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Unprecedented crisis of iron ore to hit steel industry, says ASSOCHAM January 30, 2015: In the wake of bans and restrictions imposed on iron ore mining in Odisha, Jharkhand and Karnataka, India's steel industry is likely to face unprecedented crisis due to extreme shortage of iron ore and cheaper imports from China and Russia. In a note submitted to the government, apex industry body ASSOCHAM has suggested for an urgent intervention to correct artificially inflated rate of iron ore in the domestic market by the non-captive iron ore miners. The chamber secretary general, D.S. Rawat lamented that as against the international norm of efficient steel making, the Indian steel industries have no captive mines and fully dependent on the domestic merchant miners. Both private and PSU in the states of Chhattisgarh, Odisha, Jharkhand, etc. have been paying very high cost for Iron Ore ranging from US$ 96-105/ MT (landed cost) resulting in high production cost of Steel $ 450 -500...

India's JSW Steel calls for action against Chinese steel "dumping" MUMBAI, Fri Jan 30, 2015: India's JSW Steel Ltd on Friday urged the government to address "dumping" of cheap steel by Chinese rivals and take steps to improve iron ore availability after lower steel prices led to a 30 percent drop in the company's third-quarter profit . Steel imports into India leapt by more than 60 percent in the April to December period, with 1 million tonnes imported in December alone, group Chief Financial Officer Seshagiri Rao told reporters in Mumbai. "We have been representing to the government that they should take steps, as is being done by various countries, in stopping the dumping and to stop injury to the domestic industry," Rao said. The company has been struggling with restricted supply of steel making raw materials, especially iron ore, due to mining bans in India and high domestic prices, forcing it to resort to imports to keep...

WINNING STROKES: THINK DIFFERENT Rohit Ferro Tech Ltd  was one of the stars of the day, as the scrip closed at Rs.8.45, up 9.74%m after intra-day touching Rs.8.92.The Board of Directors of Rohit Ferro-Tech Ltd at its meeting held on December 29, 2014, has approved the proposal to sell, transfer or otherwise dispose of the Jajpur manufacturing unit of the Company located at Kalinganagar Industrial Complex, P.O.: Duburi - 755 026, Dist,: Jajpur, Orissa as going concern by way of slump sale or otherwise, subject to the such approvals and permission as may be required for such sale. Meanwhile, the Board also approved proposal to offer and allot, subject to the approval of the shareholders, 7,12,05,000 (Seven Crores Twelve Lacs Five Thousand) Convertible Warrants of nominal value of Rs 10/- each at a price of Rs.20 per Warrant (including a premium of Rs.10 per Warrant) in accordance with SEBI (ICDR) Regulations, 2009, to the entities belonging to the promoter group and strategic ...

Jindal Saw standalone quarterly net rises 23.74%  20 Jan, 2015: Jindal Saw Ltd (Rs.80,40) saw a good increase in standalone net profit for the quarter ended December 2014.  During the quarter, the profit of the company rose 23.74% to Rs 619.20 million from Rs.500.40 million  in the same quarter last year. Net sales for the quarter  rose marginally 3.97% to Rs.17,774.30 million, compared with Rs.17,096 million for the prior year period. Earnings per share for the quarter stood at Rs.2.21, registering 22.10% growth over previous year period.  Courtesy : Myiris.com  

FII/FPI  were Net Buyers Yesterday The selling actually came from the DIIs, who sold around shares worth Rs.1680.09 Cr. But still the net buy figures of both FIIs and DIIs were positive yesterday.  Today, while the Nifyt is down 149 points, the mid-cap index is down only 59.45 points. This show that the selling is coming basically in the large caps, near 9000 level of Nifty.  Hence, the traders can enter the mid and small cap space today and keep holding. 

Market Mantra Rohit Ferro Tech Ltd which was repeatedly recommended in this blog from Rs.8.40 till Rs.7.5, during the last couple of weeks today made an intra-day high of Rs.8.90 and is now trading at Rs.8.75. This time the target of the shares of the company is Rs.12-14, hence do not sell them in a hurry. According to the website of Rohit Ferro Tech Ltd, the group now has a total installed capacity of 2,74,583 mtpa. Interestingly, it takes about  $1 billion (Rs. 6,000 crore) to build one mtpa capacity.   In January, last year, the government-owned Steel Authority of India Ltd (SAIL) said it would expand its capacity to 24 mtpa, by adding 10 mtpa at a cost of Rs.60,000 crore. And, that further expansion to 50 mtpa by 2025 would cost Rs.170,000 crore or Rs.6,500 crore per mt.  Now you can calculate the enterprise value of Rohit Ferro Tech Ltd.  Meanwhile, t he company is also setting up a 67 MW Captive Power Plant at its jajpur unit to feed its energy requireme...

BPO firm Firstsource Solutions Ltd Q2 profit up 36.8 per cent at Rs 61.2 crore NEW DELHI, Nov 14, 2014: BPO firm Firstsource Solutions Ltd today posted a 36.8 per cent increase in net profit at Rs 61.2 crore for the quarter ended September this fiscal. This is against a net profit of Rs 44.7 crore in the same period last year. The company's revenues, however, fell by 2.1 per cent to Rs 773.9 crore in the quarter under review from Rs 790.7 crore in the July-September quarter of the previous fiscal. Sequentially, net profit was up 15 per cent from Rs 53.2 crore, while revenue was higher by 2.4 per cent from the April-June quarter. Firstsource reported additional wins of about $ 45 million in ACV (annual contract value) across business verticals with existing and new customers in July-September period. This includes the entry and cross selling of customer management services into the healthcare vertical in the US. Firstsource removed 224 people during the...

DO YOU KNOW? The stock of HOUSING DEVELOPMENT & INFRASTRUCTURE LTD was recommended few weeks back at Rs.67-68. Yesterday it touched Rs.98.55, Congratulations to those who bought the scrip and kept on holding. 

Jindal Saw Ltd: Screaming Buy Jindal Saw Ltd, part of the O.P. Jindal Group, is the undisputed leader in India’s tubular market. Today, Jindal SAW is one of the largest pipe manufacturers with business interests catering to varied industries spanning across the globe. It competes with companies such as Welspun and Maharashtra Seamless. With integrated facilities at multiple locations, Jindal SAW is rolling out Large Diameter Submerged Arc Welded Pipes and Spiral Pipes for the energy transportation sector; Ductile Iron (DI) Pipes for water and wastewater transportation; Carbon, Alloy and Stainless Steel Seamless Pipes and Tubes for industrial applications. Maintaining its edge, Jindal SAW provides value added products and services in different verticals of its business. It is India’s most diversified manufacturer and supplier of Iron & Steel pipe products for the energy, water sector and other industrial applications. Its principal products include (a) Large Diame...

Market Mantra Today MRPL Ltd touched Rs.57.90, and almost came near my first target of Rs.60. Those who do not want to take too much risk of the Oil and Gas sector can book profits and shift to Firstsource Solutions Ltd at around Rs.29.35.  Today's call : Buy Jindal Saw Ltd at Rs.81.80 for a target of Rs.87-92.  The pipes are used in large quantities in Nuclear installations and any forward movement in the Indo-US nuclear deal is positive for the company.  For the time being Nifty would meander along 8900-9000 mark, till it breaks up. However, the stock specific action would continue to rule the roost.  Firstsource Solutions Ltd today touched Rs.30.30 and is  now trading at Rs.29.30. The investors should buy the stock  and keep holding.

Firstsource Solutions: Buy in Bulk CMP: Rs.29.35 Firstsource Solutions Ltd is a global provider of customized BPO (Business Process Outsourcing) services to the Banking & Financial Services, Insurance, Telecommunications, Media and Publishing and Healthcare sectors.  The company’s clients include Fortune 500, FTSE 100 & Nifty 50 companies. Firstsource has a “rightshore” delivery model with operations in India, Philippines, Sri Lanka, UK and U.S.  Prime Triggers:  (i) Firstsource Solutions’ wholly owned subsidiary - Firstsource Please Click on the Photo to Expand Group USA, Inc., has successfully made its seventh quarterly repayment of $11.25 million on its outstanding debt on December 31, 2014. (ii) According to the latest shareholding pattern, the promoters' holding in the company stood at 56.25% (controlling stake), while ICICI Bank Ltd, the ace investor, Rakesh Jhunjhunwala and Goldman Sachs India Fund Ltd holds 4.85%, 3.76% and 1.27% ...

Promoters cut pledged shares as stocks rally Volumes fell in 39 companies and rose in 34 during Oct-Dec Photo : The Indepndent Mumbai, Jan 28 2015: Promoters of companies and business conglomerates, like Anil Ambani and the Jindals, have revoked large volumes of pl­edged shares following the sharp gain in stock prices over the past few months. On the contrary, there was a rise in share pledges by promoters of many midcap companies during the December quarter. Share pledge is a popular and convenient fund raising option among company promoters, who mobilise credit from banks and other financial institutions by mortgaging part of their shareholdings. There was a rise in share pledges in recent years as companies struggled to raise cash amid rising interest rates, credit squeeze in the banking system and a slowdown in businesses that curtailed cash flow. But the quantum of shares pledged by various companies, especially lar­gecap firms, have come down sharply ove...

Market Mantra Reliance Capital Ltd recommended around Rs.474, today touched Rs.480.75 in the BSE, before some profit booking set in. In view of company's improved performance and being a share from Anil Ambani group, the investors are suggested to buy and hold the scrip for some good returns in the short term.  Today's Call : Buy First Source Solutions Ltd at Rs.29-29.50, T -Rs.35, Sl--Rs.27. This is a buy and hold scrip.  The ace investors, Rakesh Radheshyam Jhunjhunwala, Goldman Sachs India Fund Ltd and ICICI Bank Ltd holds 3.76%, 1.27% and 4.85% of the shares of the company, respectively. Recently, Mr.Jhunjhunwala has reportedly hiked his stake in Polaris Consulting & Services Ltd and this could be in his radar too........ MRPL Today touched Rs.53.60, intra-day and is now trading at Rs.53. Those who do not want to take high-risk of the oil and gas sector can book some profits in the counter. The Nifty is expected to meander around the current ranges ...

Why iron ore won’t rebound any time soon Photo : Live Mint [ Editor : On the contrary I ask CNBC.Com's Leslie Shaffer (Y oga teacher) ; as why every analysis has to exclude India (and talk only of China, when it comes to steel), which is the fourth largest steel producer in the world? The Financial Portal, Live Mint writes on January, 04 2015: India will import nearly 15 million tonnes of iron ore in 2015 as higher domestic prices amid a supply shortage push top steel makers to import more, said industry executives. Goutam Chakraborty, analyst with brokerage Emkay Global Financial Services, said the current price of 62% Fe grade iron ore is about Rs.4,000 per tonne in India; the same grade is available internationally at around Rs.3,500 per tonne. He added that the cost of iron ore is even higher in India in case of lumps and is close to Rs.4,200-4,500 per tonne for a 62% Fe grade. Seshagiri Rao, joint managing director and group chief financial officer of JSW G...

China eliminates 31.1 million tonne of steel capacity in 2014 Photo : Business Spectator 27 Jan, 2015: BEIJING: China has eliminated 31.1 million tonnes of steel production capacity last year, higher than expected, a senior official of the industrial ministry said on Tuesday, as Beijing seeks to ease overcapacity and improve air quality.  China has also removed 81 million tonnes of cement production capacity, Mao Weiming, vice minister of the Ministry of Industrial and Information Technology, told at a presser in Beijing.  China, the world's largest steel producer, earlier set the target of 27 million tonnes for the steel sector.  Separately, Hebei province, the country's biggest steel-making region, has closed as much as 15 million tonnes of steel production capacity last year, meeting its target, but aims to shut only 5 million tonnes this year.  Courtesy : The Economic Times

Which Company Will You Choose From Below; For Investment Purpose?? Reliance Capital Ltd  (Rs.475.45)  has interests in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, among others. Reliance Capital, a part of the Reliance Group, is one of India’s leading private sector financial services companies. It ranks amongst the top private sector financial services and banking groups, in terms of net worth. The Company is a constituent of CNX Nifty Junior and MSCI India. Another Japanese financial services giant, Nippon Life, recently signed an agreement with Reliance Capital Asset Management, a part of Reliance Capital, to raise its stake in the company from 26 %  to 49 %  in two or more tranches over the next two years. Or in other words,  Reliance Capital Ltd  (Rs.475.45) , financial services arm of industrialist Anil Ambani-led business conglomerate Reliance Group, is likely to s...

U.S. crude oil inches higher after mixed data, API report ahead [ Editor : It was expected!! I have mentioned about that several times in my earlier posts and ridiculed those Hedge Fund Managers, who were speaking of crude oil, further nosediving. Meanwhile, what is interesting to note, is that The Wall Street Journal wrote on, 27 January, 2015:  In the short term, a rebound in prices, which have fallen around 55% since last summer, seems unlikely, analysts say.  The oil market looks fundamentally weak despite initial signs that oil prices may be stabilizing around $47 to $51 a barrel, analysts at Energy Aspects said. “Inventories are building and on top of a high base which will continue to weigh on the term structure of Brent and WTI,” Energy Aspects said. The question is who are these analysts and on what basis, they are forecasting crude oil prices, based on apparent factors? I have seen most of these "so-called" are fic...

Reliance Capital expects turnaround in insurance business in 2015  Firm will continue with its ongoing policy of exiting from the day-to-day operations of non-core businesses, says CEO Reliance Capital is also likely to soon divest more equity in its life insurance venture to its foreign partner Nippon Life (which currently holds 26% stake). Photo: Abhijit Bhatlekar/Mint Mumbai, January 04 2015: Confident about further growth in its mutual fund and securities market businesses, financial sector conglomerate Reliance Capital Ltd expects a turnaround in its life insurance business as well in 2015.  Besides, the group should record a faster growth in its general insurance venture this year, Reliance Capital chief executive officer (CEO) Sam Ghosh said. He said the 2014 has been very good for Reliance Capital in areas like mutual funds and brokerage businesses, although growth was somewhat stagnant in the life insurance segment.  I expect the growth trends t...

MARKET MANTRA Nifty which opened today at 8871.35 made an intra-day low of 8825.45 and a high of 8878.20. After that Nifty is now trading in a tight range of 15-20 points and is currently trading at 8835.95 up marginally by 0.35 points. As long as Nifty is above 8600, the bulls do not  have to worry much. The focus has already shifted to good small and mid cap counters.  Today's Call : Buy Reliance Capital Ltd at Rs.474, for a short term target of Rs.545. Recently, there were some media news that, Japan-based Sumitomo Mitsui Trust Bank (SMTB) has acquired a minority stake in the Anil Ambani-led Reliance Capital Ltd (RCL) – part of the Reliance Group – for Rs.371Cr.  The investment is being made at  Rs.530 per share, which is much higher than the CMP of Rs.474.  Sumitomo Mitsui Trust Bank (SMTB) is the l argest bank in Japan (in terms of market capitalisation and corporate loans) and largest financial institution in the country, managing assets of $6...

Dumpwatch: Low Ruble Prices Bringing Russian Steel To India's Shores   Jan. 26, 2015: First it was China, now India's steel makers face a similar "cheap imports" threat from a neighbor, this time Russia. The depreciation of the Russian ruble against the US dollar has started to have its effect felt in India's steel sector. Since the last two months, even as steel majors have watched the developments from the sidelines, the steady decline in the ruble's value has led to local players increasingly importing Russian alloy. It is Russia as the flavor of the month, much to the consternation of Indian steel companies, and the situation is not going to improve anytime soon. To combat the trend, India's steel ministry has proposed an immediate upward revision of import duties on steel products such as long products and hot-rolled coil. The logic is "to safeguard the TMT/rebar industry." The minister has told the finance ministry to incr...