The rise in the wholesale price index during November is mainly due to higher food prices, Finance Minister Pranab Mukherjee told reporters on Monday.
Data showed on Monday wholesale price index rose 4.78% in November from a year earlier, higher than the previous month's annual rise of 1.34%.
The food price index rose an annual 16.71% in November from a year earlier.
Monday, December 14, 2009
Rajasthan Spinning eyes FY10 topline at Rs 1,500cr
In an interview with CNBC-TV18, JC Laddha, Executive Director of Rajasthan Spinning and Weaving Mills, spoke about the company’s future plans.
Here is a verbatim transcript of an exclusive interview with JC Laddha on CNBC-TV18. Also watch the accompanying video.
Q: There was a block deal in which Rajasthan Spinning’s stake of 15 lakh shares in Maral Overseas was sold along with it we also had HEG selling its stake in Maral Overseas. These shares were purchased by Agarwal Finestate and Essay Marketing. Is it basically an inter-se group change of hands?
A: I am not much aware about it. It might be the arrangement between the promoters. I am looking after the operations and the business of the company.
Here is a verbatim transcript of an exclusive interview with JC Laddha on CNBC-TV18. Also watch the accompanying video.
Q: There was a block deal in which Rajasthan Spinning’s stake of 15 lakh shares in Maral Overseas was sold along with it we also had HEG selling its stake in Maral Overseas. These shares were purchased by Agarwal Finestate and Essay Marketing. Is it basically an inter-se group change of hands?
A: I am not much aware about it. It might be the arrangement between the promoters. I am looking after the operations and the business of the company.
Accumulate RIL on declines: Sajiv Dhawan
Accumulate Reliance Industries (RIL) on declines, says Sajiv Dhawan, JV Capital Services.
Dhawan told CNBC-TV18, "We have advised clients to hold RIL and accumulate on any significant decline. The bad news is pretty much factored into the stock; the stock has had a bit of a rough patch, it's reasonably steady at sub Rs 1,100 levels. I think investors after the bonus would look to further accumulate the stock on any significant decline.”
He further added, “Over a period of time Reliance does reward patient shareholders; its not one of the most glamorous stock from a trader's perspective nowadays but it has been in the news. Anyway if Lyondell Basell deal doesn't go through or get reworked, I am sure in the medium to longer-term Reliance will give its investors a steady decent return over the two-three year timeframe.”
Dhawan told CNBC-TV18, "We have advised clients to hold RIL and accumulate on any significant decline. The bad news is pretty much factored into the stock; the stock has had a bit of a rough patch, it's reasonably steady at sub Rs 1,100 levels. I think investors after the bonus would look to further accumulate the stock on any significant decline.”
He further added, “Over a period of time Reliance does reward patient shareholders; its not one of the most glamorous stock from a trader's perspective nowadays but it has been in the news. Anyway if Lyondell Basell deal doesn't go through or get reworked, I am sure in the medium to longer-term Reliance will give its investors a steady decent return over the two-three year timeframe.”
Stay away from real estate sector: Varun Dagga
Stay away from real estate sector, says Varun Dagga, Founder & CEO of varundagga.com.
Dagga told CNBC-TV18, “One should stay away from the real estate sector especially at these levels where the Nifty is seeing a lot of resistance on the upside. When these stocks fall something like Unitech and other stocks they tend to fall very sharply and these were the leaders of the previous bull market and they have fallen sharply from the highs. So every upside has been sold into and there is technically lot of resistance, so I would take my hands off from the real estate sector.”
Dagga told CNBC-TV18, “One should stay away from the real estate sector especially at these levels where the Nifty is seeing a lot of resistance on the upside. When these stocks fall something like Unitech and other stocks they tend to fall very sharply and these were the leaders of the previous bull market and they have fallen sharply from the highs. So every upside has been sold into and there is technically lot of resistance, so I would take my hands off from the real estate sector.”
Mphasis has target of Rs 895: Varun Dagga
Mphasis has target of Rs 895, says Varun Dagga, Founder & CEO of varundagga.com.
Dagga told CNBC-TV18, “On the long side Mphasis would be my top pick and this is the best stock in the IT sector. It has moved sideways in the past two months, so that give us opportunity to pick it up from these levels. Our long term target on this stock is Rs 1025 and for the short term we are expecting a target of Rs 895.”
He further added, “It is a good level to buy the stock. We should have a stoploss of Rs 672 in place but from here we can expect a good upside. The stock has been taking very strong support at the 50 DMA, so I think that is the level which it is at right now. This stock can take a good bounce from here and reach the levels on the upside.”
Dagga told CNBC-TV18, “On the long side Mphasis would be my top pick and this is the best stock in the IT sector. It has moved sideways in the past two months, so that give us opportunity to pick it up from these levels. Our long term target on this stock is Rs 1025 and for the short term we are expecting a target of Rs 895.”
He further added, “It is a good level to buy the stock. We should have a stoploss of Rs 672 in place but from here we can expect a good upside. The stock has been taking very strong support at the 50 DMA, so I think that is the level which it is at right now. This stock can take a good bounce from here and reach the levels on the upside.”
Volkswagen Beetle finally arrives in India
Volkswagen Beetle one of the world’s most popular and loved car has finally hit the Indian roads. The car that enjoyed an iconic status for the past four decades will be available in India for 20.45 lakh ex-showroom Delhi.
The new Beetle features a 2 litre four cylinder petrol engine making 116PS power and 172Nm of torque, mated to a 6-speed automatic tiptronic gear box and unlike its earlier ancestors which were rear wheel driven; the new beetle is a front wheel drive. The car gets an overseeing viewpoint with its 15-inch alloy wheels. The rear section, dome shaped roof, the embedded round head and tail lights are all a reminiscent of the old Beetle, but what adds a touch of modernity to the car are the windows and the sharp accentuated lines.
The new Beetle is equipped with fabric seats, a 6-CD changer, ABS, 4-airbags, ESP, engine immobilizers and a power steering. It also features body coloured exterior mirror housing, tail gate handle and heat insulated tinted glass. The Beetle is the second modern retro car to be launched in India after the Fiat 500, but unlike the 500 the Beetle is not even close being called small. At 4129mm it stretches longer than the 500 which is 3446mm long. With its bright peppy colours and blend of contemporary looks and modern design the Beetle is sure to be the star on the streets.
Volkswagen also launched the Touareg, a SUV featuring a 3-litre V6 TDI engine mated to a 6-speed DSG gear box. The Touareg is a 4x4 featuring a permanent all wheel drive producing 242PS of power and accelerates from 0-100kmph in 7.8 seconds. It also features an electric sunroof, 12-way adjustable seats, electrically folding outer rear view mirror along with a 230V power socket in the luggage compartment and leather seats. The Touareg has a 45-degree hill climbing ability, a 35 degree side slop angle and a 500mm wadding depth and comes equipped with eight air-bags. The Touareg will be available for 51.85 lakh ex-showroom Delhi. Here is the original press release:
The new Beetle features a 2 litre four cylinder petrol engine making 116PS power and 172Nm of torque, mated to a 6-speed automatic tiptronic gear box and unlike its earlier ancestors which were rear wheel driven; the new beetle is a front wheel drive. The car gets an overseeing viewpoint with its 15-inch alloy wheels. The rear section, dome shaped roof, the embedded round head and tail lights are all a reminiscent of the old Beetle, but what adds a touch of modernity to the car are the windows and the sharp accentuated lines.
The new Beetle is equipped with fabric seats, a 6-CD changer, ABS, 4-airbags, ESP, engine immobilizers and a power steering. It also features body coloured exterior mirror housing, tail gate handle and heat insulated tinted glass. The Beetle is the second modern retro car to be launched in India after the Fiat 500, but unlike the 500 the Beetle is not even close being called small. At 4129mm it stretches longer than the 500 which is 3446mm long. With its bright peppy colours and blend of contemporary looks and modern design the Beetle is sure to be the star on the streets.
Volkswagen also launched the Touareg, a SUV featuring a 3-litre V6 TDI engine mated to a 6-speed DSG gear box. The Touareg is a 4x4 featuring a permanent all wheel drive producing 242PS of power and accelerates from 0-100kmph in 7.8 seconds. It also features an electric sunroof, 12-way adjustable seats, electrically folding outer rear view mirror along with a 230V power socket in the luggage compartment and leather seats. The Touareg has a 45-degree hill climbing ability, a 35 degree side slop angle and a 500mm wadding depth and comes equipped with eight air-bags. The Touareg will be available for 51.85 lakh ex-showroom Delhi. Here is the original press release:
ACC top gainer on the Sensex
At 3:05 pm, ACC was top gainer on the Sensex. It touched an intraday high of Rs 855.90 and an intraday low of Rs 816. The share was quoting at Rs 855.90, up Rs 41.10, or 5.04%
It was trading with volumes of 311,119 shares, compared to its five-day average of 67,469 shares, an increase of 361.13%.
On Friday the share closed up 0.36% or Rs 2.95 at Rs 814.80.
It was trading with volumes of 311,119 shares, compared to its five-day average of 67,469 shares, an increase of 361.13%.
On Friday the share closed up 0.36% or Rs 2.95 at Rs 814.80.
Expect 40-50 % return in Century Textiles: Tulsian
Expect 40-50 % upside in Century Textiles and Industries, says Investment Advisor, SP Tulsian.
Tulsian told CNBC-TV18, "Century Textiles and Industries is a multi-divisional company. The biggest attraction in the company is 9 million tonne of cement capacity and we have seen that group has been aggressive in consolidating all their cement business in one company. Maybe KM Birla Group will not go ahead for consolidation of the capacity held by his grandfather in the companies like Mangalam Cement, Kesoram and Century but eventually this is going to happen.”
He further added, “All these companies put together have a capacity of close to 20 million tonne of which 9 million is held in the Century textile, so that is a very well profit making company. Apart from that they have 200,000 tonne of paper making plant in Uttaranchal. They have recently started textile plant in Jhagadia near Bharuch in Gujarat which has recently commenced. Apart from that even their Century Rayon at Kalyan has been doing quite well.”
“Overall from the core business, company can alone make a profit of about or an EPS of about close to Rs 40 go for FY11. The balance sheet of the company is also not quite leveraged. It is only sitting on a debt of close to Rs 1000 crore and the management has hinted that they will be going for about 1 million sq feet of development without any equity dilution, without any JV and they are likely to get completed in two years time.”
“The whole mill which was held by the company earlier as Century Mill will be developed mostly in the hospitality and the IT park where they will be getting an FSI of anywhere between 2.5 to 4. So they can easily have a developable area of about 5 million sq feet, which can easily get valued to the extent of Rs 7000-8000 crore. So taking all this into consideration with a market cap of less than Rs 5000 crore with an EV of Rs 6000 crore, I see huge value laying in the books of the company or atleast share at quite under price at Rs 500. So if somebody can buy this share with 12 months target can easily expect 40-50% kind of return."
Tulsian told CNBC-TV18, "Century Textiles and Industries is a multi-divisional company. The biggest attraction in the company is 9 million tonne of cement capacity and we have seen that group has been aggressive in consolidating all their cement business in one company. Maybe KM Birla Group will not go ahead for consolidation of the capacity held by his grandfather in the companies like Mangalam Cement, Kesoram and Century but eventually this is going to happen.”
He further added, “All these companies put together have a capacity of close to 20 million tonne of which 9 million is held in the Century textile, so that is a very well profit making company. Apart from that they have 200,000 tonne of paper making plant in Uttaranchal. They have recently started textile plant in Jhagadia near Bharuch in Gujarat which has recently commenced. Apart from that even their Century Rayon at Kalyan has been doing quite well.”
“Overall from the core business, company can alone make a profit of about or an EPS of about close to Rs 40 go for FY11. The balance sheet of the company is also not quite leveraged. It is only sitting on a debt of close to Rs 1000 crore and the management has hinted that they will be going for about 1 million sq feet of development without any equity dilution, without any JV and they are likely to get completed in two years time.”
“The whole mill which was held by the company earlier as Century Mill will be developed mostly in the hospitality and the IT park where they will be getting an FSI of anywhere between 2.5 to 4. So they can easily have a developable area of about 5 million sq feet, which can easily get valued to the extent of Rs 7000-8000 crore. So taking all this into consideration with a market cap of less than Rs 5000 crore with an EV of Rs 6000 crore, I see huge value laying in the books of the company or atleast share at quite under price at Rs 500. So if somebody can buy this share with 12 months target can easily expect 40-50% kind of return."
CESC wins 140 MW hydro power project in Himachal
Power utility CESC Ltd has been awarded a hydro power project by the Himachal Pradesh government, a top official said on Monday.
"We have been allocated one project in Himachal Pradesh at Lara-Sumta which is a 140 MW hydroproject," Vice Chairman Sanjiv Goenka told Reuters in an interview.
"It has been awarded to us on a competitive bidding process," Goenka said.
Power utility CESC Ltd has been awarded a hydro power project by the Himachal Pradesh government, a top official said on Monday.
"We have been allocated one project in Himachal Pradesh at Lara-Sumta which is a 140 MW hydroproject," Vice Chairman Sanjiv Goenka told Reuters in an interview.
"It has been awarded to us on a competitive bidding process," Goenka said.
"We have been allocated one project in Himachal Pradesh at Lara-Sumta which is a 140 MW hydroproject," Vice Chairman Sanjiv Goenka told Reuters in an interview.
"It has been awarded to us on a competitive bidding process," Goenka said.
Power utility CESC Ltd has been awarded a hydro power project by the Himachal Pradesh government, a top official said on Monday.
"We have been allocated one project in Himachal Pradesh at Lara-Sumta which is a 140 MW hydroproject," Vice Chairman Sanjiv Goenka told Reuters in an interview.
"It has been awarded to us on a competitive bidding process," Goenka said.
Sunday, December 13, 2009
Cotton farmers cut sales on price rise hopes
Domestic output this year is forecast to drop 3.3 percent to 29.5 million bales despite higher planting because of dry weather in some parts of the country and floods in other, raising farmers' hopes of higher prices.
"I expect prices to reach 3,500-4,000 rupees (USD75-USD86) per 100 kg. I will wait for a few weeks to sell the produce," said Vijaykumar Kumavat, who has harvested 4,000 kg of cotton in the Jalgaon district of Maharashtra, a key producer.
Raw cotton supplied to the market until Dec. 4 was 7.31 million bales, marginally higher than 7.16 million bales a year ago, data from the Cotton Corporation of India showed, but farmers say they will reduce sales.
Panjabrao Shelke, a farmer in Akola district of Maharashtra, said he had sold about half his harvest of 17,000 kg at 3,1250 rupees per 100 kg due to a shortage of storage space, but will sell the remainder when prices touch 3,500 rupees.
Most growing states, other than the western Indian state of Gujarat, the country's top producer, reported a similar trend.
"Farmers are aware of the strong demand this year. They have held their crop to take benefit of rising prices," said G Punnaiah Chowdary, president of Andhra Pradesh Cotton Association.
In the central Madhya Pradesh state, most farmers were waiting for the price to touch 3,500 rupees per 100 kg, said Nitin Bonde, a farmer from in its Chhindwara district.
Lower yield in some regions had hit cotton output, said Rakesh Rathi, president of North India Cotton Association.
"Acreage may be higher this year, but the yield has fallen in northern parts and due to this, arrivals have gone down," he said.
In Gujarat, farmers could hold stocks for only two weeks because of low storage capacity, said NM Sharma, Managing Director at Gujarat State Cooperative Cotton Federation Ltd.
Farmers in the state had sold about 2.7 million bales until last week, up three quarters from a year ago, but in Punjab and Andhra Pradesh states, sales were down by a third.
In Maharashtra, the second-biggest grower, sales were down 8 percent.
"I expect prices to reach 3,500-4,000 rupees (USD75-USD86) per 100 kg. I will wait for a few weeks to sell the produce," said Vijaykumar Kumavat, who has harvested 4,000 kg of cotton in the Jalgaon district of Maharashtra, a key producer.
Raw cotton supplied to the market until Dec. 4 was 7.31 million bales, marginally higher than 7.16 million bales a year ago, data from the Cotton Corporation of India showed, but farmers say they will reduce sales.
Panjabrao Shelke, a farmer in Akola district of Maharashtra, said he had sold about half his harvest of 17,000 kg at 3,1250 rupees per 100 kg due to a shortage of storage space, but will sell the remainder when prices touch 3,500 rupees.
Most growing states, other than the western Indian state of Gujarat, the country's top producer, reported a similar trend.
"Farmers are aware of the strong demand this year. They have held their crop to take benefit of rising prices," said G Punnaiah Chowdary, president of Andhra Pradesh Cotton Association.
In the central Madhya Pradesh state, most farmers were waiting for the price to touch 3,500 rupees per 100 kg, said Nitin Bonde, a farmer from in its Chhindwara district.
Lower yield in some regions had hit cotton output, said Rakesh Rathi, president of North India Cotton Association.
"Acreage may be higher this year, but the yield has fallen in northern parts and due to this, arrivals have gone down," he said.
In Gujarat, farmers could hold stocks for only two weeks because of low storage capacity, said NM Sharma, Managing Director at Gujarat State Cooperative Cotton Federation Ltd.
Farmers in the state had sold about 2.7 million bales until last week, up three quarters from a year ago, but in Punjab and Andhra Pradesh states, sales were down by a third.
In Maharashtra, the second-biggest grower, sales were down 8 percent.
Mahindra Satyam has support at Rs 100: Mohindar
Rahul Mohindar of viratechindia.com is of the view that Mahindra Satyam has support at Rs 100. The stock can go upto Rs 115 in medium term.
Mohindar told CNBC-TV18, “Mahindra Satyam moved up with a gap which gives it some room to correct and fill up so there could be this venerability that we head down to levels of Rs 100 but closer to Rs 100 there is good support. Bottomline I would say let us hold on to the stock give it a chance, there is a support at Rs 100 mark, keep a stop loss below it which means let say Rs 97 stop loss. A price target I would set out on the medium term would be closer to about Rs 115.”
Mohindar told CNBC-TV18, “Mahindra Satyam moved up with a gap which gives it some room to correct and fill up so there could be this venerability that we head down to levels of Rs 100 but closer to Rs 100 there is good support. Bottomline I would say let us hold on to the stock give it a chance, there is a support at Rs 100 mark, keep a stop loss below it which means let say Rs 97 stop loss. A price target I would set out on the medium term would be closer to about Rs 115.”
Remain invested in Maruti Suzuki: Tulsian
Investment Advisor, SP Tulsian is of the view that remain invested in Maruti Suzuki.
Tulsian told CNBC-TV18, “The present position of Maruti Suzuki are already having vehicles sales of 1 million plus. Infact they have reached their capacity, they are the leader in the small car segment as well as in the petrol version. But with Volkswagen coming in and buying close to about 20% stake in the parent company will enable them to launch the diesel car which has been very much required or needed for the Indian market plus they may be able to increase the models in the upper segment where they did not have much success so all those things most likely entry in the diesel segment as well as in the upper car segments will give them a growth otherwise the saturation has been coming in."
He further added, "We have been seeing monthly sales of getting packed between 85000 to 90,000 vehicles per month so I think with this collaboration or this strategic investments one can expect the monthly sales exceeding one lakh mark per month. This will definitely be a value accretion for the stock and those who are holding it are advice to remain invested."
Tulsian told CNBC-TV18, “The present position of Maruti Suzuki are already having vehicles sales of 1 million plus. Infact they have reached their capacity, they are the leader in the small car segment as well as in the petrol version. But with Volkswagen coming in and buying close to about 20% stake in the parent company will enable them to launch the diesel car which has been very much required or needed for the Indian market plus they may be able to increase the models in the upper segment where they did not have much success so all those things most likely entry in the diesel segment as well as in the upper car segments will give them a growth otherwise the saturation has been coming in."
He further added, "We have been seeing monthly sales of getting packed between 85000 to 90,000 vehicles per month so I think with this collaboration or this strategic investments one can expect the monthly sales exceeding one lakh mark per month. This will definitely be a value accretion for the stock and those who are holding it are advice to remain invested."
Buy RIL with a target of Rs 1100: Mohindar
Rahul Mohindar of viratechindia.com is of the view that one can buy Reliance Industries with a target of Rs 1100. Keep stop loss at Rs 1040.
Mohindar told CNBC-TV18, “In the last couple of days Reliance Industries is holding Rs 1050 mark as good support so even short term keep a stoploss below Rs 1050 so let us say Rs 1040 could work as a stoploss. The real strength comes in beyond Rs 1095 so if we clear a Rs 1095 we get into this uptrend but all in all medium to long term I would say the target for this stock is past Rs 1100 so you could be looking at Rs 1150-1200 levels which you could stretch your time frame but certainly even from a short term or a long term I would certainly say this still remains on a buy list.”
Mohindar told CNBC-TV18, “In the last couple of days Reliance Industries is holding Rs 1050 mark as good support so even short term keep a stoploss below Rs 1050 so let us say Rs 1040 could work as a stoploss. The real strength comes in beyond Rs 1095 so if we clear a Rs 1095 we get into this uptrend but all in all medium to long term I would say the target for this stock is past Rs 1100 so you could be looking at Rs 1150-1200 levels which you could stretch your time frame but certainly even from a short term or a long term I would certainly say this still remains on a buy list.”
Ansal Properties can see 25-30% jump: SP Tulsian
Investment Advisor, SP Tulsian is of the view that Ansal Properties can really give a breakout at any time. One can really see 25-30% jump in the share price if someone can keep a view of one month.
SP Tulsian told CNBC-TV18, “Even if I take their call or the presence in NCR and Tier III there are concerns for Tier III but I do not think there is now any concern for NCR region because we have been seeing demand picking up and if I go by the Q2 results of the company they had a topline of Rs 175 crore of bottomline of Rs 32 crore resulting in an EPS of close to Rs 280 so one can extrapolate this and expect an EPS of close to Rs 11-12 for FY10 which translates into a PE multiple of 6. I do not think the market cap of Rs 850 crore which right now of the company is really stretched and especially when we see the issues of too many IPOs coming in like Godrej Property which had a very stretch valuations. Taking all this into consideration this can really give a breakout at any time. We can really see 25-30% jump in the share price if someone can keep a view of one month."
SP Tulsian told CNBC-TV18, “Even if I take their call or the presence in NCR and Tier III there are concerns for Tier III but I do not think there is now any concern for NCR region because we have been seeing demand picking up and if I go by the Q2 results of the company they had a topline of Rs 175 crore of bottomline of Rs 32 crore resulting in an EPS of close to Rs 280 so one can extrapolate this and expect an EPS of close to Rs 11-12 for FY10 which translates into a PE multiple of 6. I do not think the market cap of Rs 850 crore which right now of the company is really stretched and especially when we see the issues of too many IPOs coming in like Godrej Property which had a very stretch valuations. Taking all this into consideration this can really give a breakout at any time. We can really see 25-30% jump in the share price if someone can keep a view of one month."
Gold, a great investment over next decade: Jim Rogers
According to Jim Rogers, Chairman of Rogers Holdings, US' spend-money-to revive-economy theory has failed. In an exclusive interview with CNBC, Rogers lambasted Federal Reserve for printing gigantic amounts of money which only contributed to bad debts.
Further, discussing various asset classes, he said, he was bullish on commodities and real assets. Gold, according to him, would certainly go to couple of thousand dollars an ounce over the next decade, maybe by 2019. "I am sure gold will be a great investment over the next decade," he said, adding that he would surely buy the metal when the prices drop. However, he feels other commodities like silver are better.
Here is a verbatim transcript of an exclusive interview with Jim Rogers on CNBC-TV18. Also watch the accompanying video.
Q: Why do you think that we are going to have a short-term rally in the dollar? What’s behind this thinking?
A: Everybody is pessimistic, I am pessimistic too and that’s why there might be a rally.
Q: Long-term you used to worry about deficit, you are still worried about the debt that this country has?
A: Gigantic spending in Washington, incompetence in Washington where they don’t know what’s going on, they are making our situation worse. I see nothing to turn the dollar around.
Q: What you mean incompetence in Washington? Where is the most incompetence? What would you like to see done differently?
A: The Federal Reserve has tripled its balance sheet full of garbage, which you and I are going to have to pay for. They have gone out and printed gigantic amounts of money, why do we want the Fed they are making the situation disastrous for all of us.
Q: I guess you don't think that Bernanke should be reconfirmed?
A: Hopefully. Of course not.
Q: What about Tim Geithner? Treasury as well has been putting out this entire stimulus and now the troubled asset relief program (TARP) programme?
A: Mr Geithner is a smart person from what I understand but he has been wrong about everything for the last 15 years. Why are we listening to him? Why are we listening to any of those guys? They are making our situation worse. They said in writing yesterday that the solution is to spend more money, that’s what got us into the problem, too much debt too much consumption and now we are going to solve it with more debt and more consumption? That’s like telling Tiger Woods, you got another girlfriend then you solve your problem.
Further, discussing various asset classes, he said, he was bullish on commodities and real assets. Gold, according to him, would certainly go to couple of thousand dollars an ounce over the next decade, maybe by 2019. "I am sure gold will be a great investment over the next decade," he said, adding that he would surely buy the metal when the prices drop. However, he feels other commodities like silver are better.
Here is a verbatim transcript of an exclusive interview with Jim Rogers on CNBC-TV18. Also watch the accompanying video.
Q: Why do you think that we are going to have a short-term rally in the dollar? What’s behind this thinking?
A: Everybody is pessimistic, I am pessimistic too and that’s why there might be a rally.
Q: Long-term you used to worry about deficit, you are still worried about the debt that this country has?
A: Gigantic spending in Washington, incompetence in Washington where they don’t know what’s going on, they are making our situation worse. I see nothing to turn the dollar around.
Q: What you mean incompetence in Washington? Where is the most incompetence? What would you like to see done differently?
A: The Federal Reserve has tripled its balance sheet full of garbage, which you and I are going to have to pay for. They have gone out and printed gigantic amounts of money, why do we want the Fed they are making the situation disastrous for all of us.
Q: I guess you don't think that Bernanke should be reconfirmed?
A: Hopefully. Of course not.
Q: What about Tim Geithner? Treasury as well has been putting out this entire stimulus and now the troubled asset relief program (TARP) programme?
A: Mr Geithner is a smart person from what I understand but he has been wrong about everything for the last 15 years. Why are we listening to him? Why are we listening to any of those guys? They are making our situation worse. They said in writing yesterday that the solution is to spend more money, that’s what got us into the problem, too much debt too much consumption and now we are going to solve it with more debt and more consumption? That’s like telling Tiger Woods, you got another girlfriend then you solve your problem.
Sell Idea Cellular: Rahul Mohindar
Rahul Mohindar of viratechindia.com is of the view that one can sell Idea Cellular with a downside target of Rs 56.
Mohindar told CNBC-TV18, “I think in terms of a resistance first of all there is a pressure point for Idea Cellular around Rs 61-63 belt, so at Rs 60 I think you are looking at another Rs 1-2 best case scenario to reach that pressure point. It is a very important resistance, I would rate this upmove more as a pull back rally and that is because it is not backed with very big volumes or something."
He further added, "It does not look like a up breakout or a medium or long term move to me so keeping that in mind and keeping the fact that we are heading to that Rs 62-63 pressure point, resistance point I would say one could sell on the stock I would expect the first target on the downside to be about Rs 56 breaking it which could be looking at Rs 47.”
Mohindar told CNBC-TV18, “I think in terms of a resistance first of all there is a pressure point for Idea Cellular around Rs 61-63 belt, so at Rs 60 I think you are looking at another Rs 1-2 best case scenario to reach that pressure point. It is a very important resistance, I would rate this upmove more as a pull back rally and that is because it is not backed with very big volumes or something."
He further added, "It does not look like a up breakout or a medium or long term move to me so keeping that in mind and keeping the fact that we are heading to that Rs 62-63 pressure point, resistance point I would say one could sell on the stock I would expect the first target on the downside to be about Rs 56 breaking it which could be looking at Rs 47.”
China is Wipro's new hot spot
It is destination China for IT major Wipro. CNBC-TV18’s Sunanda Jayaseelan reports how the dragon is fast emerging as the next investment hot spot for the company.
IT giant Wipro, which set up its first development centre in Chengdu last month also intends to use it as an offshoring hub. The plan is to use the Chinese base to service Japan and other nearby hubs and thus complementing work being done out of India.
Suresh Vaswani, Joint Chief Executive Officer, Wipro Technologies, says, “We will use this centre predominantly to service the local market but also a significant portion of it will now be to service near shore centres in China. There is a huge opportunity there we can tap and we are going to ramp up.”
Currently, Wipro has 400 employees in China and sources say it will hire more aggressively in the next three years. Industry body NASSCOM says China is growing in importance.
Som Mittal, President, NASSCOM, says, “China has some advantages—it has a huge population of engineers who are English speaking.”
China, Japan and Middle East apart from India are the next growth areas. Japan for example contributes 1.6% to Wipro’s overall revenues as of the moment which will continue to grow going ahead.
IT giant Wipro, which set up its first development centre in Chengdu last month also intends to use it as an offshoring hub. The plan is to use the Chinese base to service Japan and other nearby hubs and thus complementing work being done out of India.
Suresh Vaswani, Joint Chief Executive Officer, Wipro Technologies, says, “We will use this centre predominantly to service the local market but also a significant portion of it will now be to service near shore centres in China. There is a huge opportunity there we can tap and we are going to ramp up.”
Currently, Wipro has 400 employees in China and sources say it will hire more aggressively in the next three years. Industry body NASSCOM says China is growing in importance.
Som Mittal, President, NASSCOM, says, “China has some advantages—it has a huge population of engineers who are English speaking.”
China, Japan and Middle East apart from India are the next growth areas. Japan for example contributes 1.6% to Wipro’s overall revenues as of the moment which will continue to grow going ahead.
Woods's indefinite break sets off guessing game
Tiger Woods's decision to take an indefinite break from golf amid embarrassing revelations about his personal life has set off a high-stakes guessing game as to when the game's most popular and bankable player will return.
After being swamped by a deluge of media reports on his numerous extra-marital affairs, Woods finally addressed his infidelities on Friday, apologising to his wife and children after previously only admitting to "transgressions".
"I am deeply aware of the disappointment and hurt that my infidelity has caused to so many people, most of all my wife and children," the 33-year-old said in a statement on his website (www.tigerwoods.com).
"I want to say again to everyone that I am profoundly sorry and that I ask forgiveness. It may not be possible to repair the damage I've done, but I want to do my best to try."
The world number one golfer's withdrawal, without a hint of a time-table for his return, has raised questions about how fans and
sponsors will react, and how much the game will suffer for his absence.
Woods had already pulled out of his own charity event in California last month, citing minor injuries from the bizarre early morning car accident that began the chain of revelations that has unravelled his image of clean-cut perfection.
It had been thought the American might target the Century Club of San Diego Invitational at Torrey Pines in late January for his 2010 debut, but that now seems highly unlikely.
"He's played in our tournament 11 years in a row except for last year when he had his injury from the US Open," San Diego tournament director Rick Schloss told Reuters in a telephone interview.
"Obviously it's a difficult decision for him to take the time off from the tour but obviously these are personal decisions and we accept those and hopefully when everything gets back to normal he'll be back in San Diego."
Couting the days
Woods's impact on the PGA Tour has been well documented and his periods of absence from it have been mourned by organisers, fans and sponsors alike.
His eight-month hiatus from the tour in 2008-2009 after knee surgery following his US Open triumph at Torrey Pines last year, hammered TV ratings and crowd attendances, leaving officials counting the days before his return in February.
Interest will be intense when Woods comes back to competition, as inevitably, will be the media reception.
The American father of two showed flashes of top form this year, raising hopes he might be poised for a spectacular year and a chance to add to his 14 major titles.
Apart from Woods's usual happy hunting ground at Augusta, the US Open will be played at Pebble Beach and the British Open at St Andrews -- two of his most favourite venues.
But instead of building momentum for the majors early in the year, Woods must now face up to his personal issues, the potential loss of sponsorship deals that helped make him the world's first billionaire athlete, and the disappointment of fans who once held him up as a lofty role model.
Despite the tawdry revelations that continue to dog Woods in the media, golf officials have provided statements of support.
"We fully support Tiger's decision to step away from competitive golf to focus on his family," US PGA Tour chief Tim Finchem said in a statement.
"His priorities are where they need to be, and we will continue to respect and honor his family's request for privacy. We look forward to Tiger's return to the PGA Tour."
One of Woods's largest sponsors has already said it will stand by the golfer.
"Tiger has been part of Nike for more than a decade," the company said in a statement. "He is the best golfer in the world and one of the greatest athletes of his era. We look forward to his return to golf. He and his family have Nike's full support."
The CEO of the PGA of Australia, Max Garske, who was among the nearly 100,000 people to have welcomed Woods to Melbourne for the Australian Masters last month, also weighed in, underlying the golfer's immense global appeal.
"We fully support what a delicate situation it is for Tiger and his family where clearly they need their privacy and time to rebuild their lives," Garske said.
While more sponsors and officials are likely to offer their unqualified support, Woods's agent and friend Mark Steinberg has acknowledged that the golfer's world, economic and personal, may have changed irrevocably.
"The entirety of someone's life is more important than just a professional career," Steinberg said in a statement.
"What matters most is a young family that is trying to cope with difficult life issues in a secluded and caring way. Whenever Tiger may return to the game, should be on the family's terms alone."
Steinberg, however, is also prepared for defections on the business side.
"Of course, each sponsor has unique considerations and ultimately the decisions they make we would fully understand and accept," he said.
After being swamped by a deluge of media reports on his numerous extra-marital affairs, Woods finally addressed his infidelities on Friday, apologising to his wife and children after previously only admitting to "transgressions".
"I am deeply aware of the disappointment and hurt that my infidelity has caused to so many people, most of all my wife and children," the 33-year-old said in a statement on his website (www.tigerwoods.com).
"I want to say again to everyone that I am profoundly sorry and that I ask forgiveness. It may not be possible to repair the damage I've done, but I want to do my best to try."
The world number one golfer's withdrawal, without a hint of a time-table for his return, has raised questions about how fans and
sponsors will react, and how much the game will suffer for his absence.
Woods had already pulled out of his own charity event in California last month, citing minor injuries from the bizarre early morning car accident that began the chain of revelations that has unravelled his image of clean-cut perfection.
It had been thought the American might target the Century Club of San Diego Invitational at Torrey Pines in late January for his 2010 debut, but that now seems highly unlikely.
"He's played in our tournament 11 years in a row except for last year when he had his injury from the US Open," San Diego tournament director Rick Schloss told Reuters in a telephone interview.
"Obviously it's a difficult decision for him to take the time off from the tour but obviously these are personal decisions and we accept those and hopefully when everything gets back to normal he'll be back in San Diego."
Couting the days
Woods's impact on the PGA Tour has been well documented and his periods of absence from it have been mourned by organisers, fans and sponsors alike.
His eight-month hiatus from the tour in 2008-2009 after knee surgery following his US Open triumph at Torrey Pines last year, hammered TV ratings and crowd attendances, leaving officials counting the days before his return in February.
Interest will be intense when Woods comes back to competition, as inevitably, will be the media reception.
The American father of two showed flashes of top form this year, raising hopes he might be poised for a spectacular year and a chance to add to his 14 major titles.
Apart from Woods's usual happy hunting ground at Augusta, the US Open will be played at Pebble Beach and the British Open at St Andrews -- two of his most favourite venues.
But instead of building momentum for the majors early in the year, Woods must now face up to his personal issues, the potential loss of sponsorship deals that helped make him the world's first billionaire athlete, and the disappointment of fans who once held him up as a lofty role model.
Despite the tawdry revelations that continue to dog Woods in the media, golf officials have provided statements of support.
"We fully support Tiger's decision to step away from competitive golf to focus on his family," US PGA Tour chief Tim Finchem said in a statement.
"His priorities are where they need to be, and we will continue to respect and honor his family's request for privacy. We look forward to Tiger's return to the PGA Tour."
One of Woods's largest sponsors has already said it will stand by the golfer.
"Tiger has been part of Nike for more than a decade," the company said in a statement. "He is the best golfer in the world and one of the greatest athletes of his era. We look forward to his return to golf. He and his family have Nike's full support."
The CEO of the PGA of Australia, Max Garske, who was among the nearly 100,000 people to have welcomed Woods to Melbourne for the Australian Masters last month, also weighed in, underlying the golfer's immense global appeal.
"We fully support what a delicate situation it is for Tiger and his family where clearly they need their privacy and time to rebuild their lives," Garske said.
While more sponsors and officials are likely to offer their unqualified support, Woods's agent and friend Mark Steinberg has acknowledged that the golfer's world, economic and personal, may have changed irrevocably.
"The entirety of someone's life is more important than just a professional career," Steinberg said in a statement.
"What matters most is a young family that is trying to cope with difficult life issues in a secluded and caring way. Whenever Tiger may return to the game, should be on the family's terms alone."
Steinberg, however, is also prepared for defections on the business side.
"Of course, each sponsor has unique considerations and ultimately the decisions they make we would fully understand and accept," he said.
Hold Reliance Power: Rahul Mohindar
Rahul Mohindar of viratechindia.com is of the view that one can hold Reliance Power only if it crosses Rs 142-142 level.
Mohindar told CNBC-TV18, “My view is also a bit in sync because technically also there is a variety of choice available you do not have to be with a Reliance Power this point. It largely looks like a sideways counter even if I look at the last 10-15 days of price movement. We have looked ourselves up in a small zone so the way I put it is if you still want to give this a shot you could hold on with a Rs 160-165 target but again that is not a very good risk reward ratio to be justifying considering if we break a Rs 142-145 again we will be dipping down so not a very comfortable stock to be in much better choice available but again only a short-term hold for a Rs 160-165 target."
Mohindar told CNBC-TV18, “My view is also a bit in sync because technically also there is a variety of choice available you do not have to be with a Reliance Power this point. It largely looks like a sideways counter even if I look at the last 10-15 days of price movement. We have looked ourselves up in a small zone so the way I put it is if you still want to give this a shot you could hold on with a Rs 160-165 target but again that is not a very good risk reward ratio to be justifying considering if we break a Rs 142-145 again we will be dipping down so not a very comfortable stock to be in much better choice available but again only a short-term hold for a Rs 160-165 target."
Karnataka govt announces Millennium Biotech Policy
Karnataka has always been India's premier biotech destination, but the state government does not want to rest on its laurels. In the new Millennium Biotech Policy, the government has announced a slew of incentives for the sector. CNBC-TV18’s Sunanda Jayaseelan reports.
The Millennium Biotech Policy was announced in 2001. What the state government did today was to announce revisions to that policy. The key revisions include setting up of a bio-venture fund to the tune of Rs 50 crore, which will be funded partly by the state government and partly be a venture capital firm. The second is stamp duty exemption between 75-100% depending on which zone the company is situated in.
For the purposes of offering fiscal incentives the state government has classified industrial clusters into to one two and three zones and depending on where the company is situated, it will be able to avail such stamp duty exemption.
Third was the setting up of 10 biotech finishing schools as also five biotech parks outside of Bangalore focusing on tier II and III cities; The state government expressed some bit of concern over the fact that there were not enough research projects coming out of the biotech sector. It has proposed setting up of fund with a corpus of Rs 20 crore towards a commercialization of research projects.
One last proposal put forward by the state government is a new IT BT facility, which will be set up with an investment of Rs 23 crore. The biotech industry achieved revenues of USD 2.5 billion in 2008-09 and the state government is confident that once most of these proposals have really been rolled at, it will be able to achieve a USD 5 billion target, which it has set for itself by 2012.
The Millennium Biotech Policy was announced in 2001. What the state government did today was to announce revisions to that policy. The key revisions include setting up of a bio-venture fund to the tune of Rs 50 crore, which will be funded partly by the state government and partly be a venture capital firm. The second is stamp duty exemption between 75-100% depending on which zone the company is situated in.
For the purposes of offering fiscal incentives the state government has classified industrial clusters into to one two and three zones and depending on where the company is situated, it will be able to avail such stamp duty exemption.
Third was the setting up of 10 biotech finishing schools as also five biotech parks outside of Bangalore focusing on tier II and III cities; The state government expressed some bit of concern over the fact that there were not enough research projects coming out of the biotech sector. It has proposed setting up of fund with a corpus of Rs 20 crore towards a commercialization of research projects.
One last proposal put forward by the state government is a new IT BT facility, which will be set up with an investment of Rs 23 crore. The biotech industry achieved revenues of USD 2.5 billion in 2008-09 and the state government is confident that once most of these proposals have really been rolled at, it will be able to achieve a USD 5 billion target, which it has set for itself by 2012.
US froze $2 billion held for Iran in Citibank
A US court last year secretly froze more than USD2 billion allegedly held for Iran in Citigroup Inc accounts, the Wall Street Journal reported on Saturday, citing legal documents.
The US District Court for the Southern District of New York, acting in part on information provided by the US Treasury Department, ordered Citibank to freeze the money in June 2008, the newspaper said.
The money is in accounts held by Luxembourg's Clearstream Banking AG , a subsidiary of Germany's Deutsche Boerse AG, the newspaper said.
Citibank, Clearstream and the Iranian government declined to comment, the Journal said.
Clearstream has denied holding funds for Iran according to court documents cited by the newspaper, and is fighting to get the funds released.
US firms are forbidden from doing business with Iran. There is no indication Citibank knew the funds could have belonged to Iran, the newspaper said.
The money is part of a battle between the families of US Marines killed or injured in a 1983 bombing in Beirut, Lebanon, that a US court ruled was organized by Iran.
In 2007, a judge ordered Tehran to pay the victims' families USD2.7 billion in compensation.
Lawyers for the families seeking compensation subpoenaed the Treasury Department to find information about Iranian assets held in the United States, which led to a secret court order to freeze Clearstream's accounts at Citibank, the newspaper said.
"I was stunned when this money popped up in New York," Steven Perles, a lawyer representing the victims' families, told the Journal.
The case comes as Obama administration weighs whether to pursue more sanctions against Iran over its nuclear program.
The US District Court for the Southern District of New York, acting in part on information provided by the US Treasury Department, ordered Citibank to freeze the money in June 2008, the newspaper said.
The money is in accounts held by Luxembourg's Clearstream Banking AG , a subsidiary of Germany's Deutsche Boerse AG, the newspaper said.
Citibank, Clearstream and the Iranian government declined to comment, the Journal said.
Clearstream has denied holding funds for Iran according to court documents cited by the newspaper, and is fighting to get the funds released.
US firms are forbidden from doing business with Iran. There is no indication Citibank knew the funds could have belonged to Iran, the newspaper said.
The money is part of a battle between the families of US Marines killed or injured in a 1983 bombing in Beirut, Lebanon, that a US court ruled was organized by Iran.
In 2007, a judge ordered Tehran to pay the victims' families USD2.7 billion in compensation.
Lawyers for the families seeking compensation subpoenaed the Treasury Department to find information about Iranian assets held in the United States, which led to a secret court order to freeze Clearstream's accounts at Citibank, the newspaper said.
"I was stunned when this money popped up in New York," Steven Perles, a lawyer representing the victims' families, told the Journal.
The case comes as Obama administration weighs whether to pursue more sanctions against Iran over its nuclear program.
Reddy brothers in trouble; CBI raids mining co in Bellary
The Bellary brothers are in the Central Bureau of Investigation’s radar. The CBI on Thursday conducted searches at the offices of the Reddy brothers, who are Ministers in the Bharatiya Janata Party (BJP) government in Karnataka, reports CNBC-TV18’s Deepa Balakrishnan.
Here is a verbatim transcript of Deepa Balakrishnan’s comments on CNBC-TV18. Also watch the accompanying video.
It’s a mixed bag of news for the politically powerful Reddy brothers of Bellary in Northern Karnataka. First of all they have been facing the CBI raids on the head offices of Obalipuram mining company, which has its head office in Bellary. The office as well as home of Janaraan Reddy, who runs that company have been raided and documents have been seized. What source are telling us is some Compact Disks as well as computer hard disk has been seized. This would have data that would pertain to their probes into illegal mining activities that is what we gather from sources.
Reason behind CBI”s raid:
There are three basic issues here. Firstly, this relates to the illegal mining activities in Anantpur District in Andhra Pradesh, Obalipuram mining company has its head office in Bellary but most of their mining operations have been in Anantpur district in Andhra. Secondly, there have been serious allegations as well reports from AP Government’s forest department of illegal encroachment on forest land. Thirdly, there have been specific questions related to their illegal operations going to such an extent they have changed the interstate boundary between Karnataka and Andhra Pradesh. So these are the primary questions being probed by the CBI. The CBI probe was actually sort for by the AP Government and it has the backing of the Union ministry of forest and environment.
AP High Court order provides some relief:
At the same time, the Supreme Court’s CEC has also said that mining operations of this company are illegal and they want a deeper investigation into it. At the same time the AP High Court has now come out with an order setting aside the government order, which bans the mining activity. The government had banned mining activity on November 25, 2009 after reports from the forest department about illegal encroachments. Now, that ban has been set aside and the AP High Court says they can go ahead with their mining operations despite the probe and the survey that has been ordered. They say the survey and the probe can happen side by side with the mining operations. So the Reddy brothers getting getting some relief from the AP High Court order wherein, first of all they can résumé their mining activity. Secondly, they are also allowed to transport the already explored iron ore of 1.25 lakh tonne and use that for either sale or export as they had originally planned.
Here is a verbatim transcript of Deepa Balakrishnan’s comments on CNBC-TV18. Also watch the accompanying video.
It’s a mixed bag of news for the politically powerful Reddy brothers of Bellary in Northern Karnataka. First of all they have been facing the CBI raids on the head offices of Obalipuram mining company, which has its head office in Bellary. The office as well as home of Janaraan Reddy, who runs that company have been raided and documents have been seized. What source are telling us is some Compact Disks as well as computer hard disk has been seized. This would have data that would pertain to their probes into illegal mining activities that is what we gather from sources.
Reason behind CBI”s raid:
There are three basic issues here. Firstly, this relates to the illegal mining activities in Anantpur District in Andhra Pradesh, Obalipuram mining company has its head office in Bellary but most of their mining operations have been in Anantpur district in Andhra. Secondly, there have been serious allegations as well reports from AP Government’s forest department of illegal encroachment on forest land. Thirdly, there have been specific questions related to their illegal operations going to such an extent they have changed the interstate boundary between Karnataka and Andhra Pradesh. So these are the primary questions being probed by the CBI. The CBI probe was actually sort for by the AP Government and it has the backing of the Union ministry of forest and environment.
AP High Court order provides some relief:
At the same time, the Supreme Court’s CEC has also said that mining operations of this company are illegal and they want a deeper investigation into it. At the same time the AP High Court has now come out with an order setting aside the government order, which bans the mining activity. The government had banned mining activity on November 25, 2009 after reports from the forest department about illegal encroachments. Now, that ban has been set aside and the AP High Court says they can go ahead with their mining operations despite the probe and the survey that has been ordered. They say the survey and the probe can happen side by side with the mining operations. So the Reddy brothers getting getting some relief from the AP High Court order wherein, first of all they can résumé their mining activity. Secondly, they are also allowed to transport the already explored iron ore of 1.25 lakh tonne and use that for either sale or export as they had originally planned.
7 stks that were buzzing last week & how to trade them now
SP Tulsian of sptulsian.com and Rahul Mohindar from viratechindia.com discuss various stocks and debate on whether last week’s buzzing stocks will continue to be winners going forward?
Mahindra Satyam
SP Tulsian told CNBC-TV18, “Upaid liability settlement at USD 70 million plus the appointment of auditors which will accelerate the finalization of the accounts of the company are definitely quite positive which has been resulted the stock to move from Rs 90 to about Rs 106. But one should not forget that eventually this company is going to get merged with Tech Mahindra maybe by June or July next year. Any company which is getting merged gets its upside capped. I do not see the share moving beyond Rs 110 or Rs 112 it is always advisable to go for making investments in Tech Mahindra instead of Mahindra Satyam so my call is not to make further investment in the stock those who are holding it can think of exiting it at a level of about Rs 110 with a view to shift to Tech Mahindra.”
Rahul Mohindar told CNBC-TV18, “Mahindra Satyam moved up with a gap which gives it some room to correct and fill up so there could be this venerability that we head down to levels of Rs 100 but closer to Rs 100 there is good support. Bottomline I would say let us hold on to the stock give it a chance, there is a support at Rs 100 mark, keep a stop loss below it which means let say Rs 97 stop loss. A price target I would set out on the medium term would be closer to about Rs 115.”
Reliance Industries
Tulsian told CNBC-TV18, “We all know that Q3 will be putting pressure on the GRMs of the company (RIL) and we may not expect the profitability for Q3 happening from that sector but yes the gas business from KG Basin will be the real kicker for the stock which I am quite hopeful that it will keep contributing and will be on a growing trajectory over next to 3-4 quarters. Coming on the LyondellBasell there seems to be on a strong footing which they are planning to acquire close to about USD 12 billion without much for dilution of the equity. They may fall back on the sale of the treasury stocks, all these things augers well for the stock. We have seen the absorption of the bonus shares which have already come in the market couple of days back so taking all this into consideration if those who have a six months view on the stock can remain invested in Reliance Industries Ltd.”
Mohindar told CNBC-TV18, “In the last couple of days Reliance Industries is holding Rs 1050 mark as good support so even short term keep a stoploss below Rs 1050 so let us say Rs 1040 could work as a stoploss. The real strength comes in beyond Rs 1095 so if we clear a Rs 1095 we get into this uptrend but all in all medium to long term I would say the target for this stock is past Rs 1100 so you could be looking at Rs 1150-1200 levels which you could stretch your time frame but certainly even from a short term or a long term I would certainly say this still remains on a buy list.”
Maruti Suzuki
Tulsian told CNBC-TV18, “The present position of Maruti Suzuki are already having vehicles sales of 1 million plus. Infact they have reached their capacity, they are the leader in the small car segment as well as in the petrol version. But with Volkswagen coming in and buying close to about 20% stake in the parent company will enable them to launch the diesel car which has been very much required or needed for the Indian market plus they may be able to increase the models in the upper segment where they did not have much success so all those things most likely entry in the diesel segment as well as in the upper car segments will give them a growth otherwise the saturation has been coming in. We have been seeing monthly sales of getting packed between 85000 to 90,000 vehicles per month so I think with this collaboration or this strategic investments one can expect the monthly sales exceeding one lakh mark per month. This will definitely be a value accretion for the stock and those who are holding it are advice to remain invested.”
Mohindar told CNBC-TV18, “On a short-term or a long-term count I think the Maruti Suzuki looks exceptionally positive. Overall the auto sector index itself looks pretty interesting so Maruti is a good choice. If I had to compare my self to a Tata Motors or Ashok Leyland I would certainly say Maruti stands out. Rs 1520 is good support for the stock so protect your capital by putting in a stoploss, if we break the Rs 1520 level in terms of a positive surprise yes there is a possibility that could happen because we have seen all the right triggers in terms of volume and price formations. I won’t be surprised if you see levels between Rs 1750 – 1800 within a 3-6 month timeframe."
Idea Cellular
Tulsian told CNBC-TV18, “I am personally negative on Idea Cellular, keeping a negative view on the telecom sector for a simple reason that the whole sector is getting commoditize, they will be requiring huge capex for the time to come in the form of 3G and the tower investments. If you see the rise in the share prices that has mainly happen because of a rise of about Rs 50 or maybe 17-18% rise in Bharti Airtel which generally gives the direction to the telecom stock. We have seen the similar kind of rise in the share price of idea Cellular also. Reliance Communication has not participated mainly because of the problems they have of their own. So in the present context if Bharti keeps on moving like this then Idea Cellular has some room left upside but I do not think the kind of things happening because we may start seeing profit booking which has been made by people in Bharti as well as in Idea. So Rs 60 seems to be fair price in the present circumstances and I do not advice buying from hereon in fact my call is a sell on the stock.”
Mohindar told CNBC-TV18, “I think in terms of a resistance first of all there is a pressure point for Idea Cellular around Rs 61-63 belt, so at Rs 60 I think you are looking at another Rs 1-2 best case scenario to reach that pressure point. It is a very important resistance, I would rate this upmove more as a pull back rally and that is because it is not backed with very big volumes or something."
He further added, "It does not look like a up breakout or a medium or long term move to me so keeping that in mind and keeping the fact that we are heading to that Rs 62-63 pressure point, resistance point I would say one could sell on the stock I would expect the first target on the downside to be about Rs 56 breaking it which could be looking at Rs 47.”
KPIT Cummins Infosystems
Tulsian told CNBC-TV18, “I think exiting KPIT Cummins will be the right strategy because to support my suggestion if you see the FY10 EPS it is likely to Rs 10 that means it translates into a PE multiple of Rs 13. If I take the topline which is expected to be about Rs 700 crore for FY10 results into a market capitalization of 1.5 times, I think these two parameters are enough for any midcap IT stocks when you compare with the other peers available in the market. The company has good presence in auto sector and other areas for their IT space but I do not think that you have much upside available especially when you have the alternatives or comparable peers available in the segment so my call is to book profit or exit from the stock at the present level.”
Mohindar told CNBC-TV18, "I am a bit tempted to say that the stocks run up really well and book profits but again the strategy which is prudent and this point in time is to use a trailing stoploss and move ahead. So the way I look at it is Rs 115 is the support which we have seen is holding over the last couple of days and in fact before the shoot up last week we saw a good consolidation in that Rs 115-120 area so keep a stoploss below Rs 115. My sense we are heading to about Rs 145 levels so that would be the price target and that would be the point I would tell the investor to move out so a hold is what I put KPIT Cummins at."
Reliance Power
SP Tulsian told CNBC-TV18, “My call again on Reliance Power is to go for profit booking for the simple reason because investors are taking an execution capability call of each group. We have seen the lot of variety before the investors where the execution capabilities of many groups are getting established. Here we have seen the negative news is coming in for the company like Dadri and all that though they had no concrete plan for execution of Dadri projects when they went public but still the 7000 megawatt power projects which they have the plans or under pipeline for execution are going to take the time upto 2016 and you have much better ideas available on the secondary market when compared with the pipeline execution of the power projects. So my call is exit from this power stocks and you have the better opportunities available in the other stocks."
Rahul Mohindar told CNBC-TV18, “My view is also a bit in sync because technically also there is a variety of choice available you do not have to be with a Reliance Power this point. It largely looks like a sideways counter even if I look at the last 10-15 days of price movement. We have looked ourselves up in a small zone so the way I put it is if you still want to give this a shot you could hold on with a Rs 160-165 target but again that is not a very good risk reward ratio to be justifying considering if we break a Rs 142-145 again we will be dipping down so not a very comfortable stock to be in much better choice available but again only a short-term hold for a Rs 160-165 target."
Ansal Properties
Rahul Mohindar told CNBC-TV18, “I do not really think Ansal Properties is going to give you all that kind of a return, I would say at these levels it still looks a very sideways counter but having said that if someone is already into the stock I probably tell him to stay in it because you could see about a 5-8% upside. Personally I am not very comfortable in terms of going long at these levels but as I said it is clearly a short-term hold from my side."
SP Tulsian told CNBC-TV18, “Even if I take their call or the presence in NCR and Tier III there are concerns for Tier III but I do not think there is now any concern for NCR region because we have been seeing demand picking up and if I go by the Q2 results of the company they had a topline of Rs 175 crore of bottomline of Rs 32 crore resulting in an EPS of close to Rs 280 so one can extrapolate this and expect an EPS of close to Rs 11-12 for FY10 which translates into a PE multiple of 6. I do not think the market cap of Rs 850 crore which right now of the company is really stretched and especially when we see the issues of too many IPOs coming in like Godrej Property which had a very stretch valuations. Taking all this into consideration this can really give a breakout at any time. We can really see 25-30% jump in the share price if someone can keep a view of one month."
Mahindra Satyam
SP Tulsian told CNBC-TV18, “Upaid liability settlement at USD 70 million plus the appointment of auditors which will accelerate the finalization of the accounts of the company are definitely quite positive which has been resulted the stock to move from Rs 90 to about Rs 106. But one should not forget that eventually this company is going to get merged with Tech Mahindra maybe by June or July next year. Any company which is getting merged gets its upside capped. I do not see the share moving beyond Rs 110 or Rs 112 it is always advisable to go for making investments in Tech Mahindra instead of Mahindra Satyam so my call is not to make further investment in the stock those who are holding it can think of exiting it at a level of about Rs 110 with a view to shift to Tech Mahindra.”
Rahul Mohindar told CNBC-TV18, “Mahindra Satyam moved up with a gap which gives it some room to correct and fill up so there could be this venerability that we head down to levels of Rs 100 but closer to Rs 100 there is good support. Bottomline I would say let us hold on to the stock give it a chance, there is a support at Rs 100 mark, keep a stop loss below it which means let say Rs 97 stop loss. A price target I would set out on the medium term would be closer to about Rs 115.”
Reliance Industries
Tulsian told CNBC-TV18, “We all know that Q3 will be putting pressure on the GRMs of the company (RIL) and we may not expect the profitability for Q3 happening from that sector but yes the gas business from KG Basin will be the real kicker for the stock which I am quite hopeful that it will keep contributing and will be on a growing trajectory over next to 3-4 quarters. Coming on the LyondellBasell there seems to be on a strong footing which they are planning to acquire close to about USD 12 billion without much for dilution of the equity. They may fall back on the sale of the treasury stocks, all these things augers well for the stock. We have seen the absorption of the bonus shares which have already come in the market couple of days back so taking all this into consideration if those who have a six months view on the stock can remain invested in Reliance Industries Ltd.”
Mohindar told CNBC-TV18, “In the last couple of days Reliance Industries is holding Rs 1050 mark as good support so even short term keep a stoploss below Rs 1050 so let us say Rs 1040 could work as a stoploss. The real strength comes in beyond Rs 1095 so if we clear a Rs 1095 we get into this uptrend but all in all medium to long term I would say the target for this stock is past Rs 1100 so you could be looking at Rs 1150-1200 levels which you could stretch your time frame but certainly even from a short term or a long term I would certainly say this still remains on a buy list.”
Maruti Suzuki
Tulsian told CNBC-TV18, “The present position of Maruti Suzuki are already having vehicles sales of 1 million plus. Infact they have reached their capacity, they are the leader in the small car segment as well as in the petrol version. But with Volkswagen coming in and buying close to about 20% stake in the parent company will enable them to launch the diesel car which has been very much required or needed for the Indian market plus they may be able to increase the models in the upper segment where they did not have much success so all those things most likely entry in the diesel segment as well as in the upper car segments will give them a growth otherwise the saturation has been coming in. We have been seeing monthly sales of getting packed between 85000 to 90,000 vehicles per month so I think with this collaboration or this strategic investments one can expect the monthly sales exceeding one lakh mark per month. This will definitely be a value accretion for the stock and those who are holding it are advice to remain invested.”
Mohindar told CNBC-TV18, “On a short-term or a long-term count I think the Maruti Suzuki looks exceptionally positive. Overall the auto sector index itself looks pretty interesting so Maruti is a good choice. If I had to compare my self to a Tata Motors or Ashok Leyland I would certainly say Maruti stands out. Rs 1520 is good support for the stock so protect your capital by putting in a stoploss, if we break the Rs 1520 level in terms of a positive surprise yes there is a possibility that could happen because we have seen all the right triggers in terms of volume and price formations. I won’t be surprised if you see levels between Rs 1750 – 1800 within a 3-6 month timeframe."
Idea Cellular
Tulsian told CNBC-TV18, “I am personally negative on Idea Cellular, keeping a negative view on the telecom sector for a simple reason that the whole sector is getting commoditize, they will be requiring huge capex for the time to come in the form of 3G and the tower investments. If you see the rise in the share prices that has mainly happen because of a rise of about Rs 50 or maybe 17-18% rise in Bharti Airtel which generally gives the direction to the telecom stock. We have seen the similar kind of rise in the share price of idea Cellular also. Reliance Communication has not participated mainly because of the problems they have of their own. So in the present context if Bharti keeps on moving like this then Idea Cellular has some room left upside but I do not think the kind of things happening because we may start seeing profit booking which has been made by people in Bharti as well as in Idea. So Rs 60 seems to be fair price in the present circumstances and I do not advice buying from hereon in fact my call is a sell on the stock.”
Mohindar told CNBC-TV18, “I think in terms of a resistance first of all there is a pressure point for Idea Cellular around Rs 61-63 belt, so at Rs 60 I think you are looking at another Rs 1-2 best case scenario to reach that pressure point. It is a very important resistance, I would rate this upmove more as a pull back rally and that is because it is not backed with very big volumes or something."
He further added, "It does not look like a up breakout or a medium or long term move to me so keeping that in mind and keeping the fact that we are heading to that Rs 62-63 pressure point, resistance point I would say one could sell on the stock I would expect the first target on the downside to be about Rs 56 breaking it which could be looking at Rs 47.”
KPIT Cummins Infosystems
Tulsian told CNBC-TV18, “I think exiting KPIT Cummins will be the right strategy because to support my suggestion if you see the FY10 EPS it is likely to Rs 10 that means it translates into a PE multiple of Rs 13. If I take the topline which is expected to be about Rs 700 crore for FY10 results into a market capitalization of 1.5 times, I think these two parameters are enough for any midcap IT stocks when you compare with the other peers available in the market. The company has good presence in auto sector and other areas for their IT space but I do not think that you have much upside available especially when you have the alternatives or comparable peers available in the segment so my call is to book profit or exit from the stock at the present level.”
Mohindar told CNBC-TV18, "I am a bit tempted to say that the stocks run up really well and book profits but again the strategy which is prudent and this point in time is to use a trailing stoploss and move ahead. So the way I look at it is Rs 115 is the support which we have seen is holding over the last couple of days and in fact before the shoot up last week we saw a good consolidation in that Rs 115-120 area so keep a stoploss below Rs 115. My sense we are heading to about Rs 145 levels so that would be the price target and that would be the point I would tell the investor to move out so a hold is what I put KPIT Cummins at."
Reliance Power
SP Tulsian told CNBC-TV18, “My call again on Reliance Power is to go for profit booking for the simple reason because investors are taking an execution capability call of each group. We have seen the lot of variety before the investors where the execution capabilities of many groups are getting established. Here we have seen the negative news is coming in for the company like Dadri and all that though they had no concrete plan for execution of Dadri projects when they went public but still the 7000 megawatt power projects which they have the plans or under pipeline for execution are going to take the time upto 2016 and you have much better ideas available on the secondary market when compared with the pipeline execution of the power projects. So my call is exit from this power stocks and you have the better opportunities available in the other stocks."
Rahul Mohindar told CNBC-TV18, “My view is also a bit in sync because technically also there is a variety of choice available you do not have to be with a Reliance Power this point. It largely looks like a sideways counter even if I look at the last 10-15 days of price movement. We have looked ourselves up in a small zone so the way I put it is if you still want to give this a shot you could hold on with a Rs 160-165 target but again that is not a very good risk reward ratio to be justifying considering if we break a Rs 142-145 again we will be dipping down so not a very comfortable stock to be in much better choice available but again only a short-term hold for a Rs 160-165 target."
Ansal Properties
Rahul Mohindar told CNBC-TV18, “I do not really think Ansal Properties is going to give you all that kind of a return, I would say at these levels it still looks a very sideways counter but having said that if someone is already into the stock I probably tell him to stay in it because you could see about a 5-8% upside. Personally I am not very comfortable in terms of going long at these levels but as I said it is clearly a short-term hold from my side."
SP Tulsian told CNBC-TV18, “Even if I take their call or the presence in NCR and Tier III there are concerns for Tier III but I do not think there is now any concern for NCR region because we have been seeing demand picking up and if I go by the Q2 results of the company they had a topline of Rs 175 crore of bottomline of Rs 32 crore resulting in an EPS of close to Rs 280 so one can extrapolate this and expect an EPS of close to Rs 11-12 for FY10 which translates into a PE multiple of 6. I do not think the market cap of Rs 850 crore which right now of the company is really stretched and especially when we see the issues of too many IPOs coming in like Godrej Property which had a very stretch valuations. Taking all this into consideration this can really give a breakout at any time. We can really see 25-30% jump in the share price if someone can keep a view of one month."
Subscription levels of the IPOs of 2009: SMC Capital
SMC Capital has come out with report on IPOs of 2009 subscription levels.
The key takeaways from the report are:
1. The IPO market in India has tried to stage a comeback during the calendar year 2009 with an amount of about Rs 18,407 Crores through 19 issues.
2. Eventhough the IPO market has appeared to stage a comeback, the interesting trend is that the subscription levels at the time of IPOs are heavily skewed towards QIBs (Qualified Institutional Buyers). While the response from HNIs is moderate, the response from Retail investors is muted. Similarly, no meaningful participation from Employees as well.
3. On overall basis, the average QIB level subscription was 11.42x, the HNI level was 8.49x and the Retail level was 1.86x. The Employee subscription level was a mere 0.56x.
4. Just to the put the things in perspective, in several IPOs, the Retail and HNI portions didn’t even got subscribed fully. For example, the IPOs such as JSW Energy, Godrej Properties, MBL Infrastructure, DEN Networks, Raj Oil Mills couldn’t see the full subscription in their retail portions. Similarly, in case of JSW Energy and Godrej Properties, even the HNI category couldn’t get subscribed fully.
5. This probably underlines the fact that there is no widespread participation in the IPO market revival of 2009. Only the institutions have participated actively, both in QIB portion as well as Anchor Investors. Despite their active participation, several of the IPOs in 2009 had poor listing indicating that institutions had tough time with their performance in IPOs of 2009.
The key takeaways from the report are:
1. The IPO market in India has tried to stage a comeback during the calendar year 2009 with an amount of about Rs 18,407 Crores through 19 issues.
2. Eventhough the IPO market has appeared to stage a comeback, the interesting trend is that the subscription levels at the time of IPOs are heavily skewed towards QIBs (Qualified Institutional Buyers). While the response from HNIs is moderate, the response from Retail investors is muted. Similarly, no meaningful participation from Employees as well.
3. On overall basis, the average QIB level subscription was 11.42x, the HNI level was 8.49x and the Retail level was 1.86x. The Employee subscription level was a mere 0.56x.
4. Just to the put the things in perspective, in several IPOs, the Retail and HNI portions didn’t even got subscribed fully. For example, the IPOs such as JSW Energy, Godrej Properties, MBL Infrastructure, DEN Networks, Raj Oil Mills couldn’t see the full subscription in their retail portions. Similarly, in case of JSW Energy and Godrej Properties, even the HNI category couldn’t get subscribed fully.
5. This probably underlines the fact that there is no widespread participation in the IPO market revival of 2009. Only the institutions have participated actively, both in QIB portion as well as Anchor Investors. Despite their active participation, several of the IPOs in 2009 had poor listing indicating that institutions had tough time with their performance in IPOs of 2009.
Friday, December 11, 2009
Bharti Airtel takes a dip
Bharti Airtel touched an intraday high of Rs 348.80 and an intraday low of Rs 334.50. At 11:04 am, the share was quoting at Rs 336.70, down Rs 5.65, or 1.65%.
The company has signed agreement to build, operate SE Asia JCS (South East Asia Japan Cable System). SJC will cost USD 400 million, measure 8,300 km. SJC is going to link Singapore, Hong Kong, Indonesia, Philippines and Japan. It will operational by Q2 2012, reports CNBC-TV18.
It was trading with volumes of 1,188,130 shares. Yesterday the share closed up 3.43% or Rs 11.35 at Rs 342.35.
The company has signed agreement to build, operate SE Asia JCS (South East Asia Japan Cable System). SJC will cost USD 400 million, measure 8,300 km. SJC is going to link Singapore, Hong Kong, Indonesia, Philippines and Japan. It will operational by Q2 2012, reports CNBC-TV18.
It was trading with volumes of 1,188,130 shares. Yesterday the share closed up 3.43% or Rs 11.35 at Rs 342.35.
IDBI Bank tumbles 3%
IDBI Bank touched a 52-week high of Rs 140. At 1:04 pm, the share was quoting at Rs 132.80, down Rs 4.3, or 3.14%.
It was trading with volumes of 1,088,972 shares. Yesterday the share closed up 1.29% or Rs 1.75 at Rs 137.10.
It was trading with volumes of 1,088,972 shares. Yesterday the share closed up 1.29% or Rs 1.75 at Rs 137.10.
Shoppers Stop touches 52-week high
Shoppers Stop has touched a 52-week high of Rs 416. At 12:13 pm, the share was quoting at Rs 392.00, up Rs 32.10, or 8.92%.
It has touched an intra day high of Rs 416.00 and an intra day low of Rs 358.
It was trading with volumes of 175,957 shares, compared to its five-day average of 54,142 shares, an increase of 224.99%.
Yesterday the share closed up 2.62% or Rs 9.20 at Rs 359.90.
It has touched an intra day high of Rs 416.00 and an intra day low of Rs 358.
It was trading with volumes of 175,957 shares, compared to its five-day average of 54,142 shares, an increase of 224.99%.
Yesterday the share closed up 2.62% or Rs 9.20 at Rs 359.90.
Overall financial performance in line with budget: FM
Soon after the October IIP data was released today, Finance Minister, Pranab Mukherjee said that the country's overall financial performance has been in line with budget expectations. "The Stimulus has started showing results," he said. However, he cautioned that the impact of poor monsoons will show in October-December.
On tax collections, another indicator of the company's financial health, Mukherjee said that there was likely be a shortfall in indirect tax mop-up. But this would be met by direct tax mop-up thus helping the govt to achieve the overall tax mop-up target for FY10.
On tax collections, another indicator of the company's financial health, Mukherjee said that there was likely be a shortfall in indirect tax mop-up. But this would be met by direct tax mop-up thus helping the govt to achieve the overall tax mop-up target for FY10.
Bank staff plan one-day strike on Dec 16
About 600,000 employees of India's banks plan to go on a one-day strike on Dec. 16 to protest the move to merge state-owned banks.
"We are against any move for merger and consolidation in the banking industry," CH Venkatachalam, general secretary of All India Bank Employees Association (AIBEA) told Reuters over telephone.
"We term the move as closure of public sector banks," he said. The employees were also protesting the ongoing move to merge State Bank of Indore with its founder State Bank of India, the country's largest bank, he added.
Earlier, Indian Banks Association, the apex banker's body, said it got a notice from All India Bank Officers' Association and AIBEA informing its members working in state-owned, private and foreign banks would strike work on Dec. 16.
State-run Corporation Bank also informed stock exchanges normal functioning in bank branches may be affected owing to the strike.
Shree Renuka in talks to buy stake Balrampur: Sources
Shree Renuka has initiated talks to buy stake in Balrampur Chini reports CNBC-TV18 quoting Sources. Balrampur Chini’s market cap stands at about Rs 3,600 crore with a promoter holding of 36.6%.
However, when contacted both Balrampur Chini and Shree Renuka declined to comment.
However, when contacted both Balrampur Chini and Shree Renuka declined to comment.
Hold MindTree, says Phani Sekhar
Hold MindTree, says Phani Sekhar of Angel Broking.
Sekhar told CNBC-TV18, "MindTree is one of the best midcap IT players as seen by its track record and management pedigree. The company showed lackluster numbers in the last one year or so mainly because of a slowdown in the macro environment as well as the Forex hits that it took which depressed its profits. But again going forward the low base of last year and the same Forex positions are helping the company post a good amount of further income as well as impressive growth rates.”
He further added, “If one extrapolates the current run rate and the topline growth equivalent to what the industry will grow at then the company is available at hardly eleven to twelve times one year forward earnings, which again is very interesting because this company has a niche in the offshore R&D market and that pie is getting increasingly offshorable which helps this company in a big way. Going forward we believe that the company will be able to maintain its operating margins because of its advantage in that space. So I will continue to hold MindTree with a 30% upside in the mind from the one year perspective.”
Sekhar told CNBC-TV18, "MindTree is one of the best midcap IT players as seen by its track record and management pedigree. The company showed lackluster numbers in the last one year or so mainly because of a slowdown in the macro environment as well as the Forex hits that it took which depressed its profits. But again going forward the low base of last year and the same Forex positions are helping the company post a good amount of further income as well as impressive growth rates.”
He further added, “If one extrapolates the current run rate and the topline growth equivalent to what the industry will grow at then the company is available at hardly eleven to twelve times one year forward earnings, which again is very interesting because this company has a niche in the offshore R&D market and that pie is getting increasingly offshorable which helps this company in a big way. Going forward we believe that the company will be able to maintain its operating margins because of its advantage in that space. So I will continue to hold MindTree with a 30% upside in the mind from the one year perspective.”
Accumulate Geodesic; target of Rs 130: Bonanza
Bonanza research has recommended accumulate rating on Geodesic with a target of Rs 130, in its December 1, 2009 research report.
"Geodesic Ltd has a niche product line. The company has reported near 100% CAGR in top line and bottom-lines over the past five years. The company has increased its top line by acquiring companies and increasing its portfolio of products. It has also ear marked FCCB funds for more such acquisition abroad that would further fuel its top line and bottom-line. The company has announced that it would soon acquire a social networking company and the deal is in finalization stage. Company is also planning to set up a small facility for manufacturing Simputer in Roorkee. Company has worked on many e-governance pilot projects and hopes to bag orders from the government for the same. Company has been focusing on developing economies such as China and Latin America as new target markets with good growth potential. Company also plans to increase the dividend payout in the coming years."
"Geodesic Ltd has a niche product line. The company has reported near 100% CAGR in top line and bottom-lines over the past five years. The company has increased its top line by acquiring companies and increasing its portfolio of products. It has also ear marked FCCB funds for more such acquisition abroad that would further fuel its top line and bottom-line. The company has announced that it would soon acquire a social networking company and the deal is in finalization stage. Company is also planning to set up a small facility for manufacturing Simputer in Roorkee. Company has worked on many e-governance pilot projects and hopes to bag orders from the government for the same. Company has been focusing on developing economies such as China and Latin America as new target markets with good growth potential. Company also plans to increase the dividend payout in the coming years."
Sensex volatile despite positive global cues; banks dip
At 14:25 hours IST, the Nifty was trading with negative bias amid volatility. Telecom, banking, oil marketing, realty and pharma stocks were seeing selling pressure. ITC, M&M and Tata Steel were also the losers. However, buying in BHEL, SAIL, Jindal Steel, Reliance Industries, Infosys, NTPC, Grasim, Maruti, L&T and Reliance Infrastructure capped the losses to some extent.
The markets shrugged off positive global cues. European markets were up 0.5-1% and the US index futures gained 0.4% each. Asian markets ended higher. Nikkei rose 2.5%. Hang Seng was up 0.9% and Taiwan Weighted up 1.5%. Straits Times and Taiwan gained 0.3-0.6% while Shanghai fell just 0.2%.
The benchmark indices turned cautious post less than expected IIP (index of industrial production) data. The IIP numbers for the month of October stood at 10.2% as against 9.6% on month-on-month basis. The markets expected at around 12.5%. Sonal Verma of Nomura Financial Advisories and Securites sees a full year IIP at 9.5%.
FM said impact of poor monsoon would show in October-December and stimulus has started showing results.
The Nifty declined 15 points to 5,119 and the Sensex was down 42 points to 17,147. The broader indices were marginally in the red; as about 1,396 shares advanced while 1,491 shares declined on the BSE. Nearly 549 shares were unchanged.
Bank of Baroda, Axis Bank, PNB, ICICI Bank, SBI and HDFC Bank were down 0.6-1.6% in the banking space.
Sources told CNBC-TV18, Shree Renuka Sugars initiated talks to buy stake in Balrampur Chini. Shree Renuka fell 2% with 117% fall in volumes while Balrampur Chini gained 3% with 161% rise in volumes. Talks between Shree Renuka-Balrampur Chini are in preliminary stage.
Balrampur Chini market cap stood at Rs 3,600 crore and promoters hold 36.6% stake in the company. Both companies declined to comment.
Today's new listing - Cox and Kings was trading at Rs 402.20, up 21.88% over its issue price of Rs 330 per share.
The markets shrugged off positive global cues. European markets were up 0.5-1% and the US index futures gained 0.4% each. Asian markets ended higher. Nikkei rose 2.5%. Hang Seng was up 0.9% and Taiwan Weighted up 1.5%. Straits Times and Taiwan gained 0.3-0.6% while Shanghai fell just 0.2%.
The benchmark indices turned cautious post less than expected IIP (index of industrial production) data. The IIP numbers for the month of October stood at 10.2% as against 9.6% on month-on-month basis. The markets expected at around 12.5%. Sonal Verma of Nomura Financial Advisories and Securites sees a full year IIP at 9.5%.
FM said impact of poor monsoon would show in October-December and stimulus has started showing results.
The Nifty declined 15 points to 5,119 and the Sensex was down 42 points to 17,147. The broader indices were marginally in the red; as about 1,396 shares advanced while 1,491 shares declined on the BSE. Nearly 549 shares were unchanged.
Bank of Baroda, Axis Bank, PNB, ICICI Bank, SBI and HDFC Bank were down 0.6-1.6% in the banking space.
Sources told CNBC-TV18, Shree Renuka Sugars initiated talks to buy stake in Balrampur Chini. Shree Renuka fell 2% with 117% fall in volumes while Balrampur Chini gained 3% with 161% rise in volumes. Talks between Shree Renuka-Balrampur Chini are in preliminary stage.
Balrampur Chini market cap stood at Rs 3,600 crore and promoters hold 36.6% stake in the company. Both companies declined to comment.
Today's new listing - Cox and Kings was trading at Rs 402.20, up 21.88% over its issue price of Rs 330 per share.
Godrej Properties IPO subscribed 2.6 times
The initial public offering (IPO) of Mumbai based Godrej Properties has been subscribed 2.63 times so far, as per data available on the NSE website. The major support has been coming from qualified institutional investors; their reserved portion got subscribed 2.43 times, till yesterday.
The issue of 9,429,750 equity shares of Rs 10 each closes today and its price band is at Rs 490-530 per share.
V-Guard Industries has target of Rs 150: Sukhani
V-Guard Industries has target of Rs 150, says Technical Analyst, Sudarshan Sukhani.
Sukhani told CNBC-TV18, "V-Guard Industries is making 52 week highs repeatedly. The stocks, which are making lifetime highs telling us that there is much more headroom. My personal target for this stock is Rs 150. It will take its own time but I think this is one of those easy ones which should come slowly and steadily."
Sukhani told CNBC-TV18, "V-Guard Industries is making 52 week highs repeatedly. The stocks, which are making lifetime highs telling us that there is much more headroom. My personal target for this stock is Rs 150. It will take its own time but I think this is one of those easy ones which should come slowly and steadily."
ICSA India has target of Rs 220: Satish Betadpur
ICSA India has target of Rs 220, says Satish Betadpur, Independent International Investment Research.
Betadpur told CNBC-TV18, “ICSA India is a stock that I have been looking at from 2004 when it was a tiny cap and they were trying to raise funds. It has grown consistently through that time and they have delivered on every metric mentioned by them five years ago. This is a management which has great track record, the earnings are growing and the multiple today is 5.68 times, so this is a very cheap stock.”
He further added, “They are in power sector, which is extremely attractive. They provide embedded systems for power and these systems help in monitoring and curbing transmission and distribution losses, which in India is one of the biggest problems that is plaguing all electricity boards. They are in the sweetest part of sector that is growing extremely well and this is a company that is doing very well in that space. So this is a huge thumb up for any investor who wants to play in the power sector and wants to be there over the medium to long term. The day target is Rs 220 but this stock will double triple over the medium and long term."
Betadpur told CNBC-TV18, “ICSA India is a stock that I have been looking at from 2004 when it was a tiny cap and they were trying to raise funds. It has grown consistently through that time and they have delivered on every metric mentioned by them five years ago. This is a management which has great track record, the earnings are growing and the multiple today is 5.68 times, so this is a very cheap stock.”
He further added, “They are in power sector, which is extremely attractive. They provide embedded systems for power and these systems help in monitoring and curbing transmission and distribution losses, which in India is one of the biggest problems that is plaguing all electricity boards. They are in the sweetest part of sector that is growing extremely well and this is a company that is doing very well in that space. So this is a huge thumb up for any investor who wants to play in the power sector and wants to be there over the medium to long term. The day target is Rs 220 but this stock will double triple over the medium and long term."
Friday, December 4, 2009
Indian ADRs: Tata Comm, MTNL up, Dr Reddys down
The Indian ADR ended mostly higher. In the IT pack, Infosys was up 0.90% at $52.46, Satyam was up 1.68% at $4.84, Wipro was up 0.25% at $20.45 and Patni was up 0.50% at $19.92.
In the telecom pack, MTNL was up 2.84% at $3.26 and Tata Comm was up 2.38% at $16.76. In the banking space, ICICI Bank was up 1.97% at $38.24 and HDFC Bank was up 1.73% at $139.35.
In the other space, Tata Motors was up 0.91% at $15.60, Sterlite was down 0.05% at $19.00 and Dr Reddys was down 2.77% at $23.89.
In the telecom pack, MTNL was up 2.84% at $3.26 and Tata Comm was up 2.38% at $16.76. In the banking space, ICICI Bank was up 1.97% at $38.24 and HDFC Bank was up 1.73% at $139.35.
In the other space, Tata Motors was up 0.91% at $15.60, Sterlite was down 0.05% at $19.00 and Dr Reddys was down 2.77% at $23.89.
The jobless rate dips to 10% as U.S. employers shed far fewer jobs than expected last month
Employers in the U.S. cut the fewest jobs in November since the recession began and the unemployment rate unexpectedly fell, signaling the recovery is lifting the labor market out of the worst employment slump in the post-World War II era.
Payrolls fell by 11,000 workers, less than the median estimate of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The jobless rate declined to 10%.
The Obama administration, under pressure after almost half of the 7.2 million jobs lost during the recession occurred since the president's inauguration, is considering additional measures to boost job growth. Ben S. Bernanke, chairman of the Federal Reserve, has pledged to maintain record-low interest rates until joblessness subsides, even as a recovery takes hold.
"We're getting closer to the point where companies will need to hire back workers," Joseph LaVorgna, chief U.S. economist at Deutsche Bank (DB) Securities in New York, said before the report. "We're going to see an improvement in hiring just because firms have cut so much."
Stock futures rallied and Treasury yields rose after the report. Futures on the Standard & Poor's 500 Index expiring this month added 1.3% to 1,112.5 at 8:36 a.m. in New York. The yield on the government's 10-year note increased to 3.47% from 3.39% late yesterday.
Revisions added 159,000 from payroll figures previously reported for October and September. The October reading was revised to show a 111,000 drop in jobs compared with an initially reported 190,000 decline.
Payrolls fell by 11,000 workers, less than the median estimate of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The jobless rate declined to 10%.
The Obama administration, under pressure after almost half of the 7.2 million jobs lost during the recession occurred since the president's inauguration, is considering additional measures to boost job growth. Ben S. Bernanke, chairman of the Federal Reserve, has pledged to maintain record-low interest rates until joblessness subsides, even as a recovery takes hold.
"We're getting closer to the point where companies will need to hire back workers," Joseph LaVorgna, chief U.S. economist at Deutsche Bank (DB) Securities in New York, said before the report. "We're going to see an improvement in hiring just because firms have cut so much."
Stock futures rallied and Treasury yields rose after the report. Futures on the Standard & Poor's 500 Index expiring this month added 1.3% to 1,112.5 at 8:36 a.m. in New York. The yield on the government's 10-year note increased to 3.47% from 3.39% late yesterday.
Revisions added 159,000 from payroll figures previously reported for October and September. The October reading was revised to show a 111,000 drop in jobs compared with an initially reported 190,000 decline.
TCS, Infy, Wipro, IBM to bid for Rs 2000 cr online FIR project
Vijay Kumar Singh hopes that by 2012, most of those he gets to see in person would be potential
criminals.
Well, Singh happens to be a cop. And those whom he intends to spare from his appointment diary are the general public. Singh’s hopes are pinned on a new automated complaint filing and tracking system
that the ministry of home affairs (MHA) plans to roll out across India, aimed at trimming the time the general public spends in doing the labyrinthine rounds of the good old police station.
At the Greater Kailash-1 police station in South Delhi, where Singh is the station house officer, the existing Zipnet search is pretty much an ornament. The system tracks from a set base of data, often outdated, and fails to read the latest inputs from other law enforcement agencies.
The new integrated system police officers like Singh are looking forward to will network
initially 14,000 police stations across the country, and all the 6,000 higher offices in police hierarchy (like headquarters, range offices, zonal offices). It will bring the benefits of India Inc’s technology prowess to this British era institution, hopes Singh.
The MHA contract pegged at Rs 2,000 crore will come up for bidding on Tuesday. Around 12 companies, including Tata Consultancy Services, Infosys, Wipro, IBM and Accenture, would be participating to devise the system, slugged CCTNS—Crime and Criminal Tracking Network and Systems.
criminals.
Well, Singh happens to be a cop. And those whom he intends to spare from his appointment diary are the general public. Singh’s hopes are pinned on a new automated complaint filing and tracking system
that the ministry of home affairs (MHA) plans to roll out across India, aimed at trimming the time the general public spends in doing the labyrinthine rounds of the good old police station.
At the Greater Kailash-1 police station in South Delhi, where Singh is the station house officer, the existing Zipnet search is pretty much an ornament. The system tracks from a set base of data, often outdated, and fails to read the latest inputs from other law enforcement agencies.
The new integrated system police officers like Singh are looking forward to will network
initially 14,000 police stations across the country, and all the 6,000 higher offices in police hierarchy (like headquarters, range offices, zonal offices). It will bring the benefits of India Inc’s technology prowess to this British era institution, hopes Singh.
The MHA contract pegged at Rs 2,000 crore will come up for bidding on Tuesday. Around 12 companies, including Tata Consultancy Services, Infosys, Wipro, IBM and Accenture, would be participating to devise the system, slugged CCTNS—Crime and Criminal Tracking Network and Systems.
Deepak Parekh to step down as HDFC chief this month
Deepak Parekh, whose name has been synonymous with India’s largest mortgage company, HDFC, will cease to be the chief executive of the
Deepak Parekh
New teen CEOs
Meet the Gen Y CEOs
India's top 10 business houses
corporation from December-end. The company on Friday formally announced the succession of Keki Mistry, vice-chairman and MD, as chief executive and joint MD Renu Sud Karnad as managing director for a five-year period from January 1, 2010.
Although Mr Parekh would continue to be chairman, he has indicated that he would be spending lesser time in office in the day-to-day running of the company. “Mr Deepak Parekh, chairman & CEO of HDFC, after 31 years of which 16 years were as chairman, has decided to step down from his executive position. He will continue as the non-executive chairman of HDFC, which is the holding company for its group ventures,” a statement issued by the corporation said. The group ventures include HDFC Bank, HDFC Standard Life, HDFC Ergo General Insurance and HDFC Mutual Fund.
The corporation’s board has also approved the elevation of V Srinivasa Rangan, senior GM & chief treasurer, to the rank of the executive director of the corporation for five years.
Mr Mistry joined the corporation in 1981, has served on the company’s board for 16 years. He has worked in various positions and now would be responsible for the overall functioning of the corporation. Ms Karnad had joined the corporation in 1978, and has been on the board for nine years. She will continue to be responsible for the operations, human resources and communications functions of the corporation.
Deepak Parekh
New teen CEOs
Meet the Gen Y CEOs
India's top 10 business houses
corporation from December-end. The company on Friday formally announced the succession of Keki Mistry, vice-chairman and MD, as chief executive and joint MD Renu Sud Karnad as managing director for a five-year period from January 1, 2010.
Although Mr Parekh would continue to be chairman, he has indicated that he would be spending lesser time in office in the day-to-day running of the company. “Mr Deepak Parekh, chairman & CEO of HDFC, after 31 years of which 16 years were as chairman, has decided to step down from his executive position. He will continue as the non-executive chairman of HDFC, which is the holding company for its group ventures,” a statement issued by the corporation said. The group ventures include HDFC Bank, HDFC Standard Life, HDFC Ergo General Insurance and HDFC Mutual Fund.
The corporation’s board has also approved the elevation of V Srinivasa Rangan, senior GM & chief treasurer, to the rank of the executive director of the corporation for five years.
Mr Mistry joined the corporation in 1981, has served on the company’s board for 16 years. He has worked in various positions and now would be responsible for the overall functioning of the corporation. Ms Karnad had joined the corporation in 1978, and has been on the board for nine years. She will continue to be responsible for the operations, human resources and communications functions of the corporation.
Chinese gold rush to overtake India's this year
China looks set to overtake India as the world's largest gold consumer in 2009, with total demand for jewellery and investment forecast
Gold
How to invest in gold
Few tips to buy gold
Gold & silver jewellery
Different ways to invest in gold
Is gold fund for you?
at 432 tonnes, a senior official at major metals consultancy GFMS said on Friday.
High gold prices are putting a larger damper on appetite for gold in India than in China, with Chinese demand robust, especially in the investment area, said Philip Klapwijk, GFMS executive chairman, at a gold conference.
"To answer the question, will China overtake India to become the world's top gold consumer, according to our forecast, it looks as if it is happening this year," Klapwijk said.
GFMS forecasts total gold demand from China in 2009 to be 432 tonnes, compared with that of 422 tonnes from India. China's investment demand alone was forecast at 83 tonnes, exceeding India's 53 tonnes.
These figures exclude central bank purchases, Klapwijk said. India bought 200 tonnes from the International Monetary Fund.
Which country will become a bigger gold demand market will depend on prices, he said, adding that sensitivity to market prices is significantly bigger in India than in China.
Gold hit record highs above $1,225 an ounce on Thursday as the precious metal continued to attract investors looking for an alternative to the U.S. dollar.
"There is a huge latent demand in India and it will explode if prices fall significantly from current levels. India will react far more strongly than China to lower price environment," Klapwijk said.
In comparison, growth in jewellery consumption in China has been strong, especially in the last three to four years.
Very high local gold prices are discouraging investors to buy gold in India while China's gold buying has not been discouraged even when prices were rising to record highs, said Klapwijk.
Gold
How to invest in gold
Few tips to buy gold
Gold & silver jewellery
Different ways to invest in gold
Is gold fund for you?
at 432 tonnes, a senior official at major metals consultancy GFMS said on Friday.
High gold prices are putting a larger damper on appetite for gold in India than in China, with Chinese demand robust, especially in the investment area, said Philip Klapwijk, GFMS executive chairman, at a gold conference.
"To answer the question, will China overtake India to become the world's top gold consumer, according to our forecast, it looks as if it is happening this year," Klapwijk said.
GFMS forecasts total gold demand from China in 2009 to be 432 tonnes, compared with that of 422 tonnes from India. China's investment demand alone was forecast at 83 tonnes, exceeding India's 53 tonnes.
These figures exclude central bank purchases, Klapwijk said. India bought 200 tonnes from the International Monetary Fund.
Which country will become a bigger gold demand market will depend on prices, he said, adding that sensitivity to market prices is significantly bigger in India than in China.
Gold hit record highs above $1,225 an ounce on Thursday as the precious metal continued to attract investors looking for an alternative to the U.S. dollar.
"There is a huge latent demand in India and it will explode if prices fall significantly from current levels. India will react far more strongly than China to lower price environment," Klapwijk said.
In comparison, growth in jewellery consumption in China has been strong, especially in the last three to four years.
Very high local gold prices are discouraging investors to buy gold in India while China's gold buying has not been discouraged even when prices were rising to record highs, said Klapwijk.
Thursday, December 3, 2009
Aftermath of the Dubai debacle
On Wednesday, last week, a press release issued by the government of Dubai and the Dubai Financial Support Fund took global markets by total surprise when it announced that the ace construction company owned by the emirate - Dubai World would be restructuring its debt obligations. The document says that "as a first step, Dubai World intends to ask all providers of financing to Dubai World and Nakheel to 'standstill' and extend maturities until at least 30 May 2010".
The impact was immediately felt on global markets, even though the Middle East markets remained closed for Eid holidays. However, since then, there seems to be a semblance of sanity being established and the fears that a Lehman Brothers like situation where one announcement followed the other and took the entire global financial sector down, have been allayed at the moment.
"We doubt the issues in Dubai spread further. The foreign currency liabilities of Dubai World (ex Ports) is $22 billion (according to Dealogic), equivalent to some 0.05% of the combined assets of the US and European banks and 4% of their preprovisioning profits," say analysts at Credit Suisse.
Abu Dhabi has $50 billion of annual oil revenue and some $400 billion in its sovereign wealth fund. It thus could easily support Dubai, as it did in February.
Moreover, total foreign claims on the UAE (which includes Dubai) are $123 billion, according to the BIS. This clearly exaggerates the exposure to Dubai, as the BIS data includes SWAPs data and, above all, lending to other UAE states than Dubai. Dubai World has about $25 billion of foreign liabilities, according to Dealogic data ($22 billion if Dubai Ports is excluded, as it has been from the "standstill" announcement). This represents less than 0.1% of the assets of the US and Europeans and no more than 4% of their pre-provisioning profits, they add.
"Our banks team believes that as much as a third of the foreign currency debt might be held by UAE banks, thus limiting the exposure to global banks."
At the moment it is not clear whether UAE sovereign wealth funds would sell assets in order to fund any Dubai bail out (yet, with a standstill agreement, less funds are now needed to bail out Dubai). The key date is meant to be December 14 when the Nakheel $3.5 billion bond matures. Two thirds of these bonds are estimated by our fixed income...
Offshore buy to make Bharati a shipping giant; shares soar
Shares of Bharati Shipyard soared 17% on the Bombay Stock Exchange to close at Rs 207.80 on Thursday after the company revised the open offer price to shareholders of Great Offshore to Rs 590 per share, compelling rival ABG Shipyard to exit the race. Acquiring a controlling stake in Great Offshore will take Bharati one step further in the offshore services business and will help it turn the company into an integrated shipping firm.
Bharati will have to spend another Rs 462 crore to buy a 20% sake in Great Offshore. The company has already invested Rs 322.32 crore in acquiring 23.17% stake in Great Offshore.
Arvind Mahajan, executive director, KPMG Advisory Services, said: “Since ABG has opted out of the race to acquire Great Offshore, it is some kind of a relief for Bharati, whose stocks were deep down a while ago. The long battle with ABG is over, and to that extent, the lost share value of Bharati has come back.” He added that Bharati will be able to optimise on the synergy benefits through this acquisition.
Bharati is engaged in construction of a large array of specialised sophisticated vessels for diverse offshore, coastal and marine market sectors. Great Offshore is an integrated offshore oilfield services provider, offering a broad spectrum of services to upstream oil & gas producers to carry out offshore exploration and production activities.
Another analyst said that Bharati is constructing one oil drilling rig and a support vessel for Great Offshore, together worth around $220 million. These shipbuilding contracts could have been in trouble if ABG were to acquire Great Offshore. Also, Bharati now has the comfort of knowing that Great Offshore, one of its largest clients, will not end up being controlled by a rival company.
Param Desai, an analyst from Angel Broking, said Bharati would reap synergy benefits in the long term because of the acquisition.
Navindar M, an analyst with Natverlal and Sons Stockbrokers Pvt Ltd, said, “Bharati will not be able to reap synergy benefits so soon. Currently, Great Offshore has no leadership or a board. Also it has Rs 2,000-crore debt. Bharati will have to deal with this in the short term.
Meanwhile, shares of Great Offshore rose 0.15% to close at Rs 513.70 on the BSE. ABG’s shares also surged 3.5% to close at Rs 213.75 on the BSE.
In May this year, Bharati Shipyard bought a 14.89%...
JSW Energy IPO price band at Rs 100-115
fter 15 years, the Jindal Group is going public again. It aims to raise Rs 2,700 crore for its energy business, JSW Energy. Incorporated in 1994, JSW Energy has a current generation capacity of 995 mw and is targeting about 11,000 mw by 2015.
With this issue, JSW Energy will be the fourth power generation company this year to enter the capital market after state-run NHPC, Adani Power and Indiabulls Power, which are currently trading below the issue price.
JSW on Thursday announced the price band of its IPO — between Rs 100-115 per equity share. The issue opens on December 7 and closes on December 10.
Already, there are concerns if the IPO will sail through, especially when the stock market performance of recent power sector IPOs was disappointing. Many experts believe that they were overpriced. Adani Power had raised Rs 3,020 crore and Indiabulls Power raised Rs 1,700 crore in recent IPOs.
However, industry analysts believe the JSW Energy IPO is better placed as it is not over-priced in the current scenario and the company is also better placed. Says Nishna Biyani, an analyst with Prabhudas Lilladher, "With the current price band, the JSW Energy IPO is better placed. The company's projects are new, with 995 mw up and running, and it is getting a variable cost of Rs 1.20 to 1.30 per unit for these projects. The company is currently selling power in the short-term market at Rs 5 per unit and is targeting a total capacity generation of 3,140 mw by 2012."
JSW would use the proceeds of the issue for its plans to increase the generation capacity to 11,390 mw by 2015 and also for mining and transmission projects. The company would also use the proceeds to repay its debt of Rs 475 crore. JSW Group's consolidated debt as on September 30 stands at Rs 7,676 crore.
SS Rao, joint managing director and CEO of JSW Energy, said, "The company is currently selling about 55% of the total capacity through merchant sales and 45% through long-term contracts. Subsequently, it will sell about 40% by merchant sales."
The Sajjan Jindal-led company will dilute up to 16.64% equity stake through the issue, 18% of which will be offered to anchor investors, a company official said.
JSW Energy said it would offer a retail discount of Rs 5 to the issue price determined after completion of the book-building process. The company would allocate...
Stocks: The Trouble with Telecom
After a traumatic beginning, the year 2009 has turned out to be a great year for U.S. stocks generally. But one sector of the market, telecom, wasn't allowed into the party.
In a year when many stocks have doubled on hopes of an economic recovery, telecom has been wounded by its reputation for slow, steady growth. While the Standard & Poor's 500-stock index is up 21% this year, the S&P 500 telecommunication service sector was down 1.6% year-to-date as of Nov. 27.
That's the only one of the broad index's sectors in negative territory. The tech sector has gained 50%, while consumer discretionary stocks have risen 35%.
Telecom's troubles are well-known on Wall Street. First, there is uncertainty about the effect of new regulations, particularly from the Obama Administration's Federal Communications Commission, or FCC.
Second, the recession has accelerated the trend away from traditional landline phone service, as more companies and residences cut lines or decide to switch to wireless, Internet, or cable phone service.
Third, competition among telecom players is fierce, both in offering new services—such as wireless smartphones—and in lowering prices.
India's Next Global Export: Innovation
On a November afternoon, a dozen executives from companies including investment banks Rothschild and Goldman Sachs (GS) and tech research firm Gartner (IT) ringed a conference table in a brownstone on New York's Upper East Side. They were there to learn how U.S. businesses could develop products more cheaply and quickly by borrowing strategies from India. Speaker Navi Radjou, who heads the recently formed Centre for India & Global Business at England's Cambridge University, summed up his advice in one word: jugaad.
A Hindi slang word, jugaad (pronounced "joo-gaardh") translates to an improvisational style of innovation that's driven by scarce resources and attention to a customer's immediate needs, not their lifestyle wants. It captures how Tata Group, Infosys Technologies (INFY), and other Indian corporations have gained international stature. The term seems likely to enter the lexicon of management consultants, mingling with Six Sigma, total quality, lean, and kaizen, the Japanese term for continuous improvement.
Like previous management concepts, Indian-style innovation could be a fad. Moreover, because jugaad essentially means inexpensive invention on the fly, it can imply cutting corners, disregarding safety, or providing shoddy service. "Jugaad means 'Somehow, get it done,' even if it involves corruption," cautions M.S. Krishnan, a Ross business school professor. "Companies have to be careful. They have to pursue jugaad with regulations and ethics in mind."
More than a Fad?
The rise of jugaad raises another question: Do companies really need to pay someone to tell them something that's as elementary as keep it simple? "Having a consulting industry built around jugaad is almost anathema to the word itself," says Robert C. Wolcott, executive director of Northwestern University's Kellogg Innovation Network. "I'm not sure how this is different from old-fashioned Yankee ingenuity."
Nonetheless, jugaad seems aligned with the times. Recession-slammed corporations no longer have money to burn on research and development. Likewise, U.S. consumers are trading down to good-enough products and services. Meantime, the Indian economy continues to plow ahead despite the global recession—it grew at a 7.9% clip in the third quarter—suggesting its executives have a winning strategy.
Already, companies as varied as Best Buy (BBY), Cisco Systems (CSCO) , and Oracle (ORCL) are employing jugaad as they create products and services that are more economical both for supplier and consumer. "In today's challenging times, American companies are forced to learn to operate with Plan Bs," notes Radjou. "But Indian engineers have long known how to invent with a whole alphabet soup of options that work, are cheap, and can be rolled out instantly. That is jugaad."
Godrej Properties sets IPO price band at 490-530 rupees
he price band for the public issue of Godrej Properties Ltd, a unit of Godrej Industries Ltd, has been fixed at 490-530 rupees a share,
the parent said in a statement to the BSE on Friday.
The company is offering 9.4 million shares in the offer.
the parent said in a statement to the BSE on Friday.
The company is offering 9.4 million shares in the offer.
Gold lower on profit-taking; US data eyed
Gold futures edged lower on Friday morning on profit-taking after the yellow metal gained about 13 percent since the start of November,
and investors
awaited the US employment data for direction. The most-traded February gold contract on the Multi Commodity Exchange was 0.72 per cent lower at 18,047 rupees per 10 grams at 10:51 am, after hitting a record of 18,364 rupees in the previous session.
"This could be attributed to profit-taking, support is placed at 17,900 rupees for the day," said Abhishek Chauhan, technical analyst, Angel Commodities
. "Further direction would be data-dependent," said Aurobinda Prasad, head of research, Karvy Comtrade. Friday's US employment report is expected to show payrolls shed fewer jobs in November than October.
Economists polled by Reuters gave a median estimate of 130,000 jobs lost in November, compared with 190,000 in October. Open interest for February gold on MCX was at 17,517 lots, down from 17,787 a day earlier. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:51 am.
and investors
awaited the US employment data for direction. The most-traded February gold contract on the Multi Commodity Exchange was 0.72 per cent lower at 18,047 rupees per 10 grams at 10:51 am, after hitting a record of 18,364 rupees in the previous session.
"This could be attributed to profit-taking, support is placed at 17,900 rupees for the day," said Abhishek Chauhan, technical analyst, Angel Commodities
. "Further direction would be data-dependent," said Aurobinda Prasad, head of research, Karvy Comtrade. Friday's US employment report is expected to show payrolls shed fewer jobs in November than October.
Economists polled by Reuters gave a median estimate of 130,000 jobs lost in November, compared with 190,000 in October. Open interest for February gold on MCX was at 17,517 lots, down from 17,787 a day earlier. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:51 am.
High-frequency trading surges across the globe
High-frequency stock trading is spreading around the world into more and more asset classes, but progress is being slowed by poor infrastructure, heavy regulation and opposition from entrenched interests.
In some major markets in Asia, it can take seconds to execute an equities order. That's a lifetime for a trader who uses sophisticated algorithms to trade thousands of shares in a millisecond with the aim of earning a profit from market making and price imbalances.
Turf battles between exchanges also sometimes prevent the kind of interconnected market approach that provides fertile ground for high-frequency trading. Traditional brokers and institutions, whose positions are threatened by upstart trading houses, also help to erect barriers.
In some major markets in Asia, it can take seconds to execute an equities order. That's a lifetime for a trader who uses sophisticated algorithms to trade thousands of shares in a millisecond with the aim of earning a profit from market making and price imbalances.
Turf battles between exchanges also sometimes prevent the kind of interconnected market approach that provides fertile ground for high-frequency trading. Traditional brokers and institutions, whose positions are threatened by upstart trading houses, also help to erect barriers.
FOREX-Dollar dips vs yen, steadies vs euro before US data
The dollar dipped against the yen on Friday as traders took profits on the greenback's sharp rebound from a 14-year trough ahead of the U.S. government's monthly employment report later in the day.
The euro slipped against the yen after climbing sharply versus the Japanese currency the previous day when the European Central Bank suggested that it would gradually withdraw emergency liquidity from the system.
The European single currency on Thursday neared a 16-month high against the dollar around $1.5140 after ECB President Jean-Claude Trichet said the next 12-month refinancing operation for banks would be the last. [ID:nECBNEWS]
But the euro soon lost steam as Trichet said liquidity moves should not be seen as any kind of a signal on interest rates. The ECB left rates at record low of 1.0 percent at Thursday's meeting. [ID:nGEE5B125T]
Market players' attention has now shifted to U.S. monthly jobs data for November.
"The market would react more to stronger-than-expected numbers as such figures would improve investor risk appetite, likely to trigger buying in higher-yielding currencies," said Tsutomu Soma, senior manager of foreign securities department at Okasan Securities.
The dollar fell 0.2 percent from late U.S. trade to 88.05 yen JPY=, having recovered from a 14-year low of 84.82 yen hit last week on trading platform EBS.
The U.S. currency rose 1 percent against the yen the previous day after Bank of America (BAC.N) said it would repay $45 billion of taxpayer bailout funds, boosting investor confidence. [ID:nN0250856]
Traders said Japanese exporters' dollar offers were lined up above 88.50 yen, keeping players hesitant about chasing the dollar higher.
The euro was barely moved against the greenback at $1.5051 EUR=, while it dipped 0.3 percent versus the yen to 132.53 yen EURJPY=R.
Cisco to go ahead with plan to buy Tandberg
Cisco Systems Inc (CSCO.O) said it plans to go ahead with its plan to buy Norway's Tandberg ASA (TAA.OL), paving the way toward creating the world's leader in video conferencing equipment, although acceptances from shareholders were slightly below its target.
Cisco said about 89 percent of shareholders accepted the 19 billion Norwegian crown ($3.4 billion) deal. That was lower than the 90 percent Cisco had set as a minimum requirement, but the company said it would waive this condition.
Cisco had struggled to win over the shareholders. Its original bid was rejected by over 90 percent of Tandberg shareholders, forcing Cisco to repeatedly extend its offer deadline and raise its bid by 10 percent last month.
Cisco said it could raise its stake above 90 percent by buying more shares in the open market or through various contracts, including options and other financial instruments.
"We intend on pursuing all options available to us," company spokeswoman Kristin Carvell said in an email to Reuters.
Analysts have said that Cisco will likely eventually make Tandberg and its other video-related products work together seamlessly. That will help make Cisco's equipment -- including the routers and switches that support online communications -- indispensable to business customers.
"We think the deal makes sense," Brian White of Ticonderoga Securities said on Thursday. "If they can link it in with TelePresence it makes a lot of sense."
Tandberg is the leading videoconferencing equipment maker, filling a gap between Cisco's high-end TelePresence conferencing products and WebEx desktop video service. Tandberg holds 40 percent of the mid-tier market for videoconferencing, according to Wainhouse Research.
While Cisco repeatedly threatened to walk away, most analysts expected it to ensure the deal went through, since the leading network equipment maker has repeatedly touted videoconferencing as a key growth business.
CASH-RICH CISCO
Cisco Chief Executive John Chambers has said online videoconferencing was on the brink of wider adoption. The company estimates the total value of collaboration tools, including everything from videoconferencing to Google Apps, at around $34 billion.
High-quality, real-time videoconferencing can help cut travel costs, and Cisco says it can do more, such as helping businesses like retailers, banks and hospitals launch services from remote locations.
Cisco can pursue such ambitions because is one of the most cash-rich companies in the technology business, with $35.4 billion in cash and investments at the end of the quarter. The Tandberg deal also makes use of Cisco's cash overseas, which accounts for most of the stockpile.
Emboldened by a recovering economy and customer demands for one-stop-shop type technology services, Cisco has been expanding its product line to include networking, security and videoconferencing.
A few weeks after announcing its bid for Tandberg, Cisco said it also planned to buy advanced wireless equipment maker Starent Networks Corp (STAR.O) for $2.9 billion.
MORE DEALS COMING?
Analysts also have said the deal could trigger more deals in the videoconferencing space.
No rivals publicly emerged for the Tandberg deal, but analysts have said companies like Microsoft (MSFT.O), Hewlett-Packard (HPQ.N), IBM (IBM.N) and Avaya [AVXX.UL] could seek to add videoconferencing services.
Polycom Inc (PLCM.O), the industry's No. 2 player, has been seen as a target, although its CEO told Reuters last month that it was looking to step up partnerships with companies like HP and IBM rather than pursue a buyout. [ID:nN11428210]
Tandberg shares closed at 163.20 crowns per share, below Cisco's final bid of 170 crowns. Cisco shares fell 4 cents on the Nasdaq to $23.83 on Thursday but were up slightly in after-hours trading.
Thursday, November 26, 2009
Tata Power - Consolidated Q2 results on Nov 26, 2009
Tata Power Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on November 26, 2009, inter alia, to consider and take on record the unaudited consolidated financial results for the quarter / half year ended September 30, 2009 (Q2).
Tata Power - Half yearly communication as per Clause 6 of Debt Listing Agreement
Tata Power Company Ltd has submitted to BSE a copy of Half-Yearly information statement as required by the Simplified Listing Agreement for Debt Securities.
Indiabulls Financial - Disclosures under Reg. 7(3) of SEBI (SAST) Regulations, 1997
Indiabulls Financial Services Ltd has submitted the disclosure under Regulation 7(3) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997 to BSE:
Indiabulls Financial announces Q2 results
Indiabulls Financial Services Ltd has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a net profit of Rs 623.426 million for the quarter ended September 30, 2009 as compared to Rs 448.236 million for the quarter ended September 30, 2008. Total Income has decreased from Rs 4753.488 million for the quarter ended September 30, 2008 to Rs 3430.540 million for the quarter ended September 30, 2009.
The Consolidated Results are as follows
The Group has posted a net profit after tax & minority interest of Rs 711.263 million for the quarter ended September 30, 2009 as compared to Rs 1335.810 million for the quarter ended September 30, 2008. Total Income has decreased from Rs 6415.281 million for the quarter ended September 30, 2008 to Rs 3954.442 million for the quarter ended September 30, 2009.
Indiabulls Financial - Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 1992
Indiabulls Financial Services Ltd has submitted the disclosure under Regulation 13(6) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 to BSE
SAIL - Change in Directorate
Steel Authority of India Ltd (SAIL) has informed BSE that with the completion of tenure on November 21, 2009 (A/N), the following Independent Directors have ceased to be Directors on the Board of SAIL:
1. Prof. Javaid Akhtar
2. Shri P. K. Sengupta
3. Dr. Vinayshil Gautam.
1. Prof. Javaid Akhtar
2. Shri P. K. Sengupta
3. Dr. Vinayshil Gautam.
India Cements announces Q2 results
ndia Cements Ltd has announced the following Audited results for the quarter ended September 30, 2009:
The results for the Quarter ended September 30, 2009
The Company has posted a net profit of Rs 1369.40 million for the quarter ended September 30, 2009 as compared to Rs 1342.70 million for the quarter ended September 30, 2008. Total Income has increased from Rs 9296.40 million for the quarter ended September 30, 2008 to Rs 9949.20 million for the quarter ended September 30, 2009.
The results for the Quarter ended September 30, 2009
The Company has posted a net profit of Rs 1369.40 million for the quarter ended September 30, 2009 as compared to Rs 1342.70 million for the quarter ended September 30, 2008. Total Income has increased from Rs 9296.40 million for the quarter ended September 30, 2008 to Rs 9949.20 million for the quarter ended September 30, 2009.
Gail India announces Q2 results
Gail India Ltd has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a net profit of Rs 7132.30 million for the quarter ended September 30, 2009 as compared to Rs 10234.50 million for the quarter ended September 30, 2008. Total Income has increased from Rs 63582.00 million for the quarter ended September 30, 2008 to Rs 63711.00 million for the quarter ended September 30, 2009.
Gail India - Analyst Meet - Presentation
Gail India Ltd has informed BSE that a presentation was made in a Analyst meet at Mumbai on November 04, 2009. The same is also hosted on the Company's website i.e. www.gailonline.com -> Investor Zone -> Presentation -> Investor Presentation - (Mumbai) - November 2009.
Tuesday, November 24, 2009
Godrej Industries announces Q2 results
Godrej Industries Ltd has announced the following Unaudited results for the quarter ended September 30, 2009:
The Company has posted a net profit of Rs 364.30 million for the quarter ended September 30, 2009 where as the same was at net loss of Rs (90.90) million for the quarter ended September 30, 2008. Total Income is Rs 2345.80 million for the quarter ended September 30, 2009 where as the same was at Rs 2584.60 million for the quarter ended September 30, 2008.
The Unaudited Consolidated Results are as follows
The Group has posted a net profit of Rs 666.70 million for the quarter ended September 30, 2009 where as the same was at Rs 194.70 million for the quarter ended September 30, 2008. Total Income is Rs 8961.70 million for the quarter ended September 30, 2009 where as the same was at Rs 9652.70 million for the quarter ended September 30, 2008.
The Company has posted a net profit of Rs 364.30 million for the quarter ended September 30, 2009 where as the same was at net loss of Rs (90.90) million for the quarter ended September 30, 2008. Total Income is Rs 2345.80 million for the quarter ended September 30, 2009 where as the same was at Rs 2584.60 million for the quarter ended September 30, 2008.
The Unaudited Consolidated Results are as follows
The Group has posted a net profit of Rs 666.70 million for the quarter ended September 30, 2009 where as the same was at Rs 194.70 million for the quarter ended September 30, 2008. Total Income is Rs 8961.70 million for the quarter ended September 30, 2009 where as the same was at Rs 9652.70 million for the quarter ended September 30, 2008.
Bharti Airtel announces Q2 results
Bharti Airtel Ltd has announced the following Audited results for the quarter ended September 30, 2009:
The Company has posted a net profit of Rs 22969.40 million for the quarter ended September 30, 2009 as compared to Rs 16047.80 million for the quarter ended September 30, 2008. Total Income has increased from Rs 83028.00 million for the quarter ended September 30, 2008 to Rs 89271.00 million for the quarter ended September 30, 2009.
The Consolidated Results are as follows
The Audited Consolidated results as per Indian Generally Accepted Accounting Principles (IGAAP) are as follows:
The Group has posted a net profit of Rs 22541.70 million for the quarter ended September 30, 2009 as compared to Rs 16681.20 million for the quarter ended September 30, 2008. Total Income has increased from Rs 89527.30 million for the quarter ended September 30, 2008 to Rs 103930.60 million for the quarter ended September 30, 2009.
Sterlite Technologies - Financial Results for Sep 30, 2009
Sterlite Technologies Ltd has informed BSE about the financial results for the Quarter ended September 30, 2009.
Sterlite Technologies - Allotment of Warrants
Sterlite Technologies Ltd has informed BSE that the Allotment Committee of the Company in its meeting held October 08, 2009 has issued and allotted 73,00,000 share warrants convertible in equity shares to its promoter entity M/s. Twinstar Overseas Ltd. vide the approval received from shareholders of the Company in their meeting held on July 24, 2009.
Sterlite Industries - Press Release
Sterlite Industries India Ltd has informed BSE regarding a Press Release dated October 30, 2009 titled Sterlite Energy Limited files Draft Red Herring Prospectus with Securities and Exchange Board of India (SEBI)
Sterlite Industries - Monitoring Agency Report
Sterlite Industries India Ltd has submitted to BSE a report dated October 20, 2009, received from ICICI Bank Ltd. (Monitoring Agency for the Rights Issue of the Company in the year 2004) for the quarter ended September 30, 2009 in respect of the Utilization of Rights Issue Proceeds, duly noted by the Audit Committee and Board of Directors of the Company in their respective meetings held on October 29, 2009.
Sunday, September 20, 2009
Google revamps DoubleClick exchange
SAN FRANCISCO, Sept 18 (Reuters) - Google Inc (GOOG.O) unveiled a new advertising exchange that draws on its search prowess to challenge Yahoo Inc's (YHOO.O) grip on the market for online display ads.
The new DoubleClick Ad Exchange introduced on Friday is the first major overhaul of the system since Google acquired DoubleClick for more than $3 billion in March 2008.
It represents a key plank in Google's plan to supplement its market-leading business of serving text-based ads alongside Web search results with the more visual, graphical ads that appear on websites -- a market dominated by online rivals Yahoo and Time Warner Inc's (TWX.N) AOL.
The new DoubleClick Ad Exchange introduced on Friday is the first major overhaul of the system since Google acquired DoubleClick for more than $3 billion in March 2008.
It represents a key plank in Google's plan to supplement its market-leading business of serving text-based ads alongside Web search results with the more visual, graphical ads that appear on websites -- a market dominated by online rivals Yahoo and Time Warner Inc's (TWX.N) AOL.
Goldman Sachs fund to invest $250 million in Geely
BEIJING (Reuters) - A Goldman Sachs Group private equity fund is investing about $250 million in Chinese carmaker Geely Automobile (0175.HK), a move that could free up capital for Geely's parent to bid on Ford's (F.N) Volvo unit, the Wall Street Journal reported, citing an unidentified source.
Joblessness Spikes to 11.1% in D.C., Eases in Va., Md.
The unemployment rate for the District rose dramatically to 11.1 percent in August, the highest level since July 1983, but fell for the second consecutive month in Virginia and stabilized in Maryland, according to government data released Friday.
Some employment experts attributed the disparity to the higher proportion in the District of undereducated employees in low-wage jobs that are more vulnerable to cuts. Meanwhile, in Virginia and Maryland, the labor market is showing signs of a turnaround, evidenced by a slowing of layoffs and a surge of jobs created by stimulus dollars.
Some employment experts attributed the disparity to the higher proportion in the District of undereducated employees in low-wage jobs that are more vulnerable to cuts. Meanwhile, in Virginia and Maryland, the labor market is showing signs of a turnaround, evidenced by a slowing of layoffs and a surge of jobs created by stimulus dollars.
Thursday, September 17, 2009
Reliance Petroleum drops 3.4%
Reliance Petroleum (RPL)touched an intraday high of Rs 138 and an intraday low of Rs 130.50. At 12:09 pm, the share was quoting at Rs 130.50, down Rs 4.6, or 3.4%.
Reliance Petroleum is going to be remove from NSE F&O from September 25, all contracts to expire on September 24 (merger with RIL), reports CNBC-TV18.It was trading with volumes of 835,604 shares. Yesterday the share closed up 0.41% or Rs 0.55 at Rs 135.10.
Wednesday, September 16, 2009
BOJ Raises Economic Assessment, Sees Recovery Signs
The Bank of Japan raised its assessment of the economy and held the benchmark interest rate close to zero percent as it seeks to strengthen the recovery.
“Japan’s economic conditions are showing signs of recovery,” the central bank said in a statement in Tokyo today, after last month saying they had “stopped worsening.” Governor Masaaki Shirakawa and his colleagues kept the overnight lending rate at 0.1 percent at the policy board meeting.
Reports today showed the economy is rebounding from its worst postwar recession: manufacturers turned optimistic for the first time in almost two years and demand for services rose for a second month in July. The revival has been driven by global stimulus spending and Shirakawa said on Aug. 31 that he’s not yet confident it will continue to improve.
“Even though Japan’s economy is on a recovery path, demand is still weak and the bank seems to think it’s too early to normalize policy measures,” said Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo, who used to work at the central bank. He said the policy board will keep the key rate unchanged at least until March 2011.
“Japan’s economic conditions are showing signs of recovery,” the central bank said in a statement in Tokyo today, after last month saying they had “stopped worsening.” Governor Masaaki Shirakawa and his colleagues kept the overnight lending rate at 0.1 percent at the policy board meeting.
Reports today showed the economy is rebounding from its worst postwar recession: manufacturers turned optimistic for the first time in almost two years and demand for services rose for a second month in July. The revival has been driven by global stimulus spending and Shirakawa said on Aug. 31 that he’s not yet confident it will continue to improve.
“Even though Japan’s economy is on a recovery path, demand is still weak and the bank seems to think it’s too early to normalize policy measures,” said Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo, who used to work at the central bank. He said the policy board will keep the key rate unchanged at least until March 2011.
Flat Times For Consumer Prices
Consumer prices rose .45% in August, driven primarily by the 4.6% jump in energy costs, while food prices also eked out a .1% gain after falling through the year. Excluding those relatively volatile elements, inflation barely rose, managing to squeeze out a gain of .07%, the weakest reading of the year.
The razor-thin increase was all the more impressive as the Fed reported that industrial output, which includes U.S. factories, mines and utilities, rose .8% in August, topping the Street's expectations, and providing further indication that the nation is in the midst of a nascent recovery.
The razor-thin increase was all the more impressive as the Fed reported that industrial output, which includes U.S. factories, mines and utilities, rose .8% in August, topping the Street's expectations, and providing further indication that the nation is in the midst of a nascent recovery.
Swine flu death rate similar to seasonal flu: expert
WASHINGTON (Reuters) - The death rate from the pandemic H1N1 swine flu is likely lower than earlier estimates, an expert in infectious diseases said on Wednesday.
New estimates suggest that the death rate compares to a moderate year of seasonal influenza, said Dr Marc Lipsitch of Harvard University.
"It's mildest in kids. That's one of the really good pieces of news in this pandemic," Lipsitch told a meeting of flu experts being held by the U.S. Institute of Medicine.
"Barring any changes in the virus, I think we can say we are in a category 1 pandemic. This has not become clear until fairly recently."
New estimates suggest that the death rate compares to a moderate year of seasonal influenza, said Dr Marc Lipsitch of Harvard University.
"It's mildest in kids. That's one of the really good pieces of news in this pandemic," Lipsitch told a meeting of flu experts being held by the U.S. Institute of Medicine.
"Barring any changes in the virus, I think we can say we are in a category 1 pandemic. This has not become clear until fairly recently."
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