India’s Stocks Rose to Highest since May 2008

India’s stocks rose to their highest in 19 months

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India’s stocks rose to their highest in 19 months after foreign direct investment into the nation jumped 61 percent

and the government relaxed a rule to make some state-run companies globally competitive.

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Tata Motors Ltd., soared to the highest in more than two years after foreign direct investment into the nation rose to $1.74 billion in November.

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Oil & Natural Gas Corp., the largest state-owned oil explorer, climbed the most in three weeks as the government increased the cap on the amount some state-run companies can spend to acquire assets and set up joint ventures.

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“Money always chases opportunity and now the opportunity is in India,” said

Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi.

“There are not many options left for the global investor.”

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The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 129.50, or 0.8 percent, to 17,360.61, the highest since May 16, 2008.

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The gauge has risen 3.8 percent this week, the most in more than a month.

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The Sensex climbed 80 percent this year, set for its best annual performance in 18 years as economic expansion accelerated and the election victory of Prime Minister Manmohan Singh ruling coalition in May raised optimism he will push through reform measures to boost growth.

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The S&P CNX Nifty Index on the National Stock Exchange rose 0.7 percent to 5,178.40.

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The BSE 200 Index increased 0.7 percent to 2,169.65.

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🙂

Indian Stocks Rose After Govt Approved Disinvestment Plans

Indian Stocks Rose After Govt Approved Disinvestment Plans

Indian stocks rose, extending the benchmark index’s longest string of gains in five weeks, after the government approved a plan to sell more shares in state- controlled companies, helping it raise funds to boost spending.

MMTC Ltd., India’s biggest state-owned trading company, surged 20 percent, the most in 10 months.

Rico Auto Industries Ltd., an auto component maker that supplies General Motors Co. and Ford Motor Co., climbed 5.1 percent after workers ended a 45-day strike.

🙂

The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 94.38, or 0.6 percent, to 16,158.28.
The measure this week gained 1.7 percent, snapping two weeks of losses.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.6 percent to 4,796.15.
The BSE 200 Index added 1.1 percent to 2,011.08.

🙂

“The disinvestment move will help moderate India’s fiscal deficit,” said Jagannadham Thunuguntla, head of equities at SMC Capitals Ltd. in New Delhi.

“Also, it may help in higher GDP growth led by increased government spending.”

🙂

MMTC soared 20 percent to 36,146.85 rupees, the most since Dec. 17.
State Trading Corp., the No. 2, leapt 15 percent to 353.6 rupees.

NMDC Ltd., India’s largest iron-ore producer, climbed 10 percent to 338 rupees. 

Hindustan Copper Ltd., India’s biggest copper miner, 99.59 percent state-owned, gained 10 percent to 256.35 rupees.

🙂

Budget Deficit

The government owns 99.33 percent in MMTC and 91.02 percent in State Trading, while it holds 98.38 percent in NMDC, according to filings to the Bombay Stock Exchange.

The government will use the money raised from the sale of shares of state companies for social spending.

India’s fiscal deficit reached 6 percent of gross domestic product in the year ended March 31, surpassing the 2.5 percent government target.

The key Sensitive stock index has more than doubled from this year’s lowest level, in March.

Govt’s stand to sell state assets and accept more overseas funds into insurance and banking, has strengthened, after Prime Minister Manmohan Singh resounding re-election victory in May.

🙂

Stock Markets Reversed Early Losses, Sensex & Metal Stocks..Up :)

India’s benchmark stock index rose the most in a week, reversing earlier losses.

India’s benchmark stock index rose the most in a week, reversing earlier losses.

Sterlite Industries (India) Ltd. and Hindalco Industries Ltd. led commodity producers higher after metals prices jumped.

Sterlite, the nation’s largest copper producer jumped 3.1 percent after the price of the metal gained and the stock’s rating was lifted at Nomura Holdings Inc.

Hindalco Industries leapt 6.2 percent after aluminum soared.

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The market reversed early losses helped by metal stocks.

Also, gains in Asian and European markets boosted sentiment here.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 92.13, or 0.6 percent, the most since Sept. 30, to 16,958.54.

🙂

The gauge had earlier declined as much as 1.5 percent.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to 5,027.40.

The BSE 200 Index advanced 0.4 percent to 2,072.31.

🙂

European and Asian stocks gained as higher commodities lifted metal producers, while financial shares advanced after Bank of America Merrill Lynch Global Research recommended European banks.

Europe’s Dow Jones Stoxx 600 Index gained 1.4 percent to 239.19 at 12:26 p.m. in London, while futures on the Standard & Poor’s 500 Index rose 0.8 percent.

The MSCI Asia Pacific Index advanced for the first time in four days today, adding 1.5 percent.

Overseas funds bought a net 13.7 billion rupees ($286.7 million) of Indian stocks on Oct. 1, the Securities and Exchange Board of India said.

The funds have bought 615 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.

However, Reliance Communications Ltd., India’s second-largest mobile phone operator, led declines by telecom companies on concern lower call charges will cut earnings.

“The price war can impact the revenues of telecom companies by 15 percent to 20 percent,” said Jagannadham Thunuguntla, the head of equities at SMC Capitals Ltd. in New Delhi.

Kotak Securities removed Bharti from its list of 10 most recommended stocks following yesterday’s downgrade.

🙂

On Energy front, Oil & Natural Gas Corp., the biggest energy explorer, added 1.3 percent to 1,184.8 rupees after saying its in talks with Iran’s state-owned Petropars Ltd. to buy a stake in South Pars, the country’s largest natural gas field.

🙂

Nifty BeES ! (Nifty Benchmark Exchange Traded Scheme)

Nifty Bees

1. What is Nifty BeES?

Nifty BeES is an Open-Ended Exchange Traded Mutual Fund. It is a combination of a share and a Mutual Fund Unit. Nifty BeES tracks the S&P CNX Nifty Index.

The investment objective of Nifty BeES is to provide investment returns that, before expenses, closely correspond to the total returns of the S&P CNX Nifty Index.

Nifty BeES is listed on the Capital Market Segment of the NSE.

2. How is Nifty BeES different from Nifty Futures?

Nifty BeES & Nifty Futures both allow investors to take exposure to the Nifty Index. However, Nifty Futures are derivative products and trade in the F&O segment of NSE, while Nifty BeES is a cash product and trades in the Capital Market Segment.

Unlike futures, there is no lot size for Nifty BeES, you can buy as little as one unit.

As Nifty BeES is traded in the cash segment, you do not need to roll it over every month and can hold it as for long as you want. In terms of Taxation, with Index Futures it is not possible to take advantage of Long Term Capital Gains while with Nifty BeES you can take advantage of Long Term Capital Gains if you hold it for over a year.

3. Can one buy & sell any time during trading hours?

Yes, one can buy or sell Nifty BeES just like one buys or sells any other share. It trades on the capital market segment of NSE and is settled just like any other shares on T+2.
4. About Benchmark :

Benchmark Asset Management Company Pvt. Ltd. (BAMC) is a SEBI registered Asset Management Company launched in June 2001. BAMC is the first and only asset management company in India with a primary focus on indexing and using quantitative techniques in creating innovative products. Benchmark is run and co-promoted by professionals with a long experience in the Indian and International Financial Markets.
Benchmark Milestones

·First AMC in Asia (ex Japan) to launch ETF, and only 18th in the World

·Launched the First ETF in India – Nifty BeES

·Nifty BeES has been awarded the “Best Performing Mutual Fund of the Year in the index fund category at the CNBC-TV18-CRISIL Mutual Fund Awards in 2007 & 2008

·BAMC is the largest Index Fund Manager and the largest ETF manager in India

·BAMC was the first AMC to conceptualize the idea of a Gold ETF in the world

·BAMC has been ranked as the “Best Provider of Structured Products” in their Private Banking Poll 2006, by Euro money
Details of other ETFs:

·Nifty BeES: The First ETF in Asia (Barring Japan)

·Junior BeES: The First and only Midcap Index Fund and ETF in India.

·Bank BeES: The First and only Sector Index Fund and ETF in India.

·PSU Bank BeES: The First PSU Bank Sector Index Fund and ETF in India.

·Gold BeES: The First Gold ETF in India.

·Liquid BeES: The First and only Liquid ETF in the world

·Shariah BeES : First Shariah based ETF in India