Archive for August 28th, 2009

Indian Stocks Rise; Bharti, Telecom Companies Lead Advance

Bull & Bears

Indian stocks rose for the seventh day, driving the benchmark index to its highest monthly gain in more than a year. Telecom shares led gains after the government said it aims to auction high-speed mobile phone service permits.

Bharti Airtel Ltd., the largest mobile operator, jumped to a three-month high on news that so-called 3G licenses will be auctioned off at a starting price of 35 billion rupees ($716 million).

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 108.66, or 0.7 percent, to 15,889.73, according to preliminary closing prices. The gauge gained 4.3 percent this week. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.8 percent to 4,723.85. The BSE 200 Index rose 0.7 percent to 1,945.33.

Building your Financial Future After a Divorce

financial-planning-after-divorce

You need to do long term financial planning when you are going through a divorce. It’s important that you recover from the split by assessing your situation as singles and setting up new financial plans with a focus on longevity. Here are five simple steps for building your financial future after a divorce:

1. Start with a plan.

Take a look at your finances before the divorce and then subtract what you’ve lost to give you a good perspective on your fiscal situation. Be realistic with yourself and set a budget that you can easily manage with your new single status.

2. Check your credit.

Maintaining your credit is an important step in walking away from a divorce financially intact. Examine your credit reports and ensure that any name changes or card closures are accurate and taken care of.

3. Ensure your retirement.

Confirm that all of your retirement arrangements are intact and that any assets or funds you are entitled to have been taken care of. Division of savings and accounts should be paramount in your review.

4. Obtain the necessary insurance.

Examine your insurance policies and make sure that you and your property are still covered.

5. Review your taxes.

Understanding the tax ramifications of your divorce is a key part of planning for your financial future. Confirm that all tax responsibilities between you and your spouse are coordinated appropriately.

Private Equity Funds Shying Away from PIPEs

Private equity-money-indian-rupees

Indian private equity firms are currently disinclined to conduct private investments in public equity (PIPE) deals, according to a report in the Business Standard. Their reticence is thought to be due to the recent secondary market crash, and the uncertainty that ensued.

According to the report, which cites a study by Venture Intelligence, private equity firms announced 24 PIPE deals in H1 2009, which were worth around $349m – a massive 68 percent decline on H1 2008’s $1.58bn, across 68 deals.

In addition, PIPE deals comprised 12 percent of the total private equity deal value – $2.89bn – for H1 2009.

For instance, in 2008, the value of Pipe investments worth $1.67 billion eroded to $1.22 billion, an absolute loss of $0.45 billion (26.85 per cent), said an SMC Capital report.

Vishal Tulsyan, chief executive officer of Motilal Oswal suggested to the Business Standard that losses arising from mark-to-market accounting may be partially to blame for this trend.

“PEs are staying away from PIPE deals due to the mark-to-market issue. PEs invest for a time-frame of four-six years. Since the market is uncertain, one would not like to take risk,” he said.

Furthermore, valuations have risen in the last nine months or so. “PIPE deals are not cheap anymore. The capital market makes sense for people who are looking at quick appreciation. The market has been range-bound and very volatile,” said Alok Gupta, the chief executive officer of Axis Private Equity, speaking to the Business Standard.