Archive for the ‘Company’ Category

Moneywise…Be Wise ;)

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If you find yourself asking the question –

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Why should I Save ?

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Why should I Invest ?

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Where do I Invest ?

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Who would Guide me to take informed decision on my Investments ?

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…then look no further !

Why SMC?

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SMC Group, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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SMC Group, having rich experience of more then two decades in financial markets, is one of the largest & most reputed investment solutions company that provides a wide range of services to its client base of more than 5, 50,000 clients with presence in more then 1500 cities.

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SMC Online, an unit of SMC Group, is one stop financial investment portal for investor’s all financial needs.

Investors can trade online in Equities, FNO, Currency Futures, Commodities, apply online for IPOs, and invest online in Mutual Funds.

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SMC is :

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a) 4th Largest broking house of India in terms of trading terminals (Source: Dun and Bradsheet, 2008)

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b) 5th largest distributor of Initial Public Offering (IPOs) in retail (Source: Prime Data Ranking)

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c) Awarded ‘Fastest Growing Retail Distribution Network in Financial Services’ (Source: Business Sphere, 2008)

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d) Recipient of ‘Major Volume Driver Award’ from BSE for last three years consecutively.

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e) Nominated among the top three in the CNBC Optimix Financial Services Award 2008 under National Level Retail Category.

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f) One of the largest Proprietary Arbitrage Desk doing risk free arbitrage in equities & commodities.

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g) Commanding turnover of more then 3% in equity market, 4% in commodity market and 10% in DGCX.

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h) Transparent and professional management.

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j) Relentless focus on investor care.

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k) World class in-house research facilities providing research support to investors.

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l) All financial products and services under one roof.

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🙂

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Next Blog we would try to read more about the other SMC’s investment products and services.

Stay Tuned for more on this 🙂

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To know more about the SMC Products and Services, click here.

ECBs and FCCBs Dropped 6% in Dec 2009 !

external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) have dropped 6% in December 2009

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Total approvals received by Indian companies to raise capital by way of external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) have dropped 6% in December 2009 to $1.56 billion as against $1.66 billion in December 2008.

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This is as per the data released by the Reserve Bank of India (RBI).

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Total approvals received by Indian companies to raise capital by ECBs and FCCBs stood at $2.35 billion in November 2009.

There were about 68 deals in December 2009, out of which three deals were by way of FCCBs.

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Daimler India Commercial Vehicles Pvt Ltd raised $402 million by way of ECBs for new projects for a maturity period of eight years and 11 months.

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“The ECB market is definitely looking bullish for 2010, however the robustness will not be the way it was in 2007.

Indian banks are also not lending to the corporates here.

Hence, there will be appetite for foreign funds. However, there is a challenge on the forex fluctuation risk as well,” noted Jagannadham Thunuguntla, equity head with SMC Capital.

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According to market analysts, more Indian companies are going to take the ECB route to raise funds, with the interest rates heading northwards in India.

Currently there is also more demand for short-term funds.

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🙂

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Lets Know About Economic Indicators :)

Hello Friends here we come up with our another write up on “SMC Gyan Series”.

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Lets Know About Economic Indicators

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Topic is “Economic Indicators”.

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Economic indicators are important as they provide an accurate account of nation‘s economy at various points of time.

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There are various types of economic indicators that deal with different periods of time and there are others that deal with separate administrative divisions like states for example.

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They are important in context of analyzing nation’s economy.

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In this Blog, we would know what are major economic indicators ?

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Major Economic Indicators :

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1. Industrial Production:

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Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

2. Gross Domestic Product (GDP):

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Indicates the pace at which a country’s economy is growing or shrinking.

3. Purchasing Managers Index (PMI):

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This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

4. Producer Price Index (PPI):

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Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

5. Consumer Price Index (CPI):

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Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

6. Durable Goods:

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Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

7. Employment Cost Index (ECI):

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ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

8.Retail Sales:

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It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

9. Housing Starts :

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Measures the number of residential units on which construction is begun each month.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.

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It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.

🙂

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

Morning News Capsules – 29th Jan 2010

Hello Friends, here, we bring you the latest updates from the Indian market and Industry.

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Latest updates from the Indian market and Industry

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NEWS CAPSULES

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India’s food price index rose 17.40 percent in the 12 months to Jan. 16, rising for the first time after falling for three consecutive weeks, while the fuel index was up 5.70 percent.

Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, signed a joint venture (JV) deal with Madhya Pradesh Power Generation Company Ltd (MPPGCL) for setting up a 1,600-Mw supercritical thermal power plant in Khandwa district.

• State-run Hindustan Petroleum Corp plans to invest Rs 25,000 crore to set up a refinery with an annual capacity of 15 million tonnes a year on the west coast.

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The new refinery may be located anywhere between Mumbai and Goa on the western coast and is being mulled to make up for the space constraint the Mumbai refinery faces.

HCL Technologies said it has received a contract worth around Rs 231 crore from UK-based defence equipment maker Meggitt for providing engineering services.

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Meggitt signs $50 million (around Rs 231 crore) global engineering transformation services agreement with the company’s engineering and R&D services (HCL ERS) division.

Tata Steel said its net profit on a standalone basis for the quarter ended December 31 more than doubled to Rs 1,190 crore against Rs 466 crore a year ago.

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The company’s profit grew on the back of higher demand for steel from automakers and builders.

Sales for the company grew by 33 per cent to Rs 6,307 crore in the period.

Jindal Steel & Power (JSPL) said its consolidated net profit declined by 3.20 per cent to Rs 874.35 crore for the third quarter ended December 31, compared to the same period corresponding fiscal.

Cipla has posted a 29 per cent increase in net profit at Rs 289 crore for the quarter ended December 31, 2009.

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The company had registered a profit of Rs 223 crore in the corresponding quarter of the previous financial year.

Bharat Petroleum Corporation (BPCL) today reported a fall of 52.6 per cent in net profit at Rs 379.09 crore for the third quarter of 2009-10.

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It had a net profit of Rs 799.84 crore in the year-ago period.

Cairn India today reported a 23 per cent rise in net profit to Rs 291 crore in the third quarter.

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The company had a net profit of Rs 290.96 crore in October-December compared with Rs 236.42 crore in the corresponding period previous fiscal.

• An increase in total expenditure, coupled with a heavy deferred tax burden, pulled down the consolidated net profit of Tata Tea Ltd by 77 per cent to Rs 92.23 crore in the quarter ended December 31, 2009.

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The company had clocked a profit of Rs 396.12 crore in the corresponding period in the previous financial year.

🙂

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

India Inc Set to Raise Rs.50k Crores Through IPOs in 2010: SMC Capital

India Inc Set to Raise Rs.50k Crores Through IPOs in 2010:SMC Capital

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Domestic companies seems set to get on with the huge fund raising exercise this year with plans to raise over Rs 50,000 crore via public offers, driven by the sharp recovery in the stock market.

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Almost 50 companies have already filed the draft prospectus with the market regulator, the Securities and Exchange Board of India (SEBI).

This depicts at the healthy prospect of the strong IPO market after the encouraging revival of IPO market in 2009.

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Indian companies had raised about Rs 20,000 crore through IPOs in 2009.

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Market Experts feel that fund raising can go up to Rs 50,000 crore this year since Government has already planned to sell shares in a host of public sector companies by way of IPOs and follow-on public offers (FPOs).

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Five companies aiming to raise over Rs 300 crore have already received the regulator’s clearance for the IPO, if draft prospectus filed with the SEBI is anything to go by.

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“The IPO pipeline looks strong in 2010.

Also the way the government is pushing ahead with the disinvestment plan, fund raising can go up to Rs 50,000 crore by the end of the year,” SMC Capitals Equity Head Jagannadham Thunuguntla said.

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As part of its disinvestment plans the government intends to raise over Rs 20,000 crore by way of FPOs of NMDC, SAIL, NTPC, and REC.

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Some of the prominent private companies which have their IPOs lined up, beside this, include Jindal Power, BPTP, Reliance Infratel, Emaar MGF etc;

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“Of the total IPOs that are in the pipeline, as many as 16 are from real estate sector. However, their success is a bit doubtful as the appetite for realty IPOs are currently less,” Thunuguntla added.

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Primary market fund raising in 2008 saw 30 IPOs mopping up Rs 17,000 crore, but shares of many these companies gave the investors modest-to-good returns.

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🙂

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

EQUITY MARKET OVERVIEW JANUARY 2010

EQUITY MARKET OVERVIEW JANUARY 2010

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The year 2009 was an unconventional year with surprises galore.

The sharp recovery in the benchmark Sensex is evident of the same.

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The year came with some shocks and some surprises, be it Satyam opening the Pandora’s Box, government coming to the rescue through fiscal stimulus or gold touching the new highs.


With appreciation of more than 75%, 2009 calendar year emerged as the best year bringing back hope and strengthening the faith and confidence of investors.

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As we welcome the New Year, let’s have a glance at how was the sunset of 2009 with the happenings in the month of December.


The month started with not much action as the indices were little changed as every rise was seen as an opportunity to book profits as fear of rising inflation barred investors from building large positions.

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The India’s industrial output jumped 11.7% in November 2009 from a year earlier, helped by stimulus measures and robust domestic demand.


The momentum in the country’s industrial output is likely to sustain in the coming months.


The facility for Indian companies to buy back their Foreign Currency Convertible Bonds (FCCBs) under the automatic route and approval route would be discontinued from January 2010 due to the improvement in the equity market.

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The central bank said it would allow non-bank financial companies which are focused on financing infrastructure projects to borrow from overseas markets under the approval route.


During the middle of the month, profit taking pulled the key benchmark indices lower.

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The worst monsoon since 1972 and flood in some parts of the country have pushed up food prices nearly to 17.28% annually in beginning of January, while the headline inflation accelerated to 7.31% in December.


The food supplies need to be boosted to stem the price rise as the current acceleration in inflation rate is not only due to loose monetary stance.


The government towards this, has cut the open sale price of wheat, while ministers have pledged to import food items that are in short supply to boost local supplies and stem inflation.

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Dollar also showed strength and sparked fears of unwinding of dollar carry trade.

The Christmas week saw a ‘Santa Claus’ rally that took the market to 19 months’ closing high in a truncated trading week.

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Further, the latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal.

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The corporate advance tax payments for the quarter were up 44% to Rs.48300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter.


The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.

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Amidst all this, we had the Finance Minister‘s statement that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term.


Towards this the government can even alter the proposed draft for the direct tax code to sustain the high economic growth.

🙂


Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Morning News Capsules

Hello Friends, here, we bring you the latest updates from the Indian market and Industry.

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SMC Morning News Capsules

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NEWS CAPSULES

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• Backed by government stimulus measures and a low base effect,  growth in industrial output touched a two-year high in November 2009.

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The index of industrial production (IIP) grew 11.7 per cent, primarily due to growth in manufacturing (12.68 per cent in November as against 2.7 per cent last year),
fuelling a debate on withdrawal of fiscal and monetary stimulus measures.

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•  Maruti Suzuki, India’s largest manufacturer of passenger cars, launched Eeco, a multipurpose vehicle (MPV) in Ahmedabad.

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With Maruti Omni being largely used by the cargo segment, and the Versa failing to create a buzz in the market, the company needed to focus on the passenger side.

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Introduced in three variants at a price range of Rs 2.58-2.89 lakh, Eeco aims at fulfilling this gap.

Currently the company sells 550 Omni each month.

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•  Telecom major, Bharti Airtel, has announced that it has agreed to acquire 70% stake in Bangladesh-based, Warid Telecom.

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Bharti plans to make $300 million fresh investment in the company, thus taking the overall investment to $1 billion.

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The new funding will be for capacity expansion, coverage and innovative products.

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• FMCG major Dabur said it has tied up with a Belgium firm for technical collaboration to reduce carbon emissions in its plants and has invested Rs 5 crore for the purpose.

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The company said it is rolling out a host of initiatives at its various manufacturing facilities spread across India and Nepal to reduce carbon emissions and become more energy efficient.

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• Central electricity distribution firm PowerGrid would sign an agreement with Bangladesh later next month for setting up a transmission link with the neighboring country.

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Punj Lloyd has bagged orders worth Rs 947 crore from Ind-Barath Energy.

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The company informed that it has won an order for partial balance of plant and civil work on a two 350 MW thermal power project by Ind-Barath Energy, Orissa.

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• New Delhi Television (NDTV) has informed BSE that NDTV Worldwide, a NDTV Group company has entered into an agreement with Beximco Group, Bangladesh.

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The company would be providing consultancy to set tip and assist in the business management and operations of a 24-hour news and current affairs channel proposed to be launched in Bangladesh by Beximco Group.

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Infosys Technologies, India’s second-largest software services exporter, has reported a 3.6 per cent year-on-year (Y-o-Y) decline in net profit to Rs 1,582 crore for the third quarter ended December 31, 2009.

Total income, too, saw a decline of close to 1 per cent to Rs 5,741 crore.

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• Two – wheeler giant Bajaj Auto reported a smashing 189.24 per cent increase in its net profit at Rs 475.14 crore for the third quarter ended December 31, 2009.

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The company had a net profit of Rs 164.27 crore in the corresponding quarter a year ago.

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•  IT firm Mastek reported a 24.8 per cent decline in its net profit at Rs 23.54 crore for the quarter ended December 31, 2009.

It had a net profit of Rs 31.33 crore in the same period previous fiscal.

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🙂

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Additional Directional Movement (ADX) Final Part

Hello Friends here we come up with an extension of our previous blog “Additional Directional Movement (ADX)” Part 1.

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Additional Directional Movement (ADX) Final Part

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In this blog we would read about the features of ADX and the current scenario of the ADX in the market.

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ADX On PRACTICE

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The great feature of ADX is the ability to see buying and selling pressure at the same time.

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Values above 40 indicate very strong trending while values below 20 indicate non-trending or ranging market conditions.

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The indicator does not grade the trend as bullish or bearish, but merely assesses the strength of the current trend.

When ADX begins to strengthen from below 20 and moves above 20, it is a sign that the trading range is ending and a trend is developing.

The current scenario of ADX falling from the levels of 32 & now continuing at 25, tells that the momentum of price is toward a weaker section with a sideways movement.

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It shows that the sellers are stronger than the buyers,this is seen in a downtrend.

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The lesser volumes of trade & the bearish fundamentals also confirm that the overall sentiments are not supportive to the prices.

The factors are as follows:

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· Fresh arrivals are coming to the spot market with harvesting in Idukki.

· Commencement of fresh arrivals with higher moisture content is likely to keep check on the price.

· Indian production is also expected to be higher by 10% to 55,000 tonnes.

· Indian parity in the international market quoting at $3,200-3,225 a tonne (c&f).

· Spot prices have plunged by 9% within a span of 4 weeks, quoting near the levels of 14K.

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The investors are being cautious to enter the trade, which is hence keeping the price in a range between Rs. 13800-14800.

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However, the current tight stock levels in pipeline, & demand from the overseas and domestic market is adding support to prices.

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The DMI lines are good reference for price volatility.

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In a nutshell, values of the ADX can be used to confirm the strength of an upward/down trend & also give the investor the confidence to enter into the trade.

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🙂

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Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

Economic Indicators

Hello Friends here we come up with our another write up on “SMC Gyan Series”.

Topic is “Economic Indicators”.

In this Blog, we would know what are major economic indicators ?

.

Economic Indicators

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Major Economic Indicators :

.

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Industrial Production:


Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

.

Gross Domestic Product (GDP):

Indicates the pace at which a country’s economy is growing or shrinking.

.

Purchasing Managers Index (PMI):

This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

.

Producer Price Index (PPI):


Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

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Consumer Price Index (CPI):


Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

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Durable Goods:


Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

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Employment Cost Index (ECI):


ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

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Retail Sales:


It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

.

Housing Starts:


Measures the number of residential units on which construction is begun each month.

.

🙂

.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.

It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.

.

🙂

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