Market loses ground ahead of RBI's policy review T he key benchmark indices skidded to their lowest level in more than a week as high inflation stoked macroeconomic problems for the world's second fastest growing economy. Data showing sustained selling by foreign institutional investors weighed on the sentiment. Caution prevailed as the central bank is seen raising key short-term interest rates by a minimum 25 basis points at a policy review early next week. The market fell on all the five trading sessions during the week ended Friday, 29 April 2011. Volatility was high as traders rolled over positions in the futures & options (F&O) segment ahead of the expiry of the near-month April 2011 contracts Thursday, 28 April 2011. The BSE Sensex declined 466.27 points or 2.38% to 19135.96, in the week ended 29 April 2011, its lowest closing level since 19 April 2011. The S&P CNX Nifty shed 135.20 points or 2.29% to 5,749.5096, its lowest closing level since 19 April 2011. ...
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The US Stocks rise after Fed says recovery will continue..... My yesterday's morning call Amrutanjan Health Care Ltd. moved up by more than 16% on the following news sent to Paid Clients: Keep watch on AMRUTANJAN HEALTH CARE which is expected to consider a share buyback proposal on May 3, 2011.... Another of the yesterday's buy calls: Buy ABB Ltd around Rs.836, T--Rs.900, SL--Rs.798...The scrip moved to Rs.855, intra-day.... N EW YORK -- Stocks rose to another high for the year Wednesday after Federal Reserve Chairman Ben Bernanke said central bank officials expect the economy to continue recovering as the jobs market strengthens. An index of small stocks hit a record. The Fed said it expects the economy to grow as much as 3.3 percent this year. That's below the Fed's previous forecast in January, but the Fed also said it's more optimistic about jobs. It now expects the unemployment rate to fall as low as 8.4 percent by the end of the year. The unemployment is c...
Market Mantra: Atlanta Ltd hits the lower freeze after my sell call on all the Mumbai based real estate counters. Bombay's real estate market is in a very bad shape, as I am told more than 30% of the apartments purchased are only for speculative purpose. So the rates are bound to crash in the coming days. You know the rates in Goregaon (W) only about couple of years back were abound Rs.6000-6600 per sq.ft near Mega Mall. Now you will be surprised to know that the rates are ruling at around Rs.9000---9500 per sq. ft. which is totally abnormal. In Goregaon (E) the rates a couple of years back were as low as Rs.5000 per sq. ft--the rates now are more than Rs.8000 per sq.ft. The Reserve Bank of India fined 19 banks including HDFC Bank, Axis Bank, Kotak Mahindra Bank and ICICI Bank for violating rules on derivatives. I am happy to find the name of ICICI Bank Ltd in the list. They still did not send my ATM Card and the cheque book---everytime I have to write ...
MARKET MANTRA: Buy Reliance Media Works Ltd above Rs.167.5 for a target of Rs.182-185. The scrip should move up due to its sheer size. With advertisement and Entertainment spend enablers (consumption led growth of corporate business and gradual increase in disposable incomes in metro and non-Metro cities) in place we can see a secular growth across the media verticals. Reliance Media Works Ltd has grown from its origins of a film processing and printing lab to an integrated global service provider across the entire film and media services value chain with presence in India, USA, Japan and UK. The company today has a dominant and comprehensive presence in Motion Picture Processing and DI; Film Restoration and Image Enhancement; 3D; Digital Mastering: Studios and Equipment Rentals; Visual Effects; Animation and TVC Post Production. Reliance MediaWorks has also become the first motion picture services facility in India and all of Asia to be awarded certification by the UK’s- industry b...
RBI grants relief to banks on NPAs MUMBAI: In a move that will ease pressure on bank profits, Reserve Bank of India has said that an earlier guideline requiring additional funds to be set aside for bad loans will not apply to loans that turn bad after September 2010. This move will benefit all lenders as RBI has now specified the end point for setting aside additional provisions on bad loans. These guidelines on additional provisions were issued in October 2009 after banks turned in large profits following a bounce back from the global financial crisis. At that time, the central bank had said that the idea was to build up a capital buffer during good times so that it could be used if the outlook for the economy changes suddenly. State Bank of India will gain directly from this measure as RBI has said that even for those banks that have not achieved the prescribed provision coverage ratio, the target date continues to be September 30, 2010. SBI has been struggling to m...
Some Inputs on Assam Company Ltd: Tea with Mint (i) Assam Company Ltd's subsidiary Gujarat Hydrocarbon and Power Ltd (GHPL) will set up a SEZ, in Gujarat, which will cater to the Petroleum sector and for which 450 (four hundred and fifty) acres of land has already been acquired by the company, according to my close sources who refused to be named. (ii) A sector specific SEZ (basically catering to the Power Sector) will be also be set up in Bharuch, Gujarat by GHPL. (iii) Since the tea and crude oil prices are ruling firm in both the domestic and international markets, the company hopes to generate good operating margins from the same in the coming quarters. Moreover, in case of tea since last year's production was low, the prices are expected to remain firm in the coming months. Recently, it has been mentioned in this blog, that www.icicidirect.com has recommended Jayashree Tea, based on the buoyant tea prices both ...
Bombay's Real Estate market is in a very shape: Exit all the Mumbai based real estate companies: People cannot be fooled for long with unrealistic prices.....the scenario to deteriorate further; the bubble would burst soon.....stay away...!! MUMBAI: Residents of the space crunched city, where homes come with extortionate price tags, seem to prefer to rent houses rather than buy them. Data compiled by the state stamp duty department shows that in March 2011, registration of homes plunged by 30%, hitting the lowest since May 2009. The statistics contain information of both the sale of new homes as well as change in ownership. While the registration of sale deeds of flats dipped from about 8,000 in March, 2010, to 5,832 in March, 2011, the corresponding period saw a 35% rise in number of lease agreements being signed in the city. The report showed that 6,300 houses were rented out in 2010 and the next year, the figure climbed to 9,603. The first two months of t...
TCS LTD is the new Infosys Tech Ltd of the Indian Bourses, Beats Forecasts: IT giant Tata Consultancy Service has reported nearly 30% increase in its consolidated profit for the financial year ended March 31, 2011. According to stock exchange filings, the net profit for FY11 was pegged at Rs.9,068.04 crore, 29.54% higher than Rs.7,000.64 crore for the previous fiscal. The total income for FY11 increased to Rs.37,324.51 crore from Rs.30,028.92 crore in the financial year ended March 31, 2010. This signifies an increase of 24.30%. The income received a major boost from sale of equipment and software licences that reported an increase of nearly 35%. TCS also achieved a 3.2% growth in its Q4 net profit at Rs.2,402 crore as per US GAAP. Q4 sales too sprang by 5.1% to Rs.10,157 crore. Within the income segment, banking, financial services and insurance (BFSI) contributed the largest share followed by telecom, retail & consumer packaged goods and manufacturing. Meanwhile, the company...
Reliance Industries AimsTo Expand Mining Plans For Diamond In Madhya Pradesh: Reliance Industries (RIL), India`s largest private sector enterprise, is aiming to expand its plans for mining for precious metals by acquiring state prospected areas in the diamond rich state of Madhya Pradesh. Through an unnamed subsidiary Reliance Industries currently owns a license to prospect for diamonds in Rewa, Siddhi and Satna region, of the state and is looking to extend its foray in the sector which has already seen the presence of global mining majors such as Rio Tinto and De Beers, signaling a tough fight in the near future among these large players. The move by Reliance is backed by the sharp growth seen in precious metals with a large chunk of the diamond business slowly shifting to India and China, away from traditional markets such as Israel and Belgium. This is due to the advantages of low-cost skilled labor in India and use of modern technology. According to Gem & Jewellery Export Promo...
Inflation Likely To Come Down To 7% By May, 2011: Buy REAL ESTATE COUNTERS..... India`s headline inflation, that continues to remain above the 8% level despite a series of policy rate hikes by the central bank over last financial year, might come down to around 7% by May, said the Prime Minister`s Economic Advisory Council (PMEAC) Chairman C Rangarajan. The PMEAC Chief expects that inflation was softening, particularly in food commodities and results would be visible in couple of months. I think the inflation numbers will show some decline in the month of March but certainly by April or May. Weekly data that are available indicate that the food price inflation is coming down, Rangarajan said while talking to media persons on the side lines of an industry event. Rangarajan, a former Governor of the Reserve Bank of India (RBI) himself, said that since food price inflation was persistent for a long time it was also getting extended to the manufacturing side that was why the overall...
U.S. Existing Home Sales Rebound By 3.7% In March After reporting a steep drop in U.S. existing home sales for the month of February, the National Association of Realtors released a report on Wednesday showing that existing home sales rebounded by more than expected in March. NAR said existing home sales rose by 3.7 percent to an annual rate of 5.10 million in March after falling by 8.9 percent to a revised 4.92 million in February. Economists had expected existing home sales to increase to 5.00 million from the 4.88 million originally reported for the previous month. While existing home sales in March were still down by 6.3 percent compared to the same month a year ago, NAR noted that sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit. Noting that he expects the improving sales pattern to continue, Lawrence Yun, NAR chief economist, said, "Existing-home sales have risen in six of the past eight months, so we're clearly on a ...
Crude Moves Up Near $110 Ahead Of Official Inventories Data.... The price of crude oil was extending gains for a second session Wednesday morning as traders await cues from the official inventories data due out later during the session. Also, a weak U.S. dollar helped lift buyer sentiment. Light Sweet Crude Oil (WTI) futures for June delivery, the new front month contract, were up $1.35 to $109.63 a barrel. Yesterday, oil bounced back above $108 amid a weak U.S. dollar. Tuesday after the market close, the API said U.S. crude oil inventories increased by 667,000 barrels, while gasoline stocks dipped by 1.79 million barrels in the week ended April 15. Analysts were expecting crude oil inventories pile up by 1.60 million barrels, while gasoline stocks were seen dipping 1.3 million barrels last week. This morning, the U.S. dollar slipped to a fresh 16-month low versus the euro and trading weak against sterling. The buck moved back near its record low, hit last week, versus the Swiss Franc...
Tea Prices Firm Up As Demand Supply Equation Remains Tight Global tea prices continue to remain firm despite the increase in production in last calendar year as a strong supply response to high prices was witnessed. Lower production in India due to weather related troubles coupled with high global prices have boosted tea prices in Indian markets as well and going forward the commodity is expected to remain bullish for at least another couple of quarters. In fact global tea prices have been quite volatile in the past two years, with prices in 2008 and 2009 respectively swinging within a 25-30% price range. The average growth in prices in 2010 was again over 10%. High prices yielded a strong supply response as well. While there were wide swings, on the whole tea prices have remained relatively strong in historical context in both Indian and global markets. The industry has remained firm even as global production increases. It was apprehended that strong supply response to high pr...
Markets on a Pull Back Mode: Euphoric Indian equities showcased an impressive performance on Wednesday by recapturing the crucial 5,850 and 19,450 levels as they got underpinned by a series of encouraging leads which started emerging even before the trading hours commenced. HCL's announcement of a 33% rise in net profit for Jan-March quarter, beating street expectation while reports that India's exports surged 37.5% in 2010-11-their fastest annual growth since independence and projections of monsoon to remain normal this year set the tone of an outright rally. While cues from markets across the globe too remained highly supportive as most Asian and European indices rallied over one and half a percent points and little signs of profit booking emerged in global markets. Local investors even went ahead to discount the rebound in international crude prices which surged by over a percentage point in today's session. While the surprising news of a special court denying bail to ...