Re: {LONGTERMINVESTORS} Market buzz, Whispers, Rumours, Heard on the street...Thread.
RAJESH DESAI
China growth target to be pared. A survey of analysts indicated that China’s Premier Wen Jiabao is seen signalling that the benefits of faster economic growth are eclipsed by a need to curb pollution, inequality and the risk of financial instability. Premier Wen is expected to target expansion of less than 8% in his report to the National People’s Congress in Beijing next month.--On Wed, Feb 22, 2012 at 3:20 PM, RAJESH DESAI <stock...@gmail.com> wrote:
Activity at one of the captive chrome ore mines operated by Indian Metals & Ferro Alloys has been suspended from February 17, 2012 onwards following communication from the District Collector. There is no disruption of ferro chrome production.
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CA. Rajesh Desai
CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
By Joan Ng
Rounding off the results of the banks, United Overseas Bank released its earnings this morning. For FY2011, the company saw a 3.5% increase in total income to $5.7 billion. Core net profit after tax, however, was down 4.1% to $2.3 billion. For 4Q2011, income rose 6.4% y-o-y while core net profit after tax was up 0.8%.
The results were more or less in line with analyst estimates but were hurt somewhat as UOB took a more conservative stance. For instance, the bank has significantly reduced its exposure to Europe. In his report, Kim Eng analyst Desmond Ch’ng notes that total exposure to European investment securities at the end of December stood at $1.6 billion or 7% of shareholders’ funds. This is down from $2.6 billion at the end of June, or 12% of shareholders’ funds. The reduction has been achieved mostly through disposals of bank investment securities as well as CDS protection.
DBS Vickers analyst Lim Sue Lin also points out that 4Q11 net profit was dragged down by higher provisions for its available-for-sale portfolio, on prudent grounds. And, loan growth moderated to 3% q-o-q even as deposit growth accelerated to 7% q-o-q. Lim says this is in line with the bank’s emphasis on solid funding. “As a result, loan-to-deposit ratio was lower at 83%, below peers,” Lim says.
In his presentation, Wee Ee Cheong, deputy chairman and CEO, seemed to emphasise UOB’s stronger and well diversified balance sheet. The customer deposit base has grown from 67% to 72%. Interbank funding, on the other hand, has been reduced. Meanwhile, the company is rebalancing its customer risk profile towards a greater emphasis on Asia.
Analysts seem to have picked up on the same thing. Nomura analyst Anand Pathmakanthan, in a report, writes that although UOB’s results were 3% below his expectations, the result was one of quality. “The provisioning drag appears prudential in nature,” he says, noting that fully 15% of the European loan book is classified as non-performing loans and provided for. “Earnings miss has been due to conservative provisioning principles rather than a systemic asset quality issue.”
The debt problems of Greece have surfaced in the results of the European banks, with the sector reporting heavy losses in the current earnings season. Credit Agricole CEO Jean-Paul Chifflet was quoted as saying that this represented “the worst economic crisis since 1929.” The bank reported a record quarterly net loss of €3.1 billion ($5.2 billion).
So perhaps it is just as well that Wee is being conservative. In fact, UOB has long enjoyed a reputation as being a conservative and well-managed bank. For this, its shares outperformed peers DBS Group Holdings and Oversea-Chinese Banking Corp last year. Will this outperformance continue given the currently difficult climate?
Some analysts are sceptical. JPMorgan analyst Harsh Modi expects the stock to be range-bound. “A combination of persistent low rates, turbulent (but stabilising) macro and fast pace of balance sheet growth in last two years will limit return on equity expansion in 2012-13,” Modi says. But Macquarie analyst Matthew Smith is maintaining his “outperform” call. “The apparent year-end clean-up should mean less concern over UOB’s securities’ asset quality going forward,” Smith says.
However, in the coming quarters, if the losses among Europe’s banks worsen, more banks may follow in UOB’s footsteps.
Macquarie on Sterlite Industries: Outperform with a target of 149The management has highlighted its intent to resolve equity holding of Vedanta by March 2012. Dual listing structure in offing. Expected structure reduces risk for Sterlite. Merger ratios scenario analysis indicates Sterlite is well below worst case.
CLSA maintains buy on Cairn India, revises target to 460Expect Cairn to work to redefine the Rajasthan block vision. Cairn is among the five cheapest Nifty stocks. 15-30% cheaper than Asian peers on March-13 earnings.
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Rohan Shukla,Stag Investor cum Trader
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Economists braced for a 1% drop in US mfg new orders, but got a 4% drop on month instead. Core orders excluding transport fell 3.2%. Order for capital goods fell sharply as well with or without volatile aircraft. A result like this would usually caused a sell-off, but consumer confidence, improved hiring, and recovering housing, is causing the market to be more forgiving. Let us just say this: the job market is a lagging indicator, new mfg orders are leading indicators.
The S&P500 rises to a cycle new high on lower momentum, technically not a great sign, near term. The Indices pull back so far is rather shallow, and is still in consolidation/correction mode despite yesterday's advance. Nonetheless, barring immediate ''tail'' risks (e.g. disorderly euro exit, middle east conflict) the odd underlying story remains, equities face a win-win scenario over the short/medium term, and corrections will likely be used to add positions: if economy data is strong, stocks will of course rise; if economic data is weak, a correction will likely give way to a wave of liquidity and fiscal induced buying: (1) the Fed will consider QE3 if the US economy weakens, (2) China considers 'fine tuning' policy in 1q12 - expect fiscal loosening, and (3) unlimited long term refinancing operations (3yrs) by the ECB could easily be expanded.--
CA. Rajesh Desai
RAJESH DESAI
The rupee opened lower on Thursday, tracking weaker euro and on expected dollar demand from domestic oil refiners.
The rupee was at 49.07 to the dollar from Wednesday's close of 49.0050/0150.
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CA. Rajesh Desai
RAJESH DESAI
The reading indicated a modest expansion in the vast factory sector and was stronger than market expectations of 50.7. The PMI readings above 50 signal factory expansion while those below 50 point to contraction.
The HSBC Flash PMI, the earliest indicator of China's industrial activity, hit a 4-month high of 49.7 in February, but new export orders shrank the most in 8 months as global demand weakened.
The new orders sub-index rose to 51 in February from 50.4 in January while the sub-index for new export orders rose to 51.1 from January's 46.9.
India’s economy grew at the slowest pace in more than two years last quarter as domestic demand weakened and the global recovery faltered, adding pressure on the central bank to lower interest rates.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
ONGC Auction FLOPS, did not get fully subscribed.--
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
Elder Pharma raided for tax evasion.
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CA. Rajesh Desai
RAJESH DESAI
Morgan Stanley
The immediate consensus reaction is that these results will trigger a wave of populism from the Congress government at the center. However, that would be a hasty conclusion given the country‘s fiscal balance and that general elections are another 24 months away. In fact, we think that these results could trigger a concerted effort to consolidate the fiscal deficit and raise growth through development so that social spending becomes more viable in 2013 ahead of the 2014 general elections.
RBS
A potential silver lining from these election results could be the Congress
re-considering some of its supposedly populist measures, e.g., the introduction of the food security bill which is expected to add another 20-30 basis points of GDP to the government’s fiscal deficit. These measures have not yielded political dividends for the INC in the recent state elections, and could lead to a policy shift with the INC re-focussing on boosting economic growth via reform measures, and also shifting government expenditure to infrastructure rather than consumption.
Enam
With a fairly progressive Akhilesh Yadav running the show, issue-based support (to UPA) from SP may continue. At the same time, BSP may also instead be more amenable to extending outside support at the Centre given its weak standing in the assembly elections.
Citi
Not immediately, but the BJP – the primary opposition party – has put in a strong show (excluding in UP). This is something the market could start looking at for the next General Elections (2014, but who knows?). Remember, the BJP effected meaningful reform, when in Government (1999-2004). It might not be the same reform-oriented party – but it does have a track record
source.. moneycontrol
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CA. Rajesh Desai
RAJESH DESAI
Eurozone 4q11 GDP readout was a 0.3% contraction as investment, exports, consumption all fell. As mfg and services PMI readouts for the EZ have been weak, momentum going into 2012 is poor and confirms our expectation of a recession there this year and next. The Eurozone faces massive fiscal consolidation ahead in almost all countries as new budget rules will be written into member constitutions.
Portugal is now a worry. You'd think after 1tr euros of LTROs from the ECB would see some of that money cycled into Portugese sovereigns to bring down the yields - that has not happened. Obviously bank treasuries do not believe that Portugal is anywhere the same kettle of fish as Spain or Italy, which have seen their yields drop. On top of this, we should let you know that just 20% of Greek bonds held by the private sector have signed up for the debt swap. If the 75% take up rate is not achieved, the Greek govt will trigger collective action clauses to force the remainder to accept the swap. This would constitute a forced default (not voluntary as it is now) and trigger the credit default swaps written on Greece. We smell danger...
The S&P500 has finally entered correction mode, as we have been warning, momentum was getting weaker and volumes declining on higher prices, always a bad sign. Asia Pac indices, STI included are odds on to deepen their correction. Risk off inter market picture is confirmed with dollar rising and commodities tanking. Correction could be deep as the dollar index has put in a MACD bullish divergence. ASX, NZX, have been in selling mode this morning.
Looking out beyond the correction, over the short/medium term, we think prospects of the global economy stalling will raise the likelihood of policy intervention. As we have been saying, stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak (as we think it will be), a correction will likely give way to a wave of policy induced buying: (1) Bernanke may have omitted mention of QE3 in his last testimony to temper market expectations, but we believe the Fed will probably re-consider QE3 if the US economy weakens (2) China is likely to loosen fiscal policy for consumption as investment and exports are weak, and (3) the ECB may consider further monetary policy easing.
For our larger trend market outlook, which is much less optimistic.--
CA. Rajesh Desai
RAJESH DESAI
CA. Rajesh Desai
RAJESH DESAI
MUMBAI | Wed Mar 7, 2012 11:30am IST
(Reuters) - The rupee continued to weaken for the fifth consecutive session on Wednesday, sliding to a seven-week low, due to incessant dollar demand from oil refiners and gold importers.
Mounting worries over slowing world economies and renewed uncertainty over Greece's bailout added to the downward pressure on the rupee, traders said.
At 11:01 a.m. (0531 GMT), the rupee was at 50.64/65 to the dollar, after dipping to 50.76, its lowest since January 18, according to Thomson Reuters data. The unit had closed at 50.36/37 on Tuesday.
"There is huge demand in the market. It seems that everybody just wants to buy dollars including most sections of importers," said a foreign exchange dealer with a large state-run bank.
Local oil refiners have been buying dollars aggressively in the past few sessions due to a recent surge in global oil prices, with India importing nearly 80 percent of its oil needs.
Demand for gold in India, the world's largest consumer of the bullion, has climbed amid the festival and wedding season after prices fell 2.8 percent since February 27.
Outlook for foreign inflows has been clouded as expectations of a revival in reforms were jolted after the Congress party's severe losses in crucial state elections on Tuesday.
However, expectations that the Reserve Bank of India may take action and intervene actively in the foreign exchange market to support the rupee is likely to provide some support to the currency, traders said.
"People do remember what happened last time when they tested RBI's resolve so they will be even more careful now. You don't want the central bank to shut you from the market completely," said a senior currency trader with a private sector bank.
The RBI has been intervening in the currency market over the past few months to support the rupee, which touched a record low of 54.30 on December 15, and took numerous steps including slashing of banks' trading limits to cut speculative trades.
The one-month offshore non-deliverable forward contracts were at 51.04.
In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all around 50.89, on a total volume of $1.92 billion.
(Reporting by Aditya Phatak; Editing by Aradhana Aravindan)
Apple is expected to introduce the iPad 3 (or rumoured to be renamed iPad HD) tonight.
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Karishma Suvarna
CA. Rajesh Desai
Amit shah
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CA. Rajesh Desai
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RAJESH DESAI
Subbarao meets FM ahead of RBI's policy review
Ahead of credit policy review and budget, Reserve Bank Governor D Subbarao today met Finance Minister Pranab Mukherjee and is believed to have discussed the macro-economic situation.The RBI is scheduled to announce the mid-quarterly review of its monetary policy on March 15, a day before the presentation of the Union Budget in Parliament.
It is a standard practice for RBI Governor to discuss the state of economy with the Finance Minister before review of the monetary policy.
In order to ease the liquidity situation, the Reserve Bank in its third quarter monetary policy on January 24 had cut cash reserve ratio (CRR), the portion of deposits banks
have to keep with RBI, by half a percentage point to 5.5 per cent, releasing Rs 32,000 crore in the system.
It is believed that RBI may further reduce CRR to infuse liquidity into the cash-strapped system in its upcoming review.
However, the central bank may not tinker with the policy rates before the annual policy in April.
Subbarao had warned that unless the government contains fiscal deficit, rate cut is not possible.
"In the absence of credible fiscal consolidation, the RBI will be constrained from lowering the policy rates...The forthcoming budget must ...begin this process in a credible and sustainable way," he had said.
In its effort to bring down inflation, the RBI hiked interest rates by 350 basis points between March 2010 and October, 2011.
Headline inflation had fallen to an over two-year low of 6.55 per cent in January on cheaper food items.
Economic growth in the third quarter had slumped to an over 2-year low of 6.1 per cent.
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CA. Rajesh Desai
RAJESH DESAI
Day after verdict, Rly minister says mid-term polls could come sooner rather than later
Barely 24 hours after the Congress debacle in the Assembly elections, Dinesh Trivedi, union railway minister and senior leader of the UPA’s largest ally, the Trinamool Congress, said here today that there is a gathering political momentum for general elections that could come “sooner rather than later”.
Speaking at Idea Exchange at The Indian Express, Trivedi said that after yesterday’s verdict, the Samajwadi Party and even the Trinamool Congress would want to see a mid-term poll so that they “can increase their tally” in Parliament.
“Why only TMC? I feel after yesterday’s results... If I was Samajwadi Party, I would be very happy to have a general election tomorrow so I can increase my tally because I have the momentum. The Trinamool Congress may also be happy to have a mid-term poll now rather than two years later. If there is a perception that there is an anti-Congress feeling (in the country) then, obviously, even BJP would want an election now. So if everybody wants an election, there will be election,” he said.
Given the restiveness of the regional allies and their gains, Trivedi said, not much could be expected in the budget session of Parliament. “Today we are almost in a position of a status quo, nothing big ticket will get sanctioned (in Parliament). It will be very difficult even to run this Parliament because everybody is aspiring and everybody feels we are in a critical situation.
There is not going to be (any) reform,” Trivedi said.
Trivedi underlined that it was crucial for the Congress to get the “pulse of the people.” “If I am in a situation and a position of a lame duck then I think it may be a good idea to call it a day,” he said when asked about the UPA government finding itself in a “policy paralysis”.
Hours before the Railway Minister’s comment, Congress President Sonia Gandhi had sought to downplay the differences with allies. Asked about the possibility of allies like the Trinamool Congress becoming more demanding in the wake of the electoral, she had told reporters: “It is my view and also of the Prime Minister that if we regularly keep in touch and talk with our coalition partners, I hope that all the issues beneficial to the people and the country, they will understand and they will support.” The Congress President also held detailed discussions with party in charge of West Bengal Shakeel Ahmed on the party’s equations with the Trinamool Congress.
http://www.indianexpress.com/news/day-after-verdict-rly-minister-says-midterm-polls-could-come-sooner-rather-than-later/921491/
Author: Jana Marais, Bloomberg|
06 March 2012 12:37
SA is looking at duty on chrome ore to limit exports
March 6 (Bloomberg) -- South Africa is looking at imposing an export duty on chrome ore to curb exports in the so-called short term, Merafe Resource Ltd. Chief Executive Officer Stuart Elliot said.The nation’s government is looking at “some control” over the outflow of chrome ore in the longer term, Elliot said on a conference call today. Banning chrome-ore exports isn’t on the cards, he said.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Rise in petrol price on Friday?
NEW DELHI: Don't be surprised if you come down with a thud from the high of Holi revelry the morning after. Top management of state-run fuel retailers were engaged in an informal do-or-die effort to get government nod for raising petrol price from Friday.
The jury is out on the quantum but government sources said an increase of Rs 3-4 per litre is "quite possible". "The oil company brass claim the loss on petrol has gone beyond Rs 5 a litre and they can't take it any more. I won't be surprised if this time they take government's rhetoric of petrol being outside its control on face value and raise pump price from Friday or Saturday -- even at the cost of rolling back some of it and becoming the fall guys later," a source told TOI on Wednesday.
Top executives from fuel retailers had on Tuesday discussed the issue with top oil ministry officials. On Wednesday too their efforts continued till late in the evening. The message to the government was clear: Any further delay in raising petrol price may affect their ratings and block ability to borrow money. The foreign borrowings of IndianOil Corporation, India's largest fuel retailer with about 55% market share, has topped $6 billion as the company had to borrow more and more to meet daily operational expenses.
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CA. Rajesh Desai
RAJESH DESAI
Greece may avoid default as investors agree to bond swaps
ATHENS, GREECE: Greece's race to slice (euro) 107 billion ($140 billion) off its national debt entered the final stretch Thursday, with markets confident enough private investors will decide to accept a deal to write down the value of their Greek bond holdings.
If too few investors agree and the swap fails, the crisis-hit country will likely default on its debt in less than two weeks, prompting renewed turmoil in financial markets and knocking confidence in the global economy.
But markets appeared confident that Greece would muster enough support. Greece's stock exchange was up 1.9 per cent, while the Stoxx 50 of leading European shares edged up 1 per cent. The euro was trading 0.6 per cent higher at $1.3220.
Athens is asking private creditors to swap their Greek bonds for new ones with a 53.5 per cent lower face value, lower interest rates and longer maturity dates.
The bond swap is a radical attempt to finally pull Greece out of its debt spiral and put its shrinking economy back on the path to recovery. The hope is that by slashing the overall debt it has to repay, the country that is in a fifth year of recession can gradually return to growth.
The task at hand, even with the debt reduction, is massive. Official figures released on Thursday showed unemployment shot up to a record 21 per cent in December, compared to 14.8 per cent last year, it's even worse for young people with 51.1 per cent of those aged between 15 and 24 out of work.
By early on Thursday, banks, pension funds and other investors holding more than half the (euro) 206 billion ($270 billion) total debt in public hands had pledged to take part. New legislation will allow Greece to force holdouts into accepting the deal if overall participation is not high enough.
Investors have until 10 p.m. local time (2000 GMT) to sign up. Only bonds held by private investors are part of the deal, meaning that outstanding amounts held by the European Central Bank and other central banks are exempt. Athens will announce the results early Friday morning, after which finance ministers of European countries using the euro are to discuss the outcome in a conference call.
The complex bond swap, known as the Private Sector Involvement, or PSI, is critical for Greece to secure a (euro) 130 billion ($171 billion) package of rescue loans from other eurozone countries and the International Monetary Fund. Without the funds, Greece faces a potentially messy default that could drag down other financially vulnerable countries in Europe and threaten the joint currency itself.
``The most likely outcome remains that Greece will receive enough acceptances to move ahead with the deal and trigger the second bailout package from the EU,'' said Gary Jenkins, managing director of Swordfish Research.
Athens has said it needs 90 per cent participation for the deal to be successful. However, it has said it can trigger legislation to force holdouts to go along if creditors holding between 75 per cent and 90 per cent sign up.
The Institute of International Finance, which has been leading the debt talks for large private creditors, said 32 firms holding (euro) 84 billion ($111 billion) of Greek bonds have agreed to the deal, including major German, French, Greek and Cypriot banks. German reinsurer Munich Re, which holds some (euro) 1.6 billion ($2.1 billion) in Greek bonds, also said it will participate.
On top of that, some (euro) 17.5 billion ($23 billion) in bonds owned by Greek social security funds but managed by the central bank will also be part of the swap. Five social security funds which hold about (euro) 3 billion ($3.9 billion) in bonds have voted against participating, while another eight had signed up to the deal by Thursday morning.
However some creditors, notably hedge funds, are expected to hold out, hoping to scupper the deal and trigger the payment of credit default swaps _ essentially insurance against a default. The use of legislation forcing holdouts into the swap, known as ``collective action clauses'' could also trigger the payment of CDS, an event which is determined by the International Securities and Derivatives Association.
Budget update - India needs to fix its infrastructure - Mr Nerurkar
- 08 Mar 2012
Bloomberg reported that Mr HM Nerurkar MD of TATA Steel outlined his expectations from the government’s budget for 2012-13, slated form March 6th 2012.
Mr Nerurkar in an interview said “As a steel company, we would expect that projects that have been announced should actually be on the ground. That is the only thing that will stimulate steel demand and growth in the country.”
He said ‘‘Investment in the infrastructure sector must go up because our country is now getting choked in terms of roads and railways. If India has to go somewhere near China in consumption, or if steel consumption doubles in 10 years, how do you transport raw material, finished goods, or reach the customer? Infrastructure is still very poor, be it ports, airports or roads. So that stimulus is a must if business has to move fast.”
He added ‘‘Something also needs to be done quickly for the mining industry because last quarter mining actually contracted by 3 percent. This is quite bad. Mining also involves a lot of infrastructure jobs, including mobile equipment and trucks.’’
Source - Bloomberg
www.steelguru.com
Words are under your control until you have spoken them,
but you come under their control once you have spoken them.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Nikkei hits 7-month high on Greece weakness. Japan’s Nikkei rose as much as 1.5%, after Greece successfully closed its bond-swap offer to private creditors. A weaker yen also gave Japanese exporters a boost, with industry giants Toyota Motor rising 1.4% and Honda Motor gaining 1.3% this morning.
Coastal Gujarat Power, a wholly owned subsidiary of Tata Power Company , has commissioned 800 MW sized super-critical unit.
The chairman of Jet Airways , Naresh Goyal, met a group of pilots at his residence, in an attempt to persuade them to desist from wearing black bands as a mark of protest against delayed salaries.--
Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
Mahindra Satyam said this is the first 100% acquisition by the firm since it became part of Mahindra Group. The acquisition marks the entry of Mahindra Satyam's BPO operations into other verticals such as retail and consumer technology in addition to enhancing its technical support business.
The combination of vCustomer's expertise in the retail and consumer technology verticals with Mahindra Satyam's domain expertise and customer base will further strengthen the ability to address evolving market needs, the company said in a statement.
C P Gurnani, CEO - Mahindra Satyam, commented, "This is a landmark moment in Mahindra Satyam's resurgence and reflects our investment appetite to enhance domain depth and global scale, across diverse verticals. The focus and operations of vCustomer maps perfectly with our global operating model - allowing for seamless integration and smooth transition of processes and associates."
Sujit Baksi, Chairman of Mahindra Satyam BPO Board stated, "The expertise of vCustomer aligns well with our operations and enhances our competencies. We look forward to collaborating and creating new benchmarks of excellence."
Commenting on the business outlook, Sanjay Kumar, Founder and CEO vCustomer said, "vCustomer has harnessed formidable expertise and a diversified geographical presence across the Retail and Consumer Technology sectors. Mahindra Satyam's synergy and commitment to investment in business growth will spur growth plans and help build new service offerings."
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
The government will release industrial production data for January 2012 today, 12 March 2012. Industrial production is seen rising 2.1% in January 2012 as per the median estimate of a poll of economists.
--On Mon, Mar 12, 2012 at 9:57 AM, karishma suvarna <karishma...@gmail.com> wrote:
Allahabad Bank rose 3.17% after the bank said it launched a special domestic term deposit scheme at an interest rate of 9.25% per annum on deposits of Rs 5 crore and above
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Karishma Suvarna
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
Not much in terms of data releases, but Asian markets continue to worry about China slowing economy. Just to go over it again, China's retail sales underperformed expectations - as investment and exports have both rapidly slowed, consumption has to compensate to keep the economy on even keel. Our take is that the govt will probably do a fiscal stimulus of some sort to guard the growing risk of a hard landing. On the monetary side we do not expect anything other than reserve ratio cuts, as even though inflation may have topped out, authorities are reminded that fundamentally it is sticky. On the immediate horizon, markets across Asia, US and Europe are still in correction or consolidation mode, lacking catalyst for further gains.
Beyond the immediate, over the short to medium term, we have been saying that stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak (as we think it will be), corrections will likely give way to a wave of policy induced buying. This policy safety net has however been a bit weakened: Bernanke omitted QE3 from his last testimony and the ECB's latest message was that it was looking to reverse its wave of liquidity. China remains the more likely prospect of a policy announcement. Overall, the safety net has been partially removed, and markets will have to place greater reliance on outperforming global economic data to push higher.
Shares of Mahindra & Mahindra continued to slip lower as sentiments turned bearish after the company cut tractor production for 4-5days during March 2012 on account of a slowdown in demand
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
The issue got bids for 24.8 million shares, which is worth about 10.7 billion rupees at the stock's Tuesday close price of 430.95 rupees. Details of the price at which the Wipro shares will be allotted were not immediately available.
Proceeds from the Wipro share sale will be used to finance the education activities of the Azim Premji Foundation, a non-profit unit set up by the founder to improve the quality of education in the country.
Reuters
http://m.firstpost.com/india/railway-budget-live-blog-railways-to-be-as-good-as-gold-243296.html
1:38 pm: Railway Minister follows up fare hike with some bad poetry. And presents 820 annexures and the Railway Budget to the speaker of the house.--
1:37 pm: Trivedi says, "I propose to rationalise the fares to cause minimum impact on common man. Am asking for extra 2 paise per km for suburban and second class, Mail and express train by 3 paise per km, airconditioned 3 tier by 10 paise per km, airconditioned 2-tier by 20 paise per km and airconditioned 3-tier by 30 paise per km."
1:31 pm: Concessions granted to students, farmers and other groups is valued at Rs 800 crore per year and will not be touched. Fuel costs and inflation are up and I have been advised a steep rise in fares. However, there will be no steep increase in fares, Trivedi says.
1:30 pm: Criticism over railway finances unwarranted. Budgetary support not at levels required, says Trivedi.
1:24 pm:Railways didn't fail to pay dividend, Trivedi says. Finance Minister Pranab Mukherjee doesn't look to happy after hearing about financial condition of railways. Passengers expected to increase by 5 percent and earnings thanks to them are expected to rise. Freight earnings also to rise.
1:21 pm : Television feed is back in time for Railway Minister to announce that Railways going though a difficult phase.
1:20 pm: New passenger services- 75 new express trains, 21 passenger trains. Minister says he is willing to talk all day to talk about the 800 new projects planned under budget when MPs raise ruckus over him not announcing which trains are planned. And Lok Sabha television feed crashes after this announcement.
1:15 pm: Toilets could be better on Railways soon. Minister says Rs 350 crore to be spent on e-toilets and 2500 coaches to be fitted with bio toilets to improve sanitary conditions. Can we say goodbye to stinking tracks and train toilets?
1:10 pm: High speed 'bullet' trains make a re-appearance in this year's budget. Trains to operate at 350 km/hr are being studied. Six studies....
CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
kobe steel japan will buy 3.25% shares of man industries @165
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
The February inflation numbers has rose to 6.95% MoM, a bit higher than expected at 6.75% according to a CNBC-TV18 poll. Wholesale prices rose 6.55% in January, the slowest in 26 months. The annual reading for December was revised up to 7.74% from 7.47%, the government said in the release.
The Reserve Bank will watch this number very crucially, it is the last major data point that comes out before the crucial credit policy on Thursday.
The RBI has repeatedly said that while growth is important target inflation will continue to remain important.
Most of the economists are going with a no action credit policy but if the inflation numbers were to come very benign below 5.7% on manufacturing and below 6.7% overall then there is a possibility that the RBI may think that there is enough tendency or trend of a decline in inflation. So it's a crucial number to watch out for today.
US Feb retail sales came in at consensus +1.1m-m sa. FOMC statement noted an improving US economy, with improvements in the labour market, consumer spending, business investment, while long term inflation expectations remain stable despite recent gains in oil. Downside risk remains 'strains in global financial markets' (i.e. Europe). Nonetheless, it believes that interest rates would be kept where they are now, 0-25bp, till end-2014, to support a 'stronger economy recovery'.
Fed also announced that 15 out of 19 banks could maintain capital adequacy, dividend payouts and stock buybacks, even under its stress test scenarios of 13% peak unemployment, 50% decline in equity markets and 21% decline in house prices. The announcement was catalytic to US bank stocks advancing more than 5%.
US markets were buoyed by the flying colours the Fed stress tests gave to US banks which led the strong upward movement in stock prices, the S&P500 could be finished with its consolidation. ASX and NZX are rallying strongly this morning so it is quite likely the STI and Asian markets will build on yesterday's positive move. Consolidation/correction could be over.
Beyond the immediate, over the short to medium term, we have been saying that stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak (as we think it will be), corrections will likely give way to a wave of policy induced buying. This policy safety net, though largely still in place and accommodative, has however been a bit weakened: Bernanke omitted QE3 from his last testimony and the ECB's latest message was that it was looking to reverse its wave of liquidity, China however remains the more likely prospect of a fresh policy announcement.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Aircel-Maxis deal: ED issues summons to Dayanidhi Maran--On Thu, Mar 15, 2012 at 1:59 PM, Mihir Desai <desaim...@gmail.com> wrote:
RBI has maintained policy rates in its policy review today, but there is a lingering doubt that it is waiting for the impossible of lower fiscal deficit coupled with populism to happen. Markets are not happy and if the government does not oblige tomorrow, more downside is ahead.--
CA Mihir Desai
Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
China's property price data showed sequential contraction in most major Chinese cities, new home prices in Beijing fell 0.1%m-m and Shanghai, fell 0.2%m-m. Premier Wen has said that there will be no let up in policy to contain property prices. Our view of China is that hard landing risks have risen dramatically, we can expect fiscal loosening and reserve ratio cuts, but no interest rate cuts as inflation and property prices are not seen as contained yet.
Asian markets over the last two days have not further advanced to build on their bright mid week movements last week, while the US certainly has. We are hopeful that gains will start to be built over the course of this week as data maintains its expansionary momentum. Over the short to medium term, we have been saying that stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak, corrections will likely give way to a wave of policy induced buying. This policy safety net is still largely in place and accommodative: the Fed may start talking about QE3 again if econ data weakens, further operation twist is likely to boost housing, and the ECB we believe does not have much room to reverse its wave of liquidity due to EZ recession risk. China however remains the more likely near term prospect of a policy announcement, as the economy's last pillar of growth - consumption - put in a below expectations result.
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CA. Rajesh Desai
RAJESH DESAI
The finance minister, in the Union Budget 2012-13 on Friday, 16 March 2012, proposed an increase in excise duty on 'demerit' goods such as hand-rolled bidis, pan masala, gutkha, chewing tobacco, un-manufactured tobacco, zarda scented tobacco and select cigarettes.
Reports suggested that cigarette stocks got a boost as market had factored a hike in excise duty on all types of cigarettes, which did not happen.
As per the finance minister's latest proposal, the government will levy an additional 10% tax of the current duty on cigarettes of more than 65 millimeters. The tax will be added on an ad valorem basis. The additional ad valorem levy will be charged on 50% of the retail sale price of a packet of cigarettes.
Cigarette shares also rose on hopes that increase in excise on chewing tobacco and beedis will tempt users to shift to lower-priced filtered cigarettes.
Further, investors are also hoping that cigarette makers may launch filter cigarettes below the 65 millimeters category to avoid the tax hike.
Union Bank of India shares tumbled more 5% to Rs 218 on the NSE after the rating agency Moody’s had downgraded the stock by one notch from BA1 to BA2 on weak asset quality and insufficient loss-absorption.--
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
Asian markets continue to hold back even as the S&P500 gains and Treasuries sell. Another few bearish days on the Nifty puts momentum back to suggesting that this consolidation could go on longer. As there is some visibility that data should maintain its expansionary momentum over the next 3 or 4 months at least (2H12 likely to be challenging), our immediate bias leans more positive. Possible explanation why Asian markets are hesitant is that China's slowdown and property price declines are seen as a risk. To be sure, odds of a China hard landing grow, but fiscal intervention to guard the downside also grows, it could be that Asian markets will wait for such a catalyst. Other explanation could be that Asian central banks face downside risks to growth from abroad, yet are unable to loosen given that inflation is sticky.
In any case, we maintain there is some gas left in the tank for markets to make another run for it higher. Over the short to medium term, we have been saying that stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak, corrections will likely give way to a wave of policy induced buying. This policy safety net is still largely in place and accommodative: the Fed may start talking about QE3 again if econ data weakens, further operation twist is likely to boost housing, and the ECB we believe does not have much room to reverse its wave of liquidity due to EZ recession risk. China however remains the more likely near term prospect of a policy announcement, as the economy's last pillar of growth - consumption - put in a below expectations result.
National Buildings Construction Corporation has fixed the price band of its Initial Public Offering (IPO) at Rs 90-106 per share. The government hopes to raise around o Rs 120 crore by diluting 10 percent of its share in the company. The issue will run from March 22 to March 27.--
On Tue, Mar 20, 2012 at 10:28 AM, karishma suvarna <karishma...@gmail.com> wrote:Kingfisher Airlines has taken a big pounding today and is down 9 percent today as the DGCA issues showcase notice to the airliner.The aviation regulator on Monday summoned Vijay Mallya, the billionaire owner of debt-laden Kingfisher airline, to seek an explanation on why his carrier can’t stick to its revised schedule. Sources familiar with the regulator’s said there was a possibility that Kingfisher’s licence could be suspended if it was not able to get its act together.
On the winning side, Jet Airways is up 2 percent, probably benefiting from Kingfisher’s woes.The airline said yesterday, effective 25 March, its low-cost arm JetLite will cease to operate, after being merged with the other no-frills brand JetKonnect.The merger is aimed at streamlining the product portfolio of the group and to offer the guests a single superior in-flight product in the full-service and low-fare categories respectively, drawing synergies from the other brand.
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Karishma Suvarna
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
SC rejects govt request for review of Vodafone judgement
European auto stocks are down 3% after media reports indiacate that Mercedes, BMW and Audi are giving discounts upto 25% in China
BMW AG is trading down - 3.45%
Daimler AG - 3.19%
Volkswagen AG -2.84%
On Tue, Mar 20, 2012 at 2:30 PM, RAJESH DESAI <stock...@gmail.com> wrote:
Strong buzz of delisting in Oracle.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Footwear makers in demand
Shares of three footwear makers rose by 1.75% to 3.38% at 11:44 IST on BSE after the Union Budget 2012-13 enhanced the excise duty exemption limit on non-leatherfootwear.
Relaxo Footwear (up 3.38% at Rs 306), Bata India (up 3.23% at Rs 749.70) and LibertyShoes (up 1.75% at Rs 90.25), edged higher.
The BSE Sensex was up 47.92 points or 0.28% to 17,364.10
Bata India had outperformed the market over the past one month until 20 March 2012, rising 2.81% compared with the Sensex's 5.32% fall. The scrip had also outperformed the marketin past one quarter, rising 36.35% as against 14.11% rise in the Sensex.
Liberty Shoes had outperformed the market over the past one month until 20 March 2012, falling 1.99% compared with the Sensex's 5.32% fall. The scrip had also outperformed the market in past one quarter, soaring 53.73% as against 14.11% rise in the Sensex.
Relaxo Footwear had underperformed the market over the past one month until 20 March 2012, falling 14.50% compared with the Sensex's 5.32% fall. The scrip had, however, outperformed the market in past one quarter, rising 18.28% as against 14.11% rise in the Sensex.
The Union Budget, presented on Friday, 16 March 2012, enhanced the excise dutyexemption limit on non-leather footwear from Rs 250 per pair to Rs 500 per pair. The non-leather footwear above Rs 500 per pair would, however, attract excise duty of 12% from 10% earlier.
The Obama administration is sending a message to major buyers of Iranian oil -- in particular China, India and South Korea -- that they can avoid new U.S. sanctions by curtailing their imports of Iranian crude by the end of June, several U.S. officials said.
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Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
The BSE Sensex surged nearly 300 points after clarifications on promissory-notes issue by Finance Minister Pranab Mukherjee.
The Finance Minister said that intention of government was not to harass genuine investors. "Income Tax department will examine taxability of FIIs and would not to go beyond FII issuing P-notes," he said. There was no tax liability on holders of P-notes, he added.
Punjab & Sind Bank rose after the state-run bank said its board has allotted 1.11 crore equity shares at Rs 85.46 per share to LIC on preferential allotment basis.
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CA Mihir Desai
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CA. Rajesh Desai
Indinomics
Please share the report.
Indinomics
Sent on my BlackBerry®
--
CA. Rajesh Desai
RAJESH DESAI
Tata Coffee may merge with Tata Global Beverage; stks react
9.29 am | 03 Apr 2012 | Source: Moneycontrol.com
Tata Coffee may merge with Tata Global Beverage, reports The Financial Express....
metal shares rose as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.70% to $3,642.40 on Monday, 2 April 2012.
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Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
Australian liquefied-natural gas projects planned by companies from Royal Dutch Shell Plc to Woodside Petroleum Ltd. and valued at about $100 billion are at risk from rising costs and cheaper U.S. exports.
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CA. Rajesh Desai
RAJESH DESAI
HSBC PMI DATA INDIACTE 50% OF CHANCES IIp data likely lower( which is
due next week)
Summary
The seasonally adjusted HSBC Purchasing Managers’ Index™ (PMI™) – a
headline index designed to measure the overall health of the
manufacturing sector – registered 54.7 in March, down from February’s
56.6. The latest reading pointed to a solid improvement in business
conditions, although growth was below the long-run trend.
Indian manufacturers reported a marked rise in new business received
during March. However, the rate of expansion was the weakest in three
months. Anecdotal evidence suggested that power cuts and raw material
shortages had limited manufacturers’ ability to take on new business
and customers’ propensity to place orders – despite a general
improvement in demand. In contrast new export order growth gained pace
in March.
With the expansion in output restricted, backlogs of work accumulated
at a marked pace that was the fastest in the series history. Stocks of
finished goods rose only modestly, with the vast majority of
respondents noting no change in post-production inventories since
February.
March data signalled a marginal rise of employment in the Indian
manufacturing sector. Job creation has now been registered in three of
the last four months. Where an increase in staffing levels was
indicated, this was attributed to higher output requirements.
The rate at which purchasing activity rose was marked, but slowed
during March. This was in line with weaker expansions in production
and new orders. Nonetheless, suppliers’ delivery times lengthened
again, and to a greater extent than in February. Panellists commented
that power cuts had impeded deliveries, and this was compounded by
some shortages of raw materials. Stocks of purchases rose again in
order to accommodate growth of output.
Input prices faced by Indian manufacturers increased substantially
during March. Higher raw material prices were cited as the main driver
of inflation. The latest rise in costs was the second-slowest in 17
months, but remained elevated in the context of historical data.
Subsequently, manufacturers aimed to pass on higher input prices to
customers by raising their prices charged. However, the rate of charge
inflation slowed to a 16-month low.
Comment
Commenting on the India Manufacturing PMI™ survey, Leif Eskesen, Chief
Economist for India & ASEAN at HSBC said:
“Activity in the manufacturing sector expanded at a slower pace in
March led by a moderation in output and order growth, although export
orders accelerated. Capacity remains tight, with backlogs of work
increasing, and supplier delivery times lengthening. While inflation
of output prices eased, a further rise in input price inflationcustomers. These numbers suggest that upside risk to inflation remain
suggests it could pick up again as cost pressures are passed on to
and that the RBI's easing cycle, in terms of timing and magnitude,
depends on the extent to which these risks materialize.”
Key points
�� Output and new order growth weaken, as power cuts lead to capacity
constraints
�� Backlogs rise at fastest pace in survey history
�� Employment increases marginally--
Jai Jai Shivshankar
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CA. Rajesh Desai
RAJESH DESAI
Cairn India said it has struck oil at Krishna-Godavari basin acreage in Andhra Pradesh. Cairn Energy India (CEIL), a wholly-owned subsidiary of Cairn India, reported the discovery in Nagayalanka-SE-1 well in the onshore block identified as KG-ONN-2003/1, a company statement said. CEIL is the operator of the block with 24% stake, while Cairn India holds 25%. The remaining 51% is with state-owned ONGC.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
 |
The negative market reaction to signs that the Federal Reserve is unlikely to take part in more quantitative easing soon has led to worries that the market rally will fade. |
Hexaware , Graphite India and Nesco can give good returns, over 25 percent, in one-year, Bhavin Shah, chief executive officer of Equirus Securities told CNBC-TV18 today.--
On Wed, Apr 4, 2012 at 1:44 PM, Mihir Desai <desaim...@gmail.com> wrote:
Mahindra Satyam announced during market hours today the launch of STAMP, an innovative structural quality service powered by CAST. This new offering aims at analyzing structural quality of the application stack resulting in delivering higher performance, greater reliability and increased security to the customers as well as reducing underlying technical debt.
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CA Mihir Desai
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
GAAR won't be rolled back, says finance ministry
The finance ministry has bluntly told FIIs that it would not roll back the anti-tax avoidance framework proposed in the budget.--
CA. Rajesh Desai
RAJESH DESAI
China March inflation spikes to 3.6 pct on food
Mon, 9 Apr 2012 01:53:00 GMT
(Adds details, comment)
BEIJING, April 9 (Reuters) - China's annual inflation spiked unexpectedly in March t o 3.6 percent driven by rising food prices, data showed on Monday, surprising investors who had bet on cooling price pressures to give Beijing room to ease monetary policy.
But quickening inflation in March may not dissuade Beijing from the view that price pressures in China are in retreat and that support for a slowing economy is the top priority.
"We see that pork prices have come down a bit so we think this is a short-term rebound, the trend is still headed lower," said Li Wei, an economist at Standard Chartered in Shanghai.
"March was a relatively cold month in the north so that may have contributed to food CPI being stronger than expected."
Economists polled by Reuters had forecast China's consumer inflation to run at 3.3 percent in March from a year ago.
Producer prices were down 0.3 percent on the year, compared with market expectations for a 0.2 percent fall.
With price pressures in the world's second-biggest economy expected to stay restrained for the rest of the year, in part due to high year-ago comparison figures, analysts say China is in good stead to meet its 4 percent inflation target for 2012.
That gives China's central bank ample scope to unwind some of its strident tightening between 2010 and 2011, when it raised interest rates five times and the amount of cash banks are required to hold as reserves 12 times.
A Reuters poll showed economists think Beijing could cut banks' reserve requirement ratios (RRR) by another 150 basis points before December to 19 percent to encourage banks to lend more to cash-strapped firms.
Underlining slowing food inflation, official data showed pork prices fell every week in March and have shed 10 percent in the past two months. Pork is a staple meat in Chinese diets and a key component of food inflation.
And though China raised retail gasoline and diesel prices in March by 6-7 percent, analysts say that has limited direct impact on overall inflation as they believe energy carries a small weight in China's consumer price index basket. (Reporting by Koh Guiqing; Editing by Alex Richardson)
((guiqi...@thomsonreuters.com)(+86 10 6627 1242)(Reuters Messaging: guiqing.koh...@reuters.net)) Keywords: CHINA ECONOMY/INFLATION
Bankers expect CRR cut in April policy meet
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Textile stocks are in focus today as government has refused to lift the ban on cotton exports while allowing traders to fulfill their pending contracts of about two million bales of the commodity.
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Warm regards,Shyam Pherwani
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CA. Rajesh Desai
RAJESH DESAI
Mangalore Refinery and Petrochemicals (MRPL) said the Phase-II and Phase-III units ofrefinery in Karnataka were receiving around 5.5 million gallons a day (mgd) water from Netravathi river. Water availability in the Netravathi river and its downstream dams started depleting from the end of March. As a result, the District authorities enforced reduction of water supply to MRPL to one third level and finally on Wednesday, 11 April 2012, completely stopped the intake of water from the Netravathi river, MRPL said in a statement. As on date, reserve water availability in the refinery can meet the full load for one and half days. In order to overcome the situation and pulling on the resources for next couple of days till rain starts, it has been decided to shutdown the Phase III and Phase II units with immediate effect. The company will continue to watch the situation and initiate necessary action as deemed fit from time to time, MRPL said in a statement. There will be shortage of supply of products to MRPL fed locations. Further, the company may have to incur additional demurrage on account of delay in unloading crudes because of ullage problem and loading of products, MRPL said in a statement. |
Aviation stocks slipped after the FDI in aviation was not discussed today and will be done next week.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Reliance Communications and Google have entered into a two-year deal according to which all Google-endorsed android mobile devices from companies like Samsung, HTC, Sony Ericsson and LG will come with the telco's third generation, or 3G, mobile connection with 1 GB of free downloads for the first six months.
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CA. Rajesh Desai
RAJESH DESAI
Monthly Inflation (WPI) for the Month Mar: 6.89 % vs 6.95 % MoM, Primary Art.: 9.62 % vs 6.28 % MoM, Food Art.: 9.94 % vs 6.07 % & Fuel Group: 10.41 % vs 12.83 % MoM
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Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
The quantum of Reserve Bank of India (RBI)'s latest repo rate cut has not just surprised market watchers but even veteran bankers like Deepak Parekh.
The RBI cut interest rates on Tuesday for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to sagging economic growth, but warned that there is limited scope for further rate cuts.
Investors and companies cheered the rate cut, with bond yields and swap rates falling sharply and stocks extending gains, although the rally was capped by expectations that there will be few further cuts in the near term.
Parekh, the respected head of Housing Development Finance Corporation (HDFC), says it will be tough to lower deposit rates in the short-term, which in turn means lending rates are unlikely to be cut soon.
Concerned over spurt in gold imports, RBI asked banks to reduce exposure to NBFC s giving loan against the precious metal and has set up a working group to suggest ways to deal with the issue, a move supported by Parekh. "The deposit growth has been low due to investments locked in gold and realty," he told CNBC-TV18 in an interview.
India's gold and silver imports during first 11 months of the current fiscal stood at USD 54.5 billion. It had imported gold worth USD 40.5 billion and silver worth USD 1.9 billion in the last fiscal.
Meanwhile, sluggish capital investment has exacerbated bottlenecks in the Indian economy, bringing down its capacity for non-inflationary growth to an estimated 7%, from 8.5% before the global financial crisis. Corporate India, dejected over government inaction that has thwarted capacity expansion, has long clamored for rate cuts.
According to Parekh, the government should start spending on infrastructure projects. "I have never seen such negativity about the India story," he remarked adding, "…investors want India to sort out its problem first."
The RBI cut its gross domestic product (GDP) growth estimate for fiscal 2012-13 to 7.2%. "While inflation has moderated, risks to inflation are still on the upside. Accordingly, monetary policy needs to support growth without inflation and external imbalances by excessively fuelling demand," the central bank said.
Parekh expects the GDP figure for the year between 6% and 7%. He says 7.5% GDP growth looks over ambitious right now.
CA. Rajesh Desai
RAJESH DESAI
Parthasarathi Fin buys 2.96 lakh shares of Sterling Holiday
12.23 pm | 17 Apr 2012 | Source: Moneycontrol.com
On April 16, 2011 Parthasarathi Financial Advisory Services Pvt Ltd bought 296,975 shares of Sterling Holiday Resorts (India) at Rs 89.99 on the BSE. ...
CA. Rajesh Desai
Indinomics
Indinomics
Sent on my BlackBerry®
RAJESH DESAI
Shorting ka jor se jhatka.......--On Fri, Apr 20, 2012 at 11:00 AM, Rajesh Gupta <rajeshm...@gmail.com> wrote:
infy april f/o 1950 maara ???CMP 2424 2425
any reason friends
On Fri, Apr 20, 2012 at 10:12 AM, Amit shah <imami...@gmail.com> wrote:
19-Apr-2012 ESCORTS Escorts India Ltd. THE ROYAL BANK OF SCOTLAND N.V. BUY 5,80,000 81.04
On Fri, Apr 20, 2012 at 10:10 AM, Mihir Desai <desaim...@gmail.com> wrote:
Escorts is up almost 2 percent after news emerged that Escorts promoters have increased stake fearing a takeover threat. The promoters have acquired 5 percent stake in last 2-3 weeks in a bid to prevent possible hostile takeover threat. The stake was acquired via open market purchases by the promoters, according to CNBC TV-18.
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CA Mihir Desai
Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
The Finance Minister Pranab Mukherjee, has reaffirmed that tax changes related with General Anti Avoidance Rules (GAAR) proposed in the Budget are not substantive but clarificatory in nature. These changes reiterated only the intent of the legislation.
Speaking during the bilateral meeting between India and US in Washington on Thursday, Mr Mukherjee informed that tax cases which have already been assessed and finalized up to Apr. 1, 2012 cannot be reopened.
It was also pointed out that as per Section 149 of the Income Tax Act, no tax cases can be opened beyond six years.
Tax laws
Further the Indian tax laws are very clear that the companies making capital gains from the assets located in India will have to pay taxes either in the country of their origin or in India. It is not a case of double taxation but ensuring that companies that are liable to pay tax must pay some tax.
Software sales
On the issue of categorization of software sales as royalties, it was informed that discussions have been held in the past between the tax authorities in both the countries and they had agreed to disagree on such characterization.
According to the officials at the Indian Mission in Washington DC, these responses came after Geithner mentioned about certain amendments proposed in the tax provisions of India`sIncome Tax Act with retrospective effect.
During the meeting, Mukherjee discussed bilateral economic and financial cooperation as well as the recent developments in the global economy.
FILL UP YOUR FUEL TANKS>>>>>>>> HP, BP, IOC Rocking>>>>>>>> Fuel Price Hike Coming this Weekend............
?????--On Fri, Apr 20, 2012 at 1:13 PM, Mihir Desai <desaim...@gmail.com> wrote:
An extract from brokerage UBS` note on Asia equity this morning:We continue to think the best theme in Asia is to be tilted towards policy easing. With liquidity easing, economic stabilisation and attractive valuations, China is our biggest overweight. We cut India to neutral from overweight as we no longer see the potential for big downside inflation surprises nor aggressive policy easing from here.The brokerage has retained its sell ratings on cement majors ACC and Ambuja, citing upcoming monsoon, possible penal action by the Competition Commission, cost pressures and high valuations. It has raised the price target for IndusInd Bank from Rs 360 to Rs 410, saying the bank was `relatively well positioned in current environment with low exposure to stress sectors and relatively higher growth compared to sector.
What is your view on cement stocks?--
CA Mihir Desai
Regards,
Chintan Pancholi
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
Srinivasan.G
--
Regards,
Prasanth KS
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RAJESH DESAI
REUTERS - Macquarie's (MQG.AX) Asia hedge fund has exited its short positions in Indian single stock futures in response to a controversial set of proposed tax rules that could lower investment returns.
Instead, it has decided to use a futures contract linked to India's 50-share NSE index Nifty on the Singapore Exchange to get its short exposure to India, according to an investor letter of the fund seen by Reuters, a switch other funds may also make.
The $1.5 billion Macquarie Asian Alpha Fund, one of the top performing in Asia and among just the 30 or so hedge funds managing $1 billion or more in the region, also cut its India long exposure in March, joining a number of foreign investors reducing their holdings in the country ahead of the expected tax rules.
Foreign investors have raised concerns on two recent Indian provisions to tax indirect investments and combat tax evasion.
The Macquarie fund's India stock short positions dropped from 2.6 percent in February to nil in March, while the gross exposure, or the sum of its long and short positions, fell to 3.2 percent from 5.4 percent, according to the investor letter.
The fund's co-portfolio manager, Andrew Alexander, declined to comment. A spokeswoman for Macquarie could not be reached for comment.
(Reporting by Nishant Kumar in HONG KONG; Additional reporting by Rafael Nam in MUMBAI; Editing by Michael Flaherty and Muralikumar Anantharaman)
JSW Steel has denied media reports stating that the Honorable Supreme Court appointed Central empowered committee (CEC) has submitted its report dated 20th April, 2012 recommending extension of scope of CBI investigation against JSW Group Companies and clarified that the report submitted by CEC is yet to be considered by the Supreme Court.
JSW Steel said it has no captive mines. The company said it is not connected with any of the alleged mining activities. The company or any of its group companies have not obtained any benefits from the genuine expenditure incurred either towards philanthropic and social causes for which the Group is committed to or in purchase of land for corporate purposes. JSW Steel further added that it follows highest standards of corporate governance and compiles with law of the land. JSW Steel said it will file its objections at appropriate time to the CEC report before the Honorable Supreme Court and contest the recommendations of the CEC before the Court. JSW Steel further assured that it will take all necessary steps to protect the interest of all its stakeholders.
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
why telecom stocks fell today -
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Warm regards,
Shyam Pherwani
--
CA. Rajesh Desai
RAJESH DESAI
India’s local-currency credit outlook was lowered to negative by Standard & Poor’s on risks from slower economic growth and a widening current-account deficit, taking the nation a step closer to junk status.
A large US-based broker, which escaped unscathed in the credit crisis in 2008, is said to be mopping up shares of cement producer Dalmia Bharat Enterprises.
Market grapevine has it that the broker has bought about 20 lakh shares recently. As on March 2012, Valiant Mauritius Partners and Morgan Stanley(Singapore) held 6.678% and 2.78%, respectively. Shares of Dalmia Bharat Enterpises declined 1% to Rs 136.45 on Tuesday. The broker is said to have sold a chunk of GAIL on NSE on Tuesday.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Printing of money in the west is leading to massive speculation in commodities.--On Wed, May 2, 2012 at 2:39 PM, Anish Poojara <anish....@gmail.com> wrote:
If the Eurozone, the US zone, china, India etc are all slowing down and getting into depression then WHY ARE COMMODITIES PRICES GOING UP? Lead, Zinc, Nickel, Aluminium, Copper and Crude have all been inching up.anish poojara
On Wed, May 2, 2012 at 2:35 PM, shama parwana <shamaparw...@gmail.com> wrote:
The fall in the markets could be attributed to the fall in the Euro-zone PMI as manufacturing activity across the 17-nation euro zone shrank at a faster pace than previously estimated in April, underlining fears of a deepening recession for the region, according to the final April Market purchasing managers’ index for the sector released Wednesday. The index fell to 45.9 from a reading of 47.7 in March and was below an earlier estimate of 46.0. A reading of less than 50 indicates a contraction in activity, according to MarketWatch.--
Shamaparwana Bazaar
Shamaparwana Bazaar
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CA. Rajesh Desai
RAJESH DESAI
The pace of growth in India's factory sector inched up in April, supported by bulging order books, but slower output growth and increasing price pressures dampened sentiment, a business survey showed on Wednesday.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 54.9 in April from 54.7 in March.
The index has remained above the 50-mark that divides growth from contraction for more than three years.
"Activity in the manufacturing sector expanded at a slightly faster pace in April. While output growth moderated ... new orders continued to pour in, including for exports," said Leif Eskesen, chief economist for India & ASEAN at HSBC.
The new orders sub-index rose to 61.1 in April after falling to 58.1 in March, buoyed by strong exports, but while remaining solidly above 50 the factory output index fell for the third straight month.
However, actual industrial output data is painting a bleaker picture with India posting sluggish factory production growth of 4.1% in February from a year ago, way below the 6.6% expected by analysts.
That does not bode well for Asia's third largest economy as factory output accounts for roughly 15% of gross domestic product (GDP).
Last month economists cut their GDP forecasts for the fifth straight quarterly Reuters poll and now expect growth to average 7.1% in the fiscal year to March 2013.
The government is more optimistic, expecting the economy to grow 7.6% in the same period, but even that is still a far cry from the near double-digit rates seen before the onset of the global financial crisis in 2008.
The economy has been throttled in recent years by a combination of high inflation, tight monetary policy, weak global economic conditions and the lax implementation of fiscal policies and reforms.
The PMI survey showed the costs of raw materials grew at their fastest pace since August, and firms hiked their prices at the quickest rate in a year.
Fears of adding to inflationary pressures that have plagued the economy might prevent the central bank from cutting interest rates aggressively to stimulate growth.
The Reserve Bank of India cut the repo rate by a greater than expected 50 basis points last month to boost the flagging economy, but warned that it had little room to manoeuvre as inflation was likely to remain elevated.
"Inflation accelerated with both output and input prices rising faster," said Eskesen. "This suggests that upside risks to inflation remain and that the RBI's rate cut could turn out to have been premature and too aggressive."
Investors may not mind paying a higher valuation for fast moving consumer goods, given the decent set of March quarter numbers announced by key companies. Revenues of key players like Hindustan Unilever, Godrej Consumer and Dabur India have grown at a healthy rate, though margins were slightly pinched because of rising operational expenses, mainly volatile raw material costs. HUL shares are up over 2% after the company yesterday reported a 16% growth in fourth quarter sales and a 21% increase in net profits. But how much of the good March quarter performance is already priced in FMCG stocks in general? Most fund managers and analysts say the stocks are fairly priced at current levels, or even over valued in some cases. Should earnings disappoint, these stocks could correct faster than the market they argue. But looks like FMCG stocks can hold on to their premium valuations for some more time. The outlook on the broader market remains uncertain, which in turn could drive investors to safer havens like FMCG and pharma. Besides, consumer companies are turning in decent numbers, and that itself is a good reason to justify the high valuation. In terms of absolute returns, FMCG shares may still sneak ahead of their counterparts in other industries. But the risk-reward ratio is no longer as attractive as it was some months.-S Nair--
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
There is buzz on the street that Divi's Laboratories may be included in MSCI.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Hero MotoCorp declined 4.98% to Rs 2136 on profit booking. The stock had hit a record high of Rs 2278.50 in intraday trade on Wednesday, 2 May 2012. The company said at the fag end of the trading session on Wednesday that its net profit rose 20.33% to Rs 603.59 crore on 12.22% growth in total income to Rs 6139.90 crore in Q4 March 2012 over Q4 March 2011. The company said it has raised prices of most of its products by Rs 500 to Rs 1000 per unit with immediate effect, in order to partially offset rising input costs.
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Tanya Mehra.
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CA. Rajesh Desai
RAJESH DESAI
CLSA removes TTK Prestige from the top five midcaps list following the run up in recent weeksand added Havells.--
CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Hindalco Industries reported a standalone net profit of Rs 640 crore for the quarter ended the March 2012 against Rs 708.37 crore in the corresponding quarter a year ago. Net sales were at Rs 7563.33 crore for the quarter against Rs 6760.75 crore in the same period last fiscal.
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CA Mihir Desai
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CA. Rajesh Desai
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May 10 2012, 08:56Final act in Greek tragedy; exit inevitable: Lloyds Bank
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
Market fearing rupee`s fall to 56-57/$ level: Edelweiss Sec.
India’s rupee fell to a record low as concern debt-stricken Greece will leave the euro bolstered demand for dollars and curbed appetite for emerging-market assets.
--On Tue, May 15, 2012 at 3:17 PM, Rangrajan C <rangr...@gmail.com> wrote:
Infosys' growth pangs: Founders need to let go its continuing influence?
CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Yeah I know. As of today, even I am in 25 percent leverage, but ... there is always a fine balance between adding and exiting and these almost successive gap downs shake down your beliefs.Btw I heard some snippet from Marc Faber saying that markets will start reversing within 10 days and s&p going to 1370-1400 but no new highs.
Sent from my iPhoneSir, Leverage if handled properly then its a traders best friend,
traders also pyramid using Martingale and Anti-martingales,
trades with longer time horizon especiallyOn Fri, May 18, 2012 at 8:35 AM, Harry P <harry....@gmail.com> wrote:
Nooresh's twitter:Did not expect 5100 to break and now 4800 also. Will have to see 4550-4750 band. Time to pyramid get leverage book half in june next dec.I thought traders did not average / pyramid !
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CA. Rajesh Desai
RAJESH DESAI
State Bank of India has reported a better than expected profit after tax of Rs 4,050 crore for the fourth quarter of FY12
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CA. Rajesh Desai
RAJESH DESAI
KOLKATA | Fri May 18, 2012 2:39pm IST
(Reuters) - The Reserve Bank of India will continue to intervene and take administrative measures to protect the rupee, deputy governor Subir Gokarn said on Friday.
"The approach over the last few months have been a combination of intervention at times when we have felt it will help us stabilise, and some administrative action. This is the approach that will work now," he said on the sidelines of an event.
The rupee fell to a life-time low of 54.91 to the dollar on Friday, remaining the worst performer among Asians since March.
Huge demand for dollars due to rising imports, and shrinking inflows from foreign investors due to sluggish growth, high inflation, widening current account and fiscal deficits and policy stalemate are key factors for the slide in the rupee.
(Reporting by Swati Pandey)
Nooresh Tweet:Today is 3rd anniversary of " The Only 20% Upper Circuit to hit in Indian Markets " Times are so bad nobody remembers itHappy 3rd Birthday - UPA 2 !!
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CA. Rajesh Desai
RAJESH DESAI
A Coordination and Monitoring Committee (CMC) co-chaired by Secretary MCA & Chairman SEBI has been setup to identify and monitor the state of affairs of Vanishing Companies and to take appropriate action against such companies in terms of Companies Act, 1956 and the SEBI Act, 1992. As on date 86 prosecutions have been filed against companies presently identified as ‘Vanishing Companies’.
With the companies (Amendment) Act, 2006, norms for incorporation of companies have been made stringent by introduction of Directors Identification Number (DIN), mandatory filing of all details of directors etc.
This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in the Lok Sabha today in reply to a written question whether the Government has directed the Registrar of Companies in the State to identify vanishing companies with public share and start legal proceedings against them and whether the Government and Exchange Board of India (SEBI) have jointly suggested tightening norms for vanishing companies following multi crore Satyam fraud and to protect the interest of small investors.
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CA. Rajesh Desai
RAJESH DESAI
Sensex down 1%; rupee hits new all-time low of 55.16/USD
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CA. Rajesh Desai
RAJESH DESAI
U.S. stock futures fell as the Congressional Budget Office said America’s economy would slip into recession if necessary budget measures aren’t taken and concern mounted that Greece will leave the euro area.
Dell Inc. (DELL) plunged 13 percent in early New York trading after the company forecast fiscal second-quarter revenue that missed analysts’ estimates. Morgan Stanley (MS) dropped after a Massachusetts regulator subpoenaed the investment bank over its handling of Facebook Inc. (FB)’s initial public offering.
Standard & Poor’s 500 Index futures expiring in June declined 0.7 percent to 1,306.2 at 7:22 a.m. in New York. Dow Jones Industrial Average futures expiring the same month lost 77 points, or 0.6 percent, to 12,400.
“Uncertainty surrounding Greece’s membership in the euro and possible contagion into other countries plagued by high deficits just isn’t going away, at least not until Greek elections have taken place on June 17th,” said Markus Huber, head of German sales trading at ETX Capital inLondon.
Stocks erased gains in the final hour of trading yesterday after former Greek Prime MinisterLucas Papademos said that while it is unlikely the Mediterranean nation will leave the euro, it remained a risk, the Wall Street Journal reported.
The leaders of the European Union meet in Brussels today to discuss the sovereign-debt crisis that has wiped about $4 trillion from equity markets worldwide this month.
Japan’s exports in April trailed economists’ estimates, underscoring the risk that weakness in global demand may limit the recovery in the world’s third-biggest economy. In Japan, exportsgrew 7.9 percent last month from a year earlier. That fell short of the median estimate for an 11.8 percent gain in a Bloomberg News survey.
‘Fiscal Cliff’
The U.S. economy will probably tip back into recession next year if Congress fails to address an impending “fiscal cliff,” the Congressional Budget Office said.
The nonpartisan agency said in a report late yesterday that the economy would contract at an annual rate of 1.3 percent in the first half of 2013 if lawmakers allow the George W. Bush-era tax cuts to expire and $1.2 trillion in government spending cuts to take effect in January.
Separately, a Commerce Department report at 10 a.m. in Washington may show that new-house sales in the U.S. rose to 335,000 in April from 328,000 in March, according to aBloomberg survey of economists.
Dell, Morgan Stanley
Dell tumbled 13 percent to $13.15 in early New York trading. Round Rock, Texas-based Dell predicted sales for the period ending in July of $14.7 billion to $15 billion. That compared with the average $15.4 billion analyst estimate compiled by Bloomberg.
Hewlett-Packard Co. (HPQ) dropped 2.4 percent to $21.27 in Germany. The world’s largest personal-computer maker will report results today after the market closes.
Morgan Stanley fell 1.9 percent to $13.06 in New York. The lead underwriter of Facebook’s IPO released a statement defending its handling of the share sale after the Massachusetts security division yesterday subpoenaed the investment bank over its communications with clients. The U.S. Securities and Exchange Commission and the brokerage industry’s watchdog both said they may review the offering.
Facebook slid 0.4 percent to $30.87 in early New York trading. The shares have plunged 18 percent over the three days since the second-largest IPO in U.S. history.
Analog Devices Inc. (ADI) fell 3.1 percent to $34.70 in late trading in New York. The company forecast third-quarter earnings-per-share of 54 cents to 58 cents. Analysts had estimated 58 cents.
PetSmart Inc. (PETM) surged 9.7 percent to $61 in late trading as the company beat first-quarter earnings estimates and increased its full-year forecast.
To contact the reporter on this story: Tom Stoukas in Athens at asto...@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at aru...@bloomberg.net
Q E 4 anyone?--
Regards,Harry
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CA. Rajesh Desai
RAJESH DESAI
Strong buzz of Urea price hike to reduce subsidy.On Thu, May 31, 2012 at 3:58 PM, uttam jain <uttamja...@gmail.com> wrote:
Eurozone - Inflation down in May
In May, eurozone inflation continued to decline. According to Eurostat Flash estimate, it was 2.4% down from 2.6% in April and from 2.7% over the previous four months. Inflation should remain on a disinflation trend going forward.
When will it go down in India? any Guesses?--Warm Regards,Uttam
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Warm regards,Shyam Pherwani
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CA. Rajesh Desai
RAJESH DESAI
Sharp fall in industrial production in Germany
Industrial production, down by 2.2% m/m in April, recorded its largest decrease in a month since September 2011. Manufacturing output fell by 2.4% m/m. Production dropped in all manufacturing sectors expect in energy sector. The development in manufacturing orders, down by 1.9% m/m in April, suggests a weak activity in the coming months.
Interest rate sensitive auto stocks rose on hopes Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012 to prop up slowing economy after data released by the government last week showed India's economy grew 5.3% in Q4 March 2012, its slowest pace of expansion in nearly a decade. Construction stocks rallied after Prime Minister Manmohan Singh, last week, approved the setting up of a mechanism that will track the progress of all major infrastructure projects to avoid delays in their completion. FMCG stocks rose on arrival of monsoon rains in Kerala
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RAJESH DESAI
European stock index futures pointed to a slightly higher open on Wednesday, as shares were poised to track a late rally on Wall Street, but simmering worries over the borrowing costs of Spain and Italy could limit the gains
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
Indian economy is in stagflation: Moody's
On Thu, Jun 14, 2012 at 5:26 PM, Mihir Desai <desaim...@gmail.com> wrote:
May exports shrink 4.16% to $25.68 billion
Amid demand slowdown in the Western markets, India's May exports declined by 4.16% to $25.68 bn, down from $26.7 bn in the same month last year--
On Thu, Jun 14, 2012 at 5:16 PM, Mihir Desai <desaim...@gmail.com> wrote:Nifty slipped below its 200-DMA on Thursday after government released much awaited inflation numbers for the month of May which dampened hopes of a rate cut.
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CA Mihir Desai
CA Mihir Desai
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RAJESH DESAI
The devastating fire at Visakhapatnam plant of Rashtriya Ispat Nigam could cast a shadow over the proposed public issue of the steel major
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
Strong rise in industrial production
Industrial production recorded a rise of 1.6% m/m in May (after -2.1% m/m in April). The rise in manufacturing production was even stronger (+1.8% m/m, after -2.3% m/m in April). However the development in manufacturing orders, despite a slight increase in May (+0.6% m/m) and surveys, suggest a weak activity in the coming months.
![India's Planning Commission Montek Singh Ahluwali]()
India should refrain from changing the way foreign investors in stocks and bonds are taxed, a key adviser to Prime Minister Manmohan Singh said, as the nation prepares rules to clamp down on tax avoidance.
On Fri, Jul 6, 2012 at 12:00 PM, kuku manmohan <manmoh...@gmail.com> wrote:
Chandigarh - Mohali Sardar Gang are gung ho & bullish on KSB Pumps & Ingersoll Rand.
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
Industrial production increased in May
According to Eurostat’s figures released this morning, industrial production increased in May (up by 0.6%), after falling over the previous two months. Leading indicators signal that activity will probably continue to remain subdued over the coming months. Nevertheless, they showed some incipient sign of improvement.
BPCL to form petrochemical JV with LG Chem.
Unitech shares are up more than 4 pct to 25.35 rupees, top traded stock on NSE
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Best Regards,
Taiyeb Ali
786
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CA. Rajesh Desai
RAJESH DESAI
HSBC's Flash China manufacturing purchasing managers index (PMI) rose to 49.5 in July from 48.2 in June, rising close to the 50 level that divides expansion from contraction. The increase was driven by a jump in the output sub-index to 51.2 - the best showing since October 2011.
The new orders sub-index recovered to a three-month high while new export orders gave their best showing since May, although both remained below 50. An employment sub-index fell to its lowest level since March 2009.
The flash PMI is the first significant Chinese data point in the third quarter of the year and signals that a sequential improvement in the economy in the second quarter may be broadening as pro-growth government policies gain traction.
Still, the HSBC PMI has been below 50 for nine straight months, showing a need for those policies to remain in place.
"This calls for more easing efforts to support growth and jobs," Qu Hongbin, chief China economist with index sponsor, HSBC, said in a statement accompanying the survey.
"We believe the fast falling inflation allows Beijing to do so and a more meaningful improvement of growth is expected in the coming months when these measures fully filter through."
The PMI, compiled by UK data provider Markit, showed broad improvement across the manufacturing sector with five sub-indexes showing their rate of decline slowing and five showing a change of direction.
The output price sub-index broke above 50 for the first time in five months, a sign that final demand may be lifting factory gate prices, which have been in deflation for four months.
The flash PMI is based on 85-90 percent of total PMI survey responses, set to be published in full around a week later.
The employment sub-index, however, deteriorated versus June, sinking further below 50.
While still just above the readings at the depths of the global financial crisis, when some 20 million Chinese jobs were axed in a few months in late 2008 as global trade ground to a halt, the fall in the employment index is a reminder of the risks in an area to which China's government is most sensitive.
JOBS CRUCIAL Analysts broadly believe a headline PMI of 48 is consistent with manufacturing output strong enough to deliver the jobs growth that China's government needs to absorb millions of new graduates and rural migrant workers each year.
But the fall in the employment sub-index to a 40-month low is a potential alarm bell.
Spain and Italy moved to ban short- selling of stocks as prices dropped and the euro traded below its lifetime average against the dollar on concerns about the European Union debt crisis.Spain’s stock market regulator, the CNMV, said it was banning short selling of all stocks for three months, amid “extreme volatility.” Italy’s Consob said its ban, scheduled to last a week, was introduced on some banking and insurance shares because of the “recent performance of stock markets.”Today’s bans echoes decisions in August of last year by France, Belgium, Spain and Italy to temporarily ban short selling of financial stocks in an effort to stabilize markets after European banks, including Societe Generale SA (GLE), hit their lowest levels since the credit crisis of 2008.
“I don’t think it is particularly smart but it is to be expected,” said Owen Callan, senior dealer at Danske Bank A/S (DANSKE) in Dublin. “Last time around it didn’t really have any lasting impact. This is trying to avert hedge-fund speculation, but the sell-off is not about speculation. This is not hedge funds trying to bring down the market.”
The Spanish prohibition also covers over-the-counter derivatives, the CNMV said. Market making activities are excluded from its measures.
The European Securities and Markets Authority “is aware” of the bans, David Cliffe, an ESMA spokesman, said in a telephone interview today. ESMA was set up last year to harmonize the implementation of market rules across the European Union.
With assistance from Ben Moshinsky in London, Chiara Vasarri in Rome. Editors: Anthony Aarons, Tim Quinson
To contact the reporter on this story: Heather Smith in Paris at hsmi...@bloomberg.net
To contact the editor responsible for this story: Anthony Aarons at aaa...@bloomberg.net
--On Mon, Jul 23, 2012 at 5:59 PM, Mihir Desai <desaim...@gmail.com> wrote:Idea Cellular Q1 net profit up 32 pct, lags estimates 4:38pm IST
REUTERS - Idea Cellular, India's third-largest mobile phone carrier by revenue, said its quarterly net profit increased by nearly a third, but lagged market estimates on higher costs.
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CA Mihir Desai
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
Euro zone slump back into recession: PMI
CA. Rajesh Desai
RAJESH DESAI
Lack of improvement in business confidence
The INSEE composite business survey went further down by 2 points in July, to 87, while the composite PMI registered another small gain, from 47.3 to 48. The diverging trajectory of the two confidence indices and their mixed details illustrate well how difficult it is to gauge the situation. Such an elevated uncertainty coupled with these particular figures does not bode well for GDP growth.
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CA. Rajesh Desai
RAJESH DESAI
Shree Cements down 3% as CCI imposes penalty of Rs 397.5 cr
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
Good news, finally!
The July labour market report brought very good news, with a marked rebound in job creations (163k). The construction and government sectors were the only ones to slash jobs, while private services employment bounced back. If sustained, this pace of job creations is strong enough to lower the unemployment rate, which remains too high for comfort, at 8.3%
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CA. Rajesh Desai
RAJESH DESAI
Veritas advises to sell Indiabulls group stocks; down 3-9%
9.54 am | 08 Aug 2012 | Source: Moneycontrol.com
Veritas has advised to sell all Indiabulls group stocks, reports CNBC-TV18....
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CA. Rajesh Desai
RAJESH DESAI
Indiabulls accuses Veritas analyst of demanding money
Indiabulls Real Estate today said it has submitted 'email evidence' to the police regarding money demanded by a Veritas analyst for holding back report.
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CA. Rajesh Desai
RAJESH DESAI
GermanyFall in industrial production
Both industrial and manufacturing production harshly fell in June. Growth prospects remain negative. Indeed the development in manufacturing orders and survey, suggest a decline of activity in the coming months, in line with the crisis in the eurozone.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
HCL Infosystems says buys out 40% stake in HCLI MEA from NTS Group
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CA. Rajesh Desai
RAJESH DESAI
MUMBAI: A combination of factors such as depressed trading volumes, prior period accounting adjustments and extraordinary expenses took their toll on the performance of BSE (formerly the Bombay Stock Exchange) in the quarter ended June 30, 2012.
Asia's oldest stock exchange posted a sharp 76% decline in its net profit to Rs 15.4 crore, while total income fell 9% to Rs 136.4 crore during the period.
A break-up of BSE's revenues showed that income from stock exchange activity, including transaction charges and listing fees among major sources, amounted to Rs 95 crore, down 11% over the figure recorded in the quarter ended June 30, 2011. Income from depository activity decreased 9% to Rs 29.5 crore.
Securities trading volume and turnover at BSE declined substantially in the last quarter due to generally dismal market conditions.
While volume fell 29% to 1,234 crore shares, turnover slipped 32% to Rs 1,28,275 crore in the period.
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CA. Rajesh Desai
RAJESH DESAI
GermanyFurther decrease in the IFO index in August
In August, the IFO business climate index decreased for the fourth consecutive month (at 102.3). The current situation index fell only slightly. However the IFO expectations index sank below its long-term average. Expectations in manufacturing sector suffered more and more from the debt crisis in the eurozone.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
Eurozone
Losing Confidence
Confidence kept deteriorating in the Eurozone according to survey data released this morning. The Economic Sentiment Indicator came in at 86.1 in August, its lowest level since July 2009. The index signalled that GDP might fall again in Q3 2012.
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CA. Rajesh Desai
RAJESH DESAI
Indian banks need to mobilize an additional Rs 5 lakh crore to meet Basel III capital requirements by March 2018, the country's central bank governor said on Tuesday, 4 September 2012. The Reserve Bank of India's D Subbarao said that, as part of the transition to the Basel III standard, the government will have to infuse Rs 90000 crore into state-run banks if it wants to retain its majority shareholding. The final Basel III guidelines for banks in India are stricter than elsewhere, requiring them to maintain a capital ratio of 9% of risk-weighted assets, rather than 8%. Basel III is a global regulatory framework for more resilient banks and banking systems.
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CA. Rajesh Desai
RAJESH DESAI
Tech Mahindra says to buy 100 pct in Hutchison Global Services private limited for $87.1 mln
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CA. Rajesh Desai
RAJESH DESAI
Co proposes new valuation for HZL & BALCO
Co proposes fair market valuation by two methods
Fair mkt value by independent valuer using discounted cash flow & fair market value
Govt to impose 22.85% import duty on power equipment
Govt likely to exclude 113 plants from paying import duty;
Alert: Most of the plants are of NTPC
To sell Max Speciality Films unit to German co Treofan for Rs 540 Cr
To spin off Max Speciality Films unit into separate co
BOC India has moved up on hopes of a delisting move expected soon. Informed circles have been seen buying the stock. If this happens, share can move to 490 in this week.
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CA Mihir Desai
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CA. Rajesh Desai