Posts Tagged ‘Commerce’

Additional Directional Movement (ADX) Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Topic is Additional Directional Movement (ADX) Part 1.

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Additional Directional Movement (ADX)

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We would touch upon aspects like what is ADX, what does it mean for Investors and what are the basics of ADX.

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As futures markets are volatile in nature & remain in over bought/-sold condition for a period of time, there is a need to confirm a move with an additional confirmation signal.

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It is important to predict the trend of the commodities futures & the analyzing the strength with applying technical tools.

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Reading directional signals from price alone can be difficult, & it is here where this indicator “Additional Directional Movement” provides an early signal to guide investor in right way.

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This indicator was created in 1978 by J. Welles Wilder, who also created the popular Relative Strength Index.

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THE BASICS

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ADX differentiates between strong and weak trends, allowing trader to enter only the strongest trends.

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The positive & increasing values on the Y-axis of the indicator measures how strongly price moves upward; the negative or decreasing figures measure how strongly price moves downward.

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· When the +ADX is dominant and rising, price direction is up.

· When the -ADX is dominant and decreasing, price direction is down.

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In other words, the -ADX rises when price falls, and falls when price rises.

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Next Blog we would read about what are the features of ADX and the current scenario of the ADX in the market.

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Stay Tuned for more on this.

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Cabinet is Expected to Allow Trading of Energy Units Saved

On the lines of sale of carbon credits by 9 power-intensive sectors, under the clean development mechanism, the Cabinet is expected to discuss a proposal in order to allow trading of energy units saved.

However, saving of an energy unit is to achieve the targeted production by consuming energy lesser than the prescribed level while the saved units can be sold to those who consume more energy than the norm.

Meanwhile, the proposal by the Power Ministry will require amendments to the Energy Conservation Act of 2001 whereas if the amendment goes through, the companies in power, steel, cement, fertilizer and five other sectors will be able to trade energy units saved.

Further, it is said that this would be a tad different from sales of carbon credits under the CDM, wherein a certificate of efficiency is issued to companies on the basis of overall energy conservation.

On the other hand, the proposal suggests reduction in the threshold limit of minimum load for buildings/offices to 100-kw from the existing 500-kw to bring in more commerce buildings and offices under the purview of the Energy Conservation Act.

SEBI Proposes New Recommendations on “Audit & Accounting Standards”:)

Sebi-Guidelines-audit

An expert panel of Securities and Exchange Board of India has proposed disclosure of audited balance sheet on a half-yearly basis by listed companies.

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At present, a listed company discloses audited accounts once a year at the annual general meeting.

This is among a slew of recommendations made by the Sebi committee on disclosure and accounting standards (Scoda).

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“The accounting irregularities at Satyam Computer Services reiterate the need for having greater internal checks and controls in an organisation,” the Sebi committee said in a discussion paper put out on Monday inviting public comments till September 25.

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Sebi will take a final decision on the new disclosure norms proposed by the committee after getting public comments.

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Pinning the responsibility of ensuring the independence of the external auditor and its partners on the audit committee of the company, Scoda has also proposed that the partner of the audit firm of a listed firm be rotated every five years to avoid management-auditor connivance.

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Citing scope for improvements in accounting norms, following the Satyam Computer scam, Sebi had asked Scoda to look into the possibility of carrying out internal checks and balances in firms by external auditors.

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Sebi panel proposals are expected to bring transparency in the corporate governance.

It is expected to lift the corporate governance standards in the country.

The need to upgrade standards was felt since the Satyam scam hit the market.

The guideline to rotate auditors after every five years is welcomed decision.

The decision to ask listed companies to report audited results twice a year may also lift investors’ confidence in the markets” said Jagannadham Thunuguntla, head of research at SMC Capital.

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Another issue, which Scoda felt may best remain unchanged is prescribing professional qualifications or financial literacy for chief executive officers and chief financial officers of companies.

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The committee suggested that the responsibility of selecting CFOs with adequate qualification be given to the audit committees of companies.

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The Scoda was of the view that the appointment of CFO should be approved by the audit committee, which while doing so shall be required to assess the qualifications, experience and background,” it said.

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Further, in order to prepare India Inc to adopt International Financial Reporting Standards (IFRS) that are expected to take effect from financial year 2011, Sebi had asked the committee to look into the possibility of allowing companies to voluntarily implement the practice.

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The committee has also proposed a uniform timeline for submission of financial results by listed entities.

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It has put forward that listed entities shall be required to submit their quarterly and year-to-date audited and standalone financial results or quarterly and year-to-date unaudited standalone results accompanied by limited review report of the auditor within 45 days from the end of the quarter.

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This is applicable to all quarters except the last one.

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Indian Corporates Pitched For a Cut in Interest Rates :)

Softer Interest Rate Regime

Stating that it was essential to maintain the growth momentum, India Inc described 6.8% rise in July industrial output as “evidence of recovery and pitched for a cut in interest rate.

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However, although performance in July has been lower than the previous month, vigorous increase in mining and manufacturing has kept up the level of industrial growth at a reasonable level of 6.8%.

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Additionally, it is said that the industrial economy is passing through a very important stage and FICCI has as a result advocated the need for a softer interest rate regime to assist the overall growth process and promote investments.

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“Although performance in July has been somewhat lower than the previous month…nevertheless robust growth in mining and manufacturing have kept up the level of industrial growth at a reasonable level of 6.8 per cent,” Ficci Secretary General Amit Mitra said in a statement.

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On the other hand, the RBI had cut reverse repo and repo rate by 25 basis points each in April whereas in June, the factory production was revised to 8.2% against 7.8% anticipated provisionally.

Moreover, Assocham stated that in future, the force of stimulus packages would also add on to the revival and India could move on to a close to 6.5% of GDP in the present financial year.

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Note : For More latest Industry,Market and Economy Updates Click Here

India’s FDI Inflows Surge in July :)

FDI-Inflow-India-july

The government has revealed that despite a global financial crisis, the flow of foreign direct investment (FDI) to India during the month of July 2009 has been registered at $3.52 billion, impressive 56.5% higher than the $2.25 billion registered last year.

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However, the inflows in July have been against $2.58 billion during the month of June 2009 and $2.10 billion received during the month of May 2009.

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Moreover, it is said that this raise is an optimistic one if the present fiscal situation of India and world is taken into consideration.

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In addition, it is said that a non-profit company will be encouraging FDI into India and this will act in association with the central and state governments as well as the Federation of Indian Chambers of Commerce and Industry.

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On the other hand, the distinctive feature is the partnership between a private sector organization, the Government of India and state governments is unlike anywhere else in the world.

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However, in order to attract more foreign investments, Indian government on Thursday announced formation of a not-for-profit company ‘Invest India’.

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India Inc created 3,00,000 jobs in US: Study

India Inc created 3,00,000 jobs in US: Study

India Inc created 3,00,000 jobs in US: Study

When the Indian outsourcing industry is being blamed for taking away American jobs, a study has found that corporate India has created employment for 3,00,000 people in the US between 2004 and 2007.

An India Brand Equity Foundation study released in Washington on Wednesday by Commerce and Industry Minister Anand Sharma mentioned USD 105 billion contribution by the Indian industry to the US economy during 2004-07.

“This revealed a story of commitment to optimise and to invest in the future of the relationship,” Sharma said.

The USD 50-billion Indian outsourcing industry has come in for a major attack in the US, bolstered by President Barack Obama’s calls to the US companies to move from Bangalore to Buffalo.

Concerned over the backlash in the US, the Indian industry has been trying to lobby with influential Americans and opinion leaders about the benefits that the American can derive from developing economies.