SumanSpeaks: The Information Super Highway

Infra Funds Throw a Lifeline at Road Projects Investors believe that things are unlikely to worsen from here and once interest rates start coming down, the IRRs will inch up from 16 per cent levels to around 20 per cent. Meanwhile, there were media reports that The Ministry of Road Transport and Highways is looking to tweak an exit policy announced for highway projects this year. The policy falied to excite developers as it did not transfer the perks to the new operator. The Union ministry is considering a proposal by the National Highways Authortity of India that allows a developer to sell or transfer their stake in a special purpose vehicle (SPV) formed for a project. The ministry has suggested the finance ministry to reschedule premium worth Rs.1,51,000 crore that developers owe the highways authority. The finance ministry has in turn set up a committee under Prime Minister’s Economic Advisory Council Chairman C Rangarajan to study the terms and conditions of reschedul...

Suzlon Energy secures 106MW contract from Mitsui and Co . [ Editor : Two of my favorite counters are now being recommended by a Mumbai (Bombay) based MARKET ANALYST. One is from the Power Equipment Space and another from the IT Segment. Join the Paid/ Premium Service or my recommended Brokerage House/s, to know the names of the Scrips, which can give good returns in the short term. Moreover, the Rangarajan-headed panel has, in principle, agreed on a formula that will allow road developers in stressed projects to backend majority of their annual premium payable to the government. The government is close to finalising a bailout package for road developers.  Therefore buy in BULK, most of the Infrastructure companies especially, Punj Lloyd Ltd (Rs.26.70) and IVRCL Ltd (Rs.14.00)]  Mumbai,  Nov 28 2013 : Wind turbine maker Suzlon Energy Ltd, on Thursday, said its subsidiary REpower Systems SE had announced the conclusion of an engineering, procurement and constru...

Capital market, financial sector reforms on the anvil : Chidambaram [ Editor : I am happy to note that the Finance Minister of India shares my view on Inflation & about the dismal performance of his predecessor in containing Fiscal Deficit. In a leading financial daily the Finance Minister said, UPA is paying a political price for high inflation. Stating that food prices will take time to come down, Chidambaram went on to say that the Reserve Bank of India's (RBI) policy which is focused on curbing inflation, has little impact on prices. "Consumer inflation in India is entrenched due to high food and fuel prices, and monetary policy has little impact in curbing these prices," he said. "There are no quick fixes for inflation, will take some time to fix it," he added. "Demand (for food and fuel) is being stoked by the fact that we have high fiscal deficit and that fiscal deficit was not contained for a fairly long period, I think over a per...

Bank Stocks Lead Rally 29-Nov-13: Key benchmark indices surged, with market sentiment boosted by data showing that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013, and that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Thursday, 28 November 2013. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in more than a week. The Sensex garnered 257.02 points or 1.25%, off about 25 points from the day's high and up close to 230 points from the day's low. All the thirteen sectoral indices on BSE were in the green. The market breadth, indicating the overall health of the market, was positive. Indian stocks gained for the second day in a row today, 29 November 2013. From a recent low of 20,420.26 Wednesday, on 27 November 2013, the Sensex has garnered 371.67 points or 1.82% in two trading sessions. The Sensex shed...

WINNING STROKES : THINK DIFFERENT BHEL Recommended a couple of days back with a target of Rs.153 today touched Rs.158.35, in the afternoon trade. Also, BGR Energy Systems Ltd recommended only some days back in this blog with a chartical analysis, rose to Rs.17.50, before cooling at Rs.115.90, up 2.43%. Today I got the information that, Krish Subramanium of Asit C Mehta has recommended buying BGR Energy Systems for a target of Rs.118. According to a report published in Live Mint, India’s power generation equipment manufacturing space has a capacity of around 30,000MW, with an equal share of boiler and turbine generator sets. Overall, India has a power generation capacity of 2,28,721.73MW, with a targeted additional capacity of 88,000MW in the current Five-Year Plan (2012-17). Last year the government hiked the import duty on power generation equipment to 21% from 5% in a bid to hold off competition from Chinese manufacturers such as Dongfang Electric Corp. and Shanghai Electric ...

RBI Swap Attracts Billions More Than Hoped November 28, 2013: India’s central bank’s program to bring dollars into the country has attracted More than $10 billion more than analysts had expected, giving the Reserve Bank of India more ammunition to defend the rupee the next time it is under attack. The swap program–through which the RBI subsidized banks’ costs of raising dollars—is set to end this week and is likely to have pulled in more than $25 billion, according to one central bank official. When the program was announced in early September, most analysts had expected it to attract less than $15 billion. “The swap facility has definitely worked and has been a key support for the rupee in recent months,” says Sacha Tihanyi, senior currency strategist at Scotiabank in Hong Kong. Introducing the swap facility was the first move of Raghuram Rajan, a high-profile academic who took over as the head of India’s central bank a few days after the rupee hit a record low of 68.80 to the d...

IVRCL Ltd ( Rs.14.15 ): Steady Upmove Ahead IVRCL Ltd is an infrastructure player, which showed a sharp rise in standalone net profit for the quarter ended September 2013 (Q2FY14). During the quarter, the profit of the company rose a whooping 3.09 times to Rs.1,224.93 million from Rs.395.90 million in the same quarter last year. Net sales for the quarter rose 13.07% to Rs.11,246.85 million, compared with Rs.9,947 million for the prior year period. In an interview with a leading Business Channel, Mr.S Ramachandran, Director (Business Development) IVRCL said  that the margin and revenue growth for the company will come in from engineering, procurement and construction (EPC) contracts and not Built, Operate and Transfer (BOT) projects because BOT is essentially a function of self sustaining the debt as well as interest payment.  Recently the road ministry has approved 14 highway projects to be bid under the engineering, procurement, and construction model (EPC), which lo...

WINNING STROKES : THINK DIFFERENT As expected Suzlon Energy Ltd hit the upper freeze before settling down at Rs.9.93 at the end of the day. The consolidated Group orderbook of Suzlon Energy Ltd stood at 5.1 GW, approximately Rs.43,834 cr / US$ 7.1 bn in value, with an intake of 395 MW over Q2 FY14. Suzlon Wind achieved volumes of 220 MW for the second quarter for FY14, aggregating first half volumes of 440 MW. REpower achieved revenues of EUR 388.8 mn in Q2 FY14, compared with EUR 332.6 mn in Q1 FY14, with volumes impacted by lower demand from the US market. REpower also crossed a major milestone with the commissioning of its 5,000th turbine. Meanwhile, REpower launched a 60 Hz turbine variant – the 3.0M122 – designed specifically for low wind sites in developed economies in the 2nd quarter of FY13. This turbine draws on the successful 3XM platform to deliver a lower cost of energy. The company continued to work towards optimizing its Working Capital ratio, with a focus on realiz...

Polls bring policy-related stocks back in focus Mumbai  November 27, 2013: The coming general elections have brought policy-related stocks back into the limelight, with stocks in the fertiliser, oil and gas, sugar, infrastructure and capital goods segments rallying up to 25 per cent on the BSE in the past month, compared with BSE Sensex’s rise of about one per cent. “Historically, the Indian market has rallied sharply after any favourable election outcome, that is, a stable government, with a single party holding a commanding position in Parliament,” says Jitendra Sriram, equity strategist and head of research for India at HSBC Securities & Capital Markets. Andrew Tilton, chief Asia-Pacific economist at Goldman Sachs, says: “The parliamentary elections in early 2014 are a major area of uncertainty, with a potentially large impact on policy reforms and investor/corporate sentiment in either a positive or negative direction.” Building gains Infrastructure and ...

Andhra Bank takes possession of two Deccan Chronicle properties [ Editor : It is to be noted that the Media company's properties in Chennai, Bangalore are worth Rs.160 crore--this will improve the confidence of the investors towards the banking sector. Meanwhile, according to a leading financial daily, the Multilateral funding agency Asian Development Bank (ADB) today said it is planning to raise funds by issuing rupee denominated bonds. Earlier this month, the World Bank group member International Finance Corporation (IFC) raised Rs.1,000 crore (USD 160 million) in the US from its first offshore sale of rupee bonds. It was believed that the IFC offering would provide some relief to the rupee against the US dollar] November, 207, 2013: Andhra Bank on Wednesday said it had taken possession of two properties worth Rs 160 crore belonging to Deccan Chronicle Holdings Limited (DCHL) to recover its loan. The Hyderabad-based media company, which owes over Rs 200 crore to t...

Sensex, Nifty end marginally lower [ Editor : Today as expected, the stocks from the two sectors Banks and Infrastructure, moved up in late trade, after recovering from their earlier losses--Allahabad Bank Ltd (Rs.89.10), Bank of India Ltd (Rs.209.40), Axis Bank Ltd (Rs.120.05), IVRCL Ltd (Rs.13.75), etc. closed near day's high] 27-Nov-13: Key benchmark indices ended a tad lower for the day in what was a lacklustre trading session. The barometer index, the S&P BSE Sensex, shed 4.76 points or 0.02%, up 72.20 points from the day's low and off 62.41 points from the day's high. The market breadth, indicating the overall health of the market, was negative. The Sensex has fallen 744.26 points or 3.52% in this month so far (till 27 November 2013). The Sensex has garnered 993.55 points or 5.11% in calendar 2013 so far (till 27 November 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 2,971.55 points or 17.03%. From a record high of 21...