Archive for the ‘capitals’ Category

NEWS ROUND UP 22nd – 26th March

Hello Friends here we come up with the News Round Up from various categories.

Economy

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路The Reserve Bank of India (RBI) unexpectedly raised interest rates from聽record-low levels for the first time since it began cutting in 2008, citing聽intensifying inflationary pressures and a steady economic recovery. The聽central bank raised the repo rate, the rate at which it lends to banks to 5.00聽percent from 4.75 percent and reverse repo rate, the rate which it absorbs聽funds from the system to 3.50 percent from 3.25 percent with immediate聽effect.

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路India’s Wholesale price inflation accelerated to 9.89 percent in February聽from a year ago, above the Reserve Bank of India’s end March projection of聽8.5 percent and higher than the 8.56 percent level recorded in January this聽year.

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路India’s food price index rose 16.30 percent in the 12 months to March 6,聽while the fuel index was up 12.68 percent. The rise in the food price index聽was lower than an annual rise of 17.81 percent in the previous week.

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Pharmaceutical

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路Elder Pharmaceuticals had increased its stake in Bulgarian subsidiary Elder聽Biomeda AD to 61 per cent from the present 51 per cent, as part of its聽strategy to strengthen its presence in the European market. The Rs 600-聽crore turnover Elder Pharma did not disclose the deal size. In April 2008,聽Elder had formed Biomeda AD in Bulgaria, to acquire three Bulgarian聽healthcare companies belonging to the local Biomeda group.

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Metal

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路Welspun Gujarat Stahl Rohren unit will acquire a 75 per cent stake in MSK聽Projects, marking its foray into infrastructure. Welspun will invest a total of聽Rs 400 crore, of which Rs 200 crore will be infused directly into MSK.

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Realty/ Construction.

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路Punj Lloyd has bagged a project worth $40 million (nearly Rs 181 crore)聽from Abu Dhabi Gas Industries (GASCO) for infrastructure related works.

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The company has secured a letter of award for engineering, procurement聽and construction works in UAE from GASCO.

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路Subhash Projects & Marketing has bagged two orders worth Rs 475.34 crore聽for infrastructure related works. The company, along with Kirloskar聽Brothers Ltd, has bagged a contract worth Rs 439.35 crore from Bangalore聽Water supply Sewerage Board for civil and electromechanical works.

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路路 Hindustan Construction Company (HCC) acquired a controlling stake in聽Swiss real estate firm Karl Steiner AG in an all-cash deal for around Rs 150聽crore (Swiss Francs 35 million), a move that will pave way for the company聽to enter the European and Gulf markets.

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路PT Madhucon Indonesia, a subsidiary of the Hyderabad-based聽infrastructure company Madhucon Projects Ltd, has been granted a new聽coal mining business permit for exploration of 30,970 hectares at聽Mauraduwa in south Sumatra, Indonesia.

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Oil & Gas

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路GAIL India plans to transit 21 per cent more natural gas through its pipelines聽at 114.8 million cubic meters per day in 2010-11 fiscal. The company in a聽press statement that it has set a target of transmitting 114.8 mmscmd of聽natural gas from domestic fields and imported LNG in 2010-11 fiscal as聽opposed to moving 94.8 mmscmd during current fiscal.

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Capital Goods

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路McNally Bharat Engineering Company has bagged an order worth Rs 173.2聽crore for works at Mahanadi Coalfields in Sambalpur, Orissa. This is the third聽order that the company has bagged within a week, the first two being from聽NPCC and SAIL.

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路Larsen & Toubro (L&T) has bagged a project worth Rs 2,035 crore from聽ONGC Mangalore Petrochemicals Ltd to set up an aromatics complex at聽Mangalore special economic zone.

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Automobile.

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路Mahindra & Mahindra has joined the long list of corporate houses looking to聽obtain a banking licence after the finance minister’s budget speech聽revealed that banking regulator RBI was planning to allow more players in聽the sector. A top executive of the $6.3-billion group that it was planning to聽seek a banking licence for its non-banking finance company Mahindra &聽Mahindra Financial Services (MMFSL).

NEWS ROUND UP

Economy

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路IIP for the month of January grew 16.7% on year. The mining sector grew 14.6%聽in the month while the manufacturing sector grew 17.9%. The electricity聽sector witnessed a growth of 5.6% in the month.

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India’s annual food price index increased 17.81% as on week ended February聽27, slower than the 17.87% growth recorded last week. A year ago, food prices聽were up 7.54%.

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Healthcare

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路Fortis Healthcare announced the largest overseas acquisition by an Indian聽company in the healthcare space, buying the entire 23.9 per cent stake held聽by TPG Capital in Singapore’s Parkway Holding Ltd for $686 million (Rs 3,119聽crore).

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Capital Goods

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路ABB Ltd. has bagged orders worth $22 million (nearly Rs 100 crore) from聽Haryana Vidyut Prasaran Nigam for the supply of four sub-stations. The聽company would deliver four sub-stations equipped with automation,聽protection and control systems to HVPNL.

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路Areva T&D India has bagged a contract worth Rs 400 crore from Uttar聽Pradesh(UP) Power Transmission Corporation for building a substation. The聽company’s transmission and distribution division will build a 765 KV extra high聽voltage substation at Anpara thermal plant in UP.

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路Thermax announced a JV with US-based Babcock & Wilcox Power Generation聽Group to manufacture super-critical boilers in the country. The total聽investment in the JV is estimated at Rs 700 crore.

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路McNally Bharat Engineering Company has bagged an order worth Rs 245.42聽crore from Steel Authority of India Ltd for infrastructure related works at聽Rourkela steel plant. The contract is for inter-plant transportation facilities at聽Rourkela steel plant.

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Mining & Minerals

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路State-owned miner NMDC is planning to invest around Rs 2,400 crore to lay a聽pipeline between its Chhattisgarh plant and Visakhapatnam in Andhra聽Pradesh.

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Realty & Construction

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路Gammon India has bagged an order worth Rs Rs 631.81 crore from Delhi聽Tourism and Transportation Development Corporation for construction of聽bridge. The company has received the project for construction of bridge and聽its approaches over river Yamuna, Delhi.

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路Hindustan Construction Company (HCC) has plans to invest around Rs 50,000聽crore in its township project in Lavasa, near here, over the next 10-12 years聽路Hindustan Construction Company (HCC) along with its joint venture partner聽has bagged a contract worth Rs 197 crore from North Frontier Railway for
development of a tunnel in Imphal.The company has bagged the project along聽with its JV partner Coastal Projects Ltd for developing a railway tunnel聽between Jiribam and Tupur in Imphal.

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路Nagarjuna Construction Company secured new contracts aggregating to Rs聽1,221 crore. The first order is of two contracts valued at Rs 647 crore from聽Hyderabad Growth Corridor. In addition, it has secured three contracts worth聽Rs 358 crore from Maharashtra State Electricity Distribution.

路Construction firm Ahluwalia Contracts India is in acquisition talks for聽specialised construction firms, with a war-chest of up to Rs 100 crore, and聽hopes to sew up the deal by June. The New Delhi-based firm sees a 25-30 per聽cent organic growth for next five years and acquisitions of up to Rs 100 crore聽could be funded from its internal resources.

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Banking & Finance

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路Rural Electrification Corporation Ltd (REC) signed a memorandum of聽understanding (MoU) with NTPC Tamil Nadu Energy Company Ltd (NTECL), a聽joint venture company set up by NTPC and the Tamil Nadu Electricity Board聽(TNEB), to fund a power project in North Chennai. Of the total project cost, 30聽per cent is being met by equity and balance through debt.

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Distilleries

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路The country’s largest liquor maker United Spirits is undertaking an aggressive聽promotion campaign for its recently launched energy drink ‘Romanov Red’.

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The company will invest over Rs 5 crore in the next one year on promotions, as聽it aims to garner a 15 per cent share in the domestic energy drink market that聽stands at around 1.5 million cases (of 24 cans) per annum.

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Stay Tuned聽for More聽updates 馃檪

COMMODITY NEWS DIGEST

  • Farmers raising the Rabi crop under Krishna Delta this year will fall due to short of water by 16 tmcft (thousand million cubic feet).

  • Government has decided to temporarily wind up its sale of wheat for bulk consumers by March-end in states of Punjab, Haryana and Uttar Pradesh.

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  • Monsanto’s Bt cotton fails to control pests in 4 Gujarat districts.

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  • The validity period for sale and delivery/dispatch of nonlevy sugar has been extended on a weekly basis to the weeks ending March15, 22, 31 and April 7 respectively.

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  • The Centre could extend the ban on pulses exports until March 31, 2011 besides allowing duty-free imports for another year.

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  • The data received from States reveal that about 278.17 lakh hectares wheat has been sown as compared to last year’s coverage of 275.89 lakh hectares.

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  • Rice procurement by state-run agencies has dropped by just 3.25% to 23.8 million tonnes till now in the 2009-10 crop marketing season.

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  • British retail sales recovered last month from January’s snow-related slide.

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  • Confidence among U.S. consumers unexpectedly declined for a second month in March, 2010.

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Stay Tuned聽for More updates

CURRENCY FUTURE – BETTER FUTURE FOR CURRENCY TRADERS

There is good news for currency traders who would like to trade in currency futures. After trading in dollar-rupee聽futures, now corporate and retail investors will also be able to trade in currencies such as Euro, and Japanese Yen.

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Currently dollar-rupee futures are trading on three recognized exchanges, NSE, MCX Stock Exchange and BSE. But the聽currency derivative is liquid only on the first two bourses, which have together posted an average daily turnover of around聽Rs. 18,566 crore in December, up from a couple of thousand crore when the currency futures trading commenced in the聽second-half of 2008.

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NSE commenced currency futures trading in India on 29th August 2008. It has witnessed healthy growth in the turnover and聽open interest positions during its first completed month of currency futures trading in India.

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Brief of currency future

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Currency futures contracts are those contracts which allow investors to hedge against foreign exchange risk and traders to聽speculate on the movement in Currency. Since these contracts are marked-to-market daily, investors can exit from their聽obligation to buy or sell the currency prior to the contract’s delivery date.

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Major Profitable accounts

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The introduction of new currency pairs will go a long way in helping market participants, especially international traders, hedge against cross-currency聽Volatility and mitigate risk in export and imports across all major traded currencies and will add depth to the exchange-traded currency futures market.

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Along with the above mentioned participants, Currency futures trading in India has generated huge interest among Indian retail investors and traders.

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There is a strong demand for information gathering about the intricacies of currency futures from small investors and enterprises. For instance, entities聽that have borrowings in Euro will get one more avenue, apart from the over-the-counter market that is dominated by banks, to hedge them against聽volatility in the 16-nation common currency.

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Due to the transparent mechanism of execution in currency futures trade, increased participation by corporations and high net worth individuals, too,聽could be witnessed.

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Contract specification

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As in the case of the dollar-rupee futures, the contract size has been fixed at 1,000 units each for pound and euro, and 100,000 units for the yen, across 12聽concurrently available contracts, one for each month.

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The contracts, like the existing dollar futures, would be cash-settled in rupees and the settlement聽price would be at RBI’s reference rate for all the four currencies.

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However, there are different initial margins (cash) that an investor needs to put up for trading each currency on day one and subsequently though this has not been changed for the dollar.

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The market regulator has also decided to modify the calendar spread margin to be applied on the dollar-rupee contracts.

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All the new contracts would be quoted in rupee terms, while the outstanding positions would be in the respective foreign currency terms.

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The maximum maturity of the contract would be 12 months, while all monthly maturities from 1 to 12 months would be made available.

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The contracts would be settled in cash in rupees.

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The client-level position limit has been capped at 6 per cent of the total open interest position.

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Responses:

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Market participants responded enthusiastically to the inclusion of these new currency pairs. The three new currency pairs clocked Rs. 1,98,761聽contracts resulting from 7,762 trades at a total value of Rs. 1,277.13-crore on the NSE on day first, which is approximately comes out to be 9.61 percent of聽the total turnover in value terms. Out of the three new pairs, euro-rupee (EURINR) was the most traded currency pair clocking 1, 82,013 contracts.

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Total contracts and open interest in EUR/INR and GBP/INR:



First Traders inception of currency futures 馃檪

The first trade in the new currency pairs was executed by East India Securities, IndusInd Bank executed the first trade amongst banks. Union Bank was the聽first PSU bank to trade and execute the single largest trade. ICICI Bank and State Bank also participated actively. This market has now become bigger than聽the cash segment of the equity market, which recorded average volumes of Rs. 20,000 crore last month.

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The beauty of exchange-traded currency futures are that they allow a participant to directly buy or sell the Dollar,Euro,Yen or GBP without having an聽underlying exposure, so it’s also a view-based market. One can take this opportunity of investing smartly in currency futures and gain by every tick.

Stay Tuned聽for More updates 馃檪

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please聽click here

WEEKLY Update 8th – 12th March

Here we bring you the weekly overview of the Indian as well as of the Global economy and latest global business and industry updates.

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Markets continued to build on the gains that came in the post budget聽week. Investors seem to have overcome the worry factors like domestic fiscal deficit & concerns over Euro Zone.

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Even the sudden burst of buying by the foreign institutional investors reflects the confidence聽 in the domestic economy. Food price index rose 17.87% in the 12 months to 20 February 2010, faster than the annual rise of 17.58% in the previous week but聽is expected to come down on the likelihood of good harvest going ahead.

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On聽the external economy front, India’s imports posted a strong growth for the聽second month running in January, signaling a pickup in domestic demand and聽investment. Non-oil imports registered a growth of 28.8% in January, while oil聽imports were up 56% from the year ago period.

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Exports jumped for a third聽 straight month in January, rising 11.5 per cent from a year earlier as demand聽 picked up in the United States and other major overseas markets.

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The data聽cheered the markets & eased some concerns over the optimistic economic growth outlook that came after the third quarter GDP numbers showing growth of 6%. In the nine months to December Indian economy has expanded by 6.7% & in order to meet the CSO expected growth of 7.2% in the current fiscal, it should grow by 8.8% in the last quarter ending March 2010.

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Going forward markets are expected to trade in line with the global markets & will keep a close eye on the IIP numbers that are scheduled to be announced in the coming week. However markets may face liquidity pressure with approximately 22,000 crore going out from the banking system last week & another 12,000 crore expected to go out by the week ending 13th march as a result of hike in Cash reserve ratio by 75 bps by RBI.

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Another liquidity squeeze would be from the corporate in the system as the last tranche of Advance tax is approaching i.e. 15th March. Above all the expected rush of new & follow on public offering in the near term is expected to put a continuous pressure on the liquidity front.

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The week gone by saw one of the strongest rallies in stock markets across the world which goes to show that bulls are still strong and a lot of money lying in the sidelines enters the market at every fall. Trend of Nifty and Sensex is bullish and Nifty has support between 5030-4950 and Sensex between 16700- 16400 levels. The dollar index is finding a strong resistance between 80-81 levels and if it does not cross this strongly then the rally is expected to continue.

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Commodities rose on benefits of doubt as dollar index is witnessing see saw movements amid some improvement in economic releases. However, there is still some uneasiness, regarding the health of European countries, including Spain. In metals and energy, things look balanced right now. These commodities are expected to trade in a range.

Story of agro commodities is little different.

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Despite fragile outlook, most of commodities prices soared on support at lower level buying and domestic as well as overseas demand.

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Cautious trading is advisable here, especially in spices as they have already witnessed significant upside in last few trading sessions.

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Stay Tuned聽for More updates

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please聽click here

Indian Stock Market Reaction To Indian Budget :)

Indian stock markets, reacted positively to the budget, with a benchmark index breaking free to close 237 points higher than its previous weekly close. 馃檪

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) moved up 237.92 points or 1.47 percent to end Friday at 16,429.55 points, 237 points above its previous weekly close at 16,191.63 points.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) too posted gains to end the week at 4,922.3 points, up 77.4 points or 1.57 percent.

Broader market indices, however, ended the week in the red with the BSE midcap index closing 0.54 percent down and the BSE smallcap index 1.67 percent lower.

“Though it is not possible to keep everyone happy, the finance minister has done a commendable job. This was evident from the way markets reacted to the announcements,” said Jagannadham Thunuguntla, the equity head for brokerage firm SMC Capitals.

“The budget did help in breaking from the side-ways movement, but it is not going to help much going forward. A lot of the budget news has been factored in and one should not expect a major rally,” he added.

The top gainers during the week included Hindalco (up 7.7 percent), Maruti Suzuki (up 6.8 percent), L&T (up 6.2 percent), Hero Honda (up 5.5 percent) and ICICI Bank (up 5 percent).

Among top losers were ITC (down 6.5 percent), Reliance Communications (down 2.8 percent), Tata Power (down 2.2 percent), Hindustan Unilever (down 2.2 percent) and Reliance Industries (down 0.6 percent).

Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $313.56 million.

Benchmark indices in the US ended slightly lower this week with Dow Jones industrial average dipping 0.8 percent, the Standard and Poor’s 500 Index 500 down 0.4 percent and the Nasdaq composite falling 0.3 percent.

Points Discussed in Budget :)

  • Excise duty on silver rose to 10%
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  • Surcharge on domestic cos reduced to 7.5% from 10%..
  • Excise duty on oil rose to 10%.
  • Fiscal deficit will be at 5.5% in 10-11, at 4.8% in 11-12 and 4.1% in 12-13
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  • Revised income tax slabs 馃檪
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  • Net market borrowing for 2010-11 at Rs 3, 45,010..
  • Extended 1% interest subsidy scheme for affordable housing.
  • Rs 5400 cr of funds allocated for urban development..
  • Defense allocation rose to Rs 147344 cr.
  • Rs 48000 cr allocated for Bharat Nirman.
  • Farmer loans extended for 6 months to June 30th 2011.
  • Allocated Rs1.73 lakh cr for infrastructure..
  • Agriculture credit flow targets at Rs. 375000cr.
  • FDI worth $20.9 bn in April to Dec 2009.
  • Proposed Rs 16500 cr for PSU banks.
  • Challenge for a 9% growth, need to review stimulus.
  • Stay Tuned聽for More updates 馃檪

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please聽click here

    BUDGET PREVIEW 2011 – Final Part :)

    Continuing The Final Part Of The Budget Preview 馃檪

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    We believe that this year Finance Minister will take a gradual move towards fiscal consolidation by聽increase in Excise duty. Excise duty forms around 40% of Indirect Tax collections. Excise duty collections were聽down by 13% in April to December period to close to Rs. 70,000 crore comprising around 66% of Budgeted聽Estimates of Rs. 1,06,477 crore. The factors that contribute to our belief are; 馃榾

    路Though the growth in corporate sales is not astonishing but profitability has improved to due to various聽cost control efforts which is quite evident by the corporate tax collection that have shown a growth of聽44% in December 2009. Cumulatively Net direct tax collections increased by 8.5 per cent during April-聽December 2009.

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    路India being a consumption story has shown healthy growth in sales of consumer durables. For instance Automobile industry’s sales聽went up by 32 per cent in December over the same month in 2009. It is believed that a gradual hike in duty will get absorbed聽without affecting medium term prospects of the industry.

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    路Partial rollback would also help the finance ministry effect a calibrated integration of excise duty with the services tax by the end聽of the next financial year, when the proposal for a Goods and Services Tax is likely to be implemented.

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    路Finance Minister had indicated that he would like the fiscal deficit for 2010-11 to be around 5.5 per cent of GDP. The proposal to聽raise excise duty by two hundred basis points is being endorsed also to help the finance ministry raise more revenue and stick to聽the projected fiscal deficit target.

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    Disinvestment would be the key focal point in the Budget. We believe that the Finance Minister would place high targets from the PSU sale proceeds. The factors that contribute to our belief are:

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    路In order to bring Fiscal deficit under control that would subsequently ease upward pressure on interest rates.

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    路This will help Investment in social sector projects which promote education, health care and employment & will also help in聽Capital investment.

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    On the Corporate Tax front, we believe that the Finance Minster is unlikely to lower tax to 25% from the current 30% as per Industry demands. The rationale behind our belief is:

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    路The direct tax code that proposes corporate tax to be 25% will be implemented in fiscal 2011 鈥 2012 & Industry have to wait till its聽implementation as it will replace the existing Income Tax act.

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    路Already, government is trying to make up more tax revenue & is unlikely to take step in this direction as it may come as an聽obstacle in order to control fiscal deficit.

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    On deregulation of Petroleum sector, we believe that in order to cut down on subsidies government could provide the road map for partial deregulation of the petroleum sector. The road map may provide OMC’s to review the prices of petrol and diesel on a聽regular basis however, LPG and kerosene could continue to be administered by the government. Factors that complement to our belief:

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    路In view of the commitment of the UPA regime to flagship social security programmes聽that require huge allocations, Mr. Mukherjee has told Mr. Deora that it would not be聽possible to provide huge subsidies to the OMCs in future.

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    On the External Economy side, we expect that the Finance Minister may continue to聽provide certain concessions like interest subsidy and extension of other export oriented聽schemes. The rationale to our belief:

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    路In the recent two months i.e. November & December, merchandise exports registered a聽positive growth of 18.2% & 9.3% respectively. But in the period of April to December聽2009, the exports were still negative to the tune of 20% as compared to the聽corresponding period.

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    路The world economic recovery especially in US & Europe is still questionable & the regions constitute approximately 15% & 21%聽respectively of our merchandise exports, thus directly affecting the trade.

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    路Sectors such as engineering goods, jute, carpets, handicrafts and leather goods are continue to be in bad shape, others such as聽gems & jewelry drugs, plastics and petroleum products are showing improvement.

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    路Concluding, the main point is that it may not be a good time to take back the stimulus so soon that may derail the recovery.

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    Note : For More Latest Industry, Stock Market and Economy News and Updates, please聽click here

    How To Get Started in Online Investing? Final Part

    Hello Friends here we come up with an extension of our previous blog 鈥How To Get Started in Online Investing?鈥 Part 1.

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    How To Get Started in Online Investing?

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    In previous blog, we have touched upon the questions, any beginner investors do have in their mind while going for investing.

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    At the same time we had also tried to look in previous blog that what is Online Trading, resources needed first of all to invest online, few steps to start investing online and how SMC ONLINE helps investors in reaping the benefits of online trading.

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    In this Blog, we would try to discuss about what are the further steps an investors need to take once the initial registrations are done with.

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    Once the registration formalities are done with, you would be required to load your online investing trading account with funds.

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    Once Funds would be deposited you would need to look out for the stocks on which you would like to invest prima facie.

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    One thing you should bear in mind that before investing, you should do the in-depth research about the company鈥檚 profile, performances and services.

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    In this respect investing firms like SMC ONLINE comes to your rescue usually by helping you with their excellent research support, stocks recommendations and quality statistics.

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    These things are really very important while you invest in buying the shares of any company.

    As a wise investor you should keep your eyes open, and don鈥檛 blindly trust anyone.

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    Another very important thing is RISK FACTOR.

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    You鈥檒l have to take the risk in terms of investing your money in the stock market.

    Stock market is a bit similar to gambling.

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    But there is a big difference between the risk and calculated risk.

    For a beginner, you should only go for calculated risk.

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    Don鈥檛 put your entire money in terms of buying the shares of a new company, even if the future potential of that company seems very high.

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    Start slowly, understand the market, earn some decent amount of money first of all and then go for big trading.

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    Once you have gotten started, you should start by learning a little bit about chart reading.

    If you can read the charts you will have a good idea what is going on.

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    And as I said earlier, I would conclude this topic by saying that any beginner investor should look for a broker firm that gives good value for money with their commission fees.

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    Stay Tuned for more and more on this 馃檪

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    However For More latest Industry,Stock Market and Economy News Updates, Click Here