Indian Mutual Fund Investors can rejoice!!

There is GOOD news for the Indian Mutual Fund investors. Sebi decided yesterday that there will be no ENTRY LOAD for any of the mutual fund schemes AND the distributor commission is to be paid by customers themselves and it wont be deducted by the fund anymore. What needs to be done now is to make sure that this message reaches the general public. Here is the snippet taken out of the news report on CNBC

The board considered the question of the existing manner of payment to the mutual fund advisors by investors and decided that there will be no entry load for any schemes. The investor will decide the commission that he is to pay to the distributor directly. It will not be deducted by the fund and then paid to the distributor. If the investor is making an application for Rs 100 that means the entire Rs 100 will get invested. There will be no deduction from that because there is no entry load. The board also decided that if the distributor is selling different schemes then he must disclose to the investor as to what commission he is getting for different schemes. This will avoid the conflict of interest and will allow investors to understand why a particular scheme is being recommended to them.

India Stocks, Stock Market and Business News Round up - 15 Apr 2008

FIIs three-times more bullish than promoters
Sify.com Yesterday at 8:16 PM

It is the 'heavy selling' by FIIs being blamed squarely for meltdown at Dalal Street, but if their market activity patterns are to be believed, overseas investors seem to be over three times more confident than India Inc itself regarding the market's future growth.


Banks may hike lending rates if RBI hikes CRR
Sify.comYesterday at 8:13 PM

Top Bankers today said the lending rates may go up by upto 0.5 per cent after RBI's credit policy on April 29, which may hike CRR by upto 0.5 per cent to contain inflation.

US financial crisis not to derail India growth story: Soros
Sify.comYesterday at 7:24 PM

Showering praise on Prime Minister Manmohan Singh-led reform process and Ambani brothers for their contributions to Indian economy, legendary investor George Soros has said that the US financial crisis would not have much impact on the country's growth story.

Stainless steel supply sufficient: ISSDA
Sify.comYesterday at 6:42 PM

Amid concerns that the government may curb exports to contain rising inflation, stainless steel makers today said there is no dearth of the commodity in India and as such they should not be treated at par with carbon steel industry which is facing flak for raising prices.

IOC losing Rs 320 crore per day
rediff.comYesterday at 8:48 PM

Indian Oil Corp, the nation's largest oil firm, today said it is losing Rs 320 crore (Rs 3.20 billion) a day on fuel sales and may see future projects getting impacted if the current situations continues in 2009. "We are losing about Rs 320 crore a day on sale of petrol, diesel, domestic LPG and PDS kerosene," IOC Chairman Sarthak Behuria told reporters on the sidelines of 5th Asia Gas Partnership Summit in New Delhi.

Interest rates may rise after April 29
rediff.comYesterday at 8:48 PM

Bankers have said that lending rates could go up to 0.5 per cent after the Reserve Bank's annual credit policy, which is widely expected to take stringent monetary measures to contain price rise. Many expect the central bank to effect a hike in cash reserve ratio (CRR), the rate of amount all commercial banks need to keep with the Reserve Bank, in its annual credit policy on April 29. Many banks, including SBI, had revised their lending rates downwards early this year.


rk
Singapore Rentals and Property Classifieds

India Stock Market News : Tata's overseas acquisition bandwagon just continues to roll!

"Tata makes hostile offer to acquire Brazilian ore miner AVG" is the headline of a news report that I just finished reading. Just can't believe that they have not stopped with Corus, where the hell are they going to get the money from! Here is the complete news report

New Delhi: After a spectacular takeover of Corus, Tata Steel has made a hostile offer to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX.

The Steel Business Briefing (SBB) quoted a MMX President Eike Batista as saying that "the domestic steel giant has made the offer." Eike, however, did not reveal the value offered by Tata, but said a deal could be made if Tata guarantees it will build a carmaker on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro,'' it quoted the daily as saying. If this happened MMX could sell as much as 50 per cent stake in AVG to the domestic steel giant.

However, when contacted a Tata Steel spokesman could not confirm the same to PTI.

AVG was purchased by MMX last year for $224 million. Its current capacity is around 2.3 million tonnes per year, but MMX has already announced plans to integrate this asset into its recently acquired Minerminal mineral company and expand the combined out put to 6.1 million tonnes this year and upto 10 m.t. by 2010, it added.

RK

Everyday India Stock Market and Business Round up - Apr 11 2008

ArcelorMittal wins EU approval for JV
Sify.comToday at 6:23 AM
ArcelorMittal, the world's largest steel maker, won approval from the European Union (EU) on Thursday to form a flat carbon steel joint venture (JV) with Swedish company BE Sverige, Xinhua reported.

March gold imports drop 50% yr/yr
Sify.comYesterday at 8:32 PM
India's gold imports in March halved from a year ago to 27 tonnes, extending a sharp downward trend as high prices kept buyers away but recovering from a heavier fall in February, a top industry official said.

Food prices make inflation control difficult: PM
Sify.comYesterday at 8:18 PM
A steep rise in food prices will make inflation control more difficult, Prime Minister Manmohan Singh said on Thursday, as he urged the global community to act together to ease a supply-demand mismatch.

Bicycle industry may hike rates by 5%
Sify.comYesterday at 6:25 PM
The bicycle industry is thinking of increasing the prices of bicycles by atleast 5 per cent as the production cost of a bicycle has shot up following the imposition of a surcharge of Rs 5,000 per ton on hot rolled steel by the primary steel manufacturers.

BSL Board to consider dividend
Sify.comYesterday at 5:57 PM
BSL Ltd has informed the BSE that a board meeting will be held on April 30 for consideration and approval of audited financial results for the quarter and year ended March 31, 2008 and to consider recommendation of dividend for the year.

Madras Aluminium board to consider dividend
Sify.comYesterday at 5:43 PM
Madras Aluminium Co Ltd has informed BSE that a board meeting will be held on April 29 to consider the audited quarterly financial results and dividend for the period ended March 31, 2008.


Tata Motors shifts gears on overseas expansion plan
Sify.comYesterday at 5:31 PM
Tata Motors gained on Thursday on reports that the company plans to expand its business in Africa by setting up assembly facilities, mainly for commercial vehicles.

NTPC net up 4%, to double coal imports
Sify.comYesterday at 5:23 PM
NTPC Ltd, India's largest power producer, on Thursday reported a 4 per cent rise in full-year provisional net profit and said it would double coal imports in 2008/09 as it expands capacity.

FIIs make a case ahead of SEBI meet
The Economic TimesToday at 9:49 AM
FIIs have requested SEBI that margin money and collateral deposited with the exchanges be made fungible across cash and derivative segment

War on rising prices may leave exporters high, dry
The Economic TimesToday at 7:49 AM
The political focus on taming inflation has robbed this year’s update of Foreign Trade Policy and exporters looking for sops are in for disappointment.

Foreign companies may get to bid for 3G spectrum
The Economic TimesToday at 5:49 AM
Government wants a pie of the spectrum revenue to meet debt relief and other social sector obligations.

RIL to sell up to 10% in KG basin
The Economic TimesToday at 3:48 AM
The company is learnt to have mandated Goldman Sachs to scout for a strategic partner in lieu of technology for further exploration and production

Tata Motors' rating may be downgraded
The Economic TimesYesterday at 10:48 PM
Moody's said Tata Motors' liquidity position is weak since the company has a high reliance on domestic bank debt.

SEZ to attract Rs 15,000 cr investments
The Financial ExpressYesterday at 2:54 PM
TIDCO and AMR Constructions signed a MoU to implement the Nanguneri multiproduct SEZ.

Indian Hotels postpones rights issue to Sept 09
The Financial ExpressYesterday at 2:54 PM
In a release to the Bombay Stock Exchange, the company said that it has extended the closing date for the issue by nine days and has pushed the exercise of warrants to next year.

Alternative use matter of concern for rising food price
The Financial ExpressYesterday at 2:54 PM
Prime Minister, Manmohan Singh, expressed deep concern over the rising commodity and food prices both at the global level and in the country. He said that the situation was becoming complex due to alternative uses being developed like for production of bio-fuel.


Rice stocks fall as AP tightens supply
The Financial ExpressYesterday at 2:54 PM
Rice stocks have fallen to alarming levels in Kerala after Andhra Pradesh government earmarked the lion's share of its 19 million tonne bumper paddy harvest for its own 'Rs 2 per kilo' rice scheme.

ICICI Bank buys back $50 m bonds
The Financial ExpressYesterday at 2:54 PM
ICICI Bank Ltd, the nation's second biggest bank, has bought back $50 million of bonds out of the $2 billion issued by its Bahrain branch in October, a statement from the bank said.

Global real estate investment to take 30%-hit, says report
The Financial ExpressYesterday at 2:54 PM
After a record year in 2007 for direct real estate investment globally, with volumes up 8% year-on-year to $759 billion, the investment outlook for 2008 expected to be down over 30% on 2007.

Ranbaxys twin presence in Orchid under sharp focus
The Financial ExpressYesterday at 2:54 PM
Even as the Ranbaxy group made it clear that it wasn't interested in hostile takeovers, the group's presence in the Orchid Pharmaceuticals case on two separate occasions is now the topic of intense discussion in market circles.

SBI, SBS merger likely to take a backseat
The Financial ExpressYesterday at 2:54 PM
The SBI is likely to put its merger with associate bank SBS on the backburner. The contentious issue would not be brought up at SBI's board meeting to be held on May 2, sources said.

RK
http://yourmitra.wordpress.com

3 Apr 2008 - Round up of important Indian Markets and Business News and Views

Bad news from Wall Street this time. The Fed chief had indicated that US may have slipped into recession already. This means that Asian stocks should take a hit today but oddly I see all the bourses in green. Indian Markets have not opened at the time of this post but I think it will follow its Asian Bros.

Wall Street stocks ended lower on Wednesday after Federal Reserve Chairman Ben Bernanke suggested the world's largest economy may have begun to slide into recession in the first half of this year.

Testifying before Congress, America's top central banker told lawmakers that the US economy would show scant expansion "and could even contract slightly" during the first six months of 2008.

The Dow Jones Industrial Average finished down 45.44 points (0.36 percent) at 12,608.92 after moving in and out of positive territory. The blue chip stock barometer had rallied by almost 400 points just a day earlier.

Indian Auto Majors foreign buying spree continues!

A consortium of Mahindra & Mahindra (M&M) and ICICI Venture Funds on Tuesday signed a definitive agreement to acquire 100% stake in Italian gear maker Metalcastello. Company officials refused to divulge details of the deal. The acquisition is part of M&M’s larger strategy to consolidate its gear business in the European market. ET first reported the deal on November 6, 2007.

More news of Indian Government fighting inflation hard! I bet we would not have seen such swift actions if not for the impending general elections. Onions led to BJP's downfall once, can this be the catalyst for Congress's demise in the next election? Lets wait and see!!

With rising prices spoiling the economic growth party, the government is ready to crack the whip beginning with a ban on cement exports.

Simultaneously, efforts are on to increase imports from Pakistan, which is willing to supply up to 11 million tonnes.

On Tuesday, in the midst of the government's multi-pronged crackdown on inflation, the cement producers had announced a rise in prices.

The export ban will augment domestic availability while the cheap imports from Pakistan will soften prices.

Some news headlines from major papers and websites

1. Anil Ambani group's financial services arm Reliance Capital has got a new Chief Executive Officer with Sam Ghosh taking over charge
2. Bajaj Auto Ltd, India's second-biggest motorcycle maker, on Wednesday said vehicle sales in March fell 10 per cent to 176,101 units from 196,592 units a year earlier.
3. Suzlon Energy Ltd has informed the BSE that Suzlon Wind Energy Corporation, the subsidiary of Suzlon Energy Ltd has signed a repeat order with Horizon Wind for 200 MW of wind turbine capacity.
4. The National Commodities and Derivatives Exchange Limited (NCDEX) will commence trading in future contracts of Certified Emission Reduction (CERs), the first of its kind in the developing world.
5. Rising oil prices has made a dint in profits of Fast Moving Consumer Goods sector. Godrej Consumer Products Ltd, a major player in FMCG market has projected that slowdown in this sector will continue and is also mulling over revising the prices of its product range shortly.
6. The National Multi-commodity exchange on Tuesday introduced futures contract in Coffee Arabica and Coffee Robusta, besides other commodities, after receiving approval of the forward markets commission.
7. The government has decided to lift the ban on exports of castor oil, coconut oil and edible oils of minor forest produce with effect from April 1, 2008

RK
Singapore Apartment Rentals

Every day Indian Stock Market News Round up

There is lots of talk about Inflation nowadays. I think it has more focus now due to the coming general elections.Snippet of two reports highlight the urgency and important of this issue

1. With Reserve Bank of India (RBI) governor Yaga Venugopal Reddy describing the spurt in inflation to 6.68% as unacceptably high and economists predicting 8% soon, bankers and money Markets now expect swift, multi-pronged action by the central bank via a mix of key short-term rate hikes and a cash reserve ratio (CRR) increase.

Various players feel RBI may not even wait for its annual monetary and credit policy announcement slated for April 29. We expect RBI to announce some urgent measures very soon, maybe this week itself. RBI may go in for both a hike in CRR and a hike in the reverse repo rate to suck out liquidity, said a senior banker. A sharp increase to deal a body blow to inflation should not come as a surprise.

2. The extent of the government's concern about inflation was evident at the meeting of the Cabinet Committee on Prices, which started at 8 pm on Monday and went on past 12 midnight.

On the government's to-do list of short-term measures to deal with foodgrain shortage, is an eye on arhatiyas (agents) who act as fronts of corporate houses and hoard grain till prices rise.

3. As part of its inflation management strategy, the Government is pitching for a 10-20 per cent reduction in steel prices before the month end.

Senior officials of the Ministry of Commerce and Ministry of Steel on Tuesday met representatives of the Indian mining industry to explore ways of controlling spiralling steel prices.

And, there is good news from US Stock Markets. Surprisingly the huge write-downs from UBS and Deutsche Bank had positive impact on the US and European Markets.

Wall Street stocks rocketed on Tuesday as hopes mounted that stressed banks are starting to put housing-related investment losses behind them and come clean about outstanding mortgage loan write-offs.

Stocks gained after the US investment bank Lehman Brothers said it had raised fresh capital totalling four billion dollars and as Swiss banking giant UBS divulged fresh losses, but raised hopes it was getting a grip on its stricken balance sheet.

Subsequently, the US currency also rose which means happy times for Indian exporters. The reason given for the rise is

The US currency got a lift from a Wall Street stock rally spurred by renewed confidence in the banking sector that the financial crisis may be bottoming out, and a survey indicating manufacturing activity in the world's largest economy had unexpectedly strengthened.

Dealers said news of a successful cash raising exercise at US investment giant Lehman Brothers, which had been hit by rumours of problems in the wake of the US sub-prime, or high-risk, home loan crisis, cheered investors.

Mean while, Oil and Gold prices are declining

Gold fell in Asia underpinned by increased demand from jewellery makers after the precious metal declined in the past three days. Gold for immediate delivery gained $4.12, or 0.5% to $921 an ounce before trading at 917.06.

Bullion declined 3.9% in the past three trading days. Silver fell 0.6% to $17.1250 an ounce.

News that can cut down the costs of Telecom operators

In a move that would bring significant reduction in costs for rolling out telecom network, the Government has allowed operators to share all parts of the infrastructure except spectrum. This is expected to enable operators to save nearly 30 per cent of their costs which in turn will result in cheaper tariffs for consumers.

News that predict bad times for Indian Banks esp the Private Sector ones

1. Lower credit offtake, lower income from foreign exchange businesses, and capital market operations could hit bank profitability in the coming quarters, reckon analysts.

Indian banks, especially foreign banks and new private sector banks, have been aggressive in selling exotic foreign exchange derivatives.

For banks like HDFC Bank and ICICI Bank, income from foreign exchange revenues was estimated to be around 12% to 17% of the profit before tax (PBT).

2. It is not just the manufacturing sector which is worried these days. India’s banks, which have seen record loan growth during the last few years, now have a major challenge on hand this fiscal as an imminent slowdown threatens to hit loan growth while the prospects of another hike in interest rates (the after effect of monetary tightening to combat inflation) could well dent their bottomlines.

The stock market has been quick to read the signs with bank stocks being pummelled. Since January, the stock prices of banks have been on a southward course.

RK
Singapore Property

Indian Stock Market News Round up - More bad news from Global Banks!!

The Indian Market did not do well yesterday and is volatile today. And to add to the misery global banks have again come out with fresh package of bad news that is sure to affect the market sentiment world wide.

Major head line news item is UBS writing down whopping 19 billion dollars!! Here is the snippet from one of the websites

UBS AG wrote down an additional $19 billion on U.S. real estate and related assets on Tuesday, causing a net loss of 12 billion Swiss francs ($12.03 billion) in the first quarter, and said it would seek 15 billion francs through a rights issue of shares.

The writedowns come at the upper end of expectations and on top of $18.4 billion in damage caused by the subprime crisis last year, which had already forced the bank to ask shareholder approval for 19 billion francs in capital-raising measures in February

Another news item that caught my eye today and which sounded so nonsensical and funny was this -

Day traders would abstain from trading on Tuesday to protest the Budget proposal on Securities Transaction Tax (STT), which would make their activity in the stock market unattractive.

But this one is definitely worth reading and is a positive move as far as I am concerned.

On the heels of rising inflation and slackening industrial output comes the latest change in accounting norms, requiring Indian companies to disclose losses arising out of derivative contracts.

The market is clueless as to how many companies have signed such deals. But that has only added to the already long list of worries; nobody knows which company may throw up a nasty surprise in its fourth-quarter numbers. Still, the dominant concern at the moment is inflation, which has now climbed to a 13-month high.

RK
Singapore Property

Gujarat Mineral Development Corporation - GMDC bonus issue

I had bought GMDC shares whey they were at their peak last year. But I have seen the value move down over the months and now its about 40% lower than the buy price. Just when I was looking to dump the stocks I came across the news that GMDC board has declared 1:1 bonus on Jan 30 2008.
I think they have not set the record date yet. But its surprising that the stock price had infact dropped irrespective of this news and strong results. I see that the stock is showing some strength recently and I am sure it goes back to its peak sooner than later.

PS: Indian Markets are heading toward a strong close as I write this.

RK

Singapore Apartment Rentals

Indian Stock Market News, Analysts Picks, Views, Tips and Recommendations - 25 March 2008

Wall Street ended high last night and the Asian bourses are following it as usual. So we can expect a better day on NSE and BSE.

-------------------------------------------------------------------------------------
Daily round-up of the Indian Stock Market News, Analysts Picks, Views, Tips and Recommendations:
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Wall St rallies on revamped Bear offer, home sales
http://economictimes.indiatimes.com/Market_News/Wall_St_rallies_on_revamped_Bear_offer/articleshow/2896735.cms

US stocks jumped on Monday after a raised buyout offer for Bear Stearns Cos Inc suggested that financial stocks may have reached bottom, especially in light of fresh data that fueled hopes for a turnaround in housing. Stocks rang up big gains for a second straight session after JPMorgan Chase & Co lifted its offer for Bear Stearns to $10 a share from $2, helping alleviate concerns that other investment banking shares could tumble.

Sensex ends up 294pts; HDFC surges 8%
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34872

The Sensex opened with a positive gap of 99 points at 15,094. The index touched a high of 15,349, and a low of 15,056. Fresh buying towards the close helped the index end on a firm note at 15,289 - up 294 points.

The BSE Mid-cap index shed 2.7% (158 points) at 5,806, and the Small-cap index dropped 3.8% (272 points) to 6,950. The BSE Bankex rallied 3.3% (249 points) to 7,744. The NSE Nifty gained 36 points to finish at 4,610. The market breadth was extremely negative - out of 2,717 stocks traded, 2,149 declined, 535 advanced and 33 were unchanged today.

IIP nos key to mkts trading forward: Religare Sec
http://moneycontrol.com/india/news/market-outlook/iip-nos-key-to-mkts-trading-forward-religare-sec/07/40/331258

Global cues to drive mkts in near-term: Pranav Sec
http://moneycontrol.com/india/news/market-outlook/global-cues-to-drive-mktsnear-term-pranav-sec/07/40/331248

Mkts look weak and lack confidence: Rada Advisors
http://moneycontrol.com/india/news/market-outlook/mkts-look-weaklack-confidence-rada-advisors/07/40/331241

Mkts could see more pain: Dawnay Day AV Fin Srvcs
http://moneycontrol.com/india/news/market-outlook/mkts-could-see-more-pain-dawnay-day-av-fin-srvcs/07/40/331196

Realty collapses; Ansal Infra, Parsvnath worst hit
http://moneycontrol.com/india/news/market-edge/realty-collapses-ansal-infra-parsvnath-worst-hit/07/40/331214

Recently listed realty IPOs slip below issue price
http://moneycontrol.com/india/news/ipo-new-listings/recently-listed-realty-ipos-slip-below-issue-price/07/40/331220

Promoters see buyback opportunity in troubled times
http://economictimes.indiatimes.com/Promoters_see_buyback_opportunity/articleshow/2896758.cms

Gujarat Fluorochemicals on Monday said it will buy back up to 10%

Great Offshore and Prithvi Information have called board meetings to consider buyback proposals

Goldiam International, Patni Computers and Madras Cements have already announced their buyback plans

The Reliance Energy board approved a buyback plan involving Rs 800 crore (in the first phase) early this month

Margin financing fall may hit broking cos’ Q4 show
http://economictimes.indiatimes.com/Margin_financing_fall_may_hit_broking_cos_Q4_show/articleshow/2896767.cms

Broking fees of most firms have already plummeted in tandem with the shrinking turnover on the bourses in the past couple of months. With income from margin financing too drying up, the fourth quarter may take the shine off what otherwise has been a stellar year for most stock broking firms.

Gold, silver skid as Street sparkles

Gold’s downward journey extended for another day as stockists continued to offload stocks in the absence of any triggers. On Monday, the price of yellow metal fell briefly below Rs 12k-level in Mumbai before closing at Rs 12,005 per 10 gm. The metal had touched a historic high on March 17 when the prices reached at Rs 13,495 per 10 gm.

FIIs net buy Rs 376cr, DIIs net sell Rs 253cr

Foreign institutional investors (FIIs) were net buyers of Rs 376.13 crore (provisional) today, according to data released by BSE. While FIIs made gross purchases of Rs 2,884.39 crore, gross sales totalled Rs 2,508.26 crore.

RK
Singapore Rentals, Real Estate, Social Network

Indian Stock Market News, Views, Tips and Recommendations - 24 March 2008

Regular daily round up of the Indian Stock Market News, Analysts Views, Tips and Recommendations:-

Stocks to pick: ABB, Neyveli Lignite, Unitech, Opto Circuits, Ceat
http://economictimes.indiatimes.com/articleshow/2892778.cms

ABB
Research: Merrill Lynch
Rating: Buy
CMP: Rs 1,103

Neyveli Lignite
Research: Indiabulls Financials
Rating: Hold
CMP: Rs 110

Unitech
Research: CLSA
Rating: Outperform
CMP: Rs 267

Opto Circuits India
Research: Networth Stock Broking
Rating: Buy
CMP: Rs 326

Ceat
Research: Edelweiss
Rating: Buy
CMP: Rs 97

Stock Picks
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34849

Airtel
Current price: Rs 777.75
Target price: Rs 800

Cipla
Current price: Rs 206
Target price: Rs 225

Praj Industries
Current price: Rs 111
Target price: Rs 101

Reliance Petroleum
Current price: Rs 151
Target price: Rs 140

Tata Motors
Current price: Rs 650.50
Target price: Rs 675

Don't drive away blue-chips stocks
The stock market has shed an unthinkable one-third of its value from its peak in January. At such a time, retail investors need expert advice more than ever before.

However, experts always try to bring the real economy into the picture, as they believe the market will catch up with the former sooner or later. However, there’s another school of thought that believes the stock market has a mind of its own and doesn’t follow the trend in the real economy. By real economy, we mean corporate earnings.

This confounds retail investors who can’t figure out whom to follow. However, we at ETIG believe that long-term investment in equities is not a catch-22 situation. It can be as simple as sticking to bluechip stocks, i.e. companies which are market leaders and have a long track record of consistent revenue and profit growth.
Go to http://economictimes.indiatimes.com/articleshow/2892800.cms to read the whole article

Indicators pointing towards market stability

The stock market appears to have neared its bottom and further downside looks limited. Though the situation remains volatile, most of the current indicators are pointing towards stability. The long-term outlook appears clouded, but with a positive undertone. India Inc’s Q4 results will give a clear picture as to what lies ahead...

Go to http://economictimes.indiatimes.com/articleshow/2892802.cms to read the whole article

Brokers to give daily margin info to clients

Stock broking firms will have to notify clients about their (the client’s) daily margin positions from April 1, according to a Securities and Exchange Board of India (Sebi) directive. The move follows a spate of complaints from investors that brokers have been liquidating their positions citing insufficient margins, even though their margin accounts had enough funds

Brokers wil need to disclose this daily

Client code and name, trade day (T)
Total margin deposit up to day T-1 (including break-up in cash, fixed deposit, bank guarantee and securities)
Margin utilised up to the end of day T-1
Margin deposit on day T (including the break-up information)
Margin adjustments for day T
Margin status (balance with the member/due from the client) at the end of day.

More at http://economictimes.indiatimes.com/Brokers_to_give_daily_margin_info_to_clients/articleshow/2892889.cms

Year-end blues: Banks rush to sell bad loans
http://economictimes.indiatimes.com/News_by_Industry/Year-end_blues_Banks_rush_to_sell_bad_loans/articleshow/2892708.cms

With the fiscal year coming to an end, several banks are looking to sell their bad loan portfolio to strengthen their balance sheets. Market sources said while some banks are entering into one-to-one deals, others are considering an auction of stressed assets. Banks planning an auction include State Bank of India (SBI), Allahabad Bank (AllBank) and UCO Bank.

While SBI and AllBank are keen to sell Rs 200 crore of stressed assets, UCO Bank wants to dispose loans with face value of Rs 260 crore. All three auctions are set to take place before the end of this year. Kolkata-based Industrial Investment Bank of India (IIBI), on the other hand, plans to sell off its assets, both performing (Rs 870 crore) and non-performing (Rs 200 crore), in April.

Rising risk aversion to keep markets on edge
http://economictimes.indiatimes.com/Market_News/Risk_aversion_to_keep_mkt_on_edge/articleshow/2892704.cms

The better-than-estimated quarterly earnings of some top US investment banks last week may have slightly eased fears and given a fillip to the US markets on Friday. Yet investor sentiment remains nervous. Analysts maintain that overseas investors are likely to book profits on every rebound here on, due to rise in ‘risk-aversion’ to shares of emerging markets, including India.

Traders are unlikely to take lightly the news of Monsoon Capital, a $1.2-billion hedge fund, faring badly, as a result of the meltdown in Indian equities in the past couple of months. While Monsoon’s exposure to Indian equities may not be as significant as compared to other major funds, there are concerns that the news may trigger more redemptions from hedge funds with higher exposure to India. One of Monsoon’s funds has dropped roughly 45% since January

Nifty may see more volatile trading sessions
http://economictimes.indiatimes.com/Market_News/Nifty_may_see_more_volatile_trading/articleshow/2892743.cms

The Nifty is making higher bottom and lower top formation so far. Any breach of its previous low at 4,448 will extend the cyclical bear market further. Any breach of 4,002 will change the cyclical bear market into structural bear market. Since March 3, the Nifty is facing strong resistance with 5- & 10-day simple moving averages (SMA). Any decisive closing above these levels will be the first indication of a short-term uptrend.


Week Ahead: Waiting for global triggers
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34849

Outlook: By breaking support at 4,600, the market signalled that it could drop quite a bit more. The 4,500 support held and upside resistance was visible at 4,750. Next week will see a lot of daily volatility and the index may swing between 4,500-4,800. Breakouts will depend on global triggers.

Rationale: As this is being written on March 20, there are two extra sessions in the US where the impact of the latest Fed cut may cause a revival. Plus the local futures and options (F&O) settlement will guarantee daily volatility – expect at least one Nifty 200-point session.

Counter-view: The derivatives position suggests that there will be a modicum of short-covering and also a sharp increase in volumes as traders try to pack in carryover within three sessions.

Bulls & bears: Every sector has lost ground in the past week and in some senses, every sector is oversold. Financial stocks, metals and real-estate counters were among the biggest losers while pharmaceuticals, select FMCGs and some information technology (IT) stocks held more defensive ground.

Sensex at 19K by year-end: Brokers

http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34850 A majority of brokerages expect the bellwether Sensex to hover at 19,000 by the end of this calendar year, according to a poll conducted by Business Standard among top local brokerage houses.

The figure is significantly lower than last December when most brokerages had expected a 15 to 20 per cent return from 20,000 levels at the end of 2007. The Sensex has dropped over 25 per cent from its January peak of 20,800.

Of a sample of 20 brokerages, 60 per cent feel some pain is left in real estate and half feel capital goods may underperform over the next couple of quarters.

Tech View: Relief rally in the offing
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34838

The Nifty almost revisited its January lows of 4,450 before bouncing back a wee bit. The index slumped to a low of 4,469, recovered to a high of 4,718 and eventually ended with a loss of 172 points at 4,574.

The index broke its yearly S3 (support 3) level of 4,500 on an intra-day basis twice in the week, but somehow managed to close above it. Going by the current trend, the chances of the index testing lower levels of 4,100 and 3,500 remain high.

The charts are indicating an oversold zone. Hence, a significant pullback cannot be ruled out. However, the rally would just be a relief rally and the markets may drop again.

The significant indicator is the Stochastic Slow, which is in a highly oversold zone. The per cent D value is 9 and the per cent K is at 7.4. There will be a buy confirmation once the per cent K crosses the per cent D level.

RK

12 March 2008 : Indian Stock Markets to see an excellent day today

Expect Indian markets to do very well today on account on global cues. All Asian stock exchanges are trading in the positive and by huge margins. Its good news for all of us. Its all due to the US markets doing pretty well last week. Lets see some of the US market headlines that could be the trigger for the positive sentiment

US dollar comes off lows on Fed action
Channel NewsAsia
NEW YORK : The US dollar hit an all-time low against the euro on Tuesday but later drew support from joint action by the US Federal Reserve and other central banks to restore credit flows in the global financial system.

Oil eases from record high as Fed move boosts dollar
Reuters
LONDON (Reuters) - Oil slipped below record highs of nearly $110 a barrel on Tuesday as the U.S. dollar rallied after the Federal Reserve and other central banks injected liquidity into strained financial markets.

Dollar soars as Fed announces liquidity measures
Reuters:
NEW YORK (Reuters) - The dollar rose sharply on Tuesday after the Federal Reserve announced new measures to inject liquidity into the financial system, easing concern about a deepening credit crisis and a U.S. recession.


Fed again takes steps to boost market liquidity
Reuters
WASHINGTON (Reuters) - The U.S. Federal Reserve said on Tuesday that with pressure mounting again in financial markets, it was expanding a securities lending program and will accept a broader range of securities as collateral.

RK
http://yourmitra.wordpress.com

12 March 2008 : Indian Stock Market and Business News roundup

MoneyControl
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Relief rally may continue for few more days: Religare Sec
Nifty may re-test Jan lows of 4448: CLSA Tech
Rally to be more broad-based this time: HSBC AMC
Next 3-6 months to be painful: Rada Adv
Brokerage biz to see earnings revision
Investors seem cautious on mkts: Karvy

Sify
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'No terror outfits in stock market'
Market regulator SEBI has ruled out participation of terror outfits in the Indian stock markets, Parliament was informed on Tuesday.

India looking at more relief sops for exporters
The government is looking at more steps to help exporters hit by a rise in rupee value, the trade minister said on Tuesday as he admitted the annual export target of $160 billion could not be met this year.

Rupee gains as local equities erase losses

The Financial Express
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Steelmakers may keep capacity idle
Indian steelmakers facing higher input prices may be forced to keep some capacity idle as their working capital is being squeezed, according to Bipin Kumar Vohra, chairman and managing director of SPS Steels group.

Tata Motors to raise $1 bn in long-term funds
Tata Motors is revving up for the last lap in its bid to buy Ford Motor Co's luxury brands, Land Rover and Jaguar, which could cost it around $2.7-3 billion. On Tuesday, the company said it plans to raise additional long-term funds of up to Rs 4,000 crore, equivalent to $1 billion.

Yellow metal price may remain high: World Gold Council
Gold prices will remain high in the short term globally mainly due to continued demand from India and China, the weakening dollar and falling global mining supplies, according to James Burton, chief executive officer, World Gold Council.

Rupee rises a second day; bonds advance
The rupee rose for a second day as a rebound in the nation's stocks spurred speculation overseas investors will return to buy equities. The currency extended gains as the benchmark stock index gained 1.3%, the most since February 25, ending two days of losses.

Indian crude oil basket touches $100 a barrel
The price of Indian basket of crude oil touched a record high of $100.17 a barrel during the Monday trade in the oil market. This has resulted in putting further pressure on fuel retailers, which are loosing Rs 360 crore per day on auto and cooking fuel sale.

Finmin finds no foul play in Reliance IPO trading
Stock prices of Reliance group companies rose by up to 37% in about a month before the opening of Reliance Power IPO, but subsequent examination of trading of these shares on exchanges did not reveal any foul play, the government said on Tuesday.

SBI, SBS merger may be postponed till elections
The State Bank of India and State Bank of Saurashtra merger is unlikely to take off at least till the general elections to be held in 2009. The reason is that the State Bank of Saurashtra Act needs to be repealed to carry on with the merger of SBS with the parent bank.

Business Standard
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Worse is yet to come in forex derivative losses
The $50 million hit L&T took due to hedging losses in a subsidiary may just be the tip of the iceberg. Losses by Indian companies as a result of their exposure to the foreign exchange derivatives market may hog the headlines for next few quarters since many of the currency swaps are likely to mature after March, said foreign exchange experts.

LIC Housing to roll out Rs 350 cr fund
In order to cash in on the real estate boom, Life Insurance Corporation Housing Finance (LICHF) is set to launch a new venture capital fund for realty projects. The size of the fund, which is awaiting regulator approval, is likely to be Rs 300-350 crore, Director and Chief Executive S K Mitter said.


RK
http://yourmitra.wordpress.com