Tata Motors to redefine SUV portfolio post excise duty hike

After Mahindra and Mahindra , Tata Motors is also looking to redefine its sport utility vehicle portfolio as government continued on its stance of levying additional excise duty of 3 percent on certain type of SUVs, reports Ronojoy Banerjee of CNBC-TV18.

It does not come as a surprise because the company that was the second most hit after Mahindra and Mahindra was Tata Motors. Four out of the 10-12 of the SUVs that have been impacted belong to Tata Motors. Tata Sumo, Tata Safari, Tata Sumo Grande and even the Aria will be impacted because of the 3 percentage point additional excise duty hike.

According to the Budget 2013-14, SUVs will be charged additional tax on three parameters. Vehicles above 4 metres or above a ground clearance of about a 170 millimetres and having an engine capacity of 1.5 litres would be subject to the excise duty hike.

Tata Motors spokeperson informed that the company had taken the SUVs issue in hand and will, going forward, look at reducing the overall cost of ownership of the vehicles by giving a better mileage.

Their thinking is that while the consumers may have to shell out more upfront because of the 3 percentage points additional excise duty hike the overall cost of running the vehicle should be lower.

Last week M&M had informed CNBC-TV18 that they are set to overhaul the SUV portfolio to meet the parameters outlined in the Budget. However reengineering models will take time because it depends on which of the categories that they would really look to sort of curtail the overall length which as per the definition is 4 meters.

It is yet to be seen how Tata Motors carves its approach for revamping its SUV portfolio.

Must read: Excise duty hike on SUVs to stay, M&M to overhaul portfolio

20.07 | 0 komentar | Read More

Tata Steel can touch Rs 310 in near term: JK Jain

JK Jain of Karvy Stock Broking told CNBC-TV18, " Tata Steel  has significantly underperformed the market. Overall, if one looks at the stock, the stock has seen a significant movement in the last two sessions but it has failed to breach its resistance of Rs 325 to Rs 330 levels which was a four year breakdown that it has given in the last month and thereafter the stock has been under significant pressure.

He further added, "We are giving a Put ratio here wherein one can buy 320 Put and simultaneously sell two lots to 310 Put 320 put is trading close to around Rs 10 and 310 Put is trading around Rs 6. So, this strategy would give you a net credit of Rs 2. Even if the stock goes up the strategy would yield a return of Rs 2."

"We are expecting the stock to gradually go down and remain close to around 310-300 levels. This strategy is break-even will be around 298, below that the strategy could start yielding loss. We expect the stock to see selling pressure on rallies rather than significant downside. We expect the stock to run down to around 310 over the period of expiry. We are advising a put ratio wherein one can buy 320 Put and simultaneously sell two lots of 310 Put. The strategy would yield a maximum profit of Rs 12 if the stock expires around 310 levels," he added.

Disclosure: The strategy that I have discussed would have been given to the client but personally I don't hold any of them.

20.07 | 0 komentar | Read More

Kotak Mahindra Bank can test Rs 745-750: Mohindar

Rahul Mohindar, Director of viratechindia.com told CNBC-TV18, "When one look at the Bank Nifty it looks like clearly today's move has helped. We have seen clear breakouts on several stocks, some broken out earlier, and some today.  State Bank of India (SBI) has definitely been on a buy list. It is a stock where one can look at another Rs 200-240 coming onto the stock. So, probably from here there is some good headroom. If you are looking for the next five to ten percent I think banking is safe play and if I want to add to that Nifty list of banking stocks, probably Kotak Mahindra Bank would be another good pick, Rs 745-750, potential target on that."

20.07 | 0 komentar | Read More

Buy UCO Bank, State Bank of India: Sudarshan Sukhani

Sudarshan Sukhani of s2analytics.com told CNBC-TV18, " UCO Bank is an attractive buying opportunity inspite of the big gains and it is worthwhile buying State Bank of India in front of news. So these are two banks I would buy."

UCO Bank ended at Rs 70.95, up Rs 0.25, or 0.35 percent. It has touched an intraday high of Rs 72.45 and an intraday low of Rs 69.

UCO Bank's trailing 12-month (TTM) EPS was at Rs 14.45 per share. (Mar, 2013). The stock's price-to-earnings (P/E) ratio was 4.91. The latest book value of the company is Rs 93.04 per share. At current value, the price-to-book value of the company was 0.76. The dividend yield of the company was 4.23 percent.

20.07 | 0 komentar | Read More

Stay with HDFC in financial space: Daljeet Kohli

Daljeet Kohli, Head of Research at IndiaNivesh Securities Private Limited said one had to be with HDFC in financial space. "HDFC has been the most consistent performer," he added.

Kohli told CNBC-TV18, "HDFC has been the most consistent performer in the financial services space. They don't give any chance to any analyst to speak anything against them. However, the only problem is that if you are not a holder of HDFC then you don't get any chance to enter into it because at every price it will look extremely overpriced."

"Even at Rs 870 now it is again four times book value. So by way of any parameters probably you will not be able to justify. However, if you are not looking at just the valuation number, you are looking at growth story and amongst the financial services, you are buying the best of the best then probably you have to be with HDFC," Kohli added.

20.07 | 0 komentar | Read More

Cognizant outruns peers once more; keeps guidance at 17%

Moneycontrol Bureau

Once again US based Cognizant has outpaced  its global IT peers with robust January-March earnings and maintaining its 17 percent growth guidance for 2013.

Cognizant has not only met its revenue guidance of USD 2 billion, but also reported 2 percent increase in net income. The IT company reported a net income of USD 284.2 million, in the first quarter, up from USD 243.7 million from a year earlier. Revenue for the quarter rose 18 percent to USD 2.02 billion.

More importantly, Cognizant reaffirmed its guidance for the full year. The company has guided for 17 percent revenue growth in calendar year 2013 at USD 8.60 billion, which is much ahead of other leading Indian IT companies like Infosys , Wipro and Tata Consultancy Services . Cognizant's guidance is also much higher than the National Association of Software and Services Companies (NASSCOMs) target of around 11-14 percent.

20.07 | 0 komentar | Read More

Prefer Corporation Bank over UCO Bank: Sharmila Joshi

Sharmila Joshi, Head of Equity of Peerless Securities advised selling UCO Bank , and buying Corporation Bank or Syndicate Bank .

Joshi told CNBC-TV18, "I think the investor can hold on to UCO Bank, but in light of the fact that the current market price is higher than the price that he bought at, maybe the investor can exit it because he can still exit without a loss."

She further said, "Maybe he should reinvest it in another PSU bank where the results have been better - Corporation Bank, the numbers were better, a Syndicate Bank where we had a good set of numbers, Bank of Maharashtra or any of the private banking stocks for that matter. Their numbers have been good because there is safety at this point in time, at least within the PSU banking space to be in stocks where you have seen an improvement in non performing assets (NPA) levels etc. Because it would mean that when interest rates starts coming down significantly it would also mean that these banks are in a better position to go up more largely because they have dealt with their problems better. From that perspective the investor can switch out of UCO Bank."

"Even if the investor holds on to it I don't think it will be too much of a problem. The bad numbers are because they have provisions far higher. So it will be slow to recover. Since the investor is making money why not switch, buy a Corporation Bank or a Syndicate Bank instead," Joshi added.

20.07 | 0 komentar | Read More

Hold Lupin, target of Rs 760: Sharmila Joshi

According to Sharmila Joshi, Head of Equity of Peerless Securities, Lupin is a hold. She expects the target of Rs 760 for the stock.

Joshi told CNBC-TV18, "For me, Lupin is a definite hold. Among the domestic pharma companies, Lupin is a stock that I continue to like. In case of results, from whatever I can see are positive surprise because on the EBITDA and revenue front that is definitely a beat. Revenue performance is quite good and on the PAT level they have done extremely well. So, to my mind there is no reason to sell."

She further said, "The kind of numbers that they have shown and the traction that they have shown is likely to continue. So, I would keep the stock with a target of about Rs 760."

20.07 | 0 komentar | Read More

Ittiam announces induction of Lip-Bu Tan

Mr. Tan's extensive industry experience and global network to be an asset for the company in the next phase of its growth

Ittiam Systems today announced the induction to the Company Board, Lip-Bu Tan, Chairman of Walden International which is a leading venture capital firm with $2 billion under management.

Founded in 2001 by a team of semiconductor industry experts, Ittiam has grown to be the largest pure-play IP company from India with world class leadership in video technologies and multimedia systems. It has a global customer base of over 300 companies. The volume of customer products such as smartphones, tablets, video communication systems and automotive infotainment systems with Ittiam IP embedded inside crossed 25 million units in 2012.

Welcoming Lip-Bu to the Board of Ittiam, VG Siddhartha, Head of Global Technology Ventures (GTV) which invested in Ittiam in 2001, said "I have had the pleasure of working with Lip-Bu for over 12 years including in our joint successful investment in MindTree Technologies. His extensive industry experience and global network will be very valuable for Ittiam in the next phase of its growth".

Looking forward to his association with Ittiam, Lip-Bu Tan commented "I am excited to join Ittiam initiative and will work with them closely to make Ittiam the best digital media technology and solutions provider for the global market. Ittiam is a fine example of new generation product companies who represent the next phase of Information Technology industry in India".

"Our vision is to deliver compelling solutions to customers who spearhead the growth of media creation, management and consumption", said Srini Rajam, Chairman and CEO of Ittiam Systems. "We are delighted to have Lip-Bu join our board. We will leverage his precious bandwidth to build great partnerships and long-term customer relationships", he added.

About Ittiam Systems Private Limited

Ittiam Systems Private Limited, headquartered in Bangalore, India, is a technology company singularly focused on embedded media centric systems. It operates through its network of offices and representatives around the world. Ittiam's customers include Fortune 100 companies and are distributed across U.S., Europe, Japan and Asia. Since 2004 the company has been consistently rated as the "World's Most Preferred DSP IP Supplier" in the annual surveys conducted by Forward Concepts Incorporated. In 2005 Ittiam had been selected by Red Herring into the top 100 private companies in Asia. In February 2007, Ittiam received the NASSCOM India IT Innovation Award, a prestigious recognition. In July 2011 Ittiam's VC won the Product of the Year 2010 from Communications Solutions. In January 2012 Ittiam won two Product of the Year 2011 awards from Internet Telephony. Embedding Ittiam IP inside, annual volume of customers' products shipped such as Smartphones, Tablets, Broadcast, Video Communication and Wi-Fi Devices is in several tens of millions units For more details, visit www.ittiam.com.

20.07 | 0 komentar | Read More

Oxigen NPCI launch OxiCash Money Transfer

History jointly created by National Payments Corporation of India and Oxigen.

OxiCash unveils its Instant Money Transfer Service. RBI Chief General Manager , Dept of Payment and Settlement Systems , Mr. Vijay Chugh inaugurated the service. A service that enables the unbanked masses of India, to transfer money without any hassles to any bank account and receive money into the Wallet 24 x7.

This service is a boon to the underprivileged segment of India's population, who have been unable to avail the benefits of money transfers due to non-availability of Bank account. They would all now be able to transfer and receive funds from any bank into the OxiCash Wallet.

These money transfers are instant & made on real time , and is made possible by NPCI, using IMPS (Immediate Payment Service).

The tie up of NPCI with Oxigen's mobile e-wallet, "OxiCash", makes OxiCash India's First Non Banked wallet (approved by RBI), to make Instant money transfers to any bank, receive funds into the OxiCash Wallet from any bank, anytime, anywhere, 24*7!

Speaking at the occasion, Mr. Pramod Saxena, Chairman & Managing Director, Oxigen said," It is indeed a proud moment for Oxigen, to be a pioneer, once again! Having launched India's first wallet OxiCash in 2008, and now with NPCI, Oxigen is the "India's First" , in mobile payment space, to launch an Instant 24x7 money transfer service, using IMPS on the OxiCash wallet. We are happy that our pioneering efforts continue to facilitate financial inclusion. The OxiCash money transfer service would be available at more than 100 thousand Oxigen retailers across the country to help the unbanked masses with an instant remittance service ".

Mr. A.P Hota, MD and CEO of National Payments Corporation of India, announced ,while inaugurating the service,"This is an unique experiment of inter-operability between bank accounts and wallet accounts. A new vista of financial transactions open up with this project."

The tie up for Money Transfers between NPCI and Oxicash would be 3 fold:

1.OxiCash to Bank Account using beneficiary's Bank account number and IFSC code:

27 banks are live on date, to execute Money Transfers, from OxiCash to any Bank Account as specified by a customer using the Beneficiary's Bank account number and Bank IFSC code, as listed in http://www.npci.org.in/impsIFSC3.aspx with 14 more banks in pipeline.

2.OxiCash to Bank Account using Beneficiary's Mobile Number and Mobile Money ID (MMID):

55 major Banks are live on date,to execute Money transfers from OxiCash to any Bank account where the customer specifies the Beneficiary's Mobile Number and Mobile Money ID (MMID), which is issued by Banks, as per list given in http://www.npci.org.in/impsmerpayp2p.aspx, with remaining 6 banks in pipeline.

3.Bank Account to OxiCash eWallet using OxiCash registered Mobile Number and MMID (8888888):

55 major banks are live on date, to execute Money transfers from a Bank account to OxiCash wallet where customer specifies the Beneficiary's OxiCash Mobile Number and Mobile Money ID (MMID) as 8888888, as per list given in http://www.npci.org.in/impsmerpayp2p.aspx with remaining 6 banks in pipeline.

Additionally, a customer can also transfer funds from an OxiCash wallet to another OxiCash Wallet.

Customers now need not wait for a long periods of time to get refunds. They also benefit from this service's Instant refunds system.

OxiCash Money Transfer service is available both Online (www.oxicash.in) and on mobile, using a Mobile Application (Android application) and available on simple text SMS also.

This wallet is available pan India and can be created over a simple SMS.

The OxiCash wallet can be funded initially at any of Oxigen's 1,00,000 retail touch points or through IMPS without visiting any retail touch points.

The steps to use OxiCash Money transfer services are easy and as follows:

On the OxiCash Website, www.oxicash.in

Go to http://www.oxicash.in/

1.Click on INSTANT MONEY TRANSFER tab

2.The customer selects the payment type as per choice: Using Account Number/IFSC Code or MMID/Mobile Number Combination

3.The customer selects the option Wallet to Any Bank (Account Number)

-- The customer logs on using his/her wallet number and the OxiCash Password
-- The customer enters the beneficiary account number and the IFSC Code
-- The customer enters the OTP received to authenticate the payment
-- The money transfer is done and updated balance is displayed on the screen

4.The customer selects the option

5.The customer selects the option Wallet to Any Bank (MMID)

-- The customer logs on using his/her wallet number and the OxiCash Password
-- The customer enters the beneficiary mobile number and MMID
-- The customer enters the OTP received to authenticate the payment
-- The money transfer is done and updated balance is displayed on the screen

Using Mobile Banking

To Send money, the customer uses either a combination of Mobile Number and MMID or Account Number and IFSC Code.

1.The customer wants to send money using Account Number and IFSC Code
SEND IMPS*Account Number*IFSC Code*Amount*OxiCash Password*Remark
to 9870888888 / 9971888888

2. The customer wants to send money using Mobile Number and MMID
SEND IMPS*Beneficiary Mobile Number*MMID*Amount*OxiCash Password*Remark
to 9870888888 / 9971888888

The information is also available on IMPS mobile site (accessible through the mobile phone browser) at http://imps.npci.org.in

Company Information:

About Oxigen:

Oxigen Services India Pvt. Ltd. an ISO 9001:2008 certified company, is India's First and Largest Payments Solutions Provider.

Oxigen is in the business of service aggregation, distribution and payment processing/collections for a number of Operators , Services Providers and Banks , pan India . The services include: Prepaid, Postpaid & Subscription based services like Mobile Recharge, Bill Payments , Ticketing and Subscriptions for all leading Telecom operators, Direct-to-home TV Operators, Internet Broadband Service providers, Railways/ Airlines/Bus/Movie Ticketing, Bill Payments (for Utilities, Post-paid Bills, Landline bills), Prepaid Value-added services, Subscription services (Music & Movie downloads ,Internet Packs, Magazines etc) Donations, Calling Cards, Insurance and a large bouquet of Banking services on a single platform.

Oxigen has a retail footprint of 100,000 outlets & has 30 million transactions per month. Oxigen works closely with SBI, Yes Bank Money, ICICI, and many other banks, for a variety of services like Money transfer, Banking Kiosks , Account opening , UID related Aadhar cards, etc.

Oxigen provides merchant payments to many such telecom operators, bank-led m/e-Wallets and online Banking portals like Airtel Money, ICICI Quick Shopping, SBI, HDFC, Corporation Bank and many more.

Oxigen has joint hands with Banks for enablement of various services like SBI Kiosk Banking, ICICI Bank for Saral Money Card & Yes Bank for Money transfer services, at Oxigen Outlets.

Oxigen is also the technology provider for India's first Full Service eWallet from State Bank of India called MobiCash, with cash-in/out, peer to peer, wallet to any Bank, Merchant payments as well, and has also as partnered to ensure market availability of MobiCash at Oxigen retail.

Oxigen is in partnership with Blue Label Telecom (South Africa). Website: http://www.myoxigen.com and http://www.oxicash.in/

About NPCI:

NPCI is a registered company under Section 25 of the Companies Act, 1956. It is promoted by 10 banks in India under the aegis of the Indian Banks Association with majority shareholding by Public Sector Banks. It has been identified by Reserve Bank of India (RBI) and Indian Banks Association (IBA) as the umbrella organization for all retail payment systems in the country. The 10 promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Union Bank, ICICI Bank, HDFC Bank, Citibank and HSBC. www.npci.org.in

20.07 | 0 komentar | Read More

Retail gold buying soars in April after sharp selloff

Physical gold buying among private investors surged in April as they took advantage of bargain prices after bullion's historic sell-off, a survey by BullionVault showed on Tuesday.

BullionVault is an online physical gold and silver market for more than 47,000 self-directed individual investors, it said.

The company said its Gold Investor Index rose to 58.6 in April, its highest level in 16 months. In March, the gauge fell for a third consecutive month to 53.3.

A number above 50 indicates more buyers than sellers. While net buying by the firm's mostly buy-and-hold type customers is seen as bullish, net selling might suggest individual retail investors are exiting the gold trade.

"The difference between the fast money of speculators and self-directed investors couldn't be any more obvious," said Miguel Perez-Santalla, vice president of BullionVault.

"It is apparent that the private investor was waiting for the right opportunity to get in," he said.

Gold's historic sell-off last month has intensified a disconnect between funds that sold on dissatisfaction over bullion's underperformance and individual investors who could not get enough physical gold coins and bars at bargain prices.

BullionVault said its April gold trading volume, measured by weight, rose to its highest level since December 2011. In dollar terms, volume rose 57 percent in April versus March.

The price of bullion fell USD 225 per ounce between April 12 and 16 after the European Central Bank and the International Monetary Fund asked Cyprus to sell reserves as part of a bailout deal and some feared the Fed might withdraw its stimulus.

Since then, strong physical demand around the world has boosted gold prices and cut that drop by more than half.

Spot gold traded nearly flat at around USD 1,468 an ounce on Monday, nearly USD 150 above a two-year low of USD 1,321.35 an ounce on April 16.

20.07 | 0 komentar | Read More

Motilal Oswal maintains 'Buy' on LT, target Rs 1734

Moneycontrol Bureau

Brokerage house Motilal Oswal has maintained 'Buy' rating on Larsen and Toubro (L&T) citing the triggers still exist to accumulate the stock on declines. However, the broking firm remains circumspect about profitability in overseas orders due to likely poor fixed cost absorption and learning curve, associated with new geographies/ segments. Motilal Oswal has a price target of Rs 1734 apiece.

"Possible order intake of Rs 20,000 crore in financial year 2014 (FY14E) from overseas markets will entail a market share of 1.5-2% in Middle East ordering (based on recent aggregate ordering trends), and is commendable. This will position L&T among the larger players in urban transport and hydrocarbon segment. L&T is expanding presence in metro or rail projects. The bidding for large size road projects is up from past trend of project below USD 40 million. In the oil and gas segment, Middle East still offers the largest opportunity, but competition remains intense. The target market for L&T is mid-sized orders of USD 250-300 million in countries like Saudi Arabia, Oman, Abu Dhabi, SE Asia etc," says the Motilal Oswal note to clients.

"E&C EBITDA margin has corrected by 200 basis points from peak levels of 14.2 percent in mid-FY11, and we expect margin to decline further by 100 basis points till FY15E. L&T is exposed to several levers across business/geographic segments and has emerged as the E&C partner of choice in India, which provides a robust foundation to capitalize on the next leg of investment cycle. Hence, despite a very strong near term performance, we remain positive on L&T and believe triggers still exist to accumulate the stock on declines." says the Motilal Oswal note.

20.07 | 0 komentar | Read More

Report on Wal-Mart lobbying in less than 2 weeks

The much-awaited report on allegations of lobbying by Wal-Mart , the world's largest retailer, in India will be submitted in less than 2 weeks. This was announced by Justice Mukul Mudgal who heads the probe.

Mudgal told CNBC-TV18's Ronojoy Banerjee that the time had come for the government to have a enact a law on lobbying activies in India -hinting that the government could look at legalising lobbying activies. Top government sources indicate that the final report is likely to reveal regulatory loopholes in the system.

Below is the edited transcript of the interview on CNBC-TV18

Q: After many rounds of meetings and comments from the public, is it now fair to assume that you have arrived at a decision?

A: I have arrived at a decision, but the report is being written.

Q: Is it is also important for Indian lawmakers to formulate adequate legislation to address lobbying?

A: That will be a very good idea.

Q: What evidence did you gather over the last many meetings that led to arriving at a decision?

A: We asked questions about lobbying expenses. Beyond that I can't tell you anything.

Q: Will you meet with Wal-Mart executives again?

A: No, absolutely not. I have met them once and that is enough.

20.07 | 0 komentar | Read More

India says China agrees retreat to de facto border

India and China have ended a three-week standoff on a windswept Himalayan plateau where they fought a war 50 years ago by pulling forces back to positions held before the confrontation, India's foreign ministry said on Monday.

The two countries packed up tents and left the disputed patch on the 5,000-metre-high (16,000-foot) Depsang Plain late on Sunday. But it had not been clear how far they had withdrawn.

Neither side has given details of the terms of the deal.

India says up to 50 Chinese soldiers intruded into its territory on the western rim of the Himalayas on April 15. Some officials and experts believe the incursion signalled Chinese concern about increased Indian military activity in the area.

Delhi had said the soldiers were 19 km (12 miles) beyond the point it understands to be the border with China in the Ladakh region of Kashmir, a vaguely defined de facto line called the Line of Actual Control, which neither side agrees on.

"The governments of India and China have agreed to restore status quo ante along the Line of Actual Control (LAC) in the Western Sector of the India-China boundary as it existed prior to 15 April, 2013." India's foreign ministry spokesman Syed Akbaruddin said in a statement.

He did not elaborate or say whether China's soldiers had already retreated the agreed distance, only saying that "flag meetings" between border commanders had been held "to work out the modalities and to confirm the arrangements".

On Sunday, an army officer from India's Northern Command told Reuters that Indian troops had initially moved back 1 km, but that he did not know how far the Chinese had moved.

China's foreign ministry on Monday stopped short of saying the standoff had been resolved, but said the two countries had treated the situation from the perspective of their wider bilateral relations, which include important trade ties.

"Currently, based on my understanding, the friendly consultations between the relevant departments from both countries achieved positive progress," spokeswoman Hua Chunying told reporters at a daily press briefing.

Some experts and Indian officials say tensions are likely to persist as the area is highly strategic and abuts the Karakoram Highway joining Pakistan to China, which Beijing hopes to develop into a high-traffic trade route linking it to the Arabian Sea port of Gawadar.

Indian media, which had criticised the government's handling of the standoff, on Monday speculated that Delhi had agreed to Chinese demands that it dismantle some infrastructure in another disputed sector in order to defuse the standoff.

Akbaruddin said he could not give details of the deal.

Throughout the crisis, China denied it had crossed into Indian territory. Its soldiers displayed bright orange banners at the site which warned India's troops that they were in fact in Chinese territory, photos leaked by the Indian army showed.

The tensions had threatened to overshadow a visit by the Indian foreign minister to Beijing on May 9. China's Premier Li Keqiang is expected to visit India later this month.

20.07 | 0 komentar | Read More

Telcos seeing pricing power, uptick in data services: ICRA

Moneycontrol Bureau

Rating agency ICRA, in a report, says the restoration of pricing power to telcos and the uptake of data services have been two positive developments for the telecom industry over the past two months. However, with regard to the regulatory developments, uncertainty persists over issues like levy of one-time spectrum charge, renewal of spectrum, and 3G roaming agreements.

Also read: Bharti remains strongest bet in telecom: Saurabh Mukherjea

Sabyasachi Majumdar, Senior Vice-President, ICRA Limited explains, "The industry has witnessed some consolidation as the telcos whose licences were cancelled in February 2012 limited their participation to fewer circles in the November 2012 and March 2013 auctions, thereby reducing their areas of operations. This consolidation has led to stabilization of the industry's operating metrics."

Another encouraging trend across companies has been the uptake of data services. According to the report, all the major telcos reported steady growth in data subs and data usage. "This has been partly driven by attractive pricing by the telcos, which is expected to continue in the medium term as the telcos look to add more data subs. Robust growth in smartphone sales in the country is also a healthy trend for adoption of 3G services," adds Majumdar.

The Department of Telecom (DoT) has issued notices for levy of one-time spectrum charge, but the telcos have secured stay orders against the same from various courts. "The inconclusive auctions (like the one held in March 2013) have not helped matters. Nevertheless, the regulatory payouts would be sizeable for the industry," adds Majumdar.

20.07 | 0 komentar | Read More

Expedia rolls out its latest ad campaign in India

With travel season kicking off, Expedia, the world's largest online travel company, has announced the launch of its latest advertising campaign in India. Conceptualized by Lowe Lintas, the campaign is aimed at igniting the hunger for travel amongst its audience. It centres on the insight that the world we live in is rapidly changing and with it are the reasons for travel. Today, travel is no longer a luxury but deemed more of a necessity and moreover it adds to ones social status, especially among one's peers. In today's stressed world, travel often is the respite that helps people rejuvenate and relax, adding to wonderful and pleasant memories. The campaign hinges on this central theme and has been rolled out nationally across print, digital, radio and television mediums.

Mr. Manmeet Ahluwalia, Head Marketing, Expedia India said, "The campaign is designed keeping in mind the need for travel and the travel proposition offered by Expedia to consumers in India and globally. The purpose of this campaign is to convey the need to travel for people who often neglect it due to lack of time or not being able to book in advance and end up being the non-traveling population. With 18,000 amazing offers every day, unparalleled in the industry, Expedia ensures that you are never 'the neighbor who never travels'. "Our campaign is based on the insight that other people's travel is always a trigger for you to travel. There was a time people travelled to see new places; today the choice of destination is heavily influenced by the 'talk value' on social media platforms. The campaign is focused mainly upon neo travelers from tier 1 cities" he said. Expedia offers a comprehensive inventory featuring more than 2,00,000 hotels, and 7,000 holiday activities and attractions from across the world. Also, with its flights+hotels product, travelers can save up to Rs 12,000 on their total travel cost. Airasia's exclusive tie up with the brand further allows it to provide low cost packages for SEA region. 

There has been 200% YOY growth in transactions at Expedia.co.in from Q1 2011 to Q1 2013. And In the past few months, it has witnessed double digit growth in transactions and triple digit growth in standalone hotel bookings. This year, with marketing outlay of 50 crore, Expedia is focused on further strengthening its position in the industry. 

Also read: Airlines can charge preferred seats, check-in bags: Govt

 About AirAsiaExpedia 

AirAsiaExpedia is the joint venture company between the world's leading online travel company, Expedia Inc. and the world's best low cost airline, AirAsia. Headquartered in Singapore, AirAsiaExpedia operates Expedia's businesses in India, Japan, Southeast Asia and East Asian markets and the AirAsiaGo.com business across Asia. In India, AirAsiaExpedia operates Expedia.co.in, a full service business helping Indian travellers plan and book their travel by offering them a comprehensive inventory of hotel accommodation, flights and tourist attractions from across the world. In addition, Expedia also has hotel-only sites operating in Malaysia, Indonesia, Thailand, Philippines, Hong Kong and Korea, along with its established businesses in Singapore and Japan. Its comprehensive inventory features more than 2,00,000 hotels, and 7, 000 holiday activities and attractions from across the world.

20.07 | 0 komentar | Read More

Buy Gujarat Pipavav Port, target Rs 70: GEPL Capital

GEPL Capital is bullish on Gujarat Pipavav Port and has recommended buy rating on the stock with a target price of Rs 70 in its May 03, 2013 research report.

"Gujarat Pipavav Port, in Q1CY13, GPPL reported 24 percent y-o-y growth in total revenues to Rs 1,245 mn as compared to Rs 1,004 mn in Q1CY12. Container volumes for the Q1CY13 witnessed a marginal drop of 2 percent y-o-y to 161,000 TEUs as compared to 165,000 TEUs in Q1CY12, however, on sequential basis the volume increased by 3 percent. There were in-all 7 vessels which skipped Pipavav Port in Q1CY13, which was due to the impact of Chinese New Year. Pipavav Rail Corporation (PRCL) witnessed 250 rakes operated in Q1CY13 (highest so far), which carried 103,911 TEUs to the hinterland.

On the other hand, Dry-bulk Volumes in Q1CY13 witnessed 10 percent slide y-o-y and stood at 0.56 mn tonnes as compared to 0.63 mn tonnes in Q1CY12. This decline was mainly due to deteriorating coal volumes which was the result of rail freight differentials. However, the impact of volume decline on revenue was not significant as the effect of lower volumes (of coal) was neutralized due to change in the handling of commodity mix. In Q1CY13, there was significant mix of Wheat and Fertilisers in the dry cargo, which enabled higher realizations and hence subsided the effect of volume decline.

Interest outgo of Rs 95 mn was down by 54 percent y-o-y. On cost front the company witnessed 22 percent y-o-y growth in total operating expenses to Rs 675 mn in Q1CY13. Operating cost which comprised of 55 percent of total cost, witnessed 37 percent increase on y-o-y basis on account of increase in equipment hire charges and high power and fuel cost. However, EBITDA margins witnessed 90bps jump to 45.8 percent vs 44.9 percent in Q1CY12.

Outlook: Timely expansion of port capacities and logical diversification in liquid logistics business is expected to augur well for GPPL over a period of time. Situation at the macro level seems changing with declining commodity prices and in tandem movement of inflation has already given the much awaited rate cuts, which is already auguring well for the economy. We strongly believe that with interest rate cycle on the reverse mode and some reformist steps taken by the government will turn the tables for the business climate. We maintain our buy rating and price target of Rs 70," says GEPL Capital research report.

Shares held by Central Governments/State Governments

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

20.07 | 0 komentar | Read More

Hold Godrej Consumer Products, says Ventura

Ventura has recommended hold rating on Godrej Consumer Products  (GCPL), in its May 03, 2013 research report. The research firm expects, the company to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format.

During the quarter, GCPL launched a disruptive innovation in HI category (HIT Anti Roach Gel). Moreover, Godrej Consumer Products Ltd (GCPL) has displayed its consistency by clocking double digit revenue growth. We expect GCPL to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format (under hair colours category). In the international business, integration of operations in Africa and Argentina is expected to bring synergies over the next few quarters. Also, we remain positive on the Indonesian operations on the back of regular innovations and distribution expansions.

Given the fact that GCPL has a large number of brands under its umbrella (across emerging market geographies), we expect cross-pollination to play out over the next 2-3 years and add further scale to GCPL's operations. At a CMP of Rs 844, GCPL trades at a PE multiple of 33.0x and 28.1x its estimated earnings for FY14 and FY15. Given the rich valuations enjoyed by the company and limited upside from current levels, we recommend a HOLD on the stock. However, owing to the robust long term outlook for the company we recommend to add the stock on declines with a potential target of Rs 900.

GCPL continued its strong growth momentum during Q4FY13 by recording 29.7 percent YoY growth in revenues to Rs 1,715.5 crore led by robust 18.1 percent YoY growth in its domestic business (HI 26 percent YoY; Soaps 17 percent YoY with volume growth of ~4 percent and Hair Colors 27 percent YoY), which contributes ~55 percent to its consolidated revenues. Increased other expenses (+50.8 percent YoY) and higher A&P expenses (+9.5 percent of sales v/s 8.3 percent in Q4FY12) led to a contraction of GCPL's EBITDA margins to 16.2 percent (-260 bps YoY; -60 bps QoQ). While EBITDA grew by 12.2 percent YoY, PAT grew by 70 percent YoY on account of exceptional income of Rs 133.7 crore (sale of non-core food business in Indonesia) and lower provision for tax (-11.7 percent YoY).

As stated earlier, domestic business grew by 18.1 percent YoY led by robust growth in all its key segments - Home Insecticides (+26 percent YoY; ~2.1x category growth), Personal Wash Soaps (+17 percent; ~1.3x category growth) and Hair Colors (+27 percent; 2x category growth). Household Insecticides segment witnessed growth on the back of continued distribution synergy benefits and we expect this category to maintain healthy growth on the back of penetration and new innovative launches (latest launch being 'HIT Anti Roach Gel'). On the other hand, GCPL's soaps segment witnessed growth of 17 percent YoY primarily led by volume. The highlight for the quarter was Hair colors category as it witnessed strong turnaround (27 percent v/s 13 percent category growth; albeit on a low base) on the back of positive response from crème format (recent entry)," says Ventura research report.

Institutional holding more than 40% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

20.07 | 0 komentar | Read More

India's rating upgrade unlikely anytime soon: SP

Amid high public-debt levels and concerns about deficit and subsidies, the India growth story still remains positive, global rating agency Standard and Poor's (S&P) said today. However, the rating agency ruled out rating upgrade of India anytime soon.

India's growth track record is good in current circumstances as the RBI attempts to counteract loose fiscal policy . The market has factored in one ore two rate cuts this year, the agency added.

However, S&P warn that reform announcements recently made by the government did not suffice to ensure growth. The agency also pointed out that a large number of infrastructure projects were stuck and those in the pipeline were "historically bad".

Investments must be unlocked for growth and the government must find short to mid-term solutions of problems in the infrastructure, power and coal sectors.

Offering a global perspective, S&P said that Asia-Pacific growth would not be impacted by problems in the US and eurozone and in fact, forecasts Asia Pacific economies to perform better from hereon. "Nobody expects the eurozone to recover by next year and will muddle through while the US economy will pick up going ahead," the agency said.

20.07 | 0 komentar | Read More

Taking away capital mgmt from RBI not advisable: Subbarao

Moneycontrol Bureau

Reserve Bank of India Governor Duvvuri Subbarao, who is known to have mind of his own, and has many times been at odds with the Finance Minister today voiced his discontent about the Financial Sector Legislative Reform Commission(FSLRC's) recommendations regarding capital inflows.

In an interview with CNBC-TV18's Latha Venkatesh, he stressed that taking away capital management from Reserve Bank of India is not advisable and that the central bank had made this suggestion to FSRLC when it was consulted.

"So we submitted but they have decided, the way they have decided. Now I believe the government will call for consultation and we will certainly not only put across our point but argue our point," he said.

FSLRC which was set up to rewrite and update all the archaic Indian financial sector laws has recommended that the government and not the RBI should make rules with respect to capital inflows. This recommendation is irrespective of whether the inflows are FDI, FII, forex loans or NRI deposits.

This recommendation has been strongly criticized by many economic and baking sector scholars including KJ Udeshi and YH Malegam. Subbarao said that FSLRC's argument on this is that external sector management with capital inflows has bearing on monetary policy, on financial stability and on bank regulation and hence RBI should not be handling capital inflows. 

Also read: Barring FDI, RBI must control all capital flows: YH Malegam

On Friday, RBI cut the repo rate by 25 basis points and pointed that further room for monetary easing was very little. Upside risk to inflation and high current account deficit (CAD) were sighted as two key reasons by RBI for its hawkish stance.

Today, Subbarao said that CAD could come close to 5 percent in 2012-13 and stressed that any improvement below 5 percent would be a good improvement on CAD. He said although India was able to finance 6.7 percent CAD up till January due to higher liquidity in global system, we can not depend on mere foreign capital flows. "We must have low and steady CAD financed by stable flows," he added.

Diesel price hike was seen as one of the key step in controlling the twin deficit-CAD and fiscal deficit, however oil retailers have declared on three prices hike since the fuel was deregulated. Subbarao also learned that diesel price hike was deferred on the back of fall in global crude oil prices, which gave oil retailers leeway to postpone the price hike. He however said that it would have been better if scheduled rise in April was taken by oil retailers.

On the recent cobrapost expose which involved leading private sector banks like ICICI Bank, Axis Bank, and HDFC Babk, Subbarao said that RBI was determined to take strict action against erring banks and will soon introduce systematic improvement in know your customer norms.

On the new banking licenses Subbarao said that RBI would constitute committee that will vet all applications only after June. He said that RBI would issue enough licenses to instill competition but would also make sure that they don't outnumber the existing players.

20.07 | 0 komentar | Read More

Buy Gujarat Pipavav Port, target Rs 70: GEPL Capital

GEPL Capital is bullish on Gujarat Pipavav Port and has recommended buy rating on the stock with a target price of Rs 70 in its May 03, 2013 research report.

"Gujarat Pipavav Port, in Q1CY13, GPPL reported 24 percent y-o-y growth in total revenues to Rs 1,245 mn as compared to Rs 1,004 mn in Q1CY12. Container volumes for the Q1CY13 witnessed a marginal drop of 2 percent y-o-y to 161,000 TEUs as compared to 165,000 TEUs in Q1CY12, however, on sequential basis the volume increased by 3 percent. There were in-all 7 vessels which skipped Pipavav Port in Q1CY13, which was due to the impact of Chinese New Year. Pipavav Rail Corporation (PRCL) witnessed 250 rakes operated in Q1CY13 (highest so far), which carried 103,911 TEUs to the hinterland.

On the other hand, Dry-bulk Volumes in Q1CY13 witnessed 10 percent slide y-o-y and stood at 0.56 mn tonnes as compared to 0.63 mn tonnes in Q1CY12. This decline was mainly due to deteriorating coal volumes which was the result of rail freight differentials. However, the impact of volume decline on revenue was not significant as the effect of lower volumes (of coal) was neutralized due to change in the handling of commodity mix. In Q1CY13, there was significant mix of Wheat and Fertilisers in the dry cargo, which enabled higher realizations and hence subsided the effect of volume decline.

Interest outgo of Rs 95 mn was down by 54 percent y-o-y. On cost front the company witnessed 22 percent y-o-y growth in total operating expenses to Rs 675 mn in Q1CY13. Operating cost which comprised of 55 percent of total cost, witnessed 37 percent increase on y-o-y basis on account of increase in equipment hire charges and high power and fuel cost. However, EBITDA margins witnessed 90bps jump to 45.8 percent vs 44.9 percent in Q1CY12.

Outlook: Timely expansion of port capacities and logical diversification in liquid logistics business is expected to augur well for GPPL over a period of time. Situation at the macro level seems changing with declining commodity prices and in tandem movement of inflation has already given the much awaited rate cuts, which is already auguring well for the economy. We strongly believe that with interest rate cycle on the reverse mode and some reformist steps taken by the government will turn the tables for the business climate. We maintain our buy rating and price target of Rs 70," says GEPL Capital research report.

Shares held by Central Governments/State Governments

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

20.07 | 0 komentar | Read More

Hold Godrej Consumer Products, says Ventura

Ventura has recommended hold rating on Godrej Consumer Products  (GCPL), in its May 03, 2013 research report. The research firm expects, the company to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format.

During the quarter, GCPL launched a disruptive innovation in HI category (HIT Anti Roach Gel). Moreover, Godrej Consumer Products Ltd (GCPL) has displayed its consistency by clocking double digit revenue growth. We expect GCPL to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format (under hair colours category). In the international business, integration of operations in Africa and Argentina is expected to bring synergies over the next few quarters. Also, we remain positive on the Indonesian operations on the back of regular innovations and distribution expansions.

Given the fact that GCPL has a large number of brands under its umbrella (across emerging market geographies), we expect cross-pollination to play out over the next 2-3 years and add further scale to GCPL's operations. At a CMP of Rs 844, GCPL trades at a PE multiple of 33.0x and 28.1x its estimated earnings for FY14 and FY15. Given the rich valuations enjoyed by the company and limited upside from current levels, we recommend a HOLD on the stock. However, owing to the robust long term outlook for the company we recommend to add the stock on declines with a potential target of Rs 900.

GCPL continued its strong growth momentum during Q4FY13 by recording 29.7 percent YoY growth in revenues to Rs 1,715.5 crore led by robust 18.1 percent YoY growth in its domestic business (HI 26 percent YoY; Soaps 17 percent YoY with volume growth of ~4 percent and Hair Colors 27 percent YoY), which contributes ~55 percent to its consolidated revenues. Increased other expenses (+50.8 percent YoY) and higher A&P expenses (+9.5 percent of sales v/s 8.3 percent in Q4FY12) led to a contraction of GCPL's EBITDA margins to 16.2 percent (-260 bps YoY; -60 bps QoQ). While EBITDA grew by 12.2 percent YoY, PAT grew by 70 percent YoY on account of exceptional income of Rs 133.7 crore (sale of non-core food business in Indonesia) and lower provision for tax (-11.7 percent YoY).

As stated earlier, domestic business grew by 18.1 percent YoY led by robust growth in all its key segments - Home Insecticides (+26 percent YoY; ~2.1x category growth), Personal Wash Soaps (+17 percent; ~1.3x category growth) and Hair Colors (+27 percent; 2x category growth). Household Insecticides segment witnessed growth on the back of continued distribution synergy benefits and we expect this category to maintain healthy growth on the back of penetration and new innovative launches (latest launch being 'HIT Anti Roach Gel'). On the other hand, GCPL's soaps segment witnessed growth of 17 percent YoY primarily led by volume. The highlight for the quarter was Hair colors category as it witnessed strong turnaround (27 percent v/s 13 percent category growth; albeit on a low base) on the back of positive response from crème format (recent entry)," says Ventura research report.

Institutional holding more than 40% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

20.07 | 0 komentar | Read More

India's rating upgrade unlikely anytime soon: SP

Amid high public-debt levels and concerns about deficit and subsidies, the India growth story still remains positive, global rating agency Standard and Poor's (S&P) said today. However, the rating agency ruled out rating upgrade of India anytime soon.

India's growth track record is good in current circumstances as the RBI attempts to counteract loose fiscal policy . The market has factored in one ore two rate cuts this year, the agency added.

However, S&P warn that reform announcements recently made by the government did not suffice to ensure growth. The agency also pointed out that a large number of infrastructure projects were stuck and those in the pipeline were "historically bad".

Investments must be unlocked for growth and the government must find short to mid-term solutions of problems in the infrastructure, power and coal sectors.

Offering a global perspective, S&P said that Asia-Pacific growth would not be impacted by problems in the US and eurozone and in fact, forecasts Asia Pacific economies to perform better from hereon. "Nobody expects the eurozone to recover by next year and will muddle through while the US economy will pick up going ahead," the agency said.

20.07 | 0 komentar | Read More

Taking away capital mgmt from RBI not advisable: Subbarao

Moneycontrol Bureau

Reserve Bank of India Governor Duvvuri Subbarao, who is known to have mind of his own, and has many times been at odds with the Finance Minister today voiced his discontent about the Financial Sector Legislative Reform Commission(FSLRC's) recommendations regarding capital inflows.

In an interview with CNBC-TV18's Latha Venkatesh, he stressed that taking away capital management from Reserve Bank of India is not advisable and that the central bank had made this suggestion to FSRLC when it was consulted.

"So we submitted but they have decided, the way they have decided. Now I believe the government will call for consultation and we will certainly not only put across our point but argue our point," he said.

FSLRC which was set up to rewrite and update all the archaic Indian financial sector laws has recommended that the government and not the RBI should make rules with respect to capital inflows. This recommendation is irrespective of whether the inflows are FDI, FII, forex loans or NRI deposits.

This recommendation has been strongly criticized by many economic and baking sector scholars including KJ Udeshi and YH Malegam. Subbarao said that FSLRC's argument on this is that external sector management with capital inflows has bearing on monetary policy, on financial stability and on bank regulation and hence RBI should not be handling capital inflows. 

Also read: Barring FDI, RBI must control all capital flows: YH Malegam

On Friday, RBI cut the repo rate by 25 basis points and pointed that further room for monetary easing was very little. Upside risk to inflation and high current account deficit (CAD) were sighted as two key reasons by RBI for its hawkish stance.

Today, Subbarao said that CAD could come close to 5 percent in 2012-13 and stressed that any improvement below 5 percent would be a good improvement on CAD. He said although India was able to finance 6.7 percent CAD up till January due to higher liquidity in global system, we can not depend on mere foreign capital flows. "We must have low and steady CAD financed by stable flows," he added.

Diesel price hike was seen as one of the key step in controlling the twin deficit-CAD and fiscal deficit, however oil retailers have declared on three prices hike since the fuel was deregulated. Subbarao also learned that diesel price hike was deferred on the back of fall in global crude oil prices, which gave oil retailers leeway to postpone the price hike. He however said that it would have been better if scheduled rise in April was taken by oil retailers.

On the recent cobrapost expose which involved leading private sector banks like ICICI Bank, Axis Bank, and HDFC Babk, Subbarao said that RBI was determined to take strict action against erring banks and will soon introduce systematic improvement in know your customer norms.

On the new banking licenses Subbarao said that RBI would constitute committee that will vet all applications only after June. He said that RBI would issue enough licenses to instill competition but would also make sure that they don't outnumber the existing players.

20.07 | 0 komentar | Read More

Alkyl Amines board to consider dividend

Alkyl Amines Chemicals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 16, 2013, inter alia, to consider :1. Approval of Audited Financial Results for the year ended March 31, 2013.2. Recommendation of dividend.Source : BSE

Read all announcements in Alkyl Amines

20.07 | 0 komentar | Read More

Deccan 360 runs into rough weather as lenders call in dues

It looks like Vijay Mallya is not the only airline chief who's facing the ire of lenders . Erstwhile Air Deccan founder GR Gopinath's loss-making air cargo venture, Deccan 360, has run into rough weather as primary lender State Bank of India (SBI) has called for auction of property pledged by Gopinath in order to recover dues, reports CNBC-TV18's Sunanda Jayaseelan, quoting sources.

SBI, in an advertisement in the papers on Friday, has called for sale of seven properties amounting to a super built-up area of almost 9,000 sqft in the heart of Bangalore. The properties were pledged towards raising loans worth nearly Rs 211 crore in May 2011.

The loans were taken for operational purposes and the company began defaulting on those loans starting September 2011. The advertisement invited interested parties to take participate in the bid that will close on May 31.

Sources at SBI indicate that Gopinath has agreed to participate in the auction. CNBC-TV18 was unable to contact Gopinath for his comments.

20.07 | 0 komentar | Read More

Pitti Laminations board recommends dividend

Pitti Laminations board recommends dividend

Pitti Laminations has informed BSE that the Board of Directors of the Company at its meeting held on May 03, 2013, inter alia, has recommended a dividend of Rs 1 per share of face value of Rs 10 each for the financial year 2012-13 subject to the approval of shareholders at the ensuing Annual General Meeting.

20.07 | 0 komentar | Read More

TV18 Broadcast FY13 results on May 13, 2013

TV18 Broadcast FY13 results on May 13, 2013

TV18 Broadcast has informed BSE that a meeting of the Board of Directors of the Company will be held on May 13, 2013, inter alia, to consider and approve the Audited Financial Results of the Company for the quarter and year ended March 31, 2013.

20.07 | 0 komentar | Read More

Buy Tata Global Beverage: Sukhani

One can buy Tata Global Beverage , says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Tata Global Beverages has completed its bear market, made a bullish pattern and broken out and the rally is simply a signal that the breakouts are genuine and the bullish pattern is intact. So we have had a very decent rally, so if you are a position trader a small correction is immaterial."

He further added, "At current levels this is a buying opportunity but for short-term trader the big run up gives very limited upside. You have to wait for a small consolidation, small dip before entering. So for both the buying opportunities exists but for the position trader you can do it now."

20.07 | 0 komentar | Read More

DLF raises Rs 750 crore through bonds issue

Realty major DLF today raised Rs 750 crore through issue of bonds and funds would be utilised for development of its housing and commercial projects.

According to sources, DLF raised the funds through issue of bonds with maturity period of five years with coupon rate of 12.5 percent.
    
When contacted, a DLF spokesperson declined to comment.
    
DLF, the country's largest realty firm, had a net debt of Rs 21,350 crore at the end of 2012 calendar year. The company has been selling its non-core businesses since last couple of years to focus on core business and cut huge debt.
    
It is targeting to pare net debt by half over the next three years to Rs 10,000-11,000 crore with the help of fresh issue of equity shares, sale of non-core assets and improved cash flows.
    
Last month, DLF's shareholders approved the sale of fresh equity shares to meet market regulator Sebi's norms of 25 percent minimum public shareholding in a listed firm.

Also read: Oberoi Realty gains 2% post Q4 earnings
    
Sources had said that the company is likely to offer over 8 crore fresh equity shares, worth about Rs 2,000 crore, to the institutional investors for dilution of promoters stake to below 75 percent from the current 78.58 percent.
The share price today rose by 0.44 percent to close at Rs 239.10 on BSE.

On the front of sale of non-core businesses, DLF has been able to divest its three major assets- land parcel in Mumbai, hospitality chain Amanresorts and wind energy.

Last month, it had sold wind turbine projects in Tamil Nadu and Rajasthan for Rs 241 crore to two separate entities. Before that, the company had sold 150MW wind mill in Gujarat to Bharat Light and Power for Rs 282.30 crore in January 2012. Now, the company is left with only Karnataka's wind mill with 11MW capacity. In August last year, DLF sold a 17-acre land in Mumbai to Lodha Developers for Rs 2,727 crore, while in December 2012, it announced sale of Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore.

20.07 | 0 komentar | Read More

Buy Havells India, Aurobindo Pharma: Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that one can buy Havells India .

Sukhani told CNBC-TV18, "The market is up so today there is no need to go and experiment with a short position. We want to buy Havells India. It has moved out of a consolidation. It was already in an uptrend, so the breakout is a continuation of the existing uptrend. Any breakout has some momentum, may be by today 3.30 PM that momentum should give us some points on the long side."

He further added, " Aurobindo Pharma has made a very attractive bullish breakout, it is an ascending triangle. Such breakouts usually tell us that a significant up move is coming, so it is worthwhile getting in today as this move is just beginning to take shape."

20.07 | 0 komentar | Read More

Avoid Aban Offshore, says Phani Sekhar

According to Phani Sekhar, Fund Manager of Angel Broking, investors must proactively avoid Aban Offshore . He feels it is a very highly leveraged stock.

Sekhar told CNBC-TV18, "Large or small I don't think Aban Offshore is an investment stock. If one actually looks at balance sheet it is carrying with Rs 13,000 crore of debt; and under Rs 2,000 crore of networth and with less than Rs 1,000 crore of operating cash every year it beats me as to how they are ever going to repay their debt."

"Just because crude has been bouncing back after two-three weeks of decline and there might have some interest in Aban Offshore does not mean that investor should consider it favourably. It is a very highly leveraged stock and that is exactly the kind of stock and business that investors must proactively avoid in this kind of a market," Sekhar added.

20.07 | 0 komentar | Read More

Decision on IKEA proposal delayed as CCEA meeting postponed

The meeting of Cabinet Committee on Economic Affairs (CCEA), which was scheduled to consider the Rs 10,500-crore proposal of Swedish furniture major IKEA, did not take place on Wednesday due to paucity of time.

"It was on the agenda of the CCEA, but CCEA could not meet today because of lack of time as the Cabinet meet took nearly two hours and then we have the CCS...I think the CCEA meeting will be fixed now...may be tomorrow, may be early next week," finance minister P Chidambaram said.

In its application, IKEA had proposed to invest the amount for setting up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India. Subsequently, it plans to open 15 more stores. Earlier in January, Foreign Investment Promotion Board (FIPB) had cleared the investment plan of the firm to open single-brand retail stores in the country.

FIPB can clear foreign investment proposals worth up to Rs 1,200 crore. As IKEA's planned investment is higher than this,  the proposal has to be cleared by the Cabinet.

IKEA's would be the largest investment in the single-brand retailing ever since the government allowed foreign investment in this sector. The company has been sourcing many products from India for the past 25 years.

20.07 | 0 komentar | Read More

Govt cuts subsidy on phosphate, potassium fertilisers

Moneycontrol Bureau

The government on Wednesday annouced a cut of about 15 percent in nutrient-based subsidy (NBS) rates for phosphate- and potassium-based fertilisers for 2013-14 following a fall in global prices. The move could help the government save Rs 5,000 crore.

Finance minister P Chidambaram said that total NBS outgo for 2013-14 will be 15 percent lower due to decline in global prices, however actual subsidy outgo will depend on consumption. 

The government of India's per kg NBS rates for fertilisers are as follows: For nitrogen, the NBS rate will be Rs 20.875, for phosphate - Rs 18.679, for potash- Rs 18.333 and for sulphur - Rs 1.677.

Also read: Chambal Fertilisers Q4 disappoints street, net falls 75%

Thus, subsidy on diammonium phosphate (DAP), a widely used phosphorous fertiliser, is fixed at Rs 12,350 per metric tonne and for muriate of potash (MoP) is fixed at Rs 11,300 per metric tonne. This will bring down the retail price on DAP by Rs 1500 per mt and on MoP by Rs 1000 mt.

The government will try to pass on the benefit of lower prices to ultimate consumers or farmers. "The department of fertilisers will put in place a mechanism to ensure that the lower MRP is fixed by the fertiliser manufacturer and benefit of the reduction in international prices and benefit in reduction in MRP is actually transferred to farmer," Chidambaram said in a press conference. 

International DAP prices have declined by Rs 3,500 per tonne and international MoP prices have declined by 2,500/tonne.

Under the NBS regime introduced on April 1, 2010, the maximum retail price of 22 varieties of phosphate- and potassium-based fertilisers have been freed. But, the government reimburses companies the difference in cost of selling the soil nutrients at lower price to farmers.

In 2012-13 fiscal, the government had fixed the subsidy on DAP at Rs 14,350 per tonne and on MoP, at Rs 14,400 a tonne. During the April-February period of 2012-13 fiscal, import of DAP stood at 57.79 lakh tonne and that of MOP, at 18.14 lakh tonne.

On average, India consumes 30 million tonne urea and around 25-26 million tonne DAP, MoP and complex fertilisers annually.

(with inputs from agencies)

20.07 | 0 komentar | Read More

Hero MotoCorp sales down 10% in April

The country's largest two-wheeler maker Hero MotoCorp on Wednesday reported 9.51  percent decline in its total sales at 4,99,113 units for April this year.

In the same month last year, it had sold 5,51,557 units, Hero MotoCorp said in a statement. 

Hero MotoCorp, senior vice-president, marketing and sales, Anil Dua said: "We are glad to have opened the new financial year with despatch of close to five lakh two-wheelers in April....we expect retails sales to stay buoyant even in May." 

Going forward, overall industry growth will depend on the monsoon and economic activity, he added.

20.07 | 0 komentar | Read More

Nikkei falls for 3rd day; Sharp, Tokyo Electron sag

Japan's Nikkei average fell on Wednesday after posting its best April performance in 20 years, with Sharp Corp and semiconductor-equipment maker Tokyo Electron Ltd tumbling on disappointing earnings news.

Gains in Fujifilm Holdings Corp and Kao Corp after their quarterly earnings helped cap losses.

The benchmark Nikkei ended 0.4 percent lower at 13,799.35, down for third straight session.

It rallied nearly 12 percent last month, marking its best April performance since 1993 and a ninth straight month of gains - its longest such winning streak since May 2005 to January 2006.

"The fundamental view (on corporate profit growth) is still sluggish," said Shun Maruyama, chief Japan equity strategist at BNP Paribas.

"The market has already priced in the effect of the currency weakness. If we exclude the currency weakness, companies are still bearish in the economic recovery forecast for the current term and the next."

"In the shorter-term, we have no choice but to recommend to take profits," he said, but added that he remained upbeat on the Nikkei and expected the benchmark to hit 15,000 by year-end.

Expectations that Japanese firms would sharply raise their earnings forecast for this fiscal year ending March had been high after the yen weakened 21 percent since mid-November, when Shinzo Abe, who became Prime Minister in December, promised expansionary monetary and fiscal policies to revive the economy.

During the same period, the Nikkei index has rallied nearly 60 percent. Japanese equities carry a 12-month forward price-to-earnings ratio of 15.1, a level not seen since May 2010 but still below its 10-year average of 16.4, data from Thomson Reuters Datastream showed.

Investors will keep an eye on the outcome of the U.S. Federal Reserve's two-day policy meeting later in the day.

STRUGGLING SHARP

Sharp sagged 5 percent on news that the liquid crystal display maker was expected to post a worse than forecast 500 billion yen net loss in the year that ended March 31. Sources with knowledge of the earnings result confirmed a report by the Nikkei newspaper to Reuters on Wednesday.

Tokyo Electron dropped 4.1 percent after it forecast an operating profit of 18 billion yen for the fiscal year through March, coming in below an average of 21 billion yen from 18 analysts polled by Thomson Reuters I/B/E/S.

Japan Airlines also disappointed investors with its earnings guidance for the current business year. Its stock lost 4.4 percent after hitting its highest level since relisting in September in the previous session.

"I clearly don't see these forecasts are catalysts for investors to go crazy on Japan," a senior dealer at a foreign bank said.

"But the conservative guidance leaves room for revision if the FX is maintained at this level, or the yen gets weaken."

PROFIT-TAKING ON SOFTBANK, NOMURA

Other notable decliners included SoftBank Corp, which fell 1.7 percent as investors took profit on the mobile operator after it hit a seven-year high on Tuesday before it announced results which were largely in line with expectations.

Investors also cashed in on Japan's top brokerage Nomura Holdings after climbing 4.5 percent in the previous session after strong quarterly results. The stock was down 2.5 percent and the most traded stock on the main board by turnover.

The broader Topix index fell 0.6 percent to 1,158.37, with trading volume hitting a four-week low at 3.07 billion shares.

Still, there are encouraging signs in the corporate sector. Of the 57 companies that have reported quarterly figures as of Tuesday, 53 percent of them either beat or met market expectations, according to Thomson Reuters StarMine. That compared with 38 percent in the previous quarter.

Fujifilm jumped 6.6 percent after its operating profit came in slightly above its own forecast for the year ended March, while its forecast for the current business year was a touch ahead of market consensus.

Kao Corp was the fifth top-weighted gainer, up 2.5 percent after its first quarter earnings.

20.07 | 0 komentar | Read More