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G20 Summit protesters hope to capitalise on recession woes

2009-03-29T02:06:00.000-07:00

Buoyed by a renewed sense that the recession has made anti-capitalist protest fashionable again, a myriad of groups have vowed to bring London to a standstill during next week's Group of 20 (G20) summit to rescue the global economy.

The website announcements by umbrella organisation G-20 Meltdown that large swaths of London would be in security lockdown and bankers would be targeted if they dared to wear smart suits on the day have led Scotland Yard to declare that police are facing a "huge challenge".

The protesters' target date is April 1, renamed Financial Fools' Day for the purpose, when suited effigies of bankers will be symbolically hanged and demonstrators will march on the Bank of England headquarters shouting: "Burn a banker!"

"They want to stop the City on Wednesday, that is their avowed intention," said Scotland Yard commander Bob Broadhurst. The force will have up to 10,000 men on the streets in a massive security operation estimated to cost in excess of seven million pounds ($10.2 million).

Their task is not made any easier by the fact that the G20 meeting coincides with a state visit by Mexican President Felipe Calderon - a summit participant - and with England's national football squad matches against Ukraine and Slovakia.

Broadhurst said the re-emergence of radical direct action groups that had not been active since the 1990s and had forged "new alliances" with environmentalists, anti-globalisation protesters and anarchists made the challenge unpredictable.

"Clearly there are some very innovative and clever people and they know our tactics," he said. "Anarchists by definition don't come to see us."

There have been reports that groups supporting "direct action" are planning to block streets and paralyse public transport by intentionally leaving unattended bags on Tube trains.

There were also plans to block a road tunnel en route to the summit venue in the ExCel exhibition centre in the former docklands in east London.

Demonstrators are expected to switch their attention to the purpose-built waterfront centre early April 2 as delegations and some 2,000 media representatives arrive for the one-day summit.

According to Broadhurst, the police will "facilitate lawful protest". There would be a "demonstration pen" near the ExCel centre to "accommodate a few hundred protestors".

Meanwhile, staff in the City, London's financial district, have been advised to dress down and postpone non-essential meetings during the summit week.

"Businesses might want to consider asking their staff not to dress in a suit and tie as a lot of the protestors say they're going to target bankers," said a spokesman for the London Chamber of Commerce.

He advised that workers should stagger their start and finish times and consider postponing meetings.

Businesses were braced for losses of millions of pounds as a result of the expected disruptions and staff being unable to get to their place of work.

"The revolution is coming. This is our time," protest group Government of the Dead said on its website, confirming the view held by anti-capitalism groups that the recession and spiralling unemployment would make ordinary citizens join their cause.

"There will be a lot of people for whom this is the first opportunity to express their anger and look for another way of doing things," singer and political activist Billy Bragg told the Observer newspaper.

Comparing the protests with the demonstrations against Third World debt at the end of the 1990s, he said: "The anti-globalisation movement last time was doing it in the teeth of a boom. Now capitalism has floundered and people want an alternative to what we have had."

While G20-Meltdown insists that its intentions are peaceful, the authorities fear that radical groups are preparing for more disruptive tactics, including entering banks and office buildings.

George McKay, professor of Cultural Studies at Salford University in Manchester, backed the belief that the economic crisis had served to boost support for street protest.

"We are at an absolutely pivotal point. That, I think, will add to a new level of angry energy," he said.

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Home loan rates may drop again, say analysts

2009-03-25T04:00:00.000-07:00

Home loan interest rates, especially on new home loan accounts, started softening from the beginning of this year when the Reserve Bank of India (RBI) announced sharp cuts in the repo rate and cash reserve ratio (CRR). The RBI started slashing the key policy rates since October last year, after taking into account the worsening liquidity situation of banks here. The central bank has reduced its key policy interest rates (repo and reverse repo) and reserve ratio (CRR) four times in the last six months.

The cut in the repo rate meant commercial banks would have funds available at a lower cost. On the other hand, the cut in the CRR meant banks would have to keep less money with the RBI and hence they had more money to lend. Analysts believe that interest rates have not yet bottomed out and there will be further cuts in borrowing rates over the next few months.

These are some of the factors that are expected to bring the interest rates on home loans further down:

RBI moves

Analysts believe that banks have not yet passed on the entire benefits of lower interest rates (especially to existing home loan borrowers). This is because banks fix the interest rates based on the concept of net interest margin (the difference between average yield on advances and average cost of deposits). Usually, banks like to keep this spread (net interest margin) above three percent.

Banks are locked-in with higher interest rate deposits from the public for certain maturity periods and these deposits cannot be terminated in view of the prevailing market conditions . Therefore, the interest rates on existing loans cannot be lowered immediately. Meanwhile, the RBI and government are pressurising banks to slash the interest rates on existing loans as well.

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Liquidity

The consumer sentiments have dropped drastically due to the global slowdown. The RBI encouraged banks to increase the credit inflow to the economy by increasing the bank credit target to 24 percent from 20 percent in the recent policy reviews.

The RBI also increased the money supply target to 19 percent from the current 16.5 to 17 percent levels. This will help increase the liquidity in the market, and also help in easy availability of loans.

Inflation rate drop

The inflation rate has come down drastically to around 2.3 percent for the week ended February 28 from its peak of 12.9 percent recorded in August last year. Analysts believe the inflation rate will go down further and may end up lower than two percent by the end of this month itself.

Some analysts believe there might be a negative inflation rate in a couple of months if the market conditions remain bad due to the higher base effect of last year. It will prompt the RBI to cut the policy rates further and that will have a direct influence on home loan interest rates.

Go for it

Borrowers should take note of these factors to track the movement of home loan interest rates. However, it is not prudent for all to keep waiting with their fingers crossed. Many banks have recently announced home loan rate cuts and people should not expect another rate cut in the next few weeks again. There are many attractive deals available for new home loan borrowers in the market. People who have already finalised on a property can choose from these available home loan offers.

A borrower should analyse the various aspects of home loans first. You should gather as much information as you can about the home loan product and lender you choose. You can consult those who have already taken a loan and gone through such an exercise.

Here are some important factors borrowers should analyse while going in for a home loan:

Charges

Understand the various charges, fees and penalties that the bank will charge at the beginning of the loan, during the loan tenure and at the time of termination of the loan. Some banks push for home loan insurance cover. You should weigh your risk profile carefully before choosing the insurance product .

Track record

Since a housing loan is a long-term relationship with the bank, you should look at the track record (trigger and frequency) of revising the home loan interest rates, in the last few years.

Flexibility
You should also look at the flexibility of charges on EMI revisions, part-prepayments and foreclosure of your home loan.

Why the US dollar is still resilient

2009-03-24T13:00:00.000-07:00

Trillion-dollar bailouts, trillion-dollar deficits, and the largest spending bill in US history. No matter how dire the news out of the US, the

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dollar strengthens. It has carried on rising in spite of new bailouts for two leading financial institutions — Citigroup and AIG — a catastrophic fall in US gross domestic product and more dreadful news about the US housing market. The dollar has risen 10% against the euro so far this year, and by 7.4% against the yen. The dollar just a fortnight ago had its best performance against the yen for 13 years — rising 4%.

Plans by the US Fed to buy $300 billion of US government debt has triggered on March 18 a fall of 3.01% for the dollar — the greatest, on a tradeweighted basis, since the signing of the Plaza accord in September 1985. The dollar had rallied since summer of 2008 largely on the perverse effects of ‘deleveraging’ , as investors paying down debts often sold assets outside the US and bought dollars.

With the dollar suddenly cheaper, and US goods, therefore, more competitive, other central banks are in a dilemma. In the eurozone, where the European Central Bank continues to face criticism that it is “behind the curve” , the fate of beleaguered exporters who are facing 10% rise for the euro against the dollar in March 2009 could force the central bank to intervene to pull down the single currency . Similarly, in Japan, where the Bank of Japan has already intervened in the bond market, it is likely that the BOJ may intervene directly to weaken the yen. The yen is some 35% stronger than it was in July 2007, at the dawn of the credit crisis.

The US Dollar Index, which tracks the US currency’s progress against a basket of six leading currencies, has risen to a three-year high of 88.969 on a trade-weighted basis. Longer term, however, the US Dollar Index remains well off its highs of this decade, or even the last six years. As recently as 2003, the index traded above 100, which is about 12.5% above current levels.

A number of analysts had predicted the continued demise of the US dollar, thanks to the financial-sector bailout and weakening economy but its sharp upside has surprised many. The dollar’s recent climb is part of a massive reversal of long-standing investing trends (due to the global economic slowdown) such as buying emerging-market stocks or wagering on rising commodity prices.

Besides, many European banking systems built up long US dollar positions vis-à-vis non-banks and funded them by inter-bank borrowing and via FX swaps, exposing them to funding risk. When heightened credit risk concerns crippled these sources of short-term funding , the chronic US dollar funding needs became acute.

Given the dollar’s credentials as safe haven, its unchallenged role as global reserve currency, plus the fact that the market continues to give US fiscal and monetary policy action the benefit of the doubt, buying the dollar on dips remains the strategy of choice.

The dollar’s strength partly reflects the weakness of other currencies. Faith in the yen as a haven has been eroded by a flurry of dismal Japanese economic data while concerns over European banks and their exposure to problems in central and eastern Europe have seen the euro and, to some extent, the Swiss franc fall from grace.

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The ability of central banks in Brazil, Russian, India , China and Saudi Arabia, which over the past few years have accounted for at least 30% of net treasury buying, to finance the ballooning US budget deficit is limited by the fact that their currency reserves are either falling — as in Brazil and Russia or no longer rising, as in China.

Aside from the actions of global reserve managers, activity from US mutual funds shows an unwillingness to increase their allocations to foreign markets. This matters because US fund managers hold $30,000 billion of domestic and foreign securities, compared with the estimated $7,000 billion of foreign currency reserves managed by the world’s central banks.

Having increased their share of overseas assets from about 12.5% at the start of the decade to a high of 26% last summer, risk averse US funds reduced that share to 23%, where it has remained so far in 2009. I see further reductions in the proportion of their portfolios held in overseas markets and the subsequent repatriation of capital will help the US to continue to fund its current account deficit and thus support the dollar this year.

Besides, long-term portfolio allocation data for all US investors shows global shocks historically have caused US investors to steer away from overseas markets for several years. This time risk-averse American fund managers are unlikely to behave any differently in their response to the global economic slump.

The process of European banking sector de-leveraging is likely to generate significant US dollar demand over the months ahead, which will lend support to the US dollar against many other currencies.

Dollar demand has also been reflected in the rise in purchases (and hence the price) of US treasury bonds, seen as the safest haven of all. The most recent data shows that such holdings of treasury bonds increased by about $100 billion over the past four weeks. Other countries are also feeling the effects (even more than the US) and so are slashing interest rates to try and boost domestic economic activity; so, the expected yield differential with the US is falling. With this trend set to continue , investors will continue to flock to the dollar.

I believe the world could see some growth return by the last quarter of 2009 and continuing through the first half of 2010. The actions of the Federal Reserve could stoke US inflation and ultimately undermine the dollar. However, this is probably a story which will continue to play itself out till 2010. Currently, the Fed thinks a rise in inflation is a lesser evil than further falls in house prices.

When you’re competing against the likes of Europe , the US dollar suddenly doesn’t look so bad. Or rather, the US dollar is the prettiest pig in the herd.

(The author is CEO, Global Capital Advisors, New York)

HDFC Bank replaces ICICI as most valued private sector bank

2009-03-24T12:57:00.000-07:00

MUMBAI: Private sector lender HDFC Bank on Tuesday toppled ICICI Bank as the country's most valued private sector bank, after its shares surged

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over six per cent on the Bombay Stock Exchange.

The market capitalisation of ICICI Bank, the top private sector lender in terms of asset size, today fell to Rs 39,516.58 crore against Rs 40,001 crore of rival HDFC Bank.

At the end of the trade today, the shares of HDFC Bank settled up 6.31 per cent at Rs 940.50 on BSE. During the day the scrip had surged 10.09 per cent to Rs 973.90.

In comparison, ICICI Bank gained 2.44 per cent at Rs 355.10. In the intra-day trade, the scrip had surged 7.69 per cent to a high of Rs 373.30 on BSE.

Overall, ICICI Bank moved down to 18th position in terms of marketcap, against a place among the top-10 companies till last year.

At the end of Friday's trading, the country's biggest state-run lender State Bank of India's market cap stood at Rs 65,697.02 crore after its shares rose by 1.09 per cent to close at Rs 1,034.65.

The banking sector stocks today witnessed a surge following positive global cues with HDFC Bank emerging as the biggest gainer among all the blue-chip stocks.

Tata makes Nano booking easy for buyers

2009-03-23T12:25:00.000-07:00

A major rush for its small car Nano, which is being launched on March 23, Tata Motors has ensured that the car can be booked at multiple points. A customer can book the car at any Tata dealership, any Croma outlet, any Westside outlet and the booking can even be made online.

To book the car, the customer will have to fill a Rs 300 application form and deposit an amount equal to 70 to 80 per cent of car’s price as booking amount. The form can be deposited at any SBI branch or the place, where it was bought and the payment can be made through a draft or cheque.

Along with the application, an address proof is also needed and that could be a copy of the Voter ID, passport or driving license.

Meanwhile, Tata Motors is gearing up for the launch of the car as the demand is expected to be more than what the company can produce now. The Pantnagar plant of the company can make 50,000 to 60, 000 cars and this will is far less than the consumer demand.

It’s only after the plant in Gujarat becomes operational that the company will be able to cater to the customer demand, analysts say. They are also putting a question mark over how long the company can sustain the Rs 1 lakh mark.

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SBI could have the Tata Nano booking monopoly

2009-03-23T12:17:00.000-07:00

State Bank of India will be the exclusive agent for booking the Tata Nano. Mr. Jayanta Kumar Sinha, chief general manager SBI, indicated that the formal announcement on this will be made in 15-20 days.

In a press conference Mr. Sinha announced that the bank will be the sole booking agent for the Nano. SBI already has an auto loan financing scheme with Tata Motors .

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Nano booking to start from April 9

2009-03-23T12:13:00.000-07:00

The booking of the Nano, the Rs 100,000-people's car from the Tata stable, will begin on April 9 and remain open till April 23.

Announcing this ahead of its launch on Monday, Tata Group chairman Ratan Tata told editors that the car, which would have the smallest footprint on the road, will be sold to the first 100,000 buyers at a price to be announced later.

The promise that has been made to sell the car at around Rs 100,000 would be kept despite the fact that commodity prices had shot up, Tata said, adding that the fall in commodity prices now may provide some cushion.

The delivery of the first lot of Nano cars will begin in early-July, he said, adding that applications for booking of the car would be available in 30,000 locations in 1,000 cities across India.

State Bank of India would be the qualified banker for collection of bookings in 850 cities, he said.

The car can be booked by just paying Rs 2,999 upfront while the rest can be secured by way of loan, he said. There would be 15 preferred financiers for the booking whose names would be disclosed in three days.

The initial 50,000-60,000 Nano cars is to be supplied from its Pantnagar plant primarily set up to manufacture Ace trucks, Tata said, adding that the plant to manufacture the Nano at Sanand (Gujarat) is likely to go on-stream by end-this year or early next year.

The first 100,000 customers will be selected by draw of lots from the bookings, he said, adding that those not allotted would have the option to retain their bookings.

The customers who wait for more than one-year will be paid 8.5 per cent interest and those beyond two-years will be paid 8.75 per cent, Tata Motors' [Get Quote] managing director, Ravi Kant, said.

No interest would be given to the first 100,000 allotments, Ravi Kant said, adding that the company expects to supply the cars to the first lot in a year's time.

Tata made it clear that Nano production at Pantnagar was, however, an interim solution after the company was forced to shift its production from Singur in West Bengal to Sanand.

"Personally, to say the least, I feel very excited that we were able to go to the last mile to implement Plan B and launch the vehicle in March this year instead of December (this year) or January (next year)," Tata said.

Tata said that all preferred financiers would roll-out their booking schemes within three days.

The rate of interest on the loan would be decided by the banks that provide the loans, Ravi Kant said, adding that several banks would be providing loans including public sector banks.

The Sanand plant would have a capacity of 2,50,000 units per annum which could later be expanded to half-a-million, Tata said.

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The model would meet BS II, III and IV norms which are equivalent to Euro II, III and IV norms, Tata said.

The four-and-a-half metre car will be emitting less carbon than even two-wheelers and hence, Tata did not subscribe to the view that it would aggravate pollution.

The 624 cc car would initially be available in three variants and can seat four persons comfortably and has the highest mileage of 26.6-kilometre per litre.

The snub-nosed vehicle will be available in one standard and two deluxe versions including A/c and power windows.

Tata said that he plans to export an upgraded version of the Nano to eastern and western Europe, the UK and possibly, the United States as well.

Exports to Europe would begin sometime in 2011 as the car has to meet certain requirements, he said.

'It is more of validation rather than re-designing' as some safety norms particularly in the rear were to be met, he said.

He also made it clear that there is no upper limit for the number of bookings.

Asked what could be the demand for the car, Tata said that the demand for two-wheelers was in the range of 6-7-million units and he expected demand for the Nano to be around 1-million.

Asked if the company would be expanding the production capacity beyond half-a-million by adding capacity in different locations, Tata said that if the demand was positive as expected, then the company would look at it.

The company had originally planned to set up assembly units at various places with quality controls in place so as to make the car available at an affordable price.

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Booking Tata Nano Car

2009-03-23T12:11:00.000-07:00

The hyped Tata 1 lakh car was launched earlier today at the Delhi Auto Expo 2008. TATA is yet to announce the bookings for the car publicly and the TATA website to does not have any information on that same. I am guessing that the bookings for TATA NANO is going to be chocked like hell and there is going to be a waiting period of several months. If I remember the television interview right, Ratan TATA said the countrywide launch is only by September 2008. Hmmm…

For now the best bet is to call up your nearest TATA dealer and strike a deal with him to get a early delivery once the NANO car rolls out of the TATA factory.

In fact, you can even try giving him a token advance and block the booking for you.

Good luck with booking the TATA Nano and feel free to post your experiences in the comments section.

Here are some pictures and the Nano car specifications:

624cc petrol engine

33BHP

20km per litre mileage, upto 26km per litre on highway

30 liter petrol tank

4 door, 5-seater

Rear engine, front boot

4 speed manual gear box

On road price expected to be around Rs. 1 lakh 25 thousand

front disc brakes and drums in the rear

Euro 4 compliant

Top speed 90kmph

You can book a Tata Nano for Rs 2,999

2009-03-23T05:02:00.000-07:00

Booking amount for the Nano, the world’s cheapest car, can be done by just paying Rs 2,999 upfront while the rest can be secured by way of loan.

Booking would begin on April 9 and remain open till April 23.

The Tata group, which announced this on Monday, said it will be sold to the first one-lakh buyers at a price to be announced later.

The delivery of the first lot of Nano cars will begin in early July. Applications for booking of the car would be available in 30,000 locations in 1,000 cities across India.

State Bank of India has an exclusive tie up for providing finance for the Nano.

Announcing this ahead of its launch today, Tata Group Chairman Ratan Tata told editors that the car, which would have the smallest footprint on the road, will be sold to the first one-lakh buyers at a price to be announced later.

The promise that has been made to sell the car at around Rs one-lakh would be kept despite the fact that commodity prices had shot up, Tata said, adding that the fall in commodity prices now may provide some cushion.

There would be 15 preferred financiers for the booking whose names would be disclosed in three days.

The initial 50,000-60,000 Nano cars is to be supplied from its Pantnagar plant primarily set up to manufacture Ace trucks, Tata said, adding that the plant to manufacture the Nano at Sanand (Gujarat) is likely to go on-stream by end-this year or early next year.

The first one-lakh customers will be selected by draw of lots from the bookings, he said, adding that those not allotted would have the option to retain their bookings.

The customers who wait for more than one-year will be paid 8.5 per cent interest and those beyond two-years will be paid 8.75 per cent, Tata Motors' Managing Director, Ravi Kant, said.

No interest would be given to the first one-lakh allotments, Ravi Kant said, adding that the company expects to supply the cars to the first lot in a year's time.

Also Read Tata Nano Car Launch May Be An Inflection Point

Tata made it clear that Nano production at Pantnagar was, however, an interim solution after the company was forced to shift its production from Singur in West Bengal to Sanand.

"Personally, to say the least, I feel very excited that we were able to go to the last mile to implement Plan B and launch the vehicle in March this year instead of December (this year) or January (next year)," Tata said.

Tata said that he plans to export an upgraded version of the Nano to eastern and western Europe, the UK and possibly, the United States as well.

Exports to Europe would begin sometime in 2011 as the car has to meet certain requirements, he said.

"It is more of validation rather than re-designing" as some safety norms particularly in the rear were to be met, he said.

He also made it clear that there is no upper limit for the number of bookings.

Asked what could be the demand for the car, Tata said that the demand for two-wheelers was in the range of 6-7-million units and he expected demand for the Nano to be around 1-million.

When asked if the company would be expanding the production capacity beyond half-a-million by adding capacity in different locations, Tata said that if the demand was positive as expected, then the company would look at it.

The company had originally planned to set up assembly units at various places with quality controls in place so as to make the car available at an affordable price.

Satyam's falling revenue is a concern: Murthy

2009-03-23T04:59:00.000-07:00

Potential bidders for acquiring a majority stake in Satyam Computer Services, including iGATE and other MNC firms such as IBM and HP,
Satyam have chosen to stay away from the bidding war on concerns of Satyam’s falling revenues, dwindling margins, customer attrition and several legal liabilities in the US and India.

iGate, which had expressed its interest in Satyam earlier this month, dropped out of the race to acquire the beleaguered company, citing concerns about financial ambiguities and legal liabilities. “When you look at the sliding revenues, margins, apart from the RFP terms, the whole picture looks very unattractive,” Phaneesh Murthy, chief executive of iGate and a former Infosys honcho told ET in an interview on Sunday. “I believe that it’s going to be a difficult transaction for anybody,” he added.

iGate had partnered with a US-based $5.5-billion private equity firm for supporting its Satyam bid. “The bigger question we faced was whether we should bid based on only three months of financial details (January-March 2008), and we eventually decided not to proceed,” added Mr Murthy. A government-appointed board at Satyam has been trying to find a buyer, after the company’s chairman and founder Ramalinga Raju admitted to over $1 billion of financial fraud last year.

Sensex closes 500 points higher

2009-03-23T04:56:00.000-07:00

Indian markets rallied Monday to end sharply higher after sentiments in global markets turned bullish ahead of US Federal Reserve’s s move to bail out banking sector from toxic bad assets. Banks, oil&gas and metals led the rally while realty space ended with modest gains.

Bombay Stock
Exchange’s Sensex ended at 9453.19, up 486.51 points or 5.43 per cent. The index touched an intra-day high of 9454.69 and low of 9040.30.

National Stock Exchange’s Nifty closed at 2946.10, up 139.05 points or 4.95 per cent. The broader index hit a high of 2949.75 and low of 2807.25.

BSE Midcap Index ended 2.61 per cent up and BSE Smallcap Index gained 2.08 per cent.

Amongst the sectoral indices, BSE Bankex was up 6.92 per cent, BSE Oil&gas Index climbed 6.82 per cent and BSE Metal Index moved up 6.48 per cent. BSE Realty Index was moderately higher.

Ranbaxy Laboratories (11.8%), Tata Steel (11.3%), Hindalco Industries (10.71%), HDFC (9.59%) and Reliance Infrastructure (9.13%) spearheaded the rally on the Sensex.

DLF, down 3.01 per cent, was the lone laggard in the 30-share index.

Market breadth on BSE remained extremely positive with 1613 advances against 920 declines.

(All the figures are provisional)

HUL, ITC Foods to slug it out in health food biz

2009-03-23T04:25:00.000-07:00

FMCG major ITC Foods is planning to extend its presence in the branded health foods sector in India with the launch of energy and nutrient bars.

On the other hand, ITC's arch rival Hindustan Unilever Ltd (HUL) is currently test marketing its health brand Amaze in Tamil Nadu, Andhra Pradesh and Karnataka. With this move, HUL will compete directly with other major players in the segment like Kellogg's India, GlaxoSmithKline Consumer Healthcare (GSKCH) and Godrej Hershey's.

"HUL and ITC will clash in the branded health foods sector in India in the next few months. The accent seems to be on health foods like energy and nutrient bars," said an industry analyst based in Mumbai.

According to a spokesperson from HUL, Amaze is India's first specifically designed brain food for school going children.

"The Amaze portfolio is available in two product formats: Bites and Milk Mixes. Amaze is a wholesome nutritional product and 100% vegetarian," he said. HUL is currently beaming a high-voltage television campaign on regional television channels to promote Amaze. Like Kellogg's, HUL is also harping on the increase in brain power in its Amaze ads. The Kellogg's punch line, incidentally, reads Dimaag Chalega Nahin, Daudega.

ITC Foods, meanwhile, is gearing up to extend its offerings in the health foods sector in the next few months, informed industry sources. "After seeing the response to its health brands Sachin FitKit and Benne Vita Flaxseed, ITC is now getting ready to launch energy bars and nutrient bars," said sources.

GlaxoSmithKline Consumer Healthcare recently forayed into the cereal bars sector with the launch of Horlicks Nutribar.

"Since the cereal bar market is nascent in India, our initial marketing plans will focus on creating awareness and educating consumers about the healthier snacking alternative," said a spokesperson from the company.

Incidentally, Godrej Hershey's launched its health brand Hershey's Milk Mix in the southern region of the country last year.

According to industry analysts, the market for energy bars is still very nascent in India and most products in the category are imported. "With the recent entry of Horlicks Nutribar, the branded health foods segment will soon witness a major tussle between Indian and international brands," said an industry analyst based in Mumbai.

The vital question is: Will swadeshi brands edge past international players in the branded health foods sector?

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Elections And Stock Markets, Can you Make Some Money ?

2009-03-22T07:05:00.000-07:00

Stock markets are like a living entity which affects and is affected by the prevailing conditions around it. General Election is a mega event for Indian and almost every aspect of life will be affected by polls including share markets. So what will be the effect on stock markets when India goes to vote. Can you make some fast money? As the trend of last some days already shows that share market is in an upbeat mood although this rally on bourse is temporary and cannot be expected to continue too long. But what will the upcoming elections do to markets.

Economic Times has published a very interesting study that shows that more often than not elections have had a positive effect on the markets and to some extent on economy in general. After going through the data of some eight elections since 1980, ET points out that as Lok Sabha elections draw near the sensex shows an average 4% gain in the three months preceding polls. There are some sector that benefit from poll-related expenditure and show positive signs.

If you leave the 2004 (where sensitive index gained just a tad less that 1%) elections sensex has shown the rise of up to unbelievable 13.5% just before polls. In 1989, due to the Bofors controversy, the sensex was down 2% before elections.

If you think from the investor's point of view, sectors such as media, FMCG and auto look favourities as polls are known to boost consumption.

So what does it mean to an average investor ? While no one can predict the mood of the monster, the stock market is, one has to take the positions and hope for the best.

Education Loans To Get Less Burdensome For Students

2009-03-22T07:03:00.000-07:00

Are you a student and have taken loan from a bank to finance your studies ? Then you must be one of the most worried persons in this world of recession. As the bad news keep coming from every side and company downsizing, it is natural to be worried about the repayment of student loans.

Student loans become liable for repayments after one year of completing the course or six months after you get the job whichever is earlier. So many students these days are perplexed about the repayment if these loans and many even cannot concentrate on their studies.

But there is a good news. Many banks have decided to ease the burden of loan on students by easing the terms like increasing the payment period, rescheduling the payments and reducing the EMIs. These nationalized banks include SBI which is the largest provider of student loans in the country.

A SBI spokesperson told Economic Times that SBI will help those students who are unable to pay the loans on case by case basis by extending the date from which payment becomes due or increase the duration of loan repayments. Likewise Bank Of Baroda has assured that it will help students by rescheduling the loans.

This comes as a very positive news for students who have taken hefty loans for their higher education and are worried that they may not be able to pay loans on time due to economic slowdown and they may get jobs late. source

Tata Nano Car Launch May Be An Inflection Point For Auto Industry

2009-03-22T07:00:00.000-07:00

As Tata motors gears up to release its most awaited car Nano, I am reminded of what Andrew S. Grove said in his book Only the Paranoid Survive. Andrew talked about how there are times in a business when its fundamentals are changed drastically. He wrote that these points are very significant and worth paying attention to.

People's Car

Something, similar may be going to happen with the release of Nano, the People's car. This small car may be about to change the way we think about personal transportation and also how the companies think about the emerging markets. People can expect to own a car for Rs 1.2 0 lakhs to 1.30 lakhs. Although they have to wait a tad more as bookings will open only in April and initially, Tata may not be able to cope up with demand as its Sanand unit in Gujarat will be ready by 2010 only.

This journey of Nano has not been without its roadblocks. There were political hurdles which made Tata drive Nano out of Singur, West Bengal. And there were some technical challenges like manufacturing a car which runs on 623cc engine and keeping costs under control. Tata has overcome all the challenges to create the car that has given the dreams of a middle class customer new dimensions.

Stock Brokers and Investment Analysis

2009-03-22T06:38:00.000-07:00

Introduction

Stock exchanges to some extent play an important role as indicators, reflecting the performance of the country's economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility, prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buys and sells securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorised body which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets specially the securities scam by Harshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiancy. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made.

As the condition of capital markets are constantly improving, it has started drawing attention of lot more people than before. On the career related aspects, professionals have opportunities to choose from for a wide range of jobs available in a number of organisations in this sector and one can expect to have good times ahead of him.

Nature of Work

In India capital markets are experiencing radical reformation. The stricter regulatory framework alongwith introduction of information and technology has added more professionalism to the industry. The most common areas of work in the capital markets, one can look forward to include the following.

Stock Brokers

Given the present complex situation of our capital markets, stock brokers have to face challenging tasks. The specialized knowledge and professional acumen required has made the job of brokers highly skillful. The work of stock brokers depends upon the kind operations they engage themselves into. Some of the brokers like to practice with individual clients while others work for institutions. Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatations of shares as they are expected to have sound knowledge of capital markets. Brokers also work in the financial sector with banks, mutual funds, consultancies, insurance companies, pension funds and financial institutions etc.

Investment Analysis

Investments in todays capital markets is not something which can always fructify, based on mere guesses. It requires thorough scientific research and analysis to make something out of it. Investment analysts are those who carry out the very same job and help fund managers manage their investments. They can work as stock broking analysts or as institutional analysts. The expertise and experience, though it varies from individual to individual, in the subject of capital markets makes them suitable to handle high value investment decisions of merchant banks, insurance and pension funds and other financial institutions. With diversification of financial sector into vast and complex fields, investment analysts usually specialize in a particular field so that they can give their best.

The work of investment analysts include studying the companies financial reports, assess various statistical information, estimate demand and supply factors, profitability projections, compare financial results, visit the organisaton, meet the management, survey the industry as a whole and on the basis of the available information, finally conclude to a decision.

Equity Analysis

Investment markets all over the world are witnessing major changes. Indian markets are no exception. The amount of professionalism and complexity of financial markets has led to the adoption of most advanced techniques and approach while dealing in securities. Increasing presence of both domestic and foreign players in the indian markets have further added to the demand for having a more systematic approach. Therefore arose the need for professionals who can specialize in the fields of capital markets. Equity analyst is one such specialist who does research and helps in systematic and better financial investments. Given the prevailing market conditions, equity analysts are in for favourable times ahead. There work is quite similar to that of investment analysts. The job mainly involves research activities apart from analysing financial performance, making profit projections, conducting interviews with the executives of c! ompanies, making field visits and market research, etc.

What are the services offered by stock brokers?

Stock brokers offer services such as buying and selling on behalf of investors. They also provide advisory services. If stock brokers are also registered as a portfolio manager, they can offer PMS services. Some of the bigger brokers also publish their own research reports which are available at a cost for investors.

What to do in case of a dispute?

If there is a dispute between you and your stock broker, bring the facts of the case immediately to the notice of stock broker. Follow it up with written complaints if the same is not resolved within reasonable time. If still nothing is done, write to the investor grievance cell of the stock exchange of which he is the member with all the facts of the case and necessary documents. Follow it up. You can also write to SEBI if your complaint is not resolved. It is possible for you to write your complaints online. You may get the relevant details from the websites of stock exchanges (www.nseindia.com, www.bseindia.com and of SEBI which is www.sebi.gov.in)

Bank Muscat sold 81 pct of stake in HDFC

2009-03-22T06:34:00.000-07:00

DUBAI (Reuters) - Bank Muscat said on Sunday it had sold about 81 percent of its stake in HDFC Bank and earned about 39 million rials ($101.3 million) in pre-tax profit from the sale.

Profit from the sale would be included in Bank Muscat's first-quarter results, it said in a statement on the Oman bourse website.

"The remaining balance in HDFC bank is held in depository form and the bank will consider further disposals over time subject to market conditions," it added.

Jalpac India reports net loss of Rs 1.86 crore in the December 2008 quarter

2009-03-22T06:33:00.000-07:00

Jalpac India reported net loss of Rs 1.86 crore in the quarter ended December 2008 as against net loss of Rs 1.37 crore during the previous quarter ended December 2007. Sales rose 8.59% to Rs 2.15 crore in the quarter ended December 2008 as against Rs 1.98 crore during the previous quarter ended December 2007.

8.59 -32.76 -73.91 -36.76 -35.77

Particulars	QuarterEnded
	Dec.2008	Dec. 2007	% Var.
Sales	2.15	1.98
OPM %	-51.63	-38.89
PBDT	-1.20	-0.69
PBT	-1.86	-1.36
NP	-1.86	-1.37

Powered by Capital Market - Live News

Market may remain cautious

2009-03-22T06:31:00.000-07:00

The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 2750 on the downside while on the upside there is a near term resistance at 2850. The Sensex has a likely support at 8850 and may face resistance at 9150.

US indices tumbled Thursday, as rising oil and gold prices, a weaker dollar and more dour reads on the economy gave investors a reason to step back after the recent rally. While the Dow Jones tumbled by 86 points to close at 7401, the Nasdaq dropped 8 points at 1483.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. Dr Reddy slipped 6.31%, Tata Motors declined 3.60%, ICICI Bank dropped 3.96%, HDFC Bank lost 3% and Rediff lost 1.26% while MTNL and VSNL slipeed marginally. However, Infosys, Satyam, Wipro and Patni Computers closed with the marginal gains.

Crude oil prices gained sharply, with the Nymex light crude oil for April series gains by $3.47 to close at $51.61 a barrel. In the commodity space, the Comex gold for April series gained $69.70 to settle at $958.80 a troy ounce.

Market may stage a comeback

2009-03-22T06:26:00.000-07:00

The modest rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 2800-2850 levels and has a likely supports at 2700-2650 levels. The Sensex has a likely support at 8700 and may test higher levels of 9000.

US indices surged on Tuesday, with the major stock gauges ending higher for the fifth out of six sessions, as investors continued to dig out from 12-year lows. While the Dow Jones moved up by 179 points at 7,396, the Nasdaq managed to add 58 points at 1,462.

Barring few, most of the Indian floats had a field day on the US bourses. Tata Motors flared up by 12.86% and Patni Computers jumped 6.37% , while MTNL, ICICI Bank, Dr Reddy's, HDFC Bank, Infosys and Wipro gained around 1% each. Among the laggards Satyam slipped 7.06% and VSNL fell 1.12%.

Crude oil prices gained a little, with the Nymex light crude oil for April delivery raising by $1.81 to close at $49.16 a barrel. In the commodity space, the Comex gold for April delivery slipped by $5.20 to settle at $916.80 an ounce.

Australian companies targeting India

2009-03-22T06:22:00.000-07:00

The global financial crisis has slammed shut the door to established export destinations, such as Japan, Europe and the US, prompting some Australian companies to seek new markets.

One of those new markets is India, says Austrade, whose economy is heavily reliant on domestic consumption and has among the world's highest households savings rate.

Austrade, the federal government's investment development agency, says the downturn in the major economies has raised the profile of emerging markets such as India.

Austrade senior trade commissioner for South Asia Peter Linford says Australian companies have made greater efforts to increase their awareness of opportunities available in India.

"When you reach a situation where global markets are retracting and decreasing, Australian companies which rely on exports ... have to either reduce their own business or they need to look to new markets," Mr Linford said on Friday.

"I think that is the catalyst at the moment that is taking Australian companies to South Asia and to India."

Mr Linford said the signs so far had been encouraging.

"The market is already showing that Australian companies that are going to India and South Asia are achieving more success than they have been achieving in past years," Mr Linford said.

One of those companies is Cartridge World, which established its first store in India two years ago and will next week open its 50th franchise.

The printer cartridge recycling and refilling company was the first organised printer cartridge refiller and retailer in India, Austrade says.

The Indian cartridge market was worth about $A921 million and estimated to grow at 20-25 per cent annually.

The company's South Asia chief executive Naveen Rakhecha said Cartridge World hoped to capture about a seven to eight per cent market share by 2010 with its environmentally friendly range of refillable printer cartridges.

"Cartridges and toners are not discretionary items; businesses need to print no matter what," Mr Rakhecha said in a statement.

"In the past few months, we've seen a significant increase in bulk enquires from large Indian companies looking to cut costs."

Mr Linford said the company had benefited from India's 200 million or so middle- and upper-class consumers that he described as a young demographic that was "fairly well cashed up".

"They are the consumers that offer terrific opportunity for Australian companies," Mr Linford said.

The International Monetary Fund's latest forecast predicted the global economy would contract by 0.5 to one per cent in 2009.

If accurate, it would mark the first such decline in 60 years.

The head of global emerging market equities at Aberdeen Asset Management Devan Kaloo said this week that he expected countries with strong domestic economies such as India, China, Brazil and Mexico to recover first and lead the upturn in global growth.

"I see the prognosis for emerging markets as being better than that of developed countries," Mr Kaloo said in a statement.

India's economy grew at 5.3 per cent in the year to the December quarter, down from 7.6 per cent recorded in the September quarter.

Mr Linford is based in New Delhi but has returned to Australia for a series of Austrade seminars on doing business in South Asia.

He said more than 1200 individuals and companies had registered for these events, which was "significantly up" on last year.

DMS buys six companies, eyes listing

2009-03-22T06:17:00.001-07:00

Diversified Mining Services Ltd (DMS) has acquired six separate businesses and forecasts further expansion as it works towards listing on the ASX.

DMS, a supplier of maintenance and operations support in the resources sector, said it made the purchase through a combination of debt and equity.

The businesses acquired are focussed on the coal industry, particularly in Queensland's Bowen Basin and the Hunter Valley in NSW.

The businesses are the Anderson Group, Ausgroup Industries, Ausscaffold, East Coast Engineering, AllSteel Fabrications and MachineTek Engineering.

DMS managing director Terry Young said the acquisitions would improve the company's diversity at a time when major mining companies were looking to consolidate their supplier lists.

"Each of the businesses acquired is a well respected and firmly established business which will further enhance the scope of services we are able to provide to the market," he said.

"The Australian coal industry is undergoing a period of cost and skills rationalisation and there are substantial opportunities for any firm that can offer mining companies a comprehensive, competitive range of operating services."

DMS is pursuing similar agreements with other mining services businesses that would underpin further growth, Mr Young said.

Brisbane-based DMS will have combined revenue of more than $100 million for the full year to June 30, 2009, he said, and will consider listing on the ASX when appropriate.

DMS buys six companies, eyes listing

2009-03-22T06:17:00.000-07:00

Diversified Mining Services Ltd (DMS) has acquired six separate businesses and forecasts further expansion as it works towards listing on the ASX.

DMS, a supplier of maintenance and operations support in the resources sector, said it made the purchase through a combination of debt and equity.

The businesses acquired are focussed on the coal industry, particularly in Queensland's Bowen Basin and the Hunter Valley in NSW.

The businesses are the Anderson Group, Ausgroup Industries, Ausscaffold, East Coast Engineering, AllSteel Fabrications and MachineTek Engineering.

DMS managing director Terry Young said the acquisitions would improve the company's diversity at a time when major mining companies were looking to consolidate their supplier lists.

"Each of the businesses acquired is a well respected and firmly established business which will further enhance the scope of services we are able to provide to the market," he said.

DMS is pursuing similar agreements with other mining services businesses that would underpin further growth, Mr Young said.

Brisbane-based DMS will have combined revenue of more than $100 million for the full year to June 30, 2009, he said, and will consider listing on the ASX when appropriate.

Oil prices jumps above $US50

2009-03-22T06:13:00.000-07:00

Oil prices jumped above $US50 on Thursday after the Federal Reserve moved to inject another $US1 trillion into the US financial system to boost the world's biggest economy.

New York's main futures contract, light sweet crude for delivery in April, ended $US3.47 higher from Wednesday's close to $US51.61 per barrel, topping $US50 for the first time in four months.

Brent North Sea crude for May delivery rose $US3.01 to $US50.67 in London after breaching $US51.

COMEX

Gold for April delivery gained $US69.70 to $US958.80 an ounce on the New York Mercantile Exchange.

May silver added $US1.585 to $US13.52 an ounce, while May copper futures gained 0.091 cent to $US1.8075 a pound.

Top gainers and losers in the futures and options market in the NSE

2009-03-22T00:46:00.000-07:00

Following is a list of top gainers and losers in the futures and options market in the NSE on 19 March 2009 for the March series:

Top Gainers
		% CHANGE	18-Mar-09	17-Mar-09	16-Mar-09	13-Mar-09	12-Mar-09
SYMBOL	OPEN_INT	IN O.I.	% CHANGE	% CHANGE	% CHANGE	% CHANGE	% CHANGE
MINDTREE	134400	5500	0	0	-33.33	0	0
VOLTAMP	11000	266.67	0	-62.5	0	0	0
PURVA	28000	100	-33.33	-25	100	0	0
TECHM	159600	84.72	12.5	-11.11	16.13	10.71	0
ABIRLANUVO	102400	57.06	-17.68	33.78	4.23	9.23	3.17
FSL	5738000	45.89	2.48	2.54	2.07	7.82	-1.65
NIITLTD	2740500	40	-8.54	2.5	3.9	5.48	-0.45
BOMDYEING	736200	38.64	8.06	9.2	25	-2.91	-7.62
PFC	535200	36.81	-7.39	-24.79	22.51	-4.98	-5.19
BATAINDIA	239400	32.56	4.88	-2.38	-10.64	9.3	-21.82
DENABANK	1858500	25.53	-10.76	-7.06	-0.58	-2.29	1.74
GLAXO	12300	24.24	-5.71	2.94	13.33	15.38	-3.7
HCL-INSYS	71400	23.53	-5.56	-14.29	-12.5	-4	0
NEYVELILIG	1191800	21.69	-2.92	4.91	3.82	0.64	0
PATELENG	158000	19.7	-14.29	32.76	38.1	0	-2.33
EDELWEISS	92000	19.48	8.45	0	0	0	0
PTC	65800	16.67	9.09	0	10	-9.09	0
ANDHRABANK	639400	14.88	15.24	1.94	-4.63	1.89	-5.36
WELGUJ	5337600	13.47	-0.61	-2.76	-1.49	5.03	-5.41
OPTOCIRCUI	297840	12.31	4.84	-1.59	-3.08	0	-1.52
PRISMCEM	222000	11.11	12.5	14.29	0	-22.22	12.5
UNITECH	47313000	10.7	-1.64	6.89	22.41	3.56	-1.33
SAIL	18770400	10.63	2.48	-5.08	4.77	15.34	8.57
KSK	39100	9.52	133.33	28.57	0	40	0
UNIPHOS	33600	9.09	-8.33	0	-14.29	-6.67	-11.76

Top Losers
		% CHANGE	18-Mar-09	17-Mar-09	16-Mar-09	13-Mar-09	12-Mar-09
SYMBOL	OPEN_INT	IN O.I.	% CHANGE	% CHANGE	% CHANGE	% CHANGE	% CHANGE
UTVSOF	28800	-59.32	-1.67	-11.76	1.49	-2.9	50
JSL	1984000	-32.61	2.79	-1.65	2.25	1.42	1.45
KSOILS	4985500	-30.45	-3.88	-11.67	0	0.49	0.71
GMRINFRA	9160000	-21.64	-11.91	-17.19	-1.69	-1.09	-1.29
M&M	2739360	-20.04	-9.94	4.67	10.51	4.81	2.82
EVERONN	167200	-18.68	0.39	1.59	111.76	63.01	4.29
GSPL	402600	-17.5	-20	6.38	17.5	-11.11	0
MAHLIFE	43400	-16.22	15.63	-20	-11.11	-2.17	4.55
KESORAMIND	754000	-14.9	0.23	0.23	0	0.46	0
ORBITCORP	1098000	-14.88	51.41	-1.39	9.09	2.33	2.38
DRREDDY	785600	-14.61	0.61	0.62	-1.56	-5.1	12.49
RELINFRA	3193872	-14.34	-18.85	-5.27	14.15	-2.52	0.04
INDHOTEL	2020536	-13.92	10.75	6.08	2.73	2.81	-0.4
GDL	500000	-13.79	-4.13	-6.92	27.45	-20.93	-3.01
GAIL	2902500	-12.54	-3.47	4.02	5.04	6.43	0.42
BANKINDIA	2638150	-12.43	-3.79	-5.94	10.05	8.59	-7.57
MAHSEAMLES	338400	-12.42	17.52	-5.52	0	-21.62	-1.6
SUNPHARMA	514575	-12.17	-2.4	4.87	4.82	0.91	0.63
RPOWER	9020000	-11.9	-15.5	-4.1	-0.69	-3.64	1.9
RELCAPITAL	5682840	-11.46	-5.18	-3.9	-7.17	5.07	-6.55
JINDALSTEL	901760	-11.27	-3.11	-14.77	5.2	2.93	0.17
WALCHANNAG	44800	-11.11	800	---n.a.---	---n.a.---	---n.a.---	---n.a.---
BEML	69750	-10.58	23.81	12	-2.6	-2.53	2.6
HDFCBANK	2687200	-10.52	-13.45	-1.73	-13.48	-14.6	-1.99
ABB	894500	-10.42	0.5	5.02	2.94	14.37	4.08

Spice Group ready to put $408 mln in Satyam

2009-01-30T00:45:00.001-08:00

NEW DELHI (Reuters) - Spice Group is ready to invest about 20 billion rupees ($408 million) in Satyam Computer Services and wants to buy a 51 percent stake in the fraud-scarred outsourcer, Spice Chairman B.K. Modi said.

"That is our desire," Modi told Reuters on Friday. "We want the money to go inside the company. For that they will have to make a preferential issue. If I buy shares from the market, the money will not go into the company."

Modi said the group had submitted on Thursday its proposal to the government-appointed new board of Satyam.

"We have also talked to two, three board members informally."

Spice Group has diversified operations including mobile handset manufacturing, mobile software development, back-office operations, entertainment and retail.

Last year, it sold its mobile telecoms services business to Idea Cellular for 21.76 billion rupees.

"That is one of the sources (for funding). But we have other channels," Modi said, adding that the group was capable to fund a possible deal internally.

Satyam eyes new customers, pledging assets for funds

2009-01-30T00:41:00.000-08:00

MUMBAI (Reuters) - A board member of Satyam Computer Services said multinationals could award it new contracts and the outsourcer had pledged assets to raise money as it tries to emerge from India's largest corporate scandal.

Satyam's government-appointed board and senior employees were reaching out to customers to stop them from joining State Farm Automobile Insurance in cancelling contracts, Tarun Das told news channel CNBC TV 18 on Thursday.
And in addition they were pushing clients to expand their business with Satyam while chasing new contracts.
"The company is stable. So we have identified people who could be potential new customers ... big multinationals who are now talking to us about new business for Satyam," he said, adding it could take at least 30 days to announce any deals.

The six-member board tasked with saving Satyam after its founder resigned as chairman earlier this month revealing profits have been falsified for years has also been able to get bank approvals for additional funds by pledging assets, Das said.

"The money is on the way. Because they are unencumbered we actually were able to offer some of these fixed assets to the banks as security, which we must do," he said.

Earlier this week, Satyam said it had almost concluded funding negotiations and would pay January salaries to its employees on time from cash and receivables.

Das said the board had done internal and external checks on employee numbers and had accounted for over 51,000 staff.

Last week, a public prosecutor told a Hyderabad court that Satyam had only 40,000 employees and not 53,000 as Satyam claimed, adding the non-existent employees were used to transfer funds from the company.
The board announcements have lifted confidence among some bidders and investors. Two funds of asset manager Fidelity Investments bought a 2.5 percent stake in Satyam for $18.7 million through two block deals on Wednesday, stock exchange data showed.

Top engineering and construction firm Larsen & Toubro trebled its stake to 12 percent last week and the new board has said there has been wide bidding interest from corporates and private equity firms.

(Additional reporting by Devidutta Tripathy)
(For full coverage on Satyam click here)
(For Quotes and Interactive Charts of Satyam Computer Services click here)

Fortis Health buys stake in Bangalore hospital

2009-01-30T00:37:00.000-08:00

MUMBAI (Reuters) -

Hospital chain Fortis Healthcare Ltd on Friday said it had acquired a majority stake in Bangalore-based Apollo RM Hospital, widening its presence in south India.
Fortis did not disclose the financial details but said Apollo RM was a 100-bed multi-speciality hospital, which could be expanded to 200 beds.

HSBC calls for new financial system transparency

2009-01-30T00:33:00.000-08:00

Europe's biggest bank HSBC Holdings said fair value accounting and capital adequacy rules had worsened the financial crisis and called for a new set of principles and rules to boost financial market transparency.

HSBC said on Friday it also wanted to create a forum to enable top international businesses to engage with governments and regulators as the new market place is constructed.

"The current financial framework, though well intentioned, has proved inadequate and must be fundamentally revised," HSBC Chairman Stephen Green said in a statement.

"Fair value accounting has added considerable volatility to results, only part of which is economic and the capital adequacy regime embodied in Basel 2 has hobbled many banks with spiralling capital requirements just when customers need them to be flexible with lending," he added.

HSBC said the concept of the new forum -- "Business 20" or "B20" -- was backed by the British government and would mirror the G20 group of the most influential economies, and would be focused on companies with international operations.

"Business needs to co-operate with government and regulators in the creation of a new global marketplace for all industries and consumers," Green said.

Satyam Computer The Great Fall, Trashed Indian Stock Market

2009-01-14T03:13:00.000-08:00

COMPANY AT GLANCE:

On 24th June 1987, Satyam Computer was incorporated as private limited company for providing software development and consultancy services to large corporation. The company was promoted by B Rama Raju and B Ramalinga Raju.
In 1991, Satyam Computers became the first Indian company to provide offshore services. His first major client John Deere, was skeptical about outsourcing to Satyam, but Raju`s simple extensive management module convinced it.
What started as humble beginning in 1990`s by the end of the decade catapulted the Satyam Computer into the big league of IT companies in India. Satyam became the fourth largest IT Company.
‘Humpty Dumpty had a great fall’, Satyam computer image got severe hit that can never be mended when its promoter accepted in writing to SEBI about the fudging of books of account of the company for showing inflated profit. Investor lost all out faith in the working of the company and dumped the share of the company. Satyam share price had a free fall on Wednesday and it closed about 80% down from the previous day close price at Rs40.

RISE AND FALL OF RAJU:

Traditionally in agriculture business. Raju family is considered as the top ten big land owners in South India.
Raju started his first business in 1977 by entering into the textile business. He floated Sri Satyam Spinning and weaving mill.
Diversified his business portfolio by entering into real estate business. For this venture he floated Satyam Construction.
Founded Satyam Computers Services jointly with one of his brother in law DVS Raju in 1987.The Company went public in 1991.
Started Satyam Infoway (Sify).Stepped down as chairman of Sify on 10December 2002.
Elected Nasscom chairman in April 2006.
Received the lifetime achievement awards from the Hyderabad management association in June 2005.a doctorate from the Anna University, Chennai, on December 14, 2007 and Frost & Sullivan Excellence in Leadership award for 2008.
Step down as the chairman of Satyam on January 7, 2009 after the accepting the manipulation in the books of account of the company

EVENTS LEADING TO THE FALL:

2008 December 16- Satyam Computer Services announces $1.6 billion acquisition of 100% stake in Maytas properties and 51% stake in Maytas Infra, both promoted by Ramalinga Raju and sons.
December 17-Satyam-Maytas deal is scrapped following investor-shareholders rebellion. Raju mulls on the share buyback.
December 21-Government asks registrar of companies to submit the report with factual evidence on Satyam-Maytas deal.
December 24-World Bank bars business with Satyam for 8 years starting September 2008.
December 25- Academician and independent director Mangalam Srinivasan exits from Satyam on Christmas owning moral responsibility for not voting against it.
December 28- Satyam Computer defers crucial board meet from December 28 to January 10.
December 29- Satyam appoints DSP Merrill Lynch to review strategic option and assess implications of possible dilution of Ramalinga Raju`s stake; Non-executive director Krishna Palepu and in dependent director Vinod Dham resign from board.
December 30- Satyam`s board nearly halved as Indian school of Business dean Rammohan Rao also quit.
2009
January 2- Satyam discloses to stock exchange that Raju and his family have pledged all their shares, held in a corporate entity SRSR limited, to institutional lenders.
January 3-Ramalinga Raju`s stake in Satyam falls to 5.13% from 8.27% as lenders sell shares.
January 6-Ramalingu Raju`s stake falls further to 3.6% from 5.13%.
January 7- Chairman Ramalinga Raju and MD Rama Raju resign.

MAGNITUDE OF FRAUD:

The fudging of books of account by the promoters of Satyam is one biggest fraud that Indian corporate world has witnessed. Raju admitted the falsifying of the earning and asset in his letter to the SEBI chairman. He admitted of the following:
Inflated cash and bank balance of Rs 5040 crore.
Non-existence of accrued interest of Rs 376 crore.
Understated liabilities of Rs 1230 crore on account of funds arranged by Raju.
Overstated debtors position of Rs 490 crore.
Q2 2008-09 revenue was stated as Rs2700 crore as against Rs 2100 crore. Operating profit margin was stated as 24% as against actual 3%.
Profit inflated over last several years attained unmanageable levels as company grew.
Aborted Maytas acquisition was a last an attempt to fill the fictitious asset with real ones.

CIRCUMSTANCES FORCED RAJU:

Promoter shareholding in the company was so low that it became very difficult for Raju to conceal the truth for long. He was also horrified by hostile takeover by some company and eventually the manipulation of account coming into picture. Raju was in catch 22 situations. He don`t have any option other than to publicly accept his guilt.
We also feel that there could be some other force who may have been involved in the fraud that Raju is trying to save.
Political and property combo cannot be ruled out for the great fall of Satyam Empire and his king. Sometimes back DMRC director E Sreedharan had called the Hyderabad Metro Rail Project a “future political scam”. He objected to the way the government allowed the private consortium to develop land commercially. It should be noted that Maytas properties and Maytas infra is leading the consortium for Hyderabad Metro Rail Projects. Both the firms are promoted by Raju and family.
This could only be the tip of the iceberg, we expect more high profile people involved in the scam.
We even suspect the role of independent directors. We cannot digest the fact that they did not know about the fact. Just resigning from the chair does relieve them from the responsibility.

RUMOURS:

There is rumour that L&T subsidiary is increasing the stake in the company. We can only wait and watch the development. Let’s see how thing unfold.

IMPACT OF SATYAM SAGA:

We are of the opinion that in short to medium term there will be ripple effect that could be seen on the street and IT companies will be affected by it. Street will feel the pinch for some time and the scars of the broken trust could be seen in investors’ eyes for years. As it is said time is the greatest healer so people will move forward.
We expect government to strengthen the auditing norm and the corporate governance. In this case PwC work as auditing firm is under scanner and is highly questionable.
Insurance company is also in line to lose a significant portion in terms of claim. As Satyam has $75 million covers to defend directors who are under fire for dereliction of duty.

CONCLUSION:

We have never expected this to happen but this world is full of surprises. When you are confident that everything is going fine something unwanted happens. As our market too regained strength and started the rally, this shook the market as never before. Market crashed by more than 6% on Wednesday. As investors returned after a long hibernation this event scared them beyond anyone’s imagination.
There are people who might have lost their life saving. There are 53000 employs whose future is at stake, at the time when economy is reeling under recession.
The only answer to Satyam fiasco that we have is this ‘bad corporate governance’.
India Inc now has to answer how to make the corporate governance more transparent and accountable.
With this we are closing our view on Satyam. We hope there is no repeat of Satyam story.

Online Share Trading India Tips and Tricks

2009-01-09T11:20:00.000-08:00

Online share trading services in India
There are three primary things required to start online share trading.
Demat account (Trading account), a computer and internet connection or else you can go to internet cafe.
¨ Online Demat Account -
You have to open online trading account that is also called as demat account.
( If you want to know more about demat account then please go to
Basics of share market Indian and check in share market and its analysis section.There are number of share broker agents with whom you can open your trading account.
Following are the some of the names of broker agent where you can contact them and open your trading account.
www.icicidirect.com, www.sharekhan.com. www.5paisa.com , www.indiabulls.com etc. these are just few agents you will find more.
Points to remember while opening your trading account
- Enquire about brokerage rates and taxes you have to pay for your trading account.
- You have to open the trading account with the agent who is offering you the lowest brokerage rates.
- Different brokerage rates are available for different trading methods like delivery trading and intraday (day
trading) trading.
- Before opening your account try to insist the agent to get demo of there online trading software or terminal and
check your reliability and Speed.
- Also confirm about there charges and any hidden charges if you have to pay.
Please properly verify above points and then decide with whom you would like to open the trading account.
Now you have your on online trading account, let’s go for another most important requirement needed for you
to start your online trading account.

¨ Computer -
Second most important requirement is computer. Nowadays you get very good computer in very affordable price. You may also go for second hand (used) computer but its better to go for new one as they are available for very less prices.
Precaution - Get the computer configuration details and price and compare with other shops and then finalize your deal.Because the price of computer varies due to configuration so get proper configuration details.
NOTE - If you can’t afford to buy a computer, then you can go to Internet café and do your trading. This method is also absolutely fine.

¨ Internet Connection -
Third requirement is your internet connection. Nowadays you get internet broadband connection very fast and very importantly at very less price. Following are the companies which provide broad band internet connection.
Tata broadband, Sify broad band, Reliance Broad band etc.
Precaution - Get proper price range and speed of the internet connection they are going to provide you. The price depends on internet speed and data they provide to you. So get proper confirmation and then go for that company’s connection
Another option -
Alternate option for Internet Broad band connection is GPRS connection. GPRS connection is the internet connection has to be activated on your cell phone (mobile phone) and then the cell phone has to be connected to your computer. The GPRS connection is bit cheaper as compared to broad band connection but you may get less speed as compared to broad band connection. The choice is yours.
On the second part the Airtel, Tata Indicom Reliance, Idea etc these all and many other provides GPRS connection and they will help you to set up your mobile phone with your computer for internet access.
Above three are the primary requirements for starting your own online share trading.
NOTE - If in case if you don’t want to purchase a computer and don’t want to get internet connection then you can go and trade in internet cafe. This is also absolutely possible and fine.

After getting your prime requirement for starting your online share trading now its time to start your share trading.
Let’s go to next chapter.
Things to know before starting your online share trading
Please make a note of following things before starting your online share trading.
¨ Must be aware of Share Market - You must be well aware about share trading, knowledge of share market and shares, fully aware of your
online trading software or terminal.
¨ Refer our website fully - To have basic idea about different types of share trading and other share market related information.
¨ Keep yourself updated - It always very important to keep updated yourself about latest news about share market and companies etc. it really
helps you in share trading. “Share market always reacts to appropriate news”
For latest market news, latest stock updates on day to day basis and also latest share market updates which may affect your shares, then
please Go here

Resources - To keep updated yourself you have to read financial newspaper like business standard, economic times etc. On the internet you can access/open financial related websites like www.businessstandard.com , www.economictimes.com , www.capitalmarket.com etc. On these websites you will get all news related to share market, government news, company’s announcements etc which will affect the share market.
Share market daily open at 9:5 am and closes at 3:30 pm, Saturday and Sunday are holidays for share market.
If you open the financial websites before market opens then you will get the idea about today’s share market movement, either it is bullish (going up) or bearish (coming down), ( want to know other terms then please check our website ) other information like movement of other Asian markets and USA market which has huge impact on our Indian share market. Asian markets start early then our Indian market.
Action Plan - Now you have to plan your action as you are ready will all the information required for share market. Now your action plan is to select shares which are I news or select shares from sector which is in news.
Sector like IT, cement, Petrochemical etc. If there is news on any particular companies/shares or on any sector then definitely there will be movement, if the news is appropriate.
During market hours also you have to keep alert about news. Always trade or select shares/companies which are involved in news. This is one of the easiest methods of tracking shares and doing trading on them.
Also it is also always better that do some study and research before starting your trading. For example note down today’s top gainers, top losers, and volume toppers etc and tomorrow keep a close watch on them this is also one method of selecting shares and trading on them.
One more very important point is you should be always aware about news like when company is declaring its dividend, companies merger plans, demerger plans, quarter results, major acquisitions, collaborations etc .
This type of news will definitely makes great movement on related company shares.

Learn Online Share Trading
There are very important benefits (advantages) of online share trading over offline share trading.
¨ No need to depend on broker -
First up of all you need not have to depend on any share broker for buying and selling of shares. Depending on broker may result in delay of
buying and selling of shares which may in turn result in huge loss or less profit. If you are doing online share trading then you can execute your
trades at any time because you are observing every movement of share market right in front of your computer screen.
¨ All updates on your computer screen -
As you have internet connection with you will get all updates of government news, companies’ announcements, and corporate declaration etc
during market hours. It’s not so practically for your broker to provide you all the updates and news. So its very important point that you get all
news, especially those news which affects share market right in front of your computer screen.
“Share Market always reacts to appropriate news”
¨ Independent for your trades -
On the other part you will get all information of your traders on your computer screen. You can view yourself your profits and losses done and
depending on your current situation you can plan your further trades. In other words you are totally independent for your trades from your broker.
You are boss of your self.
Problems online share trading
As there are couples of good advantages there are also some technical disadvantages. As every coin have two sides.
¨ Disconnection from Internet - In online share trading there is the possibility that your internet connection may get slow or get stopped, this
may result in disconnection from share market. At such critical times you have to call your executive (from whom you opened your trading
account) and place your order or square off your pending orders.
¨ Computer Problem - If your computer stops functioning then this may also result in disconnection from share market at this time also you have
contact your executive.
¨ Other Problem - Other problems like electricity disconnection. Solution for this is inverter or batter backup.
Above all technical problems which may exist at any time and they are beyond our control means not in control.

Online share trading tips
¨ Do not over trade - Do not put all your money in share market.
¨ Do not put all your money in single share or single sector - Put or divide your money in multiple shares or sectors. This may reduce the risk
of heavy loss.
¨ Do not panic or fear - Think twice before making your trade/plan and once done stick to it, don’t panic or fear.
¨ Accept Loss - If you trade is going against you and if you are not sure about your trade then immediately accept the loss and come out of your
trade. It will save you from heavy loss.
¨ Right Opportunity - Do not fall in trade early, wait for right opportunity and then trade. It’s very important.
"Wait, Watch and then trade” you will get success.
¨ Everyday is not trading day - Do not force yourself to do trading everyday. It’s wrong. If you are not sure about the market movement for that
day then it always wise decision to be away from market and not to trade.
¨ Keep you greediness away - Most of the people loose in share market due to greediness. Get satisfied with whatever profit you get and come
out of that trade and wait for next opportunity. Don’t wait to take huge for that single trade.

Barack Obama ~ New US President ( Biography )

2008-11-05T21:08:00.000-08:00

Name: Barack Obama ( aka Barack Hussein Obama, Jr. )

Date of Birth: 4 August 1961, Honolulu, Hawaii, USA

Birth Name: Barack Hussein Obama Jr.

Nickname:

Barry
Bama
Rock
The One

Height

6' 1½" (1.87 m)

Mini Biography

Barack Obama was born to a white American mother, Ann Dunham, and a black Kenyan father, Barack Obama, Sr., who were both young college students at the University of Hawaii. When his father left for Harvard, she and Barack stayed behind, and his father ultimately returned alone to Kenya, where he worked as a government economist. Barack's mother remarried an Indonesian oil manager and moved to Jakarta when Barack was six. He later recounted Indonesia as simultaneously lush and a harrowing exposure to tropical poverty. He returned to Hawaii, where he was brought up largely by his grandparents. The family lived in a small apartment - his grandfather was a furniture salesman and an unsuccessful insurance agent and his grandmother worked in a bank - but Barack managed to get into Punahou School, Hawaii's top prep academy. His father wrote to him regularly but, though he traveled around the world on official business for Kenya, he visited only once, when Barack was ten.

Obama attended Columbia University, but found New York's racial tension inescapable. He became a community organizer for a small Chicago church-based group for three years, helping poor South Side residents cope with a wave of plant closings. He then attended Harvard Law School, and in 1990 became the first African-American editor of the Harvard Law Review. He turned down a prestigious judicial clerkship, choosing instead to practice civil-rights law back in Chicago, representing victims of housing and employment discrimination and working on voting-rights legislation. He also began teaching at the University of Chicago Law School. Eventually he ran as a Democrat for the state senate seat from his district, which included both Hyde Park and some of the poorest ghettos on the South Side, and won.

In 2004 Obama was elected to the U.S. Senate as a Democrat, representing Illinois, and gained national attention by giving a rousing and well-received keynote speech at the Democratic National Convention in Boston. In 2008 he sought the Democratic nomination for the US Presidency.

Spouse

Michelle Obama

(3 October 1992 - present) 2 children

Trivia

His first name comes from the word that means "blessed by God" in Arabic.

In the Kenyan town where his father was born, the long-brewed "Senator" brand of beer has been nicknamed "Obama."

U.S. Senator from Illinois since 3 January 2005.

Won a Grammy for Best Spoken Word for the CD version of his autobiography "Dreams From My Father" (2006).

Lives in Hyde Park (Chicago).

On "Late Night with Conan O'Brien" (1993), he revealed that President George W. Bush nicknamed him "Bama" and "Rock".

The movie he saw on his first date with Michelle Obama was Do the Right Thing (1989).

Related to Park Overall.

Has two daughters, Malia Obama (born in 1998) and Sasha Obama (born in 2001).

Candidate for the Democratic nomination in the 2008 US presidential election.

Several celebrities including; Halle Berry, George Clooney, Sheryl Crow, Bob Dylan, Topher Grace, Macy Gray, Bruce Springsteen, Oprah Winfrey Tom Hanks, Scarlett Johansson, Hayden Panettiere, Zachary Quinto, Eddie Murphy and John Cleese support his 2008 presidential campaign. Robert De Niro gave his endorsement at the same rally where Barack was endorsed by Caroline and Ted Kennedy.

Enjoys playing basketball and poker.

At his wife's suggestion, he quit smoking before his campaign to win the Democratic nomination began.

His paternal relatives still live in Kenya.

Confessed teenage drug experiences in his memoirs "Dreams from My Father".

One of his ancestors was Mareen Duvall, also an ancestor of actor Robert Duvall.

Shares his surname with a small city in western Japan, which means "small shore" in Japanese.

Plays basketball.

Born to Barack Hussein Obama, Sr. (1936-1982) and Ann Dunham (1942-1995), married from 1960 to 1965.

Named one of Time magazine's "100 most influential people in the world" list in 2005 and 2007.

Chosen as one of "10 people would change the world" by New Statesman magazine (2005).

Won his second Grammy Award for Best Spoken Word Album for "The Audacity of Hope" (2008).

On June 3, 2008 he won the Montana primary election giving him enough delegates to become the first Black American presidential candidate to win a major political party's presumptive nomination for the office of President of the United States.

Is a die-hard Chicago White Sox fan.

More than 215,000 people attended his speech in Berlin on 24 July 2008.

Has one half-sister, Maya, born to his mother and stepfather in 1970.

Has his look-alike puppet in the French show "Guignols de l'info, Les" (1988).

Is very distantly related to Lon Chaney.

Personal Quotes

(from DNC keynote speech) "There's not a liberal America and a conservative America. There's the United States of America. We worship an awesome God in the blue states, and we don't like federal agents poking around our libraries in the red states. We coach Little League in the blue states, and have gay friends in the red states. There are patriots who opposed the war, and patriots who supported it. We are one people, all of us pledging allegiance to the Stars and Stripes, all of us defending the United States of America."

And it lives on in those Americans -- young and old, rich and poor, black and white, Latino and Asian and Native American, gay and straight -- who are tired of a politics that divides us and want to recapture the sense of common purpose that we had when John Kennedy was President of the United States of America.

Sometimes I don't know who I'm running against. (about Bill Clinton's support for Hillary Clinton)

[When asked whether he would call on the Clintons to release their tax returns, after Hilary loaned $5 million of her own money to her campaign] I'll just say that I've released my tax returns. That's been a policy I've maintained consistently. I think the American people deserve to know where you get your income from. But I'll leave it up to you guys to chase it down... I think we set the bar in terms of transparency and disclosure that has been a consistent theme of my campaign and my career in politics.

In the unlikely story that is America, there has never been anything false about hope.

When I am this party's nominee, my opponent will not be able to say that I voted for the war in Iraq; or that I gave George Bush the benefit of the doubt on Iran; or that I supported Bush-Cheney policies of not talking to leaders that we don't like. And he will not be able to say that I wavered on something as fundamental as whether or not it is ok for America to torture - because it is never ok. That's why I am in it. As President, I will end the war in Iraq. We will have our troops home in sixteen months. I will close Guantanamo. I will restore habeas corpus. I will finish the fight against Al Qaeda. And I will lead the world to combat the common threats of the 21st century - nuclear weapons and terrorism; climate change and poverty; genocide and disease. And I will send once more a message to those yearning faces beyond our shores that says, "You matter to us. Your future is our future. And our moment is now."

This time we want to talk about the crumbling schools that are stealing the future of black children and white children and Asian children and Hispanic children and Native American children. This time we want to reject the cynicism that tells us that these kids can't learn; that those kids who don't look like us are somebody else's problem. The children of America are not those kids, they are our kids, and we will not let them fall behind in a 21st century economy. Not this time.

Frequently Asked Questions on Barack Obama

Q: Does Barack Obama have any siblings?

A: Obama has a half-sister, Maya Soetoro-Ng. She is a teacher and professor in Honolulu.

Q: What part does Michelle Obama play in her husband's presidential campaign?

A: Completely at ease talking with crowds, she tirelessly campaigns for her husband and speaks of him and the election issues with passion and courage.

Q: Does Barack Obama have any children?

A: Barack Obama has two daughters, Malia and Natasha. They are currently being cared for by their grandmother, but Michelle Obama tries to fly home every night to tuck them into bed.

Q: Who are Barack Obama's parents?

A: Barack Obama was born in Hawaii on August 4, 1961, to Barack Obama, Sr. and Ann Dunham. His parents met while attending the University of Hawaii, where his father was enrolled as a foreign student. Barack's parents eventually divorced, and after his mother remarried, he lived in Indonesia for a time before returning to Hawaii to live with his grandparents. He later moved to New York, where he graduated from Columbia University in 1983.

Q: What is Obama's religion?

A: He is a Christian who has attended Trinity United Church of Christ for nearly 20 years.

Q: Is Barack Obama a Muslim?

A: No, he is not a Muslim, he is a Christian. While his grandfather was a Muslim, and this father an atheist and his mother an agnostic, Barack has been an actively practicing Christian for nearly 20 years, attending Chicago's Trinity United Church of Christ.

Q: What nationality is Barack Obama?

A: He is American, born in Hawaii on August 4, 1961, to Barack Obama, Sr. and Ann Dunham. His parents met while attending the University of Hawaii, where his father was enrolled as a foreign student. His mother is from heart land America (Kansas), and his father is from Kenya.

Official Website: www.barackobama.com

Click here for Barack Obama's Facebook profile...

Market crash pulls 350 stocks to their all-time lows

2008-10-25T01:21:00.000-07:00

Falling with a noisy thud, the 11 per cent crash in the value of the Sensex, the second-largest in its 18-year history, maybe painful. But it doesn’t look like the end, as all analyses — fundamental or technical — went unheard, as the market looked at cues outside India. Key among them: the threat of a global recession.

The market reached its lowest level since November 23, 2005 as foreign institutional investors (FIIs) continued their selling spree. And against their combined might of Rs 1,431 crore worth of sales, domestic institutional investors that that bought Rs 514 crore worth of equities, could not stem the fall.

The Sensex fell 1,071 points to close at 8,701 points.

The markets opened under the weight of negative growth outlooks from Sony and Toyota in Japan, sending recessionary signals. Many other American, European and Japanese major companies have lowered their future outlooks. As a result, FIIs sold.

Midway through trading, came fears of a recession in the UK, with a GDP contraction of 0.5 percentage point, the first time since 1992. Further selling followed, across the world. And India was no exception.

All Asian and European markets opened under selling pressure and closed in the red. Most of them closed with a fall of around 10 per cent. Japan was down 9.6 per cent, South Korea fell 10.6 per cent and Hong Kong closed 8.3 per cent lower. All major European markets closed with a fall of around 8 per cent.

As if these were not enough, the last hit came from the US futures market that opened in negative and hit lower circuits — a point where trading gets automatically suspended. Experts and commentators are calling this fall a Black Friday.

This impacted Indian speculators. “A weak opening of the US futures market resulted in the last hour fall as no one wanted to keep the position open over the weekend,” said Amitabh Chakraborty, president (equity), Religare Enterprises.

Sensex crashes as recession fears grow

2008-10-25T01:18:00.000-07:00

Caught between the fire in the East and the frying pan in the West, the BSE Sensex crashed to its 35-month low, falling 1,071 points or 11 per cent to close at 8,701. This is the second-largest fall in its value in absolute terms or third-largest in percentage terms.

“FIIs are not even asking for prices and are exiting at any price,” said Aseem Dhru, CEO, HDFC Securities. “There is heavy delivery based selling.”The fall was led by massive selling by foreign institutional investors — they sold equities worth Rs 14,487 crore in October alone and almost Rs 100,000 crore since January. The exit weakened the rupee which breached the 50-to-the-dollar mark on Friday.

But it wasn’t just investors in the panic room. “This is a serious situation and we require to address it,” said Commerce Minister Kamal Nath.

“FIIs are not even asking for prices and are exiting at any price,” said Aseem Dhru, CEO, HDFC Securities. “There is heavy delivery based selling.”

The last time the Sensex had hit this level, in November 2005, the global economy including India’s was flush with liquidity. Then, Reserve Bank of India (RBI) had imposed the first repo rate (rate at which RBI lends to commercial banks) hike, after four years.

In 2008, India has come a full circle, as RBI has cut the percentage of money banks need to keep with RBI as cash by 250 basis points (100 basis points makes 1 percentage point), from 9 per cent to 6.5 per cent and the repo rate from 9 per cent to 8 per cent.

Amid fears of recession, the fall resonated from Japan to the UK. While Asian markets fell 3-10 per cent, European markets were down 4-9 per cent. Britain reported a contraction in GDP — 0.5 per cent — for the first time in 16 years on Friday.

12 Basic Stock Investing Rules Every Successful Investor Should Follow

2008-10-25T01:11:00.000-07:00

There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below

1. Buy low-sell high. As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market.

2. The stock market is always right and price is the only reality in trading. If you want to make money in any market, you need to mirror what the market is doing. If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

Other things being equal, the longer you stay right with the stock market, the more money you will make. The longer you stay wrong with the stock market, the more money you will lose.

3. Every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes rule."

4. If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.

A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.

5. Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.

6. The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.

7. You must let your profits run and cut your losses quickly if you are to have any chance of being successful. Trading discipline is not a sufficient condition to make money in the markets, but it is a necessary condition. If you do not practice highly disciplined trading, you will not make money over the long term. This is a stock trading “system” in itself.

8. The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism. The Efficient Market Hypothesis at root shares many of the same false premises as the perfect competition paradigm as described by a well known economist.

The perfect competition model is not based on anything that exists on this earth. Consistently profitable professional traders simply have better information - and they act on it. Most non-professionals trade strictly on emotion, and lose much more money than they earn.

The combination of superior information for some investors and the usual panic as losses mount caused by buying high and selling low for others, creates inefficient markets.

9. Traditional technical and fundamental analysis alone may not enable you to consistently make money in the markets. Successful market timing is possible but not with the tools of analysis that most people employ.

If you eliminate optimization, data mining, subjectivism, and other such statistical tricks and data manipulation, most trading ideas are losers.

10. Never trust the advice and/or ideas of trading software vendors, stock trading system sellers, market commentators, financial analysts, brokers, newsletter publishers, trading authors, etc., unless they trade their own money and have traded successfully for years.

Note those that have traded successfully over very long periods of time are very few in number. Keep in mind that Wall Street and other financial firms make money by selling you something - not instilling wisdom in you. You should make your own trading decisions based on a rational analysis of all the facts.

11. The worst thing an investor can do is take a large loss on their position or portfolio. Market timing can help avert this much too common experience.

You can avoid making that huge mistake by avoiding buying things when they are high. It should be obvious that you should only buy when stocks are low and only sell when stocks are high.

Since your starting point is critical in determining your total return, if you buy low, your long term investment results are irrefutably better than someone that bought high.

12. The most successful investing methods should take most individuals no more than four or five hours per week and, for the majority of us, only one or two hours per week with little to no stress involved.

STRATEGY INPUTS FOR THE DAY: Don’t get emotional!

2008-10-20T08:17:00.000-07:00

STRATEGY INPUTS FOR THE DAY

Don’t get emotional!

Where we have strong emotions, we're liable to fool ourselves.

Some corporates may allow themselves to get emotional. But don’t try it with your holdings. There are challenging times when you need to let go of things close to you for your own survival. Such is the condition of the markets too. The bulls appear to be in a mood to add some greenery to the dry indices. Last afternoon they made their presence felt which helped the key indices recover after the BSE Sensex nearly breached the 10,000 mark. What could boost the sentiment is that the traded volume and turnover improved sharply over the previous day. We expect the market to open higher today following the overnight rebound in US shares. Another catalyst could be the continuing moderation in inflation and easing of the liquidity crunch in the domestic money markets.

Remain on guard as the market breadth was negative. These gains and green are just moments to charge you up and give hope that all is not lost. Don’t use it to make any fresh entry. Also, Asian markets are pretty mixed this morning, with only the Nikkei in the green (up 1.5%). Stock benchmarks in Europe and elsewhere remained under pressure. In addition, the macro picture is getting bleaker, with the excise duty receipts dropping 4% in September and several companies reportedly contemplating production cuts. The veracity of the government's data on IIP and Infrastructure growth is questionable. Like someone mentioned, ‘Just as there are no atheists in a foxhole, there are no economic fundamentalists in a crisis like this.’

Already, think tanks like CMIE and NCAER, and some brokerages have slashed their estimates for FY09 GDP. The Government and the regulators are doing their bit to shore up the banking system and check the slide in stocks. Further steps may be announced over the next few days if the situation so demands. But, the joker in the pack will continue to be global markets. And it’s not funny.

Watch out for the SEBI data on overseas lending by FIIs. On Wednesday, the market watchdog had asked FIIs and their sub-accounts to give information on lending of shares abroad and asked them to furnish details twice a week, on Tuesday and Friday. The first data will be provided today on SEBI's website, covering activity between Oct. 10 and Oct. 14.

FIIs were net sellers of Rs11.6bn (provisional) in the cash segment on Thursday while the local institutions poured in Rs7.38bn. In the F&O segment, the foreign funds were net sellers at Rs8.47bn. On Wednesday, FIIs were net sellers of just Rs8.4bn in the cash segment, taking their total outflows this year to above $11bn.

Key Results Today: Elecon Engineering, Fag Bearing, Goa Carbon, HDFC, India Infoline, JK Paper, Madras Aluminium, Mysore Cements, Novartis India, Panacea Biotec, Satyam Computer, Tata Coffee, Tata Elxsi, Zenotech Labs and Zensar Tech.

With oil prices tumbling 50% from the all-time peak of US$147 per barrel, oil producers' cartel OPEC is reportedly contemplating cutting group output at an emergency meeting in Vienna next week. According to the Finance Times (FT), OPEC has brought forward to next week an emergency meeting to consider a cut in production after oil prices dropped to less than US$70 a barrel for the first time in more than a year on worries about a global recession.

A late rebound helped US shares close higher on Thursday after a volatile day, as a steep fall in oil prices gave investors a reason to snap up shares battered in the recent selloff. After trading in a 815-point range, the Dow Jones Industrial Average rallied higher in the final hour, rising 401 points, or 4.7%, to end at 8.979.26. At one point, the blue chip barometer was down almost 400 points.

The S&P 500 climbed 38.59 points, or 4.3%, to 946.43, while the Nasdaq Composite gained 89.38 points, or 5.5%, to 1,717.71. The three main indices had been on both sides of the breakeven point throughout the morning. About four stocks gained for each that fell on the New York Stock Exchange.

US stocks fell in the morning on a couple of weak manufacturing reports and Merrill Lynch and Citigroup's losses. But the selling eased up after the major indices dipped close to last week's multi-year lows - which some market experts reckon could represent a bear market bottom.

In the last hour of trade, stocks rallied sharply, reversing the recent trend of selling off near the close. The market also seemed to benefit from a slump in commodities. The dollar strengthened versus other major currencies and the credit market showed some signs of loosening.

But, investor fear remains at an all-time high, with the CBOE Volatility (VIX) index rising to a record 81.17 on Thursday afternoon before pulling back a bit.

Oil prices continued to slide after the US government's weekly inventory report that showed a bigger-than-expected gain in crude and gasoline supplies. US light crude oil for November delivery fell US$4.65 to settle at US$69.85 a barrel on the New York Mercantile Exchange. The contract fell as low as US$68.57, the lowest level since August 2007. Gasoline prices fell another 4.1 cents overnight, to a national average of US$3.084 a gallon.

Treasury prices inched higher, lowering the yield on the 10-year note to 3.93% from 3.95% late on Wednesday. COMEX gold for December delivery plunged US$34.50 to US$804.50 an ounce. A variety of other commodities declined as well. In currency trading, the dollar rose against the euro and the yen.

Production at US factories fell by the largest amount in nearly 34 years, the Federal Reserve said. The decline was due largely to the impact of hurricanes Gustav and Ike on the Gulf Coast industry. Meanwhile, the Philadelphia Fed index, a regional reading on manufacturing, fell in October to an 18-year low. The September Consumer Price Index (CPI) showed only modest inflationary pressure.

The number of Americans filing new claims for unemployment last week fell to 461,000 from a revised 477,000 the previous week. In other news, mortgage rates spiked last week, seeing the biggest week-to-week jump since April 1987.

After the close, Google reported higher-than-expected third-quarter earnings on revenue that was in line with forecasts. The search engine's shares rose 12% in after-hours trading. AIG said it has tapped another US$12bn in emergency government funding, bringing its total to US$82.9bn as it struggles to stay afloat.

Also after the close, Advanced Micro Devices (AMD) reported a narrower quarterly loss, while IBM reported higher profit that beat estimates, after pre-announcing the results last week. Friday brings reports on housing starts and building permits in September as well as the University of Michigan's consumer sentiment index for early October. Additionally, President Bush is due to speak briefly before the market opens.

European stocks plunged, barely escaping a fresh five-year low on Thursday, as fears about an impending global recession outweighed more moves from central banks to shore up the financial system. The pan-European Stoxx 600 index slid 5% to 206.40, bringing losses since Tuesday to roughly 12%.

The UK's FTSE 100 index fell 5.4% to 3,861.39, again falling below the 4,000 level. Germany's DAX 30 dived 4.9% to 4,622.81 and the French CAC-40 index tumbled 5.9% to 3,181.00. In Vienna, the Austria ATX did even worse, falling over 9%.

Among the emerging markets, the Bovespa in Brazil fell 1% to 36,441 while the IPC index in Mexico slumped 3.2% to 20,457. The RTS index in Russia was down 9.5% to 713 and the ISE National 30 index in Turkey slid 6.9% to 34,949.

STRATEGY INPUTS FOR THE DAY

2008-10-20T08:03:00.000-07:00

Still time to take a chance!

There is no security on this earth, there is only opportunity.

The crash may tempt those with cash to jump in right now. After all, how low can we go? Friday's big crash in our market, coming a week after a global rout, must have unnerved even the strongest of bulls. Especially, as many market players believed that world equity markets had placed a bottom on Oct. 10. However, the late afternoon meltdown on Friday proved the most optimistic of bulls wrong. The key indices fell to two year lows, with the BSE Sensex sliding below the 10,000 mark. It just goes to show that looking for a bottom in this kind of an environment is a futile exercise.

Though, the market looks highly oversold, and a bounce back is on the cards on "not-so-bad" global cues, one should wait for things to settle down. Staying on sidelines for a while won't do one any major harm. One must remain on guard even if there is a relatively strong rebound, as the bulls may not be out of the woods completely. The brave heart bulls can use these opportunities to pick up some crown jewels, but only for long-term purpose (at least two years). We would caution against any bottom fishing attempts for short-term gains.

We expect a firm opening, partly in reaction to the massive selloff on Friday and partly because of some semblance of stability in world markets. But, don't get too excited, as the bears may still stage a comeback having already thrashed the bulls over the past few weeks.

For India, the big concern remains the incessant selling by FIIs. The Government may try and perk up the inflows from other sources, like FDI and ECB. The RBI will hold its half-yearly review of the monetary policy on Friday. Hopes are that the central bank may ease the repo rate now, after having slashed the CRR substantially and giving leeway on the SLR front. But we think nothing really will happen to coincide with the review. The market will of course get some boost if Mint Street indeed announces a cut in short-term rates.

Expect some more market friendly action from other global central banks and policymakers as well. Meanwhile, India Inc will continue to rollout its report card, which is unlikely to be too pleasing given the slew of headwinds confronting them. One more factor that could have some bearing on the Indian markets over the next few weeks is politics, with several state polls lined up in November and December.

The global newsflow continues to be poor, what with Pakistan almost on the verge of a default and South Africa having to announce a bank bailout plan of its own. Last week's economic reports from the US and Europe too was not at all inspiring, underscoring a growing fear that a protracted and painful global recession is imminent. Dutch financial giant ING is set to receive $13.4 billion in new capital from the Netherlands government. China, which is so used to notching up double-digit GDP growth, has seen its economic expansion slide to 9% in the July-September quarter.

FIIs were net sellers of Rs9.15bn (provisional) in the cash segment on Friday while the local institutions poured in Rs7.13bn. In the F&O segment, the foreign funds were net sellers at Rs1.69bn. On Thursday, FIIs were net sellers of Rs19.11bn in the cash segment, taking their total outflows this year to above $11.56bn.

Key Results Today: Akruti City, Alembic, Alfa Transformers, Archidply, Aztecsoft, Canara Bank, EMCO, Geometric, Granules India, Grindwell Norton, Hindustan Sanitary ware, HT Media, Idea, Indian Hotels, IL&FS Investment Managers, Ingersol Rand, JM Chemicals, Kale Consultants, KPIT Cummins, KRBL, Lumax Auto, Lumax Ind, Mic Electronics, Mindtree, MRO-TEK, Omnitech, Patel Engineering, Petronet LNG, Rolta, Sanghvi Movers, Shree Cement, Sterlite Technologies, Texmaco, Titan, United Phosphorus and Voltamp Transformers.

US stocks closed lower on Friday after another highly volatile day, as investors remained apprehensive about the future prospects of the world's leading economy amid a fresh set of disappointing data points.

Profit-taking set in ahead of the close, capping a day that sent the S&P 500 Index swinging between gains and losses at least 28 times, as worsening consumer confidence and housing data overshadowed Warren Buffett's advice to buy shares.

Treasury bond prices advanced, lowering the corresponding yields, and the dollar gained versus other major currencies. The credit market showed some signs of loosening, as several key lending rates declined.

The Dow Jones Industrial Average climbed more than 300 points before surrendering gains in the final hour of trading. The Dow retreated 127.04 points, or 1.4%, to 8,852.22 to cap its best week since 2003.

The S&P 500, which rose as much as 4%, ended down 5.88 points, or 0.6%, at 940.55, trimming its best weekly advance since February. The Nasdaq Composite Index slipped 0.4% to 1,711.29.

Market breadth was mixed. Four stocks fell for every three that gained on the New York Stock Exchange.

US stocks seesawed throughout Friday as a report showing housing starts at a 17-year low was countered by Internet giant Google's strong quarterly performance and bullish comments from Buffett.

Markets were also impacted by the monthly options expiration, which can cause increased volatility in the underlying equities.

Despite the extremely volatile week, US stocks managed to end with gains for the five-session period, which included the Dow's biggest one-day point gain ever on Monday and the second-biggest point loss ever on Wednesday.

For the week, the Dow and S&P 500 both added 4.7% and the Nasdaq gained 3.6%.

The advance last week added US$500bn in market value, according to gains in the Dow Jones Wilshire 5000, the broadest measure of the stock market. Overall, the tone of the market seemed to be better this week, compared to last week, with perhaps the exception of Wednesday's big slump.

Many Wall Street experts feel that Oct. 10 lows could potentially represent a bottom for the current bear market. During last week's topsy-turvy ride, the major indices did get close to those lows, but managed to bounce back.

Lending rates improved last week, as a slew of government initiatives around the globe started to bear some fruit. Treasury prices rose, lowering the yield on the 10-year note at 3.97%.

US light crude oil for November delivery rose US$2 to settle at US$71.85 a barrel on the New York Mercantile Exchange after ending the previous session at a 13-month low. Oil prices have slid since hitting an all-time high of US$147.27 a barrel on July 11.

Gasoline prices fell another 4.4 cents overnight, to a national average of US$3.04 a gallon. It was the 30th consecutive day that pump prices have decreased - in the past month alone, they are down more than 81 cents a gallon.

Over the weekend, the price of regular gasoline at US filling stations fell below $3 a gallon for the first time in eight months.

COMEX gold for December delivery slumped US$16.80 to settle at US$787.70 an ounce. A variety of other metals declined as well. In currency trading, the dollar rose against the euro and the yen.

European shares surged on Friday, bucking the generally weak trend across other global equity markets, with a regional stock benchmark logging its biggest weekly gain since March 2007.

The Dow Jones Stoxx 600 Index had its biggest two-day rally on record, before posting the steepest two-day slump since 1987 even as the cost of borrowing dollars in London fell on a weekly basis for the first time since July.

The pan-European Stoxx 600 index added 3.8% on Friday to 214.23, closing an eventful week on a positive note, as 15 of 19 industry groups increased. The index gained 4.5% last week, the first such advance since Sept. 12.

National stock benchmarks increased in 14 of the 18 western European markets. The UK's FTSE 100 index jumped 5.2% to 4,063.01, while Germany's DAX 30 index climbed 3.4% to 4,781.33 and the French CAC-40 index advanced 4.7% to 3,329.92.

Russian shares extended the recent sell-off on Friday, with the dollar-denominated RTS stock index dropping 6.5% on the day, after Goldman Sachs slashed its 2009 economic growth forecasts for the federation. The RTS index fell 46 points to end at 667.62 points.

Among the other emerging markets, the Bovespa in Brazil was nearly flat at 36,399 while the IPC dropped 0.7% to 20,312. The ISE National 30 index in Turkey plunged 7.5% to 32,334.

HOW MARKET FARED

Bulls look for resurrection

Indian markets ended the week with a deeper cut with the BSE benchmark Sensex sliding below the 10,000 mark for the first time since July 2006. Likewise, the broader NSE Nifty index also declined below the 3,100 mark. Markets witnessed intensified selling after starting off the Friday’s session with a positive bias extending previous day’s pull back. However, intensified selling in the index pivotal like Reliance Industries, L&T, Infosys and SBI dragged the key indices lower.

Massive selling was witnessed on the FII front, on provisional basis FIIs sold nearly Rs1,000cr on Friday and during the week FIIs were net sellers to the tune of Rs5,000cr.On the other hand, DIIs turned out to be net buyers, and bought stocks worth Rs712cr on Friday (prov).

Finaly, the BSE benchmark Sensex plummeted 606 points or 5.7% to close 9,975 and the NSE Nifty index dropped 194 points to close at 3,074.

All the 30-components of Sensex were in the red, Reliance Industries, SBI, Bharti, Infosys and HDFC Bank were among the major laggards.

Among the BSE Sectoral indices, BSE Capital Goods index (down 12%), BSE Power index (down 8.5%), BSE Metal index (down 7%) and BSE Bankex index (down 6.3%). Even the Mid-Cap and the Small-Cap indices declined over 3% each.

HDFC announced that it posted a net profit after tax of Rs5342.3mn for the quarter ended September 30, 2008 as compared to Rs6463.9mn for the quarter ended September 30, 2007.

Total income has increased from Rs18925mn for the quarter ended September 30, 2007 to Rs26205.9mn for the quarter ended September 30, 2008.

HDFC was down by 1.3% at Rs1776 hitting an intra-day high of Rs1860 and a low of Rs1751 and recorded volumes of over 4,00,000 shares on BSE.

Shares of Mphasis erased early gains and lost ground by 2.5% to Rs173. The company announced that it posted a net profit after tax of Rs1127mn (up 128.7%) for the quarter ended September 30, 2008 as compared to Rs492.7mn for the quarter ended September 30, 2007.

Total Income increased from Rs4124.1mn for the quarter ended September 30, 2007 to Rs6539.3mn (up 58.7%) for the quarter ended September 30, 2008. The scrip touched an intra-day high of Rs193 and a low of Rs172 and recorded volumes of over 99,000 shares on BSE.

Satyam announced that it posted a profit after taxation of Rs5974.3mn (up 43.2%) for the quarter ended September 30, 2008 as compared to Rs4171.5mn for the quarter ended September 30, 2007.

Total Income increased by 3.5% from Rs20564.4mn for the quarter ended September 30, 2007 to Rs27839.8mn for the quarter ended September 30, 2008.

Shares of Satyam Computer ended lower by 2.6% to close at Rs265 hitting an intra-day high of Rs285 and a low of Rs263 and recorded volumes of over 13,00,000 shares on BSE.

Shares of HCC have gained by 1.3% to Rs48.3 after the company announced that it won two orders worth Rs16.9bn from the government of the Southern Indian state of Andhra Pradesh. The scrip has touched an intra-day high of Rs50.6 and a low of Rs47.7 and has recorded volumes of over 11,00,000 shares on NSE.

Shares of Elecon Engineering also erased early gains and slipped sharply by 6% to close at Rs47. The company announced that it secured order worth Rs177mn from Techpro Systems Ltd, Chennai Supply of an Unidirectional Stacker cum Reclaimer & Slewing Boom Stacker. The scrip touched an intra-day high of Rs55 and a low of Rs46 and recorded volumes of over 1,00,000 shares on BSE.

Market players would keep a close track on the further measures to be taken by the Indian central bank on October 24^{th. Traders and investors are hoping for an interest rate cut from the RBI which could be a positive trigger for the Indian markets. However, having said that staying cautious is what we would advice.}

TEN MOST ACTIVE FUTURES
Expiry Date: October 29, 2008

TEN MOST ACTIVE OPTIONS
Expiry Date: October 29, 2008

Symbol	No.of Cont Traded	Last price	Open Interest	% chg in Op.Int
RELIANCE	89,547	1,309.10	7848750	-0.31
ICICIBANK	53,994	392.65	13770050	-3.69
SBIN	41,277	1,416.75	5365800	-3.45
BHEL	35,976	1,199.90	2864025	0.30
RELCAPITAL	35,525	604.80	2981904	-7.25
LT	33,892	790.45	5299400	-0.67
HDIL	32,710	124.50	3936048	-23.80
DLF	25,859	292.65	12080800	-2.69
NTPC	24,980	150.25	34984625	1.50
RCOM	22,639	234.65	14180250	-5.60

Symbol	Option Type	Strike price	No.of Cont Traded	Open Interest	% chg in Op.In
RELIANCE	CA	1,440	4,642	199725	149.58
RELIANCE	CA	1,500	2,273	198075	27.34
ICICIBANK	CA	420	1,827	360150	-15.86
ICICIBANK	CA	400	1,537	125475	182.28
RELIANCE	CA	1,410	1,355	50925	-
ICICIBANK	PA	400	1,351	199675	69.54
SBIN	PA	1,500	1,271	75372	-22.63
SBIN	CA	1,500	1,236	205392	-12.58
NTPC	CA	170	1,186	1079000	34.41
ICICIBANK	CA	440	922	235025	19.27

SUPPORT & RESISTANCE LEVEL

October 2008
COMPANY NAME	S3	S2	S1	CLOSING PRICE	R1	R2	R3
Sensex Index	9,397	9,538	9,686	9,975	10,264	10,413	10,553
Nifty Index	2,883	2,930	2,979	3,074	3,170	3,219	3,265
ABB Ltd	579	592	605	631	657	671	683
ACC	439	450	463	487	511	523	535
Ambuja Cements	52	53	54	57	59	61	62
Bajaj Holdings	322	330	339	357	374	383	392
BHEL	1,046	1,082	1,119	1,192	1,264	1,302	1,337
Bharti Airte	610	626	644	677	711	728	744
Cipla	191	192	194	197	201	202	204
Dabur India	78	79	80	81	82	83	84
GAIL India	205	214	224	243	262	272	282
Grasim Ind.	1,169	1,198	1,228	1,288	1,347	1,377	1,406
HCL Tech	146	149	152	158	164	167	170
HDFC Bank	931	954	979	1,026	1,074	1,099	1,122
Hero Honda	773	783	794	815	835	846	856
Hindalco	58	59	61	64	67	68	70
Hindustan Unilever	234	236	238	242	245	247	249
ICICI Bank	354	363	372	391	410	420	429
Infosys Tech	1,124	1,143	1,163	1,203	1,242	1,263	1,282
ITC Ltd	152	153	155	159	163	164	166
L&T	753	764	776	800	823	835	846
MTNL	57	58	60	63	66	68	69
M&M	419	425	430	441	452	457	462
Maruti Suzuki	603	612	622	641	659	669	678
National Alumin	238	244	251	264	277	283	290
ONGC	730	741	753	776	799	811	822
Oriental Bank	161	162	163	166	169	170	171
PNB	479	483	487	494	502	506	510
Ranbaxy Labs	243	247	250	257	263	267	270
Reliance Capital	502	526	553	604	655	682	707
Reliance Comm	209	215	221	234	247	254	260
Reliance Energy	423	440	457	491	525	542	559
Reliance Inds	1,205	1,229	1,255	1,306	1,357	1,383	1,407
R Power	108	109	111	114	117	118	120
Satyam Computer	246	251	256	266	276	281	286
Siemens India	235	243	252	268	285	294	302
SBI	1,285	1,318	1,352	1,419	1,487	1,521	1,554
TCS	398	412	426	454	482	496	509
Tata Motors	227	231	235	243	252	256	260
Tata Power	689	703	719	748	778	793	808
Tata Steel	224	229	236	248	260	266	272
Tata comm	405	413	421	437	453	461	468
Wipro	234	240	246	258	269	275	281
Wire And Wireless	10	10	11	11	12	12	13
Zee Entertainment	137	140	143	148	154	157	159
NOTE : S1, S2 and S3 are critical support levels while R1, R2 and R3 are resistance levels. Trading call depends on the price band

Sensex down nearly 700 points on october 15

2008-10-15T02:39:00.000-07:00

The markets on Wednesday continue to suffer losses with the BSE Sensex plunging 692.81 points to 10,790.59 at 2.57 pm October 15, 2008

Similarly, the NSE Nifty was trading at 3329.20, down 189.45 points.

The BSE Mid cap was at 3,714.50, down 177.53 points while the Small cap was trading at 4,394.17, down 221.72 points.

There was not a single gainer on the bourses during this time, while at least five stocks were down by as much as 10 per cent.

Jaiprakash Associates (13.76 per cent), Reliance Communications (13.73 per cent), Reliance Infrastructure (12.69 per cent), Tata Steel (10.84 per cent) and L&T (10.53 per cent) were the biggest losers.

Earlier in the day at 12.45 p.m, the Sensex was down 533.67 points at 10,949.73, while the Nifty was down 127.3 points at 3389.55.

ACC Ltd was the sole gainer on the 30-share index at that time, while all other stocks suffered losses, L&T facing the maximum heat with a 10.83 per cent loss.

The Mid cap was down 137.35 points while the Small cap was trading at 4451.70, down 164.19 points.

On opening trade, the Sensex had lost 345 points on selling by funds in metal, IT and banking sector stocks, triggered by weakening global markets.

The 30-share index, which had gained over 955 points in the past two sessions, plunged by 345.75 points, or 3.01 per cent, at 11,137.65.

Similarly, the wide-based National Stock Exchange fell by 98.95 points, or 2.81 per cent, at 3,419.70.

Marketmen said overnight weakness at the US markets and similar trends in other Asian stock markets mainly dampened the trading sentiments.

Weak Indian rupee, which depreciated by 46 paise to 48.55 against the US dollar, too dampened the trading sentiments, they added.

They said selling was wide spreading as all the sectoral indices were trading in the negative zone.

Among banking stocks, ICICI Bank, the largest lender in the private sector, lost Rs 13.45 or 3 per cent at Rs 433.65, while State Bank of India was down by Rs 7.90 at Rs 1,520.50.

Other losers which dragged the Sensex down were Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, Reliance Industries, Reliance Infra, RCom, BHEL, Larsen and Toubro and Tata Steel.

Meanwhile, the US Dow Jones Industrial Average fell by 0.82 per cent, while Hong Kong's Hang Seng lost 2.46 per cent and Nikkei down 1.36 per cent in early trade.

GLOBAL MARKETS - Stocks retreat as risk aversion returns

2008-10-15T02:34:00.000-07:00

LONDON (Reuters) - Signs of renewed risk aversion surfaced on Wednesday with stocks pressured and gold rising as investors fret the global economy will not escape a recession even after bank bailouts, which have taken the edge off money market stress.

Oil prices held near a one-year trough below $80 set on Friday, while the yen and government bonds climbed as fears about an imminent financial meltdown gave way to economic worries after trillions of dollars were pledged to boost the banking system.

"The panic may have been removed from the market, and financial system meltdown may have be averted by the compendium of measures, but the outlook for earnings ... and the global economy continues to look grim," said Daragh Maher, deputy Head of global FX strategy at Calyon.

Fuelling those concerns was a disappointing outlook from PepsiCo Inc, especially given that soft drink- and snack-makers are usually seen as holding up in tough economic times.

European stocks fell in early trade, with the FTSEurofirst 300 index shedding 2 percent, while Germany's DAX and Britain's FTSE both shed more than 2 percent.

MSCI's main world stock index was down about 1 percent, as the two-day rebound from a five-year low fizzled.

"After the colossal gains achieved at the start of this week, it would seem that the hangover has kicked in and investors have sobered to the reality that recession is here," said Andrew Turnbull, senior sales manager at ODL Securities.

MSCI's measure of Asian stock markets excluding Japan slid 3.4 percent. Japan's Nikkei, however, rose 1.1 percent after spending most of the session in negative territory.

A recent slew of negative euro zone economic indicators including Tuesday's data showing a bigger-than-expected fall in German investor sentiment about the outlook for Europe's largest economy were starting to bite.

Anyone looking for relief is likely to be disappointed with U.S. retail sales data due later in the session expected to show a decline for a third straight month. Forecasts centred on a 0.7 percent fall.

MONEY MARKETS HEALING

Still, measures by governments and central banks aimed at restoring confidence between banks appeared to be helping to kick-start the healing process in money markets, which had literally gummed up after the collapse of Lehman Brothers last month.

Overnight dollar interbank rates were indicated at 1-1.5 percent, slightly below early Tuesday's level, although three-month dollar rates remained around early Tuesday levels, indicated in wider 3.5-5.4 percent range.

"The rescue packages around the world have laid the foundation for market confidence to return. However, experience has shown that confidence recovers only slowly," said Commerzbank analyst Antje Praefcke.

The yen benefited as investors turned risk averse. The dollar fell 0.9 percent to 101.29 yen, while the euro lost 1.2 percent to 137.70 yen.

Weakness in equity markets helped fuel demand for government bonds, driving yields lower. The euro zone 10-year bond yield slipped 3.5 basis points to 4.085 percent, while the U.S. 10-year yield eased 7.2 basis points to 4.013 percent.

Meanwhile, U.S. crude was little changed at $78.70 but not far off the one-year low of $77.09 a barrel plumbed on Friday, weighed by worries that a global recession would hurt demand.

Demand for gold, however, was firm, helping push the precious metal up more than 1 percent to $846.

Sensex sheds 345 points in early trade on funds selling

2008-10-15T02:30:00.000-07:00

Mumbai, Oct 15 (PTI) The Bombay Stock Exchange benchmark Sensex lost 345 points in early trade today on selling by funds in metal, IT and banking sector stocks, triggered by weakening global markets.
The 30-share index, Sensex, which had gained over 955 points in the past two sessions, plunged by 345.75 points, or 3.01 per cent at 11,137.65.

Similarly, the wide-based National Stock Exchange fell by 98.95 points, or 2.81 per cent at 3,419.70.

Marketmen said overnight weakness at the US markets and similar trends in other Asian stock markets mainly dampened the trading sentiments.

Weak Indian rupee, which depreciated by 46 paisa to 48.55 against the US dollar, too dampened the trading sentiments, they said.

They said selling was wide spreading as all the sectoral indices were trading in the negative zone.

Among banking stocks, largest lender in the private sector ICICI Bank lost Rs 13.45, or three per cent at Rs 433.65, while State Bank of India was down by Rs 7.90 at Rs 1,520.50.

Other losers which dragged the Sensex down were Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, Reliance Industries, Reliance Infra, RCom, BHEL, Larsen and Toubro and Tata Steel.

Meanwhile, the US Dow Jones Industrial Average fell by 0.82 per cent, while Hong Kong's Hang Seng lost 2.46 per cent and Nikkei down 1.36 per cent in early trade. PTI

Sensex rises most in four years; ICICI jumps

2008-10-13T10:28:00.000-07:00

File photo of a traffic-sign near the Bombay Stock Exchange building in Mumbai. REUTERS/Punit Paranjpe/Files

Mon, Oct 13 05:53 PM

BANGALORE (Reuters) - The Sensex rose 7.4 percent on Monday, snapping a five-day losing run with its biggest rise in more than four years as the government sought to reassure investors it was working to shield India from the global crisis.

The gains were led by a surge in ICICI Bank and helped by rallies in overseas markets after policy makers around the world took new and drastic steps to rescue banks and prevent the global economy from sinking into recession.

However, doubts remained about the strength of the rise.

No. 2 lender ICICI Bank rose 16.75 percent to 425.10 rupees, having risen nearly 25 percent earlier, helped by the finance minister's comments the government was working to improve liquidity in the banking system and after its chief executive said on Monday deposits with the bank were safe and it had a cushion to take domestic and overseas shocks.

ICICI has been hammered by investor concerns about its exposure to the global crisis. Before Monday's surge, its shares had fallen more than 70 percent in 2008.

The 30-share BSE index ended up 7.42 percent, or 781.24 points, at 11,309.09, its biggest percentage rise since May 18, 2004, as it pared some of the previous week's fall of nearly 16 percent. All but two of its components gained ground.

"It's a temporary pullback rally, triggered by the positive international markets and the reassurance from the finance minister about the liquidity situation in the country," said Gajendra Nagpal, chief executive of Unicon Financial.

Finance Minister Palaniappan Chidambaram said on Monday the government, the central bank and the stock market regulator were coordinating on an hourly basis regarding the fallout of the global financial crisis on the Indian market.

Traders said the statement led to speculation the regulator would take measures such as banning short-selling, the selling of borrowed shares in the hope the price will fall and then buying them back more cheaply to make a profit, to stem the slide.

Mumbai brokerage India Infoline said it was not convinced the correction in India's markets had ended and advised investors to stay on the sidelines till global markets stabilised.

"The turmoil in the global credit markets is still far from over, and it's possible that FIIs would continue to stay away from emerging markets for some time to come," it said, referring to foreign institutional investors.

"One should not get carried away if there is any kind of a bounce back, as further selling is expected."

Foreign funds have sold a net $10.3 billion in Indian stocks in 2008, and the index is down more than 44 percent this year. In comparison, they bought a record net $17.4 billion in 2007, helping lift the benchmark 47 percent.

Shares in Tata Consultancy Services ended up 10.1 percent at 575.80 rupees after India's largest software services exporter said it had signed an outsourcing deal worth 10 billion rupees with the Indian government.

Reliance Industries, India's most valuable listed firm, rose 2.84 percent to 1,570.40 rupees and second-largest outsourcer Infosys Technologies closed up 7.6 percent at 1,319.65 rupees on short covering, traders said. The two stocks account for more than 23 percent of main index.

In the broader market, 1,690 gainers outpaced 946 losers on volume of 275 million shares.

The 50-share NSE index rose 6.43 percent to 3,490.70.

Elsewhere in Asia, Karachi's 100-share index edged up 0.03 percent to 9,184.24 points, while Colombo's All-share index rose 3.06 percent, its biggest rise in six months, to 1,983.58 points.

STOCKS THAT MOVED

* Axis Bank gained 20 percent to 662.90 rupees after the private-sector lender reported a 77 percent rise in quarterly net profit. The bank also said it planned to form an asset management company with a unit of LCF Rothschild Group.

* Sterlite Technologies rose 9.6 percent to 82.20 rupees after the firm said it secured orders worth 240 million rupees for fibre optic cables from Africa.

MAIN TOP 3 BY VOLUME

* ICICI Bank on 11.4 million shares

* Chambal Fertilisers & Chemicals on 9.8 million shares

* IFCI on 8.5 million shares

Sensex at year’s low, catches European chill

2008-10-07T10:07:00.000-07:00

Mumbai: The banking crisis spread to Europe from the US and pulled down India’s bellwether stock index, the Sensex, to its lowest this year in mid-day trades — to just past 12,400 points.

Belgian-Dutch group Fortis NV, the first big casuality outside the US, was rescued by three European governments that spent more than $16 billion (Rs75,040 crore), while the UK lender Bradford and Bingley Plc. was nationalized.

“The weaker links in European banking are being exposed,” said Mamoun Tazi, a London-based financial sector analyst at MF Global Ltd, the brokerage arm of Man Group Plc., in a telephone interview.

Global equity analysts expect more bad news from a few other banks and financial institutions in Europe and other parts of the world, with “many going bust as the current economic cycle plays through”.

Most big European banks have large exposure to Indian equities through their various arms, registered as foreign institutional investors (FIIs) in India.

FIIs have already sold some $9.2 billion worth of Indian stocks, net of purchases, and several local brokers expect this to climb up to around $12 billion by the end of this year. Last year, FIIs bought Indian stocks worth $17.36 billion, net of sales—the highest in a year since India opened its doors for foreign investors in 1993.

“Once again everybody is unsure about the end and depth of this crisis,” said Anil Advani, head of equity research at SBICap Securities Ltd, the brokerage arm of India’s largest lender.

On Monday, the Sensex recovered around 200 points to close at 12,595.75, down 3.9%, or about 500 points. The National Stock Exchange’s 50-stock Nifty index closed at 3,850.05, down 3.4%, or 135.20 points.

The sell-off in the equity markets had its impact on the currency market too, with FIIs converting their rupee exposure to dollars after selling stocks. The local currency touched 47.12 to the dollar, its lowest since 2 June 2003, in intra-day trade before aggressive intervention by the Reserve Bank of India (RBI) pushed the rupee to 46.97 to the dollar.

According to foreign exchange dealers, RBI was active in the market, selling dollars throughout the day, which were mopped up by refiners and other importers quickly to cover their short positions.

“We continue to expect the rupee to trade in the Rs45-47 range in the next few months,” said Rohini Malkani, economist for Citigroup India.

The short-term outlook for equities, however, remains strongly bearish, according to most analysts and some expect the Sensex to slip to 11,000 levels in October.

While the turmoil in the financial markets remains unabated, two pieces of India-specific positive news are: earlier-than-expected production of crude from the KG basin and the US House of Representatives voting 298-117 in favour of the nuclear deal, according to Malkani of Citigroup.

The Sensex is now down about 38% this year. “The worst of everything, everywhere in global markets is being factored in local stock valuations,” said SBI’s Advani.

The price to earnings per share multiple, or PE multiple, of the Sensex, which was 27.67 at the beginning of the year, has now come down to 15.83, but not everybody is convinced that Indian stocks have become cheap.

The higher counterparty risk that has gripped the global banking system — leading to banks refusing to lend to companies and to each other — may soon manifest itself in India, market analysts said.

A 26 September research report on Indian banks by Goldman Sachs Group Inc. said it expects significant rise in non-performing loans (NPLs) from corporations, and small and medium enterprises, a trend that reverberates across Asia with similar concerns in Korea, Taiwan, Hong Kong and China markets.

“We expect implied NPL ratio on all corporate lending to double to 7.8% from 3.9%,” the Goldman report said.

Bank stocks were hit the most on Monday. The shares of India’s largest private sector lender ICICI Bank Ltd dropped more than 12%. Among the Sensex stocks, Hindustan Unilever Ltd was the only gainer. Similarly, among sector indices, the Bankex, the index of the banking sector, lost the maximum.

The Bankex has lost close to 46% since the beginning of the year, more than the Sensex. The most affected sector, however, is the realty sector and its representative index has lost more than 73%.

Experts, however, said there was no systemic crisis in India. “We will see the impact of the crisis in the US and Europe, but Indian banks are safe and they have enough capital to withstand any pressure that may arise out of their limited exposure to some of the global players, which are crumbling,” said a senior banker, who does not wish to be named.

The new European victims surfaced even as global investors remain largely uncertain about the US government’s $700 billion bailout package.

On Monday, Citigroup Inc. agreed to acquire bulk of the assets and liabilities of troubled lender Wachovia Corp., assisted by the US Federal Deposit Insurance Corp.

With continuing deterioration in the global economic environment, more European banks could probably collapse, said Tazi of MF Global.

On Monday, the Dow Jones Industrial Average was down 300 points in early trading. At 8.45pm India time, it was trading at 10,862.50, 2.52% down.

BSE Sensex falls after opening up, HCL slumps

2008-09-29T00:02:00.000-07:00

NEW DELHI (Reuters): The BSE Sensex turned negative after opening marginally higher on Monday as troubles in European financial firms weighed on investor sentiment.

Shares in No. 5 software exporter HCL Technologies were down 7.5 percent after it launched a 441.1 million pound bid for Axon Group Plc, rivalling Infosys that had bid for the UK firm valuing it at 407 million pounds. Infosys was down 2.1 percent.

By 9:59 a.m. (0429 GMT), the 30-share BSE index was down 0.59 percent at 13,025.23, with 17 of its components falling. The index had opened 0.06 percent higher.

The 50-issue NSE index fell 0.42 percent to 3,968.45.

2008-09-20T10:09:00.000-07:00

Nuclear Deal --- Decoding the Mystery

2008-09-19T02:00:00.002-07:00

Today India tryst with destiny would begin at the sanctum sanctorum of Parliament when members from wide political spectrum cast their vote either as pro deal or anti deal . It would be worthwhile to see how things have spanned out on this issue and most importantly what are the possible gains / losses with an eye on economics and markets

Power play :

July 2005 - Prime Minister Singh and US President George W Bush agree to a civilian nuclear co-operation deal

March 2006 - Two countries agree on India’s plan to separate its civilian and military nuclear reactors

Dec 2006 - US Congress approves the deal. Approvals from Nuclear Suppliers Group, International Atomic Energy Agency and a second time by the Congress are still needed

Dec 2006 - Bush signs the law approved by Congress, which makes changes to the US Atomic Energy Act

July 2007 - The two countries announce finalisation of the deal

Aug 2007 - Text of the bilateral pact, called the 123 agreement, is unveiled

Aug 2007 - Left parties slam the pact and ask the government to suspend it saying it compromises India’s sovereignty and imposes US influence

July 4, 2008- Samajwadi Party with 39 MPs agree to support the UPA on the deal

July 8, 2008 - Left withdraws support to the UPA; Govt approaches IAEA

July 22,2008 - Trust Vote on Nuclear Deal in Parliament

GAINS---> 1.It will help India meet its rising energy demands by reversing US sanctions, imposed after nuclear tests were carried out by India in 1974 and 1998.

2.India will get access to US civilian nuclear technology.

3.The deal guarantees Indian fuel supplies for its civilian programme, and allows it to re-process spent fuel.

4.It could spur India’s economic growth as India’s objective is to increase the production of nuclear power generation from its present capacity of 4,000 MW to 20,000 MW in the next decade.

5.It could usher in a new era of nuclear power in India, freeing the country from heavy dependence on fossil fuels.

LOSSES --->The deal ties India’s future foreign and energy policy closely to the US. India will now classify 14 of its 22 nuclear facilities as being for civilian use, and thus open to inspection.Further the fuel supply is limited till India doesnt conduct another test .

Decoding the nuke jargon ---

Nuclear Deal : A nuclear deal, announced in July, 2005 and finalised in March, 2006, would allow the United States to sell nuclear material to India and, in may end India’s nuclear isolation. India is self-sufficient in thorium but possesses a meagre 1% of the global uranium reserves. The deal will help India obtaining a steady supply of uranium required for running the present nuclear programme

123 agreement : Section 123 of the United States Atomic Energy Act of 1954, titled “Cooperation With Other Nations”, establishes an agreement for cooperation as a prerequisite for nuclear deals between the US and any other nation. Such an agreement is called a 123 Agreement

Hyde Act : Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006 is the legal framework for a bilateral pact between the United States and India under which the US will provide access to civil nuclear technology and access to nuclear fuel in exchange for International Atomic Energy Agency-safeguards on civilian Indian reactors

NPT : Signatories to the Nuclear Non-Proliferation Treaty (NPT) are granted access to civilian nuclear technology from each other as well as nuclear fuel via the Nuclear Suppliers Groups in exchange for International Atomic Energy Agency-verified compliance of the NPT tenets. India, Israel, and Pakistan, however, have not signed the NPT.

Political Play on Nuclear Deal :
One of the great things about Indian democracy is its combination of predictability and surprise. In its working, it is a bit like its wiser cousin the Bollywood of the last three decades. In an ordinary sense, it operates on stereotypes of corruption, banality and cynicism. The ordinary citizen almost despairs whether this system will ever change. He also realises that it is both open and venal, which in democratic terms may be more creative than a world that is aristocratic and closed. Such a politics begins with the simple assumption that there are no permanent enemies, just permanent interests. However, it goes beyond this Machiavellian premise to realise the difference between an adversary and an enemy. In politics, as political scientist Chantal Mouffe said, the man you battle with is not an enemy, someone you have to defeat, eliminate or exterminate. He is an adversary. Adversorial politics is more playful, more unpredictable. It is competitive but allows for negotiation, but it has the negotiability of the bazaar and not the market. It is not impersonal, it is based on old memories, it prefers the logic of coalitions, a win-win situation rather than a zero-sum game. It seeks system stability rather than regime crisis. Politics is based on continuous re-readings of the situation where text, pretext and context are convertible. For instance, you cannot quite figure out whether the nuclear deal will go through to solve a political issue in UP or vice versa.
Values, exaggerated to the extreme as ideology, may destabilise politics. In fact, the politics of non-negotiability is seen as anti-political. It is not that values are not important. It is just that they have to be articulated in the right way, at the right moment. They must not sound intractable or fundamentalist. It is not that people do not know the difference between good and bad, only they feel the necessity for their coexistence. It is a covert plea for the existence of multiple frames and viewpoints. One can personally grade or prioritise them but one has to allow for some notion of plurality. The politics of untouchability of groups or functions cannot threaten system stability. Electoral politics, in that sense, operates between the homeliness of the bazaar and the nation as home. One immediately asks two questions. What does this mean for the liberal market imagination? Secondly, what does it hold for the future of values? It is not an open domain where everything is for sale. It is a grid, a gradient where negotiation is possible, where the same good is valued differently, where personal benefits derive from public goods, but no one denies the necessity of the public good. It is here that values come in because even interests and deals need a framework of value, a sense of the bigger community. A nuclear deal is not passed as a nuclear deal. That would be too profane. A nuclear deal is an affirmation of national interests, of science, of our dignity as a nation
There is a bit of hypocrisy here but it is a hypocrisy which appeals to stability, which claims a loyalty if not an adherence to values. Of course, there is no debate about the essential qualities of nuclear energy. Sixty years of debates on history of the peace movements, the memoirs of the Pugwash moment, the Bulletin of the Atomic Scientists could be non-existent. Our politics is not contending that what it is good for GM, is good for the country, only that if the nuclear deal is good for the country, it may be good for the party. It is a lowest common denominator politics but within the democratic framework .
Nuclear Deal could benefit over 400 companies !
While the nuclear deal runs the risk of getting nuked, there exists a host of homegrown companies, which have a lot to gain from the controversial 123 Agreement. The pro-deal government has recommended a roadmap for meeting the country's energy requirement for the next 25 years and has set an ambitious target of 20,000 MWe (unit of nuclear power) by 2020 from the current 3,900 MWe. If all goes well, it will open up a sea of opportunities for various sectors involved in making equipment for nuclear power plants. India has plans to set up 15 plants over the next 20 years and so the pursuance with US to import more advanced nuclear power technology may better the standards of manufacturing for smaller players in future. India has a total installed power generation capacity of 1,44,564.97 MW. Out of this, 64.6% capacity is achieved through thermal fuel, and hydroelectric power contributes 10.5% while nuclear energy makes up for a mere 2.9%. Nuclear power is considered to be economically competitive at competitive tariffs. It is estimated that over 400 companies could get a chance to participate in building power plants directly or indirectly.
Among them is Bangalore-based Avasarla Technologies Ltd that's gearing up to increase its production capacity multi-fold, and also readying for a possible JV with a US-based technology group. Half of their product portfolio caters to nuclear power plants requirements. If this deal happens, they are expecting significant business orders once the government decides upon the agreement . The Rs 160-crore company has supplied coolant channel assembly, fuel transfer equipment, reactivity mechanisms and calandria—a vessel that holds the uranium in the reactor core—to some of the nuclear power plants in the past. Further, the company is also adding few more products like fuel missions, radiation shielding windows, plugs to meet future requirements.
Walchandnagar Industries-- The engineering major has supplied critical components like the calandria to most of the nuclear power plants in India. The company has been waiting for the government to decide upon the classification of the orders for supplying the parts.
Rajkot-based Kiwi Pumps is in full swing to talk with Walchandnagar Industries, L&T and BHEL for making spares and small components. The company has been exporting some casting parts to power equipment majors for the last few years
Hyderabad-based SEC Industries expects to scale it up to the volume and sophistication levels required by the plans that are going to come into operation post-deal. The company makes equipment for some of the most sophisticated weapons, including the Prithvi missile
Power plants also need construction companies, and players in this sector are expecting an array of big orders to erect nuclear power plants. HCC, which has executed four nuclear power plants in India and is working on another two, is hopeful of adding few more to its portfolio. Soon after the news of Left parties withdrawing their support, some top officials of the company had met government representatives. The company claims to have executed 60% of construction related work for in nuclear plants in India. Nuclear Power Corporation of India Ltd (NCPIL), too, supports the growth of small manufacturing players in this area. It's waiting for a working model between the US and India. US companies helping to set up the plants will be looking to work with Indian companies as the labour cost will be a third.
Shree Venkateshwara Engineering Industries, felt only too happy when the government decided to move ahead with the nuclear deal. This firm mostly manufactures various products for satellite launch vehicles and is now focusing on nuclear power plant equipment. Most power plants will supplement adequate power supply in the power-prone areas like AP and generate employment in smaller regions wherever it will be set up . The Rs 22 crore company is expecting to double its business in the next two years by bagging some orders from NCPIL. It has supplied coolant systems and main critical sub-assemblies to NCPIL.
As per industry sources, L&T is likely to get mainstream nuclear projects. However, BHEL is looking for a tie-up to manufacture equipment of up to 700 MW and 1,500 MW. NTPC is looking at setting up 2,000 MW nuclear plants and is in talks with GE Energy for technology and fuel. When all these major giants will celebrate on getting big orders, small players have enough reasons to rejoice too. There is an urgent need in India for capital to build its infrastructure and manufacturing base.
Steel players who have been witnessing a tough time on price-rise and exports ban for sometimes may expect a larger chunk of supply-orders from a nuclear power surge. Ahmedabad-based Suraj Stainless Steel supplies LP/HP heater tubes to major fabricators that are used in nuclear power plants, is all set for expansion. Suraj Stainless did Rs 191 crore in turnover last year
Rolta India has a substantial market share in engineering, safety design and project management services for nuclear power plants. The company expects to add few more projects after this deal. The government plans to spend $50-60 billion on upcoming power projects by 2020. The company expects to enhance their designing capacity in the years to come to meet the growing prospects in such projects.
The market capitalisation for smaller companies may go up at any point of time. As they are showing interest in working on bigger projects, chances are that they may see an upswing in their individual stock prices
At the end I would like to state it clearly that I'm a staunch supporter of this deal as this is the best that any goverment could get from USA . Never before has any american goverment bend so much to accomodate our interests . The oppponents to deal are doing a great disservice to nation by going hammer-and-tongs against it . The NDA gov which all along flaunted its proximity to the then USA regime at its time is now opposing the deal just for mere political gains , when the fact is that its very own security advisor Brijesh Mishra has come out in support of deal ! As for Left , they still live in Karl Marx-Lenin-Stalin era . Its an open secret that comrades are more loyal to China-Russia than they are to their own country . Its high time our political class does things that benefits India , things that ensure our energy security in times of impending global mayhem with regard to clean energy resources .

Few Stock Picks

2008-09-19T02:00:00.001-07:00

Before i share few stock ideas i would like to draw the blog readers attention to the fact that all the stocks mentioned as part of my last post "Nuclear Deal ---Decoding the Mystery" have done exceptionally well . LnT , Bhel , Walchandnagar Industries(locked in 5% upper freeze since past few days !), etc rose 10-35% in the immediate aftermath of UPA winning the trust vote . I must hasten to add that with decks getting cleared for deal investors must not only hold but add at declines all the stocks i have mentioned in my last post . All of them would give a good upward surprise in medium to long term . Nuclear Deal will open new vistas for manufacturing industry and it will have the effect of transforming the balancesheets of major indian companies . I'll update more about it some other day.

Meanwhile i'll share some other gems

Divis Laboratories(CMP: Rs 1,393): An established player in the generic active pharma ingredient (API) space and leader among Indian contract research and manufacturing services (CRAMS) players, the company has attained market leadership in several key products. It has 20 of the top 25 innovator companies as its client in CRAMS segment. It recently commissioned a nutraceutical facility for the $1 billion global market, which has high entry barrier in the form of complex chemistry skills.

Sun Pharma(CMP: Rs 1,414): With strong earnings visibility and industry-leading earnings before interest, taxation, depreciation and amortisation (EBITDA) margins, Sun Pharmaceuticals has one of the best business models among the peers. The company's business in the US is also maturing, with windfall gains expected from 180 days exclusivities apart from a healthy product pipeline.

Aban Offshore(CMP: Rs 2,695): The largest offshore rig operator in India, the company is ideally placed to capitalise on exploration and production (E&P ) boom. It renewed contracts with ONGC at a sizeable premium, boosting its top-line visibility. It will deliver four jack-up drilling rigs in FY09 and is set to expand its fleet to 21 vessels . The addition of drill ships will reduce dependence on jack-up rig operations and attract premium rates due to low availability.

Tata Steel(CMP: Rs 618): It is the world's sixth largest steel company. In India, it has just raised its crude-steel capacity from 5 million tonnes per annum (tpa) to 6.8 million tpa, of which 60% is rolled into flat products and the rest sold as long products. It also sells ferro alloys, tubes, bearings and some mineral products. TSL India's raw material security and operating efficiencies put it among the lowest-cost producers globally. Its focus on high-value products and branding helps it earn high EBITDA margins of 40%. It should benefit from the likely rise in domestic prices in August this year.

Reliance Industries(CMP: Rs 2,147): The company has interests in E&P , refining, petrochemicals, textiles, telecom, electricity, financial services and infrastructure. Its petrochemicals business is vertically integrated with an output of around 11 million tons. It also operates India's largest and most complex refinery with a capacity of 33 million tons. It is expected to start RPL and KG Basin production from Q3 FY09, which is expected to drive growth for the company. Also, it plans to invest $7.5 billion on semiconductor and polysilicon facilities at Jamnagar. Looking at higher crude prices and strong gross refining margin (GRM), this company has strong future prospects.

GSK Pharma (CMP: Rs 620): The company has a leadership position in the malted beverages space, strong set of core brands (Horlicks & Boost) and rich parentage (new launches from global portfolio). These are expected to help GSK sustain robust growth. Moreover, surplus cash and investments of Rs 400 crore coupled with attractive valuations make it one of the best value plays in the consumer domain.

PVR (CMP: Rs 174): The company's superior management bandwidth , integrated business model and strong set of properties (in terms of location) make it the most preferred play in the movie exhibition space. Moreover, its entry into new allied businesses such as food courts and bowling alleys coupled with recent dilution in its movie production business is likely to lead to re-rating of the stock.

Bartronics (CMP: Rs 179): The company operates in the automatic identification and data capture (AIDC) solutions segment and is set to leverage the strong growth expected in the retail sector. It is the only smart cards manufacturer in India and this segment is expected to surge on strong demand from the telecom, banking and government sectors. In the wake of strong growth prospects of the company, the stock offers great value.

Jain Irrigation (CMP: Rs 464): The company is a proxy play on the increasing government focus on agriculture and micro irrigation and the booming infrastructure in the country. It would also benefit from the acquisitions it made over the last couple of years, which will be in addition to the company's organic growth initiatives. Thus, the long-term prospects of the company are robust.

Piramal Healthcare(CMP: Rs 310): The company is an early entrant into the CRAMS space. Over the last couple of years, it has consolidated its presence in the segment, which now contributes 50% of its overall revenues. Considering its robust pipeline, the company is expected to post robust growth in the years to come.

IPCA Laboratoriesboratories (CMP: Rs 540): The company's focus on branded formulations business and emerging economies is expected to be its key growth driver. New products launches in domestic and UK markets coupled with supplies to new emerging economies and US markets should lead to a compounded annual growth rate (CAGR) of 17% in revenues and 22% in profits over next two years. It is expected to clock an earning per share (EPS) of Rs 69.7 and Rs 82.6 for FY09 and FY10, respectively. Currently, the stock is trading at 7.5x FY09 and 6.2x FY10 earning estimates.

Numeric Power Systems (CMP: Rs 601): The company, a leading manufacturer of uninterrupted power supply (UPS) systems and power conditioners in India, commands 60% share in IT and 82% share of the ATMs. The strong demand for company's products (India has peak power deficit of 16.6%), increased focus on high margin equipment servicing and significant international presence make NPSL a fast-growing multinational in the power management solutions. The stock is attractively valued at 6.5x FY09 EPS of Rs 94.2.

Indian Overseas Bank (CMP: Rs 91): The company is a leading South Indiabased bank with a strong balance sheet. IOB has a healthy current and savings account (CASA) ratio of 33.5% and strong return ratios, with a return on assets (RoA) and return on earnings (RoE) of 1.3% and 28%, respectively. The net profit for FY09E and FY10E is expected to be Rs 12.42 billion and Rs 13.91 billion, respectively , resulting in an EPS of Rs 22.8 and Rs 25.5 for FY09E and FY10E, respectively.

LIC Housing Finance (CMP: Rs 306): The company is expected to continue to benefit from the growing demand for housing. A lower mortgage/GDP ratio of 6% offers huge potential. The company expects 22% year-on-year (yoy) business growth to Rs 268 billion and 20% yoy growth in net profit to Rs 4.61 billion for FY09. Improving asset quality and strong return ratios augur well for LICHF.

Bharat Electronics (Rs 1,154): The company is the premier defence contractor for the government. Over the years, the company has developed several competencies in the area of defence electronics. It is expected to benefit from the defence offset clause that the government mandates for import of defence equipment above Rs 3 billion. The order backlog is comfortable at Rs 94.5 billion and equivalent to over two years of FY08 revenues. The modernisation of the Indian defence sector is expected to throw significant opportunities for BEL.

OVER 3 LAC 28 THOUSAND AS INTRADAY PROFITS !!!

2008-09-19T02:00:00.000-07:00

1. BHARTI AIRTEL
recommended price for selling = Rs 850
last traded price = Rs 829.05
lot size = 250
recommended number of lots = 10
PROFIT = Rs 52,375

2. BHEL
recommended price for selling = Rs 1850
last traded price = Rs 1812.70
lot size = 75
recommended number of lots = 10
PROFIT = Rs 27,975

3. HDFC BANK
recommended price for selling = Rs 1320
last traded price = Rs 1270
lot size = 200
recommended number of lots = 10
PROFIT = Rs 1,00,000

4. ICICI BANK
recommended price for selling = Rs 760
last traded price = Rs 737.90
lot size = 175
recommended number of lots = 10
PROFIT = Rs 38,675

5. TATA POWER
recommended price for selling = Rs 1060
last traded price = Rs 1034.15
lot size = 200
recommended number of lots = 10
PROFIT = Rs 51,700

6. SBI
recommended price for selling = Rs 1600
last traded price = Rs 1555.90
lot size = 132
recommended number of lots = 10
PROFIT = Rs 58,212

TOTAL PROFIT IN INTRADAY FUTURES TRADING =

Rs 3,28,937

Over Rs 3 lakh 28 thousands as Profits in just 1 day !!!

How to Start Stock Market Trading, Tips Tricks Requirements

2008-07-28T10:57:00.000-07:00

You need to fulfill some basic requirements for stock market trading. These are the first steps before starting stock market trading.

Firsts you should have the bank ac. don’t worry is you have existing saving a/c, it is enough. Not any special account is opened for that. A saving account is require for financial transaction like debiting money in case of purchasing of shares and credited money in case of any sale or any other expensed on the part of share transactions. If you don’t have any saving yet, you can open a.c with any of the bank.

Second thing you need dmat account. Almost all the banks provide dmat account facilities. So you can open with any of the bank. You have to just make a call to the concerned bank executives or go directly to the bank or you can inquire on the website about various pre needs, requirements, charges and procedure of a dmat account. Basically dmat ac is same as saving ac, main difference is that saving account involves financial transaction on the other hand dmat account involves shares transactions.

Finally you need a trading account if you want to sell or purchase in stock market. You can open your trading ac in the bank or in other financial institutions. There are many financial institutions which provide trading account faculties. Now you are ready for stock market trading.

Stock Market Trading Tips Tricks or how to get success in stock market trading

Buy low and sell at high – this is the basic trick to make money in the stock market of India. Every one who want to make money buys at low prices ands share at high prices.

Up and down these both are the nature of any sock market. If stock market is going up it will definitely go down and if it going down it will go up. The people who can imagine its nature then he can get success in a very short time and who are not able to understand get success in a long time. Read More stock market tips and online stock trading tips

Some peoples make big mistakes when buy stock at high prices. So don’t try to buy shares at high prices otherwise you should have sure knowledge and idea for that or you are an expert in stock market trading.

It is always seen that long term investment in stock market is considered better that short term investment.

There you will find many stock market agents, adviser and financial firms. Don’t west your money by giving these fees and advice charges. Make market search, analytics decide yourself whether it is profitable to invest in a particular share or not.

It is kind of business and it involves risk factor like other business. Always remember those who can take high risk can earn huge profit. But it doesn’t applicable in all cases. But if you are small investor and have limited money to invest then you should not try to take big risk as you don’t have enough money to invest further. It is other matter if you want to take chance it is your life.

There are many other ways to make online money. Make online money over the web with adsense. Have a look for other money making ways Make Money online.

Hope these stock market trading tips tricks will guide you little to invest in any stock market like stock market of India, New York stock exchange, Bombay stock exchange or national stock exchange.

Sensex up over 500 points; RIL, ICICI Bank surge

2008-07-20T08:27:00.000-07:00

Frenzied buying in index pivotals led by Reliance Industries, ICICI Bank and Bharti Airtel coupled with short covering triggered a solid rally on the bourses. A sharp fall in crude oil prices for the third day in a row on Thursday, 17 July 2008, boosted the sentiments. The rally was spread across sectors barring IT and metal. The market breadth was strong.

On the New York Mercantile Exchange, August 2008 crude settled $5.31 lower at $129.29 a barrel yesterday, 17 July 2008.

European markets, which opened after Indian market, were in the red. Asian markets, which opened before Indian market, were mixed.

The wholesale price index (WPI)-based annual rate of inflation rose to 11.91% in the week ended 5 July 2008, marginally higher than the 11.89% rise in the previous week. Inflation for the week ended 10 May 2008 was revised upwards to 8.57% from 7.82% reported earlier. The data was released after market hours yesterday, 17 July 2008.

The 30-share BSE Sensex was up 513.36 points or 3.92% at 13,625.21, as per provisional closing. It hit a high of 13,684.27 in late trade. At the day's high, the Sensex surged 572.42 points. The Sensex lost 18.51 points at day’s low of 13,093.34 hit in mid-morning trade.

The broader based S&P CNX Nifty advanced 131.65 points or 3.34% at 4,078.85 as per provisional closing

The market breadth was strong on BSE with 1614 shares advancing as compared to 990 that declined. 83 remained unchanged.

The BSE Mid-Cap index was 1.48% to 5,231.42 and the BSE Small-Cap index rose 1.05% to 6,454.03, as per provisional closing. Both these indices underperformed the Sensex.

Political uncertainty will continue to weigh on the market in the near term. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

The total turnover on BSE surged in last hour of trade amounting to Rs 5312 crore as compared to Rs 3675 crore by 14:30 IST.

Among the 30-member Sensex pack, 22 advanced while the rest slipped.

Shares from banking and financial services providers rallied after the latest data showed inflation rose at a slower pace than expected.

India’s largest private sector bank in terms of net profit ICICI Bank vaulted 13.02% to Rs 622.95 on 30.74 lakh shares after the bank’s American depository receipt (ADR) rallied 9.4% to $29.02 on the New York Stock Exchange (NYSE) yesterday, 17 July 2008. It was the top gainer from Sensex pack.

HDFC Bank (up 7.54% to Rs 1030.35), and State Bank of India (up 5.37% to Rs 1293), surged.

India's largest dedicated housing finance company in terms of operating income HDFC soared 10.13% to Rs 2080. The stock rallied 9.91% yesterday, 17 July 2008 after the company's chairman Deepak Parekh denied rumors that Citigroup may sell its 11.74% stake in firm.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries advanced 4.69% at Rs 2110 on 14.12 lakh shares. The stock moved in a range of Rs 2125 and Rs 1995.05 in the day.

Reliance Communications, the country’s second largest cellular services provider in terms of market capitalisation was up 3.61% to Rs 433.

Mukesh Ambani-owned Reliance Industries (RIL) on Thursday, 17 July 2008 said it has started arbitration proceedings against younger brother Anil Ambani’s Reliance Communications (RCOM) to thwart the latter’s merger with Africa’s largest telco MTN. According to reports, RCom has dismissed the RIL move and said the arbitration can only happen when both parties refer the dispute to a person outside the court. RCom's talks with MTN, which have been extended once, are scheduled to end on 21 July 2008.

DLF (up 6.65% at Rs 455.55), Bharti Airtel (up 7.50% to Rs 805), and Jaiprakash Associates (up 8.86% to Rs 162.25), were the other key gainers from the Sensex pack.

Most IT pivotals declined after India’s third largest software services exporter Wipro said it was cautious in the near term, echoing its larger rivals TCS and Infosys.

Wipro slumped 4.23% to Rs 363.75. The company posted 3.16% rise in consolidated net profit to Rs 907.8 crore on 5.18% rise in total income to Rs 6087.1 crore in Q1 June 2008 over Q4 March 2007. The company announced the results before trading hours today, 18 July 2008.

India’s fourth largest software services exporter Satyam Computer Services plunged 7.53% to Rs 383 on 45.77 lakh shares. It was the top loser from Sensex pack. The company reported 17.32% rise in consolidated net profit to Rs 547.70 crore on 8.47% increase in consolidated sales to Rs 2620.83 crore in Q1 June 2008 over Q4 March 2008. The company declared the results before market hours today, 18 July 2008.

India’s second largest software services exporter Infosys was down 1.76% to Rs 1555.

However India’s largest software services exporter TCS staged a strong recovery from day’s low of Rs 748.60. It rose 1.54% to Rs 791.20

Ranbaxy (down 3.72% to Rs 435.40), Tata Steel (down 3.38% to Rs 586.90), and ACC (down 1.06% to Rs 533.10), edged lower from Sensex pack.

Finance Ministry P Chidambaram yesterday, 17 July 2008 said more measures might be taken to tame prices even as the steps taken by the Reserve Bank of India (RBI) take effect. Inflation is hovering at a 13-year high and is well above the RBI’s tolerance level of 5.5% set for the current fiscal.

The RBI is scheduled to review monetary policy on 29 July 2008 and analysts opine that the central bank may tighten monetary policy again. Last month, the RBI increased its key lending rate by 75 basis points and hiked the banks' reserve requirements by 50 basis points to combat inflation.

European markets, which opened after Indian markets were in the red. Key benchmark indices in UK, Germany and France were down by between 0.22% and 0.90%.

Asian markets which opened before Indian markets were trading mixed today, 18 July 2008. Key benchmark in Taiwan, South Korea, Singapore and Japan, and were down by between 0.65% and 2.28%. However indices from China and Hong Kong gained 3.49% and 0.64% respectively.

US stocks rallied building on optimism spurred by several unexpectedly strong earnings reports, including JPMorgan Chase. The Dow Jones Industrial Average surged 207.38 points, or 1.85%, to 11,446.66. The Standard & Poor's 500 index rose 14.96 points, or 1.20%, to 1,260.32, and the Nasdaq Composite index gained 27.45 points, or 1.20%, to 2,312.30.

Back home, frenzied buying in battered pivotals along with short covering after four straight days of catastrophic fall triggered a solid rally on the bourses yesterday, 17 July 2008. The 30-share BSE Sensex surged 536.05 points or 4.26% at 13,111.85 and the broader based S&P CNX Nifty advanced 130.50 points or 3.42% at 3,947.20, on that day.

Tutorials of Mutual fund and Indian stock market !!

2008-07-10T21:45:00.000-07:00

What is a Mutual Fund?

A mutual fund is a pool of money put together by a group of investors, who stand to benefit or loose from that pool to the extent they have invested.

This pool is created since small individual investments have limited power and ability to influence the outcome of the investment. On the other hand, when the investment is large, the investor can have greater control on the outcome of the investment.

Thus, many small investors gather their individual small investments into a larger investment to take advantage of the opportunities offered by large investments. This is called a mutual fund.

What does the Mutual fund invest in?

Mutual funds can be created for investing in anything. The investments that the mutual fund is going to make are discussed in the mutual fund's offer document.

Typically, mutual funds invest in investment opportunities that have a trading market around it, such as stocks and shares, bonds and debentures, etc.

How does the investors benefit?

The most important factors in choosing who to have a deposit with, is the safety of the deposit, and the rate of interest that is paid on the deposit.

How does a Mutual funds works?

A mutual fund is managed by an Asset Management Company (AMC). Professional investors, who study where and when to make investments staff the AMC. The AMC creates a mutual fund, and invites the public to subscribe in the mutual fund with their investment. The funds collected are then invested by the AMC and are continually managed.

Unlike other investments, the mutual fund itself is not traded nor does it offer guaranteed returns like a deposit. The mutual fund's Net Asset Value (NAV) determines the value of the investment. Investors redeem their investments in the mutual fund on the basis of the NAV from the mutual fund itself.

Equally, when investors want to buy, they buy into the mutual fund on the basis of the NAV.

The investments are managed by professionals who know more about deciding what to buy and sell and when to buy and sell

The risks and rewards of investments are spread across a large number of individuals, so losses are minimized

Access to funds is quick, since there is no need to sell or buy from the market

What is Net Asset value?

The Net Asset Value of a mutual fund is the total market value of the holdings of the mutual fund less its liabilities, such as expenses, management fees, etc. This is calculated on a daily basis.

What this means is, if the mutual fund were to be dissolved or liquidated, by selling off all the assets in the fund, on that specified date, the Net Asset Value is what all the holders of the mutual fund will collectively own and will be given this amount in proportion to their holdings.

You can estimate your share of the holding of the mutual fund by the Net Asset Value per unit. This is the value represented by the ownership of one unit in the fund. It is calculated simply by dividing the Net Asset Value of the fund by the number of units.

Commonly Net Asset Value is always referred by its unit value rather than by the total Net Asset Value of the fund.

How is Net Asset value calculated?

Net Asset Value is calculated as follows:

Net Asset Value = (Market value of shares/debentures + Liquid assets/cash held, if any + Dividends/interest accrued) - (Amount due on unpaid assets + Expenses incurred but not paid + Management and other fees)

This is how the above are calculated

Valuation of marketable shares/debentures: The last or closing market price on the principal exchange where the security is traded

Valuation of illiquid and unlisted and/or thinly traded shares/debentures: For shares, this could be the book value per share or an estimated market price based on performance of other shares in the industry. For debentures and bonds, value is estimated on the basis of yields of comparable liquid securities after adjusting for illiquidity

Accrued dividends/interest: Companies announce dividends, however, pay it at a later date. If a dividend is announced, then the announced dividend is taken as the accrued dividend. Similarly, interest is payable on debentures/bonds in a pre determined frequency at a pre determined rate. Therefore for every passing day, interest is said to be accrued, at the daily interest rate, which is calculated by dividing the periodic interest payment with the number of days in each period. Thus, accrued interest on a particular day is equal to the daily interest rate multiplied by the number of days since the last interest payment date.

Expenses including management fees, custody charges etc. are calculated on a daily basis. The management fees is as per the declaration in the offer document of the mutual fund.

Tutorials of stock Market and mutual funds !!

2008-07-10T21:43:00.000-07:00

What is equity trading?

It is simply buying and selling of equities. However, unlike other commodities, equities are not traded everywhere, and are traded only in special market places called exchanges.

What is an exchange?

An exchange is a mechanism through which buyers and sellers of equities are brought together. These days, this is largely electronic and done with computers.

Investors cannot, however, participate directly in the exchange and can participate only through members of the exchange, popularly referred to as brokers.

How does the exchange works?

An exchange has pre-specified timings. During that time, all the members of the exchange link up to a central computer through their remote terminals. The members then place bids to buy equities, or make offers to sell equities. Other members who can match the bid or the offer confirm their acceptance, and the transaction is completed.

Members of stock exchanges place bids and offers on behalf of their clients, who are the investors.

Why are brokers required?

Investing in equities is quite risky. The broker is a professional, who knows the risk and can advise the investor accordingly. Secondly, an exchange will become an unwieldy mechanism if the entire universe of investors were to go and start making bids and offers. Reducing the number of individuals is a way of keeping control.

Third, equity trading can also be abused. To prevent these abuses, exchanges as well as the Government has a number of regulations in place. Restricting activity to the members of the exchange will enable the regulations to be followed, preventing abuse of the system.

How are shares traded?

Like in any other buying or selling, once the broker confirms the trade, if you are buying the share, you pay the broker the value of the shares and take delivery of the shares. If you are selling the shares, you hand over the equities to the broker and the broker will pay you for your shares.

When settlement does happen?

Each exchange has its own settlement period within which the entire process of delivery and purchase should be completed. Typically, the process is completed in a week to ten days time.

Which shares to Buy and sell?

An index is an indicator of how the stock market is doing on the whole. An index comprises a basket of stocks. The collective value of these stocks on a given date is taken and given a score of 100. From that day onwards, the value of these stocks is tracked and its score relative to 100 is computed.

The stocks selected are based upon a number of parameters that the creators of the index decide. Equally, the valuation is also done using complex mathematical principles. Periodically, the list of shares used for computing the index also undergoes a change. These changes are decided by the index creators based on the parameters they have set for the stocks for inclusion.

An index shows whether the stock market, on the whole, is appreciating in value or declining in value.

The movement of the index itself is no indicator for individual shares. You may find that a particular share may be increasing in its price even when the index is down and vice versa. The index is only an indicator of the general trend

The common indexes in Indian stock markets are the SENSEX, the index for stocks listed on the Bombay Stock Exchange and Nifty, the index for stocks listed on the National Stock Exchange.

What is an index?

Buying and selling shares involve a fair amount of research. These involve assessing how well the company is managed, how the company is performing compared to others in the industry, how the industry itself is doing, the financial performance of the company, the interest of the lay public in the company, etc.

It is best that you consult an expert in such analysis, before you decided to buy or sell a particular share. Such investment advice is also provided by your share brokers.

How Long to hold on the shares?

Historically, it has been demonstrated that investments in equities offer the best long term returns and hence the highest opportunity to enhance your capital. Thus, the longer you stay invested in the equity markets, the better will be your returns.

However, this holds true for the equity market as a whole, and not necessarily for shares of individual companies. The value of shares of specific companies are subject to various pulls and pressures which could cause a share that is highly valued one day, to drop its value overnight, as a result of unpredictable factors ranging from Government policy to acts of omission and commission by the management of the company.

It is advisable that you periodically, at least once in a year, evaluate your holdings and decide whether to continue with them or change them.

However, one very important thumb rule which the professionals offer is, never to get emotional about a share. In other words, do not hold on to the share of a company whose value is declining, just because its history has been very good!

Are investment in shares safe?

Any investment is prone to a certain degree of risk. Shares, as a class of investment have the highest element of risk. The only services riskier than shares are lotteries and other games of chance.

These risks arise as a result of factors described earlier.

However, today there is strong legislation, procedures and a regulatory authority - Securities Exchange Board of India (SEBI), which to a large extent prevents risk as a result of misleading the investing public.

NOTE:- There is no risk involved if you follow our calls and then invest as our tips are very useful.

List of Holidays

2008-07-10T21:41:00.000-07:00

1	Mahashivratri	6th March, 2008	Thursday
2	Id-E-Milad	20th March, 2008	Thursday
3	Good Friday / Holi (1st Day)	21st March, 2008	Friday
4	Ambedkar Jayanti	14th April, 2008	Monday
5	Mahavir Jayanti	18th April, 2008	Friday
6	Maharashtra Day	1st May, 2008	Thursday
7	Buddha Pournima	19th May, 2008	Monday
8	Independence Day	15th August, 2008	Friday
9	Ganesh Chathurthi	3rd September, 2008	Wednesday
10	Ramzan Id / Gandhi Jayanti	2nd October, 2008	Thursday
11	Dasera	9th October, 2008	Thursday
12	Diwali (Laxmi Pujan)	28th October, 2008	Tuesday
13	Diwali (Bhaubeez)	30th October, 2008	Thursday
14	Gurunanak Jayanti	13th November, 2008	Thursday
15	Bakri-Id	9th December, 2008	Tuesday
16	Christmas	25th December, 2008	Thursday

General Market Advice:

2008-07-10T21:39:00.000-07:00

1. Never chase a stock.

2. Buy when markets are in the grip of panic.

3. Only buy fundamentally strong stocks, which are undervalued.

4. Buy stocks grown in top line and bottom line over the past years.

5. Invest in companies with proven management.

6. Avoid loss-making companies.

7. PE Ratio and Growth in earnings per share are the key.

8. Look for the dividend paying record.

9. Invest in stocks for sure returns.

10. Stocks have been the high yielding asset class over the past.

11. Stocks are an asset class.

12. The basic property of any asset class is to grow.

13. Buy when everyone is selling and sell when everyone buys.

14. Invest a fixed amount each month.

Last But not least Trust our tips and then invest to earn huge profit

Do and dont's for stock market investments

2008-07-10T21:37:00.000-07:00

What must I do now?

This is the question probably every equity investor would have asked himself a number of times in the past few months.

With the stock market moving to dizzying heights before succumbing to gravity, it's easy to get nervous or over-excited.

Here's what we suggest you do when the bulls and bears kick up a lot of dust.

What you must NOT do

1. Don't panic

The market is volatile. Accept that. It will keep fluctuating. Don't panic.

If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.

Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don't sell unnecessarily.

2. Don't make huge investments

When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.

Keep some money aside and zero in on a few companies you believe in.

When the market dips --buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.

Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.

It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.

Pick a few stocks and invest in them gradually.

Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.

3. Don't chase performance

A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.

Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.

4. Don't ignore expenses

When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).

With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.

If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).

What you MUST do

1. Get rid of the junk

Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.

Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.

2. Diversify

Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.

Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.

To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.

If you have none of these or very little investment in these, consider a balanced fund or a debt fund.

3. Believe in your investment

Don't invest in shares based on a tip, no matter who gives it to you.

Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.

Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.

4. Stick to your strategy

If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns.

Stick to your allocation.

Difference Between Traditional And Online Business.

2008-07-07T08:13:00.000-07:00

In my previous postWHY IN ONLINE BUSINESS? I tried to explain about online business. Now I will explain the difference between traditional business and online business.

Traditional business means the business which we know about from our childhood. These are a bookshop, sweetmart, daily needs shop, provision stores, hotel, restaurants, vegetable shop, department stores, etc. etc.

Traditional businesses have some limitations. You can’t do it as part-time, requires huge investment which a common man can not afford, unless and until you have some experience of business you can’t start, unfortunately if you fail in one business then it is very difficult to start another one, requires big space and set-up, you have to work as per customer’s demand. etc. etc. etc.

While in online business you don’t required any investment, you can start it at free of cost, this you can do as part time job and if you got huge success, left the present job, it’s possible. Online business requires very less experience but if you have some technical knowledge that is well and good. You can do it from your home or cyber café because this type of business don’t required any set-up, only a computer with internet connection is sufficient, online business has no time limit if you wish you can do it as 24 x 7 x 365.

TRADITIONAL BUSINESS ONLINE BUSINESS
01) Business has local limits. 01) Global business.
02) No help from field experts. 02) Experts are ready to help.
03) Physical exercise required. 03) No physical exercise.
04) Difficult to change field. 04) Can do in any field of business.
05) Failure is visible to every one. 05) No one will know about your failure.

Still many points are not covered, you add it, by your comments.
In my opinion online business is very good form of business, for a person who has desire of his own business. Next post will be on “Different ways to earn money online”

GOOD LUCK.

WHY IN ONLINE BUSINESS?

Before entering in the topic ONLINE BUSINESS I have question in my mind, why should be business? The answer is “It is my personal desire from my childhood to become a businessman.” And I personally feel that “The things you think most personal or private are the most common or general.” As I think I should be in business, many people, 75 out of 100 has desire of his own business, because nobody wants to work under the person called as “BOSS”. Even if your boss don’t want to work under his BOSS. Am I right?
So question is “Why many people are not in business?” the reasons I feel are
01) No experience of business.
02) Lack of financial condition.
03) Fear of failure.
04) Uncertainty of fix income
05) Don’t want to work hard. etc. etc.
You can add to this list as you want. This is totally true for traditional business, thou some of the points are applicable for online business also, but online business is more suitable for a person, who has strong desire of his own business, as like you.
As you are on this page means you are in online business or interested to build online business. To start in online business you required less experience. Do you think, there more skills required to read e-mails? Definitely not, but you can earn money by reading e-mails. With this simple way you can start your own online business. I just given this is an example. To build a successful business you required experience which you will gain in few months doing online and believe me, many experts are ready to help you in every field of online business.
If you don’t have funds to invest in don’t worry. Online business doesn’t required huge capital. You can start without any investment. You don’t have to worry about failure because you are in such type of business where your customers are anywhere on globe. There are different ways to earn money, which will be explained in latter post, you can try more than one .
To become a successful businessman in online business you have to have work consistently, wisely, and most important PASSIONATELY. If you have passion in you to become a businessman then this online business is definitely for you. However the earnings are not fixed. It is variable from person to person and the strategy a person can adopt.
Online business is suitable for every person who wants to earn some extra income or big money. It is totally depend on you because you are here in global business. This type of business don’t required any physical exercise, investment, vast experience, expert technical knowledge etc. etc. etc.
So think over this and start your own online business. Next post will cover some interesting topic. Keep reading,
“GOOD LUCK”
NOT FOR REPUBLISH.

Earn Money from Home Guranteed Free Tricks and Tips *

2008-07-07T08:12:00.000-07:00

You have been fed up with leaving your home for the commute daily to work and decided to get involved in a work at home Internet business. However, your Internet home business now doesn't bring you the level of Internet income that you dreamed about, and you want to give it up. If this is what you're experiencing, you have to read 3 main things below which describe why your work at home Internet business doesn't still make you money yet.

1. Laziness: This is the main reason that cause you fail in the near future if you don't watch it out. Don't ever consider that you can set a work at home Internet business up then just put a little to no other efforts on it. This way will not make you any penny. So, if you want your work from home Internet business to be prosperous, you need to overcome the laziness by creating a solid action plan for your home business.

2. Don't create a business plan: If you don't have a map, how can you get to the place that you want? You can hardly do that. The same thing will be happening in your business if you don't have a business plan. A plan will be the map, the guidelines that help you realize the actions that you need to do next. If you don't have a business plan, you're doing your home based business as if you're going in the dark without a light.

3. Don't focus: there are lots of things called 'time killers' that cause you lose the concentration such as telephone calls of relatives or friends to chat with you, an interesting movie that you want to see or an invitation to have a drink made by your friends while you're on the business time. These 'time killers' will kill your business because they make you spend the valuable time on the wrong things. After finishing your business day, you can do whatever you want in your free time. Don't let the time killers take your valuable time away. Try to identify the time killers that you may encounter then make a list of them on paper so you're able to look out for them and stay wary of them. If you can do that, your work at home Internet business will have a chance to be successful.

Running successfully a work at home Internet business is the result of a long process of trial and error. The important thing you have to bear in mind is that success will not come easily and quickly. Don't ever expect to make money overnight. Everyday, spending your time on basic activities of promoting your work at home Internet business will help your home business develop. Until then, you will make more money as many people know about your Internet home business.

Do you want to find a work at home internet business opportunity to start your work at home internet business in your free time? Visit Dang Vu's website at http://www.sungtuc.com to choose proven and legitimate opportunities that can help you start your home business immediately.

How to earn maximum income from Stock Market?

2008-07-07T07:47:00.000-07:00

My every post is on Home Based Business from which you can earn extra income online.Home Based Business or Part-time job

is not only means Data Entry,Paid to Read e-mail,Paid Survey,Pay-Per-Click ,Affiliate Marketing etc.etc. programs.

There are other ways are also available from which you can earn extra money working at home.

Today I will introduce you to one another money earning way which may not fully fit to your views about Home based business.

I agree Stock Market or Share Trading is not conventional way to earn money as home based business but it is also true that now

a days you can earn money online at home by Share Trading.This is possible if you have a PC with internet connection.

Same thing is required to run conventional Home Based Business.Is it not?

So now you have one more opportunity to earn extra income.See below the requirments for this opportunity.

01) A PC with Internet Connection.

02) Demat Account.

03) Trading Account.

04) Saving Bank Account.

05) Extra Funds to Invest.

06) Knowledge about Investments.

Demat Account,Trading Account & Knowledge about Investment, you will get at free of cost.If you find something interesting

read further to find out How you can earn extra income from Stock Market?

01) Start Early:-

When you are thinking to earn money from Stock Market,you have to start invest funds as early as possible.Today many opportunities

are available for Education but,same time expenses on education is increasing, to cope the situation start investment when your child is younger.

You will get enough time to see how your investment's value is increasing or decreasing so you can take decision whether to invest more

or divert for other options.This will also give you the vision to plan about retirement age.The expenses to maintain life style is increasing day by day

but income from conventional sources are not increasing so rapidly.So it will be better to start at early age.

02) Invest Steadily:-

Investment must be your regular behaviour.I don't mean the "Investment" means a very huge amount,which you can use to purchase Shares.

You can invest a very small amount as like $ 25 to $ 50 every month.Various Systematic Investment Plans (SIP) are available in market

You can use it for your steady investment in shares.Because of SIP you don't feel the burden of Investment & it becomes your habit.

In early days we save money at Bank,Fix Deposit etc. now SIP is modern type of saving option available which I feel is better than

Recurring Deposit,Monthly Interest plan etc.

03) Long Term Investment:-

I am not here to give you any Magic Lamp,so you can earn money from that in a day.Earning maximum money from Stock Market

is not short term business.Whenever you think to invest funds in Stock Market, invest it for Long Term.A Long Term usually mean

4 to 5 years of span.You might thought some Intra day trading tips or "Get Rich Scheame" are available to us,sorry for that.

If I write about Indian Stock Market "In last 35 years of history of Stock Market,no one had lost money,who has invested funds steadily for five years"

Think over it!

When you invest money in Life Insurance for 15 to 20 years,in Fix Deposit for 7 to 8 years etc.then why you don't invest money in Prominent

Shares for 4 to 5 years? you will definitely earn more income comparing to conventional Investment plans.Why every time you expect much more from

Share Market in short period ?this is not game of betting.

If you have extra funds to invest then think to invest for long term or invest through SIP (if you have no extra funds).Most importantly start investing at

early age .This is the best way of wealth creation.Take help of Financial Planer if required.Many sites are available on net from which you can increase

your knowledge of Stock Market.

Wish you all the best.

Online Shares Trading Guide Made Easy

2008-07-07T01:40:00.000-07:00

Shares trading in the stocks markets is now very easy with the online facilities available for the traders. Now you just need a online trading account with a Demat account linked with your online banking account.

First step to start up is to signup with any of these Online trading Account websites and link them with your Demat accounts which can be opened with any online banks like ICICI Bank, HDFC Bank etc.

ShareKhan.com Shares Trading Portal
Indiainfoline.com Equities
HDFC Bank Online Trading Account
ICICIDirect.com Online Share Trading
India Bulls
Reliance Money
KotakSecurities
JV Capital Services and many more..

Once you signup you will be offered with a link to the trading account panel and you need to discuss with your account manager in advance regarding the brokerage charges so you end up paying the lowest brokerages.

Trading depends on your budgets because if you are ready to play seriously in this game you need to invest a minimum of 10 Lakh rupees to your trading account and get started. Shares once bought will be completely recieved in your account by 3 working days and again all these time and brokerage charges depend on the brokerage company you are dealing with.

You need to daily track the quote of the best stocks by searching using their scrip codes and you can sell your shares the same day you purchased to save some money in brokerage charges. Additional research on the stocks can be made by finding the history, complete company portfolio on websites like moneycontrol.com because you need to have a good amount of information on the company you are going to invest.