distribution companies
The government is examining the option of a financial bailout for power distribution companies, even as it yet again misses the planned target for cramping up generation capacity by over 8,000 MW as the 11th Five Year Plan draws to a close.
The government managed to raise generation capacity by 53,922 MW against a target of 62,000 MW. This target was set after shifting mid-way the original goalpost, set at 78,500 mw. But in spite of the "highest generation capacity addition in a financial year", even the reduced target was missed. "In the current fiscal, the capacity addition of 19,459 mw is the highest ever for any financial year," power minister Sushilkumar Shinde told reporters on Thursday. There are five more projects aggregating 1,885 MW are expected to be commissioned shortly.
Shinde, however, said 875 billion units of electricity generation would be achieved this financial year, which would be 8% higher than 811 billion units in the previous fiscal.
The government managed to raise generation capacity by 53,922 MW against a target of 62,000 MW. This target was set after shifting mid-way the original goalpost, set at 78,500 mw. But in spite of the "highest generation capacity addition in a financial year", even the reduced target was missed. "In the current fiscal, the capacity addition of 19,459 mw is the highest ever for any financial year," power minister Sushilkumar Shinde told reporters on Thursday. There are five more projects aggregating 1,885 MW are expected to be commissioned shortly.
Shinde, however, said 875 billion units of electricity generation would be achieved this financial year, which would be 8% higher than 811 billion units in the previous fiscal.
Vodafone tax law unbelievable
The world's largest investment bank, on Thursday said it was "unbelievable" that India could introduce a tax law with retrospective effect.
Interacting with the who's who of India Inc at a luncheon meet in Mumbai, Blankfein said the Budget proposal to introduce a tax on offshore transactions - which would affect the Vodafone-Hutchison deal among others - could spook investors. Blankfein's is the most serious voice yet to oppose a proposal that has met with widespread criticism.
The board of Lloyd Blankfein-led Goldman Sachs was in Mumbai for its first-ever annual meeting in India.
Present at the Goldman Sachs luncheon meeting in Mumbai were Tata Group chairman-designate Cyrus Mistry, businessmen Prashant Ruia and Adi Godrej, bank CEOs Chanda Kochhar of ICICI and Shikha Sharma of Axis, and Infosys chairman K V Kamath.
After the meeting, board members met industry leaders for a sense of the economy. Speaking on the situation in the US, Blankfein said a recovery was underway; the Fed and government would need to focus on ensuring that the recovery was sustainable.
Interacting with the who's who of India Inc at a luncheon meet in Mumbai, Blankfein said the Budget proposal to introduce a tax on offshore transactions - which would affect the Vodafone-Hutchison deal among others - could spook investors. Blankfein's is the most serious voice yet to oppose a proposal that has met with widespread criticism.
The board of Lloyd Blankfein-led Goldman Sachs was in Mumbai for its first-ever annual meeting in India.
Present at the Goldman Sachs luncheon meeting in Mumbai were Tata Group chairman-designate Cyrus Mistry, businessmen Prashant Ruia and Adi Godrej, bank CEOs Chanda Kochhar of ICICI and Shikha Sharma of Axis, and Infosys chairman K V Kamath.
After the meeting, board members met industry leaders for a sense of the economy. Speaking on the situation in the US, Blankfein said a recovery was underway; the Fed and government would need to focus on ensuring that the recovery was sustainable.
Tamilnadu Budget 2012-13 Highlights
Tamilnadu Budget 2012-13 Highlights:
10 lakh farmers to be brought under insurance scheme
100 crore to Equitable Development of State
1000 Crore for Thane Puyal affected Region
3000 new buses to be bought with Rs. 548 Crore
Annadanam Scheme in 50 more Temples
Around Rs. 3068 crore subsidy for TN Electricity Distribution
Around Rs. 740 crore to widen 1500 km road
E-chalan system in Madurai, Coimbatore, Nellai and Tirchy
Food Production target Rs 1.20 crore metric ton
Goverment Employees Insurance Raised to Rs 4 Lakh
Laptop for VAO at Rs. 22.49 crore
New State Disaster Management Team
No VAT for Fertilizers
Patta for 1 lakh houses
Rs 50,000 cr for 20,000 Solar Street Lights
Rs 950 crore for National Rural Health Scheme
Rs. 1.93 crore to create employment opportunities in private sector
Rs. 20.75 crore to recover land grab
Rs. 200 Cr for New Urban Poor Scheme
Rs. 400 crore for 4340 Police quarters
Rs. 4000 crore loan for crops through co-operative society
Rs. 50 crore for integrating rivers
Rs. 65 crore Road Safety
Rs. 736.15 crores for Courts
Tamilnadu GDP Growth 9.2%
10 lakh farmers to be brought under insurance scheme
100 crore to Equitable Development of State
1000 Crore for Thane Puyal affected Region
3000 new buses to be bought with Rs. 548 Crore
Annadanam Scheme in 50 more Temples
Around Rs. 3068 crore subsidy for TN Electricity Distribution
Around Rs. 740 crore to widen 1500 km road
E-chalan system in Madurai, Coimbatore, Nellai and Tirchy
Food Production target Rs 1.20 crore metric ton
Goverment Employees Insurance Raised to Rs 4 Lakh
Laptop for VAO at Rs. 22.49 crore
New State Disaster Management Team
No VAT for Fertilizers
Patta for 1 lakh houses
Rs 50,000 cr for 20,000 Solar Street Lights
Rs 950 crore for National Rural Health Scheme
Rs. 1.93 crore to create employment opportunities in private sector
Rs. 20.75 crore to recover land grab
Rs. 200 Cr for New Urban Poor Scheme
Rs. 400 crore for 4340 Police quarters
Rs. 4000 crore loan for crops through co-operative society
Rs. 50 crore for integrating rivers
Rs. 65 crore Road Safety
Rs. 736.15 crores for Courts
Tamilnadu GDP Growth 9.2%
Stock Future Trading Tips for 30 March 2012
Stock Future Trading Tips for 30 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
ONGC | BUY ABOVE | 265 | 262 | 270 |
| SELL BELOW | 258 | 261 | 254 |
Thursday 15 March 2012
Passenger fares hiked in Railway Budget for 2012-13.
Union Railway Minister Dinesh Trivedi announced a modest hike in passenger fares in the Railway Budget for 2012-13. It is the first hike in passenger fares in eight years.
The minister hiked the fares for suburban and second-class passengers by 2 paise per kilometre, while fares for sleeper class were hiked by 5 paise per kilometre. Fares for mail express second class passengers are set to rise by 3 paise per kilometre.
Fares for AC chair car, AC 3 Tier and first class passengers were hiked by 10 paise per kilometre, while fares for AC 2 Tier went up by 15 paise. AC First Class passengers will have to shell out 30 paise more per kilometre.
The minimum fare and price of platform tickets were also raised to Rs 5.
The minister said the revisions would have "marginal impact" on fares, adding that he had desisted from announcing any steep increase in fares."For suburban second-class passengers travelling 35 kilometres, the hike will be on Rs 2," the Budget document said.
The Minister also proposed appointing a body of experts consisting of passengers, trade and industry bodies and public representatives to examine the issue of setting up an independent Railway Tariff Regulatory Authority to decide the fares of both freight and traffic.
He also warned that currently the earnings from freight traffic were subsidising passenger fare earnings. "This model of heavy subsidy is not sustainable over a long period," Trivedi said in his speech. "If this continues, then I am afraid Railways may lose freight traffic to road."
In addition, the minister said that a fare system to incorporate fuel price hikes is also under consideration. "I wish to share with the august House that I am contemplating a system of segregating fuel component in the cost associated with passenger services and call it FAC (fuel adjustment component).
"The FAC will be dynamic in nature and will change in either direction with the change of fuel cost. I must also be forthright and take the House into confidence in mentioning that in the event of any further increase in input costs of railways, it will not be possible for us to keep the passengers cushioned from the impact of such increases," he said.
Despite the grim warning, he managed to grant some relief to certain categories of passengers. He announced a 50 percent concession in fares in AC-2, AC-3, chair car and sleeper class tickets for patients suffering from 'aplastic anaemia' and 'sickle cell anaemia' and extended the facility of travel by Rajdhani and Shatabdi trains to Arjuna awardees.
Given the introduction of new trains and services, the minister estimated passenger traffic growth at 5.4 percent for the year ending March 2013.
The minister hiked the fares for suburban and second-class passengers by 2 paise per kilometre, while fares for sleeper class were hiked by 5 paise per kilometre. Fares for mail express second class passengers are set to rise by 3 paise per kilometre.
Fares for AC chair car, AC 3 Tier and first class passengers were hiked by 10 paise per kilometre, while fares for AC 2 Tier went up by 15 paise. AC First Class passengers will have to shell out 30 paise more per kilometre.
The minimum fare and price of platform tickets were also raised to Rs 5.
The minister said the revisions would have "marginal impact" on fares, adding that he had desisted from announcing any steep increase in fares."For suburban second-class passengers travelling 35 kilometres, the hike will be on Rs 2," the Budget document said.
The Minister also proposed appointing a body of experts consisting of passengers, trade and industry bodies and public representatives to examine the issue of setting up an independent Railway Tariff Regulatory Authority to decide the fares of both freight and traffic.
He also warned that currently the earnings from freight traffic were subsidising passenger fare earnings. "This model of heavy subsidy is not sustainable over a long period," Trivedi said in his speech. "If this continues, then I am afraid Railways may lose freight traffic to road."
In addition, the minister said that a fare system to incorporate fuel price hikes is also under consideration. "I wish to share with the august House that I am contemplating a system of segregating fuel component in the cost associated with passenger services and call it FAC (fuel adjustment component).
"The FAC will be dynamic in nature and will change in either direction with the change of fuel cost. I must also be forthright and take the House into confidence in mentioning that in the event of any further increase in input costs of railways, it will not be possible for us to keep the passengers cushioned from the impact of such increases," he said.
Despite the grim warning, he managed to grant some relief to certain categories of passengers. He announced a 50 percent concession in fares in AC-2, AC-3, chair car and sleeper class tickets for patients suffering from 'aplastic anaemia' and 'sickle cell anaemia' and extended the facility of travel by Rajdhani and Shatabdi trains to Arjuna awardees.
Given the introduction of new trains and services, the minister estimated passenger traffic growth at 5.4 percent for the year ending March 2013.
Stock Future Trading Tips for 16 March 2012
Stock Future Trading Tips for 16 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
ABAN | BUY ABOVE | 481 | 476 | 487 |
| SELL BELOW | 468 | 474 | 461 |
Wednesday 14 March 2012
Railway Budget 2012-13 in the Lok Sabha Highlights
Union Railway Minister Dinesh Trivedi presents his maiden Railway Budget 2012-13 in the Lok Sabha. He says:
- Hike of 10 paise per km for third AC passengers.
- Sleeper class passengers to pay 5 paise more per km.
- First AC fare hiked by 20 paise per km.
- 2 paise per km hike for 2nd class suburban trains.
- 2AC passengers to pay 15 paise more per km.
- 3 paisa per km for mail and express trains.
- Platform ticket hiked to Rs.5. It earlier cost Rs.3.
- 2-30 paise fare hike proposed in different classes.
- Independent tariff authority suggested; needs serious debate; experts panel established; decision after debate in Parliament.
- Fare hike proposed. First since 2003.
- GRP/RPF personnel deployed on 3,500 trains.
- Free travel by Rajdhani express for Arjuna awardees.
- Rail Khel Ratna awards to be given to rail sportspersons every year.
- Railway Board to be restructured, two more members to be included.
- Dedicated railway design wing at National Institute of Design with a contribution of Rs.10 crore.
- New passenger services: 820 new items; 75 new express trains; 21 new passenger trains; 75 new services in Mumbai suburban system.
- Targeting freight carriage of 1,025 million tonnes to bring in Rs.89,339 crore; passenger earnings estimated at Rs.36,073 crore; gross receipts estimated at Rs.1.32 lakh crore.
- Guru Parikarma special trains to cover Sikh pilgrimage centres of Amritsar, Patna and Nanded.
- Separate trains to run for wait-listed passengers.
- Excess of Rs.1,492 crore after meeting expenses/dividend payments not adequate for meeting costs of several projects.
- Special housekeeping body to be set up to maintain stations and trains.
- Passenger amenities to be given Rs.1,112 crore in 2012-13 as against Rs.762 crore in current year.
- Indian railways passing through a difficult phase.
- Improvement of passenger amenities at a cost of Rs.1,112 crore; regional cuisines to be introduced.
- World Bank funding of R 6,500 crore firmed up for dedicated freight corridors; land acquired for 3,300 km; first contracts to be handed out during 2012-13.
- Standard of hygiene needs to be improved substantially; all out efforts will be made on this in the next six months; duty bound to provide high standard of services; special housekeeping body to be set up for stations and trains
- One lakh people to be recruited in 2012.
- Corrosion from night soil being discharged from toilets on tracks costs Rs.350 crore annually; green toilets to be installed in 2,500 coaches in the next one year.
- Electric loco plant in Chhapra to be commissioned soon.
- 750 km tracks to be converted in double lines.
- Eco-friendly toilets to replace openly discharged ones.
- Tickets will be sold at post offices also.
- Garib Raths to have one special AC coach for differently-abled commuters.
- 2100 specially designed coaches manufactured to meet needs of the differently abled; aim to provide one such coach in each express train.
- Upgradation of 929 stations.
- 1000 new stations to be set up through public-private partnership.
- Electrification to be undertaken over 6,500 km at an allocation of Rs.8,000 crore during 12th Plan.
- Conversion from DC to AC power supply completed in Western Railway corridor of Mumbai suburban rail system; conversion of Central Railway corridor to be completed in 2012-13.
- The government should consider dividend payback to railways.
- Thirty-one projects over 5,000 km being implemented with state govenments sharing costs.
- Have to make Indian Railways among the best in the world.
- Signalling system to be modernised with advanced features.
- Elevated corridor from Churchgate to Virar in Mumbai being firmed up.
- 12 car trains to run for Navi Mumbai.
- 1500 new coaches for Mumbai local trains.
- 825 km of railway tracks to be transformed into broad gauge.
- Train protection warning system on 3000 km of tracks.
- Extension of Kolkata Metro continues to be on track.
- Railways expect gross budgetary support of Rs.2.5 lakh crore during 12th Plan.
- Improvements to railway stations can provide employment to 50,000 people.
- New tracks proposed for tribal areas.
- Four rail factories to be set up in Kerala.
- Capacity augmentation to get Rs.4,410 crore during 2012-13.
- Eighty-five new line projects to be taken up during 2012-13.
- One hundred and fourteen new line surveys to be undertaken during 2012-13.
- New line projects to get Rs.6,870 crore in 2012-13.
- Gauge conversion to be undertaken over 800 km with an allocation of Rs.1,950 crore.
- Focus during next five years on five areas: tracks, bridges, signalling, rolling stock and stations.
- Investment of Rs.1.70 lakh crore on rolling stock in next five years.
- New railway corporation to maintain and develop stations.
- 19,000 km of railway tracks to be modernised.
- Rs.39,110 cr needed over next 5 years to fund rail safety.
- New wagons with higher uploads need to be introduced.
- Railways will require Rs.14 lakh crore in the next 10 years for modernisation.
- Aim to bring down operating ratio from 90 per cent to 84.9 per cent in 2012-13 and to 72 per cent by 2016-17.
- Time has come for formulating national policy for railways on the lines of that for defence and external affairs.
- Railways should grow at 10 per cent annually for sustained GDP growth.
- Railways must attract 10 per cent of the Rs.20 lakh crore government expects to spend on infrastructure during 12th Plan.
- Railways should contribute 2 per cent of GDP from the present one per cent.
- Attempt to increase train speeds to 160 kmph; journey time from New Delhi to Kolkata can be brought down to 14 hours from 17 hours..
- Upgradation of coaches to be focussed upon for next 5 years.
- Train approaching warning systems to be initiated to prevent collision of trains.
- Rs.14 lakh crore needed in next 10 yrs for modernisation.
- Need Rs.2.5 lakh cr to build better infrastructure.
- Planned outlay highest ever for Railway.
- Outlay of Rs.60,100 crore during 2012-13, the highest ever.
- Have kept everyone demands in mind in this Railway Budget.
- Rs.5.5 lakh crore to connect rural areas.
- Have chosen to bite the bullet and not maintain status quo.
- Have Himalayan task of running the Indian Railways.
- Focus on 5 areas, including, consolidation, modernisation, safety and congestion
- 487 rail projects worth Rs.1 cr still pending.
- Large basket of pending projects still a cause of concern.
- Trivedi proposes rail regulator to enhance safety.
- Stress on strengthening safety. Has to be be benchmarked with the best in the world.
- Target of reducing accidents from 0.55 to 0.17 has been met.
- Railway Safety Plan for 12th Plan will be Rs.16,842 crore.
- Sam Pitroda to head railway modernisation panel.
- Anil Kakodkar to head railway safety panel.
- Trivedi proposes to set up Independent Railway Safety Authority as a statutory body.
- Special Purpose Vehicle - Rail Road Grade Separation Corporation of India - to be set up for abolishing level crossings.
- All unmanned level crossings to be abolished in next five years.
- We need to bring down deaths to zero due to rail mishaps.
- Safety cannot be achieved without modernisation.
- Safety is our highest priority.
- Want to stop recurring rail accidents.
- Death on tracks is unacceptable.
- Without the railways growing, India's GDP cannot grow.
- I dedicate all the achievements of the Railways to its staff.
- I am thankful to Mamata Banerjee for her vision for the Indian Railways in her 2011-12 paper.
- It will be a good budget for common man.
Stock Future Trading Tips for 15 March 2012
Stock Future Trading Tips for 15 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
SBIN | BUY ABOVE | 2380 | 2359 | 2400 |
| SELL BELOW | 2335 | 2350 | 2318 |
Tuesday 13 March 2012
To sell 35 mn Wipro shares to fund education
Wipro Chairman Azim Premji's The Azim Premji Trust will sell 35 million shares of the company to fund educational activities of Azim Premji Foundation, which also runs a private university in Bangalore. The shares are valued at Rs 1,530 crore ($300 million).
In a regulatory notification, the trust said the amount raised through the sale of shares would be used to scale up the foundation's activities to improve the quality and equity in school education.
The IT bellwether's shares on Tuesday were trading at Rs 430.80, down 1.35 per cent, in afternoon trade.
Business Today Feb 19 2012 Premji, who still holds 78 per cent of the Wipro's equity stock, transferred 213 million shares to the Trust in December 2010, which accounted for 8.7 per cent of the company's total shares. The shares were then valued at Rs 8,846 crore.
"The foundation is scaling up its field programmes by establishing district and state-level institutions focused on capacity building of existing functionaries in the education and development sector," the trust said in a statement.
The endowment will also use a part of the fund to scale up the university's programmes focused on research and teaching in education."In the next five years, the not-for-profit foundation aims to scale up six fold to 60 district and state-level institutions from 10, especially in the disadvantaged districts across the country," the statement noted.
Each such district, where the foundation will establish an institution will also have two 'demonstration schools'."The university will also scale up its teaching and research programmes over the next five years," the statement added.
In a regulatory notification, the trust said the amount raised through the sale of shares would be used to scale up the foundation's activities to improve the quality and equity in school education.
The IT bellwether's shares on Tuesday were trading at Rs 430.80, down 1.35 per cent, in afternoon trade.
Business Today Feb 19 2012 Premji, who still holds 78 per cent of the Wipro's equity stock, transferred 213 million shares to the Trust in December 2010, which accounted for 8.7 per cent of the company's total shares. The shares were then valued at Rs 8,846 crore.
"The foundation is scaling up its field programmes by establishing district and state-level institutions focused on capacity building of existing functionaries in the education and development sector," the trust said in a statement.
The endowment will also use a part of the fund to scale up the university's programmes focused on research and teaching in education."In the next five years, the not-for-profit foundation aims to scale up six fold to 60 district and state-level institutions from 10, especially in the disadvantaged districts across the country," the statement noted.
Each such district, where the foundation will establish an institution will also have two 'demonstration schools'."The university will also scale up its teaching and research programmes over the next five years," the statement added.
Stock Future Trading Tips for 14 March 2012
Stock Future Trading Tips for 14 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
JPASSOCIAT | BUY ABOVE | 85 | 83 | 87 |
| SELL BELOW | 82 | 84 | 79 |
Monday 12 March 2012
MCX - Shining star
MCX IPO may be the lone shining star in the IPO market. The year 2012 has already seen call-off of 11 IPOs, says Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities Limited.
1. MCX had stellar listing today. The listing has generated hopes of revival of IPO market. Almost in all the metrics the MCX IPO has proved to be highly successful. It has brought much needed hope and smile to the Indian IPO market.
2. However, MCX IPO may be the lone shining star in the IPO market. The year 2012 has already seen call-off of 11 IPOs. The probable amount that these 11 IPOs were planning to raise was to an aggregate of Rs 4,771 Crores.
3. The list of the 11 companies who have called-off their IPOs during 2012 include: Micromax, Embassy Property, Lokmat Media, VRL Logistics, etc
4. This is in additon to the call-off of 29 companies during 2011 calendar year. The probable amount that these 29 companies were planning to raise was to an aggregate of Rs 32,400 Crores.
5. So, starting 1st January 2011 till date, about 40 IPOs were called off. The total amount they were expected to raise was about Rs 37,169 Crores.
6. All these 40 companies had valid SEBI approval in hand for their IPOs. Even then, they couldn't open their IPOs within the validity period of one year from the date of SEBI approval.
7. This surely will impact the Indian corporate's ability in fund raising to finance their expansion projects resulting in slow down in capacity building and job creation.
8. Further, the government's disinvestment program which was supposed to bring public issues of several blue-chip PSUs couldn't take off. The recent lukewarm response to ONGC auction can also impact the confidence of the public issue market.
9. IPO market is smiling after MCX listing. However, it needs to be seen whether that smile will get converted into jubilation.
1. MCX had stellar listing today. The listing has generated hopes of revival of IPO market. Almost in all the metrics the MCX IPO has proved to be highly successful. It has brought much needed hope and smile to the Indian IPO market.
2. However, MCX IPO may be the lone shining star in the IPO market. The year 2012 has already seen call-off of 11 IPOs. The probable amount that these 11 IPOs were planning to raise was to an aggregate of Rs 4,771 Crores.
3. The list of the 11 companies who have called-off their IPOs during 2012 include: Micromax, Embassy Property, Lokmat Media, VRL Logistics, etc
4. This is in additon to the call-off of 29 companies during 2011 calendar year. The probable amount that these 29 companies were planning to raise was to an aggregate of Rs 32,400 Crores.
5. So, starting 1st January 2011 till date, about 40 IPOs were called off. The total amount they were expected to raise was about Rs 37,169 Crores.
6. All these 40 companies had valid SEBI approval in hand for their IPOs. Even then, they couldn't open their IPOs within the validity period of one year from the date of SEBI approval.
7. This surely will impact the Indian corporate's ability in fund raising to finance their expansion projects resulting in slow down in capacity building and job creation.
8. Further, the government's disinvestment program which was supposed to bring public issues of several blue-chip PSUs couldn't take off. The recent lukewarm response to ONGC auction can also impact the confidence of the public issue market.
9. IPO market is smiling after MCX listing. However, it needs to be seen whether that smile will get converted into jubilation.
Budget 2012 GDP growth seen at about 7%
India's economic growth is seen slowing to about 7% in the current fiscal year, but the government is confident of steering the economy back to a high growth trajectory of 8-9% soon, President Pratibha Devisingh Patil said on Monday.
"The long-term fundamentals of the Indian economy remain robust," Patil told lawmakers, adding the government was targeting to achieve a 9% annual growth in the five-year plan period ending on March 31, 2017.
Finance Minister Pranab Mukherjee, who will present the budget on Friday, is expected to set a target of 7.5% to 8% economic growth for the 2012-13 fiscal year beginning on April 1.
"The long-term fundamentals of the Indian economy remain robust," Patil told lawmakers, adding the government was targeting to achieve a 9% annual growth in the five-year plan period ending on March 31, 2017.
Finance Minister Pranab Mukherjee, who will present the budget on Friday, is expected to set a target of 7.5% to 8% economic growth for the 2012-13 fiscal year beginning on April 1.
Stock Future Trading Tips for 13 March 2012
Stock Future Trading Tips for 13 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
BHARTIARTL | BUY ABOVE | 343 | 340 | 347 |
| SELL BELOW | 338 | 341 | 334 |
Sunday 11 March 2012
Stock Future Trading Tips for 12 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
Sail | BUY ABOVE | 95 | 93 | 98 |
| SELL BELOW | 92 | 94 | 90 |
Friday 9 March 2012
Stock Future Trading Tips for 09 March 2012
Stock Future Trading Tips for 09 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
RELCAPITAL | BUY ABOVE | 423 | 418 | 429 |
| SELL BELOW | 412 | 416 | 406 |
Thursday 8 March 2012
MCX rises 38% to Rs 1425 on opening trade
A share of MCX, India's largest commodity exchange, shot up 38% on opening to trade at Rs 1425 as against issue price of 1032 on the BSE.
Equilibrium price for a share stands at Rs 1387, so accordingly the upper circuit limit of 20% is at Rs 1660.8 while lower circuit at Rs 1109.6.
It is the first big ticket IPO as well as first public listing of 2012. The company had raised over Rs 663 crore via offer for sale and there was a dilution of 12.6% by selling shareholders. Financial Technologies, a promoter, reduced its stake to 26% from 31.18% via issue.
Equilibrium price for a share stands at Rs 1387, so accordingly the upper circuit limit of 20% is at Rs 1660.8 while lower circuit at Rs 1109.6.
It is the first big ticket IPO as well as first public listing of 2012. The company had raised over Rs 663 crore via offer for sale and there was a dilution of 12.6% by selling shareholders. Financial Technologies, a promoter, reduced its stake to 26% from 31.18% via issue.
MCX expected to list at 35-40% premium to the IPO price of Rs 1,032 apiece
Multi-Commodity Exchange, which received bids worth Rs 35,000 crore for its Rs 660-crore initial public offering (IPO), is set to debut on the domestic bourses on Friday. MCX, the first Indian exchange that will be listed on the bourses, is expected to list at a 35-40% premium to the IPO price of Rs 1,032 apiece, as per the rates in the unregulated grey market.
MCX shares, which were to be listed only on the BSE, will also be available for trading on the National Stock Exchange. But, the hour-long special pre-open session, starting at 9 am to discover the 'equilibrium price' through a call auction will be available only on the BSE.
The 20% circuit filter, starting 10 am, will be based on this equilibrium price. MCX is the first company to be listed after Sebi introduced circuit filters on the listing day. High net worth investors, who had borrowed funds to invest in the offer for sale, would like to see a premium of over 35-40% on listing to be profitable. HNIs have been alloted only a fraction of what they had applied for due to over 150 times subscription in the non-institutional investors category.
A bid worth around Rs 15 crore has fetched about 1,000 shares in the non-institutional category. An investor in the non-institutional category, who borrowed at 12% rate for eight days to subscribe to the issue, will have to pay an interest of about Rs 400 per share.
So, this means the investor, who has borrowed at 12%, will profit only if the share lists above roughly Rs 1,400 apiece. A majority of the borrowings has been made at 12-14% interest rates. MCX will have to list at roughly 35-40% premium if they have to break even on their investment. Retail investors, who put applications worthRs 2 lakh in the issue, have got about eight shares.
"Even a 35% premium may not break-even HNIs' cost of funding as the category saw a huge subscription of 146 times. Most HNIs who have borrowed at 12-14% for 8-10 days, will achieve break-even only if the stock lists at a premium of at least Rs 400," said Ahmedabadbased grey market broker Dhaval Shah. Grey market brokers said the activity has been subdued in the run-up to the listing partly due to weak market sentiment.
MCX shares, which were to be listed only on the BSE, will also be available for trading on the National Stock Exchange. But, the hour-long special pre-open session, starting at 9 am to discover the 'equilibrium price' through a call auction will be available only on the BSE.
The 20% circuit filter, starting 10 am, will be based on this equilibrium price. MCX is the first company to be listed after Sebi introduced circuit filters on the listing day. High net worth investors, who had borrowed funds to invest in the offer for sale, would like to see a premium of over 35-40% on listing to be profitable. HNIs have been alloted only a fraction of what they had applied for due to over 150 times subscription in the non-institutional investors category.
A bid worth around Rs 15 crore has fetched about 1,000 shares in the non-institutional category. An investor in the non-institutional category, who borrowed at 12% rate for eight days to subscribe to the issue, will have to pay an interest of about Rs 400 per share.
So, this means the investor, who has borrowed at 12%, will profit only if the share lists above roughly Rs 1,400 apiece. A majority of the borrowings has been made at 12-14% interest rates. MCX will have to list at roughly 35-40% premium if they have to break even on their investment. Retail investors, who put applications worthRs 2 lakh in the issue, have got about eight shares.
"Even a 35% premium may not break-even HNIs' cost of funding as the category saw a huge subscription of 146 times. Most HNIs who have borrowed at 12-14% for 8-10 days, will achieve break-even only if the stock lists at a premium of at least Rs 400," said Ahmedabadbased grey market broker Dhaval Shah. Grey market brokers said the activity has been subdued in the run-up to the listing partly due to weak market sentiment.
Wednesday 7 March 2012
Current bonds / NCD in India
Corporate bond is a bond issued by a corporation to raise money from capital market. Unlike equity shares, bond holders do not have any ownership interest in the company when they buy corporate bonds.
When one buys a corporate bond, one lends money to the "issuer," the company that issued the bond.
In exchange, the company promises to return the money, also known as "principal," on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semi-annually.
Corporate bonds are debt securities which are generally considered as long term investment option. The maturity period of these securities ranges from 1 year to 15-20 years.
Corporate bonds are mostly listed with major stock exchanges (BSE and NSE) in India. Corporate bonds are also known as securities that do not have any equity element attached to it.
NCD's or Non-Convertible Debentures are Secured and Redeemable bonds. Click on the link below to view more detail of selected bond / NCD.
When one buys a corporate bond, one lends money to the "issuer," the company that issued the bond.
In exchange, the company promises to return the money, also known as "principal," on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semi-annually.
Corporate bonds are debt securities which are generally considered as long term investment option. The maturity period of these securities ranges from 1 year to 15-20 years.
Corporate bonds are mostly listed with major stock exchanges (BSE and NSE) in India. Corporate bonds are also known as securities that do not have any equity element attached to it.
NCD's or Non-Convertible Debentures are Secured and Redeemable bonds. Click on the link below to view more detail of selected bond / NCD.
| Issuer Company | Issue Open | Issue Close | Offer Price (Rs.) | Issue Type | Issue Size (Crore Rs.) |
|---|---|---|---|---|---|
Muthoot Finance Limited NCD | Dec 22, 2011 | Jan 07, 2012 | 1000/- | NCD | 300.00 |
Religare Finvest Limited NCD | Sep 09, 2011 | Sep 26, 2011 | 1000/- | NCD | 800.00 |
Muthoot Finance Ltd NCD | Aug 23, 2011 | Sep 05, 2011 | 1000/- | NCD | 500.00 |
Olympic Cards Ltd IPO
Incorporated in 1961, Olympic Cards Ltd is the Manufacturer and Supplier of Invitation cards for all occasions. They are one of the leading manufacturers of paper / board based products, with a presence mainly in southern India. Company is presently in the business of manufacturing and trading Wedding Cards, Greeting Cards, Envelopes, Letter Heads, Business Cards, Calendars, Notebooks, Account Books, etc. They are also trading in the business of printing inks.
Olympic Cards export their products including Wedding cards, Greeting cards, Visiting cards, Envelopes and Printing inks to foreign countries such as Malaysia, Singapore, Sri Lanka & Dubai. They have plans to expand their market presence both within and outside India. Olympic offer various facility to its customers like proof mailing, transporting the goods to their request, attending their queries – and providing solution, etc. It’s a single platform, where most of the customer’s needs are satisfied for any kind of ceremonies and function. As for the customer satisfaction they also give them free service of reminder-sms to their guest from 2 days earlier to the function.
Company Promoters:
The promoters of the company are:
Mr. H. Noor Mohamed
Mrs. S. Jarina
Objects of the Issue:
The objects of the Issue are to finance:
1. Setting up of a new manufacturing unit near Chennai;
2. Capital Expenditure for establishing 4 own retail outlets of the Company;
3. Meet Issue Expenses.
Issue Detail:
»» Issue Open: Mar 09, 2012 - Mar 13, 2012
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: Equity Shares of Rs. 10
»» Issue Size: Rs. 25.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 30 - Rs. 32 Per Equity Share
»» Market Lot: 200 Shares
»» Minimum Order Quantity: 200 Shares
»» Listing At: BSE
Olympic Cards Ltd IPO Grading:
CRISIL has assigned an IPO Grade 1 to Olympic Cards IPO.
This means as per CRISIL, company has 'Poor Fundamentals'. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
Olympic Cards export their products including Wedding cards, Greeting cards, Visiting cards, Envelopes and Printing inks to foreign countries such as Malaysia, Singapore, Sri Lanka & Dubai. They have plans to expand their market presence both within and outside India. Olympic offer various facility to its customers like proof mailing, transporting the goods to their request, attending their queries – and providing solution, etc. It’s a single platform, where most of the customer’s needs are satisfied for any kind of ceremonies and function. As for the customer satisfaction they also give them free service of reminder-sms to their guest from 2 days earlier to the function.
Company Promoters:
The promoters of the company are:
Mr. H. Noor Mohamed
Mrs. S. Jarina
Objects of the Issue:
The objects of the Issue are to finance:
1. Setting up of a new manufacturing unit near Chennai;
2. Capital Expenditure for establishing 4 own retail outlets of the Company;
3. Meet Issue Expenses.
Issue Detail:
»» Issue Open: Mar 09, 2012 - Mar 13, 2012
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: Equity Shares of Rs. 10
»» Issue Size: Rs. 25.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 30 - Rs. 32 Per Equity Share
»» Market Lot: 200 Shares
»» Minimum Order Quantity: 200 Shares
»» Listing At: BSE
Olympic Cards Ltd IPO Grading:
CRISIL has assigned an IPO Grade 1 to Olympic Cards IPO.
This means as per CRISIL, company has 'Poor Fundamentals'. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
Top Energy & Natural Resource ETFs as of January 2012
Top Energy & Natural Resource ETFs as of 1/31/12
| Fund Name | Get Info | Overall Rating | Risk Grade |
|---|---|---|---|
| United States Gasoline Fund LP | UGA | B | B- |
| PowerShares Dynamic Energy | PXI | B- | B- |
| UBS E-TRACS 2x Levd Lng Alerian MLP | MLPL | C+ | C |
| Alps Alerian MLP ETF | AMLP | C+ | B+ |
| United States Brent Oil Fund | BNO | C+ | B- |
| Market Vectors Coal ETF | KOL | C+ | C+ |
| SPDR S&P Oil & Gas Equip & Serv | XES | C | C+ |
| United States Heating Oil Fund | UHN | C | B- |
| PowerShares Dynamic Enrg Exp & Prod | PXE | C | B- |
| iShares DJ US Oil Equip & Svcs | IEZ | C | C+ |
Top Global ETFs as of Jaanuary 2012
Top Global ETFs as of 1/31/12
| Fund Name | Get Info | Overall Rating | Risk Grade |
|---|---|---|---|
| First Trust DJ Glb Sel Div Idx Fd | FGD | B | B |
| iShares 10+ Year Govt/Credit Bd | GLJ | B | B+ |
| iShares S&P Global Cons Disc | RXI | C+ | B- |
| SPDR SP Intl Con Stap Sect ETF | IPS | C+ | B |
| iShares S&P Gl Cons Staples Sect Id | KXI | C+ | B |
| SPDR SP Intl Con Disc Sect ETF | IPD | C+ | B |
| Market Vectors Gaming ETF | BJK | C+ | C+ |
| Guggenheim Frontier Markets ETF | FRN | C+ | B- |
| iShares 10+ Year Credit Bond | CLY | C+ | B+ |
| Guggenheim Timber ETF | CUT | C | B- |
Top Domestic Growth ETFs as of 1/31/12
Top Domestic Growth ETFs as of 1/31/12
| Fund Name | Get Info | Overall Rating | Risk Grade |
|---|---|---|---|
| Direxion Daily Retail Bull 3X | RETL | A+ | B |
| ProShares Ultra QQQ | QLD | B+ | C+ |
| Rydex S&P 500 Eq Wght Con Disc ETF | RCD | B+ | B- |
| Rydex S&P Small Cap 600 Pure Value | RZV | B+ | B- |
| PowerShares S&P SC Health Care | PSCH | B+ | B |
| ProShares Ultra Technology | ROM | B+ | C+ |
| WisdomTree SmallCap Earnings Fund | EES | B+ | B- |
| Rydex S&P Mid Cap 400 Pure Value | RFV | B | B- |
| Rydex S&P Mid Cap 400 Pure Growth | RFG | B | B- |
| Consumer Discretionary Sel Sec SPDR | XLY | B | B |
Source: TSC Ratings
10 Best Utility ETFs for 2012
Top Utility ETFs as of 1/31/12
Fund Name Get Info Overall Rating Risk Grade
ProShares Ultra Utilities UPW C+ B
Rydex S&P 500 Eq Wght Utilities ETF RYU C B+
First Trust Utilities AlphaDEX FXU C B
Utilities Select Sector SPDR XLU C B
iShares DJ US Utilities IDU C B
Vanguard Utilities Index ETF VPU C B
SPDR S&P Transportation ETF XTN C- C+
PowerShares Dynamic Utilities PUI C- B
iShares S&P Global Utilities JXI D+ B
WisdomTree Global ex-US Utilities DBU D B-
Source: TSC Ratings
Fund Name Get Info Overall Rating Risk Grade
ProShares Ultra Utilities UPW C+ B
Rydex S&P 500 Eq Wght Utilities ETF RYU C B+
First Trust Utilities AlphaDEX FXU C B
Utilities Select Sector SPDR XLU C B
iShares DJ US Utilities IDU C B
Vanguard Utilities Index ETF VPU C B
SPDR S&P Transportation ETF XTN C- C+
PowerShares Dynamic Utilities PUI C- B
iShares S&P Global Utilities JXI D+ B
WisdomTree Global ex-US Utilities DBU D B-
Source: TSC Ratings
Tuesday 6 March 2012
Stock Future Trading Tips for 07 March 2012
Stock Future Trading Tips for 07 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
ONGC | BUY ABOVE | 284 | 282 | 287 |
| SELL BELOW | 282 | 284 | 279 |
Income Tax Slabs for General , Women ,Senior Citizen ,Very Senior Citizen
General
Income tax slab (in Rs.) Tax
0 to 1,80,000 No Tax
1,80,001 to 5,00,000 10%
5,00,001 to 8,00,000 20%
Above 8,00,000 30%
Education Cess 2%
Secondary and Higher Education Cess 1%
Secondary and Higher Education Cess 1%
Women
Income tax slab (in Rs.) Tax
0 to 1,90,000 No Tax
1,90,001 to 5,00,000 10%
5,00,001 to 8,00,000 20%
Above 8,00,000 30%
Education Cess 2%
Secondary and Higher Education Cess 1%
Secondary and Higher Education Cess 1%
Senior Citizen
(Aged 60 years but less than 80 years)
Income tax slab (in Rs.) Tax
0 to 2,50,000 No Tax
2,50,001 to 5,00,000 10%
5,00,001 to 8,00,000 20%
Above 8,00,000 30%
Very Senior Citizen
(Above Aged 80 years )
Income tax slab (in Rs.) Tax
0 to 5,00,000 No Tax
5,00,001 to 8,00,000 20%
Above 8,00,000 30%
COMMERCIAL,RESIDENTIAL Rate in Chennai
RESIDENTIAL
Chennai Capital Values Rate/Sq ft (INR) Updated on
Anna Nagar 6200 - 9850 Jan 2012
Ashok Nagar 5500 - 8500 Jan 2012
Boat Club 15000 - 22000 Jan 2012
Egmore 5500 - 11000 Jan 2012
Guindy 3500 - 6000 Jan 2012
Kilpauk 5500 - 11000 Jan 2012
Moggapair 3500 - 4500 Jan 2012
Poes Garden 12500 - 20000 Jan 2012
R A Puram 6500 - 15000 Jan 2012
T Nagar 7500 - 10500 Jan 2012
Vadapalani 2900 - 5100 Jan 2012
Velachery - OMR Road 3500 - 4500 Jan 2012
COMMERCIAL
Chennai Rental Rates/Sq ft (INR) Updated on
Anna Nagar 45 - 55 Jan 2012
Guindy 45 - 55 Jan 2012
Mount Road 57 - 82 Jan 2012
Nungambakkam 55 - 80 Jan 2012
OMR 25 - 45 Jan 2012
Seruseri 22 - 28 Jan 2012
Alfa Laval approves delisting price at Rs 4000 per share
The parent of Alfa Laval has approved the delisting at Rs 4000 per share.
This is at a 5% premium to the Saturday's closing price. The company had given an indicative offer price of Rs 2,850 per share. So, this is at a 40% premium to the offer price.
This is also likely to surprise the street as maximum bids had come in at Rs 3,000 per share. However, at the current delisting price the company will have to shell out around Rs 820 crore as against Rs 417 crore which it had earlier set aside
This could trigger a rally in the delisting shares which has been going on in the market for some time on the back of successful delisting at a premium for Alfa Laval.
This is at a 5% premium to the Saturday's closing price. The company had given an indicative offer price of Rs 2,850 per share. So, this is at a 40% premium to the offer price.
This is also likely to surprise the street as maximum bids had come in at Rs 3,000 per share. However, at the current delisting price the company will have to shell out around Rs 820 crore as against Rs 417 crore which it had earlier set aside
This could trigger a rally in the delisting shares which has been going on in the market for some time on the back of successful delisting at a premium for Alfa Laval.
Budget Expectations: Reduce tax rates
1.Reduce Tax rates.
2. More in-hand savings
3. Better roads.
More employment and investment opportunities are some of the wishes an "Aam Aadmi" expects from the FM -- Pranabda. The Budget- the most important economic event of our country, affects each of the 120 billion people in one way or the other and we are going to witness the same on March 16, 2012 i.e. post the State Elections as promised by Pranabda.
The salaried class is the only class of taxpayers where tax planning opportunities are minimal. The only support in terms of tax saving is through the HRA deduction and perquisites provided by employers which are taxed at concessional rates. One will have to wait to see if the FM brings in some relief by increasing the conveyance allowance from Rs 800 per month (introduced way back in 1997) as compared to a situation today when one has to pay nearly Rs 800 for one taxi ride.
Then the medical reimbursement, which is exempted upto Rs. 15000 only, is also one area which impacts the salaried class when medical costs have sky rocketed. It would be interesting to see if the FM brings in some sops by ways of reduced tax rates, increased exemption limit or even by increasing the limit for interest paid on housing loan repayments. Undoubtedly, the deductions and concessions prescribed for salaries class have not kept pace with the inflationary trends which the country has witnessed and thus, one expects FM to do undertake some rationalisation so that the "Aam Aadmi" can be comforted.
Currently, deduction under section 80 C of the Act is limited to Rs. 100,000. However, with no social security schemes in India that could support people post retirement, the limit of Rs. 100,000 seems to add little savings in times of high inflation. Further, the infrastructure bonds notified in 2010 budget for years 2011 and 2012 have proved to be very successful and have provided additional tax benefits to the people. It would be interesting to see if the government extends the same so as to keep the tax saving window open for the taxpayers and continue the momentum for infrastructure projects currently going on in the country.
Finance Act 2011 carved out a new category of tax payers i.e. individuals attaining the age of 80 years as "very senior citizens" being eligible for a higher exemption limit of Rs 5 lacs, however, as per the Census of India 2011, average life expectancy of males in India is 67.3 years and for female is 69.6 years.
Another anomaly about the age is that for all railways bookings, banking purposes, the age of senior citizens is 60 years, whereas for income tax purposes only, the age of senior citizen is 65 years. Notwithstanding the overall loss to tax kitty which could occur due to reduction of age for senior citizen and very senior citizens to 60 years, one could expect Government to support life standards of citizens who contributed in their prime and now expect respect and relief. They are akin to elders of our nation and deserve-care and attention.
The corporate houses would also be looking at rationalization of tax rates so as to be at par with the emerging markets of the world. With the MAT rate at 18.5 %, the "Minimum Alternate Tax" has lost its sheen and is more of an alternative tax. Further, with imposition of MAT and Dividend Distribution Tax on SEZ units, some correction in the budget is desirable.
Recently, it was reported in media reports that the there is almost INR 44,500 crores locked up in transfer pricing litigation. The Advance Pricing Arrangement mechanism which is an alternative to the appeal process has not yet seen light of the day in India but is quite effective in other countries. With no mandatory time limit to dispose of appeals by the Commissioner (Appeals), how the government deals with the situation of pending litigation and tax recovery is yet to be seen.
2. More in-hand savings
3. Better roads.
More employment and investment opportunities are some of the wishes an "Aam Aadmi" expects from the FM -- Pranabda. The Budget- the most important economic event of our country, affects each of the 120 billion people in one way or the other and we are going to witness the same on March 16, 2012 i.e. post the State Elections as promised by Pranabda.
The salaried class is the only class of taxpayers where tax planning opportunities are minimal. The only support in terms of tax saving is through the HRA deduction and perquisites provided by employers which are taxed at concessional rates. One will have to wait to see if the FM brings in some relief by increasing the conveyance allowance from Rs 800 per month (introduced way back in 1997) as compared to a situation today when one has to pay nearly Rs 800 for one taxi ride.
Then the medical reimbursement, which is exempted upto Rs. 15000 only, is also one area which impacts the salaried class when medical costs have sky rocketed. It would be interesting to see if the FM brings in some sops by ways of reduced tax rates, increased exemption limit or even by increasing the limit for interest paid on housing loan repayments. Undoubtedly, the deductions and concessions prescribed for salaries class have not kept pace with the inflationary trends which the country has witnessed and thus, one expects FM to do undertake some rationalisation so that the "Aam Aadmi" can be comforted.
Currently, deduction under section 80 C of the Act is limited to Rs. 100,000. However, with no social security schemes in India that could support people post retirement, the limit of Rs. 100,000 seems to add little savings in times of high inflation. Further, the infrastructure bonds notified in 2010 budget for years 2011 and 2012 have proved to be very successful and have provided additional tax benefits to the people. It would be interesting to see if the government extends the same so as to keep the tax saving window open for the taxpayers and continue the momentum for infrastructure projects currently going on in the country.
Finance Act 2011 carved out a new category of tax payers i.e. individuals attaining the age of 80 years as "very senior citizens" being eligible for a higher exemption limit of Rs 5 lacs, however, as per the Census of India 2011, average life expectancy of males in India is 67.3 years and for female is 69.6 years.
Another anomaly about the age is that for all railways bookings, banking purposes, the age of senior citizens is 60 years, whereas for income tax purposes only, the age of senior citizen is 65 years. Notwithstanding the overall loss to tax kitty which could occur due to reduction of age for senior citizen and very senior citizens to 60 years, one could expect Government to support life standards of citizens who contributed in their prime and now expect respect and relief. They are akin to elders of our nation and deserve-care and attention.
The corporate houses would also be looking at rationalization of tax rates so as to be at par with the emerging markets of the world. With the MAT rate at 18.5 %, the "Minimum Alternate Tax" has lost its sheen and is more of an alternative tax. Further, with imposition of MAT and Dividend Distribution Tax on SEZ units, some correction in the budget is desirable.
Recently, it was reported in media reports that the there is almost INR 44,500 crores locked up in transfer pricing litigation. The Advance Pricing Arrangement mechanism which is an alternative to the appeal process has not yet seen light of the day in India but is quite effective in other countries. With no mandatory time limit to dispose of appeals by the Commissioner (Appeals), how the government deals with the situation of pending litigation and tax recovery is yet to be seen.
Cong's UP miss miffs mkt ,SP set to reach majority Sensex ends 190 pts down
SP has emerged as the top party in the 2012 Uttar Pradesh Assembly Elections winning 96 seats and leading in 125 other seats, taking the total number to 221, at 3:50 pm. Meanwhile, Mayawati's Bahujan Samaj Party won 32 seats and was leading in 51 other seats. BJP and Congress won 15 seats each and were leading in 45 and 40 other seats, respectively.
Congress also lost elections in Goa (won by BJP), Punjab (won by Shiromani Akali Dal) while it retained its power in Manipur.
Shobhana Bhartia, Chairperson of HT Media said the outcome was very disappointing for the Congress. "Performance in state assembly today will not help at centre," she added.
The BSE benchmark fell 189.58 points or 1.09%, to close at 17,173.29 led by downtrend in 21 stocks. Meanwhile, the NSE benchmark touched an intraday high of 5,382.05 and low of 5,206.40, before closing down 57.95 points at 5,222.40.
Now the market has shifted its focus to global cues, which remain weak and upcoming two local events: Budget (schedule to be announced on March 16) and RBI's monetary policy (on March 15).
Global markets were down today as renewed concerns over Greece and slowing growth in China overshadowed better-than-expected US economic news. Asian markets closed with a loss of 0.9-2% while European markets were down between 1% & 1.5%.
Depreciating rupee was another cause for concern, which was down by 43 paise to 50.28 a dollar.
Chetan Ahya of Morgan Stanley indicated that the rupee could go down to 52.5 levels against the dollar before recovering.
Metal stocks got butchered quite badly; BSE Metal Index tanked nearly 4%. Shares of Tata Steel, Sterlite Industries and Hindalco crashed around 5.5% while Jindal Steel was down 3.8%.
Capital goods majors L&T and BHEL fell 2.5-3%. Shares of country's largest lenders ICICI Bank and SBI tumbled 1-2% while rival HDFC Bank was down 0.7%.
Index heavyweight Reliance Industries dropped 2.7% and telecom major Bharti Airtel lost 3.66%.
However, Infosys and ITC bucked the trend, rising 1.4%. Shares of DLF rallied 2.7% and Maruti gained 1%.
The broader markets too declined 1% and declining shares outnumbered advancing by 1762 to 1042 on the BSE.
Total traded turnover on both exchanges was more than 1.91 lakh crore.
Congress also lost elections in Goa (won by BJP), Punjab (won by Shiromani Akali Dal) while it retained its power in Manipur.
Shobhana Bhartia, Chairperson of HT Media said the outcome was very disappointing for the Congress. "Performance in state assembly today will not help at centre," she added.
The BSE benchmark fell 189.58 points or 1.09%, to close at 17,173.29 led by downtrend in 21 stocks. Meanwhile, the NSE benchmark touched an intraday high of 5,382.05 and low of 5,206.40, before closing down 57.95 points at 5,222.40.
Now the market has shifted its focus to global cues, which remain weak and upcoming two local events: Budget (schedule to be announced on March 16) and RBI's monetary policy (on March 15).
Global markets were down today as renewed concerns over Greece and slowing growth in China overshadowed better-than-expected US economic news. Asian markets closed with a loss of 0.9-2% while European markets were down between 1% & 1.5%.
Depreciating rupee was another cause for concern, which was down by 43 paise to 50.28 a dollar.
Chetan Ahya of Morgan Stanley indicated that the rupee could go down to 52.5 levels against the dollar before recovering.
Metal stocks got butchered quite badly; BSE Metal Index tanked nearly 4%. Shares of Tata Steel, Sterlite Industries and Hindalco crashed around 5.5% while Jindal Steel was down 3.8%.
Capital goods majors L&T and BHEL fell 2.5-3%. Shares of country's largest lenders ICICI Bank and SBI tumbled 1-2% while rival HDFC Bank was down 0.7%.
Index heavyweight Reliance Industries dropped 2.7% and telecom major Bharti Airtel lost 3.66%.
However, Infosys and ITC bucked the trend, rising 1.4%. Shares of DLF rallied 2.7% and Maruti gained 1%.
The broader markets too declined 1% and declining shares outnumbered advancing by 1762 to 1042 on the BSE.
Total traded turnover on both exchanges was more than 1.91 lakh crore.
Monday 5 March 2012
UOB 4Q Net Falls 21%
nited Overseas Bank (UOB) Thursday reported a 21 percent drop in its fourth quarter net profit mainly due to the absence of one-time gains, but stressed that its core business remains strong given a positive outlook in Asia.
Singapore’s third-largest bank by assets posted a net profit of $558 million for the three months ended 31 December, down from $706 million a year earlier. The result was lower than the average estimate of $598.6 million from five analysts polled by Dow Jones Newswires.
However, UOB’s net profit for the fourth quarter of 2010 was boosted by a one-time gain of $152 million from the sale of UOB Life Assurance and United Industrial Corporation.
Net interest income for the October-December period gained 13 percent to $978 million from $865 million, while non-interest income fell 29 percent to $500 million from $700 million.
Singapore’s third-largest bank by assets posted a net profit of $558 million for the three months ended 31 December, down from $706 million a year earlier. The result was lower than the average estimate of $598.6 million from five analysts polled by Dow Jones Newswires.
However, UOB’s net profit for the fourth quarter of 2010 was boosted by a one-time gain of $152 million from the sale of UOB Life Assurance and United Industrial Corporation.
Net interest income for the October-December period gained 13 percent to $978 million from $865 million, while non-interest income fell 29 percent to $500 million from $700 million.
City Developments 4Q Net Profit Falls 32% On Lower Rental Income
Property developer City Developments on Wednesday reported a 32.3 percent drop in its fourth-quarter net profit mainly due to lower rental income, and flagged a challenging outlook for 2012 amid global economic uncertainties.The group remains optimistic that “resilient” demand will support its key Singapore residential market, as well as China’s slowing real estate sector.
“While the sales volume for new property launches is still relatively strong, the group is cognizant that market conditions could be affected by the global economic conditions in the months ahead,” City Developments Executive Chairman Kwek Leng Beng said in a statement.
City Developments “will carefully select the appropriate type of developments to launch in a timely manner, mindful of buyers’ appetite and demand,” Kwek said, adding that he expects the group to remain profitable in 2012.
Noting that most analysts expect China’s property prices to correct by a maximum 15 percent to 20 percent range, City Developments said it is devoting an additional $500 million toward potential business and land acquisitions there. The developer also expects further cuts to China’s reserve requirement ratio for banks this year, which could boost the property market due to higher liquidity and bank lending.
Net profit for the three months ended 31 December was $163.2 million, down from a restated $241 million a year ago and missing the average $193 million estimated by five analysts polled by Dow Jones Newswires. City Developments said the lower profits from rental properties was partly due to the absence of one-time gains from asset sales recorded in the fourth-quarter of 2010.
The developer restated comparable figures for 2010 in accordance with new financial reporting standards adopted last year, which recognises overseas projects and certain local projects only when they are fully completed. It originally stated 2010 fourth-quarter net profit at $176.7 million.
Fourth-quarter revenue was $721.5 million, up 7.4 percent from $671.6 million a year ago. The company proposed a dividend of 18 Singapore cents a share for 2011.
Net profit for 2011 rose 1.9 percent to $798.6 million from $784 million.
“While the sales volume for new property launches is still relatively strong, the group is cognizant that market conditions could be affected by the global economic conditions in the months ahead,” City Developments Executive Chairman Kwek Leng Beng said in a statement.
City Developments “will carefully select the appropriate type of developments to launch in a timely manner, mindful of buyers’ appetite and demand,” Kwek said, adding that he expects the group to remain profitable in 2012.
Noting that most analysts expect China’s property prices to correct by a maximum 15 percent to 20 percent range, City Developments said it is devoting an additional $500 million toward potential business and land acquisitions there. The developer also expects further cuts to China’s reserve requirement ratio for banks this year, which could boost the property market due to higher liquidity and bank lending.
Net profit for the three months ended 31 December was $163.2 million, down from a restated $241 million a year ago and missing the average $193 million estimated by five analysts polled by Dow Jones Newswires. City Developments said the lower profits from rental properties was partly due to the absence of one-time gains from asset sales recorded in the fourth-quarter of 2010.
The developer restated comparable figures for 2010 in accordance with new financial reporting standards adopted last year, which recognises overseas projects and certain local projects only when they are fully completed. It originally stated 2010 fourth-quarter net profit at $176.7 million.
Fourth-quarter revenue was $721.5 million, up 7.4 percent from $671.6 million a year ago. The company proposed a dividend of 18 Singapore cents a share for 2011.
Net profit for 2011 rose 1.9 percent to $798.6 million from $784 million.
Future Buybacks company List
1. Currently, there are about 16 buybacks ongoing in the market.
2. The idea of this report is to review the status of these buybacks and try to make an assessment about how much of the buybacks are actually being done.
3. Out of the 16 buybacks which are ongoing as of now, there are only 5 buybacks in which actual bought back amount is atleast 50% of the aggregate announced buyback size.
4. In the case of remaining 11 buybacks, the actual buyback numbers as of now are quite modest in comparison to the aggregate announced buyback amounts. However, one needs to note that these buybacks have considerable time left before their closure.
5. Reliance Industries has seen actual buyback of about Rs 51.20 Crores in the first month of its buyback program, in comparison to its aggregate buyback size of about Rs 10,440 Crores. That works out to actual buyback size of about 0.49% of the aggregate buyback announced. Also, the actual buyback has happened only on 7 trading days till now. However, the company still has considerable time before the closure of their buyback program on 19th Jan 2013.
6. Similarly, modest beginnings were seen in the buybacks of Valiant Communications (1.09%), Gemini Communications (2.75%), Ansal Housing (4.50%), GEECEE (11.49%).
7. However, the companies such as Crisil and Rain Commodities were quite aggressive as they have completed almost 99.08% and 96.75% of their buybacks respectively.
8. All in all, the investors shall take cognizance of the fact that there is no mandatory requirement of the companies completing their 100% of the announced buybacks, before investing solely on the basis of the buyback announcement.
2. The idea of this report is to review the status of these buybacks and try to make an assessment about how much of the buybacks are actually being done.
3. Out of the 16 buybacks which are ongoing as of now, there are only 5 buybacks in which actual bought back amount is atleast 50% of the aggregate announced buyback size.
4. In the case of remaining 11 buybacks, the actual buyback numbers as of now are quite modest in comparison to the aggregate announced buyback amounts. However, one needs to note that these buybacks have considerable time left before their closure.
5. Reliance Industries has seen actual buyback of about Rs 51.20 Crores in the first month of its buyback program, in comparison to its aggregate buyback size of about Rs 10,440 Crores. That works out to actual buyback size of about 0.49% of the aggregate buyback announced. Also, the actual buyback has happened only on 7 trading days till now. However, the company still has considerable time before the closure of their buyback program on 19th Jan 2013.
6. Similarly, modest beginnings were seen in the buybacks of Valiant Communications (1.09%), Gemini Communications (2.75%), Ansal Housing (4.50%), GEECEE (11.49%).
7. However, the companies such as Crisil and Rain Commodities were quite aggressive as they have completed almost 99.08% and 96.75% of their buybacks respectively.
8. All in all, the investors shall take cognizance of the fact that there is no mandatory requirement of the companies completing their 100% of the announced buybacks, before investing solely on the basis of the buyback announcement.
Stock Future Trading Tips for 05 March 2012
Stock Future Trading Tips for 05 March 2012
| Scrip | Trigger | Price | Stop Loss | Target 1 |
|---|---|---|---|---|
BHARATIARTL | BUY ABOVE | 356 | 351 | 360 |
| SELL BELOW | 351 | 356 | 345 |
Saturday 3 March 2012
BHEL opposed to buyback but open to FPO/auction
the cabinet allowed cash-rich state companies to buy back shares and participate in the government's divestment program. But, the government's buyback process may not be suited for BHEL .
Government sources say, the company is opposed to a share buyback, but is open to 5% follow on public offer (FPO) or auction.Further, the share sale can happen only when the stock markets recover.
Government sources say, the company is opposed to a share buyback, but is open to 5% follow on public offer (FPO) or auction.Further, the share sale can happen only when the stock markets recover.
RIL buys 3.73% stake to EIH
EIH has touched a 52-week high of Rs 103. It has touched an intraday high of Rs 103.00 and an intraday low of Rs 90.75. The share closed at Rs 98.10, up Rs 8.40, or 9.36%.
Reliance Industries increased its stake in hospitality firm EIH to 18.53% by picking additional 2.13 crore shares worth Rs 192 crore through an open market transaction.
Reliance Industries increased its stake in hospitality firm EIH to 18.53% by picking additional 2.13 crore shares worth Rs 192 crore through an open market transaction.
IRFC tax free bonds list on the stock exchanges
The tax-free bonds of the Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, made their debut today on the National Stock Exchange and Bombay Stock Exchange at a premium.
RFC in January 2012 issued tax free, secured, redeemable, non-convertible bonds of face value of Rs 1,000 each in the nature of debentures, having benefits under Section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended (bonds) aggregating to Rs 3,000 crore with an option to retain oversubscription of upto the shelf limit of Rs 6,300 crore.
These bonds carry a coupon rate of 8.00% p.a for 10 years (ISEC Comment: Series I) and 8.10% p.a for 15 years (ISEC Comment: Series II). An additional coupon rate of 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively shall be available to Resident Indian Individuals, Hindu Undivided Families through the Karta and Non Resident Indians on repatriation as well as non-repatriation basis, applying for an amount aggregating upto and including Rs 5 lakh across all series in the tranche (available only to the original allottees).
The bonds have been rated 'CRISIL AAA/Stable' by CRISIL, '[ICRA] AAA' by ICRA and 'CARE AAA' by CARE, indicating highest degree of safety for timely servicing of financial obligations.
SBI Capital Markets Limited, A K Capital Services Limited and ICICI Securities Limited are the Lead Managers to the issue. Indian Bank shall be the Trustee to the issue.
The company intends to utilize the Issue proceeds for financing the acquisition of rolling stock and financing the capacity enhancement works in the Indian Railways.
RFC in January 2012 issued tax free, secured, redeemable, non-convertible bonds of face value of Rs 1,000 each in the nature of debentures, having benefits under Section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended (bonds) aggregating to Rs 3,000 crore with an option to retain oversubscription of upto the shelf limit of Rs 6,300 crore.
These bonds carry a coupon rate of 8.00% p.a for 10 years (ISEC Comment: Series I) and 8.10% p.a for 15 years (ISEC Comment: Series II). An additional coupon rate of 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively shall be available to Resident Indian Individuals, Hindu Undivided Families through the Karta and Non Resident Indians on repatriation as well as non-repatriation basis, applying for an amount aggregating upto and including Rs 5 lakh across all series in the tranche (available only to the original allottees).
The bonds have been rated 'CRISIL AAA/Stable' by CRISIL, '[ICRA] AAA' by ICRA and 'CARE AAA' by CARE, indicating highest degree of safety for timely servicing of financial obligations.
SBI Capital Markets Limited, A K Capital Services Limited and ICICI Securities Limited are the Lead Managers to the issue. Indian Bank shall be the Trustee to the issue.
The company intends to utilize the Issue proceeds for financing the acquisition of rolling stock and financing the capacity enhancement works in the Indian Railways.
Monthly FII Investments on 2011
| MONTH ENDED | NET INV. (Rs m) | MONTH END Rs / US$ | NET INV. (US $ m) | MONTH END INDEX | CURRENT VALUE (Rs m) | CUMM. INV. (Rs m) | CUMM. VALUE (Rs m) | % GAIN (Rs m) | % GAIN (US$ m) |
| Jan - 2011 | (63,302) | 45.91 | (1,389) | 18,328 | (60,916) | (63,302) | (60,916) | (3.8) | (11.4) |
| Feb - 2011 | (10,053) | 44.95 | (220) | 18,447 | (9,612) | (73,355) | (70,527) | (3.9) | (11.4) |
| Mar - 2011 | 69,667 | 44.59 | 1,555 | 19,445 | 63,188 | (3,688) | (7,339) | 99.0 | 178.4 |
| Apr - 2011 | 70,185 | 44.22 | 1,582 | 19,136 | 64,687 | 66,497 | 57,347 | (13.8) | (24.2) |
| May - 2011 | (51,582) | 45.35 | (1,157) | 18,503 | (49,166) | 14,915 | 8,181 | (45.2) | (55.5) |
| Jun - 2011 | 33,106 | 44.87 | 735 | 18,694 | 31,234 | 48,021 | 39,415 | (17.9) | (28.0) |
| Jul - 2011 | 83,285 | 44.19 | 1,873 | 18,197 | 80,720 | 131,306 | 120,135 | (8.5) | (18.5) |
| Aug - 2011 | (95,364) | 46.09 | (2,107) | 16,677 | (100,854) | 35,942 | 19,281 | (46.4) | (55.3) |
| Sep - 2011 | (11,470) | 48.97 | (200) | 16,454 | (12,295) | 24,472 | 6,986 | (71.5) | (79.0) |
| Oct - 2011 | 22,506 | 48.77 | 451 | 17,705 | 22,419 | 46,978 | 29,406 | (37.4) | (47.1) |
| Nov - 2011 | (45,396) | 52.21 | (859) | 16,123 | (49,657) | 1,582 | (20,251) | (1,380.1) | (255.7) |
| Dec - 2011 | (1,284) | 53.07 | (11) | 15,544 | (1,457) | 298 | (21,708) | (7,384.6) | (274.4) |
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