See CPI in 7-7.5% range by Mar '15; Re in 60-65 band: BofA

Most experts are expecting a status quo from the Reserve Bank on policy rates. Indranil Sengupta, chief economist India, Bank of America Merrill Lynch too agrees with the majority view. He says growth is surprising policy projections on the downside, while inflation has softened. He will be watching the RBI commentary closely along with the immediate action.

Also Read: India an absolute star among EMs: Credit Suisse

On the rupee closing above 60 per dollar on Friday, Sen feels rupee is always seasonally strong towards the end of March because that's when exports pick up and IT companies repatriate funds. Besides that, the dollar too has been week and emerging markets, India in particular has received a lot of portfolio flows. But he expects RBI to buy dollars as India's import cover is just 7.5-8 months. He expects the rupee to be in the broad range of USD 60-65. 

Sen expects CPI to come down to 7-7.5 percent by March 2015 on the back of stable rainfall. If not, food prices may rise. He says in case of an El-Nino, CPI may once again get stuck in the 8-10 percent range.

Below is the verbatim transcript of Indranil Sengupta's interview with Anuj Singhal and Ekta Batra on CNBC-TV18.

Ekta: What is your expectation from the Reserve Bank of India (RBI) tomorrow, do you think that they could possibly even surprise the markets on the upside maybe hiking rates?

A: We are expecting a pause tomorrow given that growth is clearly surprising policy projections on the downside and inflation has softened to 8.1 percent, which is close to RBI's own 8 percent 12 month target.

Anuj: Were you surprised by the kind of trend that we had on Friday in currency market and the fact that it closed below 60/USD mark and do you think there will be some intervention now that we have breached that mark?

A: I think that the rupee is always seasonally strong towards the end of March because that is when exports pick up, that is when seasonally IT companies repatriate their money. So that is point one.

Secondly, of course the dollar has been weak and thirdly and clearly emerging markets in India in particular have received a lot of portfolio flows. Now that said, I do expect the RBI to buy Fx because our import cover is just 7.5-8 months and even if we want to take it to 10 months, which we had in 2000, we need to buy USD 80 billion. So, I do expect the RBI to buy Fx.

Ekta: What is your best case and worst case scenario on the rupee taking elections into the context?

A: We are looking at a range between 60/USD and 65/USD.

16.02 | 0 komentar | Read More

Deven Choksey positive on Reliance Industries

Deven Choksey, MD at KR Choksey Securities has a positive stance on Reliance Industries.

Deven Choksey, MD at KR Choksey Securities told CNBC-TV18, " Reliance Industries continues to remain in the favorable list of stocks as far as investment activity goes. The near term headwinds could probably be the issues pertaining to further rally into the stock price but I do believe that these are some of the concerns or the overhangs which are already there into the market and investors or the participants are fully aware about it. To my mind, the gas price issue related activities which are going on and which is becoming slightly disturbing more is because it is taking a longer time to get in to the resolution stage. Otherwise, the market is not factoring too much of negative on the gas price at this point of time."

"I would rather think that if the market remains subdued or in the corrective zone for Reliance, probably you would find the buying taking place in this stock. This stock has listing to own by the foreign institutional investors (FIIs) in the past, they might probably start acquiring the quantity to bring up their ownership to 17-18 percent which they used to have earlier. So, that's where I am relatively more positive about Reliance and the stock price hereafter," he said.

16.02 | 0 komentar | Read More

Expect a bounceback in Q1, Q2 margins on good content: PVR

PVR, which currently has 421 screens, is aiming to reach the 500-screen mark by March 2015. The company added 73 new screens this financial year, with around 16-18 screens this quarter.

I think this will be a first quarter (Q4) after a slew of bad quarters where the footfalls will actually look positive on the same-store level.

Nitin Sood

CFO

PVR

Nitin Sood, CFO, PVR , expects the next quarter and the next financial year to be better for the company on the back of good movie line-up.

The company's Q3FY14 performance was hampered by slew of films underperforming at the box office.

Also Read: Overall FY14 to be good; to add 20 screens in March: PVR

"I think this will be a first quarter after a slew of bad quarters where the footfalls will actually look positive on the same-store level," he said.

The company has been able to realise a large part of synergies, post Cinemax  merger, Sood said, adding though the "box office has been bad this year due to drop in footfalls, the combined revenues from the F&B (foods and beverages) segment have grown by 15 percent". The sponsorship revenues have grown up by 40 percent.

"As we integrate the entities, we should see some synergies arising out of cost, and F&B will continue to be big thrust area for us. Thus next year, box office, as it bounces back, combined with F&B will deliver strong earnings for us," he said.

PVR, which currently has 421 screens, is aiming to reach the 500-screen mark by March 2015. The company added 73 new screens this financial year, with around 16-18 screens this quarter.  

Below is the transcript of Nitin Sood's interview to CNBC-TV18's Ekta Batra and Reema Tendulkar

Reema: At least the previous quarter was hampered on account of a slew of movies which underperformed at the box office. How has this quarter been so far for you all?

A: The good news is that the film line-up in Q4 has been decently better and overall footfalls are picking up. While I think overall this will be the first quarter after a slew of bad couple of quarters where the footfalls will actually look positive on a same store level, my sense is we are seeing great content in the coming years and the box office should bounce back very fast in Q1-Q2 and so on.

PVR stock price

On March 31, 2014, at 14:31 hrs PVR was quoting at Rs 475.00, down Rs 5.9, or 1.23 percent. The 52-week high of the share was Rs 657.50 and the 52-week low was Rs 281.65.

The company's trailing 12-month (TTM) EPS was at Rs 17.11 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 27.76. The latest book value of the company is Rs 160.90 per share. At current value, the price-to-book value of the company is 2.95.

16.02 | 0 komentar | Read More

See 20-25% upside in PSU banks: Deven Choksey

Deven Choksey, MD at KR Choksey Shares and Securities feels that one may see 20-25 percent upside in PSU banking stocks in the next 12-15 months.

Deven Choksey, MD, KR Choksey Shares and Securities told CNBC-TV18, "If you look at  State Bank of India from the past all time high of the market, the stock is quoting exactly 50 percent below that all time high levels. So, from that particular perspective if you look at it, there is logic that says that the stock has headroom on the up side."

"If you look at it from the valuation perspective, the valuation on the stock is not too expensive considering the fact that we are likely to see higher amount of gross domestic product (GDP) growth rate going forward and vis-à-vis that because of the rupee remaining on a stronger side probably we will see also the inflation coming down particularly from the fuel oil side and that's where interest rate case becomes very powerful. Given that situation, the stress in the banks balance sheet would gradually come down and should that be the case then the re-rating in the stock has to happen, that's where I believe that many of the public sector undertakings (PSU) banks could possibly start performing ahead of markets and they would get re-rated. I wouldn't be surprised to see the headroom of around 20-25 percent going forward for the next 12-15 months into the stock price in some of these banks even from current levels," he added.

16.02 | 0 komentar | Read More

Indiabulls Real Estate's FY14 results on April 23, 2014

Indiabulls Real Estate has informed that a meeting of the board of directors of the company will be held on April 23, 2014 to consider and approve the audited financial results of the company for the financial year ended March 31, 2014, and to declare dividend, if any, on the equity shares of the Company, for the financial year 2013-14.

Indiabulls Real Estate Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 23, 2014, inter alia, to consider and approve the audited financial results of the Company for the financial year ended March 31, 2014, and to declare dividend , if any, on the Equity shares of the Company, for the financial year 2013-14.Further, the Trading Window of the Company, in terms of SEBI (Prohibition of Insider Trading) Regulations, 1992, has been closed and it shall remain closed till April 24, 2014, in view of board meeting for the aforesaid purposes.Source : BSE

Read all announcements in Indiabulls Real

16.03 | 0 komentar | Read More

President clears re-promulgation of Sebi ordinance

"President Pranab Mukherjee has cleared the re-promulgation of the Sebi ordinance," a top government official said. The ordinance had lapsed on January 15, since Parliament could not pass the Securities Laws (Amendment) Bill 2013 in the Winter session.

President Pranab Mukherjee has cleared re-promulgation of SEBI ordinance which provides
powers for Sebi Chairman to authorise Investigating Authority or any other officer of the regulator to conduct search and seizure under the Sebi Act and crack down on Ponzi schemes.

"President Pranab Mukherjee has cleared the re-promulgation of the Sebi ordinance," a top government official said. The ordinance had lapsed on January 15, since Parliament could not pass the Securities Laws (Amendment) Bill 2013 in the Winter session.

Also Read: Do RBI and Sebi have jurisdiction to check Sahara move?

After that Finance Ministry has sought opinion of the Law Ministry on the possibility of re-promulgation of SEBI ordinance for the third time as it could not be passed by Parliament. The Ordinance amending the Securities Laws was promulgated by President Pranab Mukherjee on July 18, 2013 after the Cabinet gave its approval to amend the SEBI Act, 1992 to give Sebi additional powers. It was re-promulgated on September 16.

As per the amended law, Sebi can regulate any money pooling scheme worth Rs 100 crore or more and attach assets in cases of non-compliance and its Chairman can order "search and seizure operations." It also empowers the market watchdog to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it.

The amendments would clear the air over regulatory gaps and overlaps with regard to types of instruments used in raising funds.

16.03 | 0 komentar | Read More

Realtors shifting focus to affordable housing projects?

It has been 8 quarters and the beating the Indian real estate sector has been taking has just not stopped. With the volumes dropping 43 percent over the period, companies, especially the 25 listed ones, have taken it on the chin and so have their investors.

Projects have been delayed along with the cost of funds having risen sharply adding to already high debt levels with the buyer interest being low. For the Indian real estate sector, the hits just keep on coming.

According to Knight Frank India, property demand in North India, which houses big names like DLF , Unitech , and Jaypee Group  have taken the hardest hit.

In the third quarter alone, sales volumes are down 57 percent Y-o-Y. This has led to profit growth dwindling to a meager 6 percent in the third quarter, against 15 percent a year ago.

Over the last 8 quarters since the slowdown began, despite the slipping volumes, developers in the region have not been able to slash prices with residential property prices having gone up 21 percent.

Western India, which has 13 listed players in the fray, has not fared any better.

Sales volumes have dropped 36 percent in the third quarter on a Y-o-Y basis and profit growth is down to 16 percent from 22 percent.

The reason for the same mainly is unaffordability. Over the last 8 quarters in this region, the average price of residential property has jumped 16-17 percent.

Players based in South India like Puravankara , Sobha , and Prestige  have fared better.

Sales volumes are up 4 percent in the third quarter, and net profit growth stands at 12 percent, against 10 percent a year ago.

Prices in Chennai have risen 10 percent while prices in Bengaluru are up 17 percent over the last 8 quarters.

But for the 25 listed real estate companies and their investors, none of this is good news .

Knight Frank says players, especially those operating in the tougher markets like north and west India, will be forced to shift their targeted milestones by at least 2-4 quarters. Also, high costs and low demand may see developers shifting focus to affordable housing projects, where margins are narrow.

By the time the dust settles, only the companies with a less-leveraged balance sheet may survive.

16.03 | 0 komentar | Read More

Vedanta donations to political parties ruled illegal

India's two main political parties both broke laws barring foreign donations by accepting cash from local companies owned by London-listed mining group Vedanta Resources Plc between 2004 and 2012, the Delhi High Court said on Friday.

The judgment was handed down 10 days before India holds a general election, in which the ruling Congress party and the opposition Bharatiya Janata Party (BJP) will go head to head in a contest where corruption is one of voters' top concerns.

Sterlite Industries India  and Sesa Goa, two companies then registered in India but whose controlling shareholder was Vedanta, donated 87.9 million rupees in total to Congress between 2004 and 2012, according to data gathered by the anti-corruption group that brought the case.

Sesa Goa donated 14.2 million rupees to the BJP over the same period, according to the data gathered by the Association for Democratic Reforms (ADR) and presented in court. The ADR brought the case against the two parties, and not the companies.

Also read:  Goa Mining: SC reserves order; good for Sesa Sterlite

Sterlite Industries India also donated 70 million rupees to the BJP, according to the company's annual 2009-10 report. Vedanta, which is the controlling shareholder, merged the two companies last year.

"The acts of the respondents ... clearly fall foul of the ban imposed under the Foreign Contribution (Regulation) Act, 1976 as the donations accepted by the political parties from Sterlite and Sesa accrue from "Foreign Sources"," Judge Pradeep Nandrajog and Judge Jayant Nath wrote in their judgment.

The court directed the home ministry and the election commission to investigate all donations to the parties by the two companies, as well as from any other groups with similar ownership structures that would also be deemed "foreign sources", and act within six months.

The government can prosecute people under the Foreign Contribution (Regulation) Act. Party officials and lawyers who facilitate such transactions can be jailed for up to three years for violating the laws on foreign donations.

Lawyers for Congress and the BJP had argued that the donations could not be classed as foreign partly because the two smaller companies were registered under India's Companies Act and partly because Vedanta's largest shareholder is billionaire Anil Agarwal, an Indian citizen.

Pinky Anand, a BJP member and lawyer for the case, said the party would appeal against the ruling using those arguments.

"Frankly, what is the objective of this law?" Anand added. "It's to prevent illegal money coming in, not legal money coming in. This money has been declared, it hasn't walked in."

A Congress party spokesman said the funds were received "from an electoral trust by an Indian company based in India".

"There has been no violation," said the spokesman Sanjay Jha but added that they would study the court order.

The party has been at the helm of India's coalition governments since 2004, although it is widely expected to be defeated in the upcoming elections.

Vedanta's legal head, Ajit Yadav, did not respond to requests for comment. The company's stock gained 0.3 percent in London trading at 886 pence.

Sesa Sterlite stock price

On March 28, 2014, Sesa Sterlite closed at Rs 182.90, up Rs 2.75, or 1.53 percent. The 52-week high of the share was Rs 213.05 and the 52-week low was Rs 119.45.

The company's trailing 12-month (TTM) EPS was at Rs 4.14 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 44.18. The latest book value of the company is Rs 44.64 per share. At current value, the price-to-book value of the company is 4.10.

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Buy Torrent Power, Karur Vysya Bank: Kunal Saraogi

Kunal Saraogi of Equityrush recommends buying Tata Communications with a target of Rs 296.

In CNBC-TV18's popular show Bull's Eye, Kunal Saraogi of Equityrush shares his trading strategies for the day.

One may buy Torrent Power  with a stoploss at Rs 85 and a target of Rs 90. The stock has got an inverted head and shoulders pattern on its daily chart and has clocked very substantial volumes in the last few sessions. I see a breakout on the charts in the stock.

Tata Communications  has been stuck in the range for a while but perked up in trade yesterday and the stock might continue its uptrend. It can go to levels of about Rs 300. One should set a target of Rs 296 and look for a stoploss of Rs 282.

Karur Vysya Bank  within the midcap banking names have really outperformed the market and I expect this outperformance from it to continue. One should buy at the current levels, put a stoploss at Rs 340.

16.03 | 0 komentar | Read More

Buy Delta Corp, Ashok Leyland, Arvind: Lancelot D Cunha

Lancelot D Cunha of Sharyans Wealth Management recommends buying Arvind with a target of Rs 179.

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of Sharyans Wealth Management shares his trading strategies for the day.

One may buy Delta Corp . It has recently launched its new casino ship in Goa as well as a Land casino based in Daman, so we see better performance from Delta Corp on the back of increase in gaming revenues and we believe that the momentum could carry it forward to its target price of Rs 103.

One may buy Ashok Leyland  with a target price of Rs 24.50. It has been moving up on good volumes over the past few trading sessions, given that investment buying is looking at sector rotation, we are seeing people move into the automobile sector and move out of the traditional sector. We believe this momentum could continue and hit its target price of Rs 24.50.

One may buy Arvind  with a target price of Rs 179. It recently moved up on the back of increasing volumes, given that as this move beyond the technical level, I expect that it could move further to its target price of Rs 179.

16.03 | 0 komentar | Read More

Nimbus Projects: Outcome of board meeting

Nimbus Projects Ltd has informed regarding Outcome of Board Meeting held on March 27, 2014.

To read the full report click here

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Trade Wings: Outcome of board meeting

Trade Wings at its meeting held on March 27, 2014, considered and approved the recommendation of Remuneration Committee for revision in remuneration payable to Dr. Shailendra P. Mittal.

Trade Wings Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 27, 2014, inter-alia, transacted the following business:1. "Considered and approved the recommendation of Remuneration Committee for revision in remuneration payable to Dr. Shailendra P. Mittal and also entering into de-novo agreement with Dr. Shailendra Mittal for his re-appointment as the Chairman and Whole-time Director, also designated as Chief Finance Officer of the Company, subject to the approval of members."2. "Considered and approved the re-appointment of Mr. Vinayak S. Ubhayakar as Managing Director also designated as Chief Executive Officer of the Company, for a period of three years with effect from April 01, 2014 subject to approval of members by special resolution."Source : BSE

Read all announcements in Trade Wings

16.02 | 0 komentar | Read More

Interact with CNBC-TV18: Will continue to buy defensive sector, says Ambit

Holland is betting on IT stocks despite their recent fall. He believes that US will recover a lot quicker than people expect and that has been the evidence so far.

Moneycontrol message board guest Pritesh from Mumbai asked Andrew Holland, CEO, Ambit Investment Advisors if this a good time to switch one's portfolio bias from defensives to cyclical.

According to Holland, if one feels that expectations in a Modi-led government might wider the mark then keeping some defensives would be a safe thing to do. "But that said, buy in consumer stocks and pharmaceutical stocks 30-40 times one year forward PEs. I do have a buy on Tata Steel 7-8 times where I can see cyclical upturn, operation and financials gearing playing through in the next two years. So, a switch should be made because you are going to see better returns from these stocks. It is not as Hindustan Unilever is going to double that profit in that time, it certainly not going to, so the ratings is too high for me to be defensive stocks, the growth at the moment," he added.

Holland is betting on IT stocks despite their recent fall. He believes that US will recover a lot quicker than people expect and that has been the evidence so far. "IT is defensive area which I like and will continue buying," he said.

16.02 | 0 komentar | Read More

Meet the original Mr HCL!

Avinash Iyer
moneycontrol.com

We have all seen and enjoyed the 'Mr HCL' ads on television. However, away from the ad world if there is one person who can be called 'Mr HCL', it has to be Shiv Nadar, India's fifth richest man.

Founder of HCL, Nadar's story is one that should serve as a case study for all startups. One of India's tech billionaires, Nadar, whose estimated net worth is $11.1 billion, founded HCL in 1976 as a start up. Over the years, his perseverance, conviction and futuristic outlook, has transformed HCL into a global IT giant.

HCL was founded merely with an investment of Rs 1,87,000. Now the company clocks in annual revenues of nearly $6.4 billion. From developing the first indigenous micro-computer at about the same time as Apple did to selling more PCs in India than any other brand, HCL has achieved a number of milestones under Nadar's leadership.

No doubt he is a billionaire now, however his roots can be traced back to a small village near Tamil Nadu's Thoothukudi district. From there, he went on to do his Electrical and Electronics Engineering from Coimbatore. He then worked at Walchand Group and floated a company called Microcomp, before HCL happened.

His contribution to the IT industry led the Indian government to award him the Padma Bhushan, the country's third largest civilian honour.

Nadar is a member of the Executive Board of the Indian School of Business, Hyderabad. He is also associated with the Public Health Foundation of India and was appointed by the President to head the Board of Governors at IIT Kharagpur.

Apart from being a successful businessman, Nadar's contribution to philanthropy is very noteworthy. It is with this objective that the Shiv Nadar Foundation was created.

The Foundation is committed at bridging the socio-economic divide and it aims to do this by way of creating oppoortunities in the field of education. The Foundation runs 'VidyaGyan' schools in Uttar Pradesh that provide free, world class education to toppers from economically disadvantaged backgrounds.

Nadar is married to Kiran, an art collector and philanthropist herself. His daughter Roshni, who is the CEO of HCL, is also closely associated with the functioning of the Shiv Nadar Foundation.

16.02 | 0 komentar | Read More

SC grants conditional bail to Sahara chief Subrata Roy

The apex court has set a condition of depositing Rs 10,000 crore in cash.

The Supreme Court today granted conditional bail to Sahara Group chief Subrata Roy.

The apex court has set a condition of depositing Rs 10,000 crore in cash in the form of a bank guarantee of Rs 5000 crore and the balance has to be paid to market regulator Sebi. SC has agreed to defreeze bank accounts of Sahara companies to raise this amount.

SC has adjourned the case for tomorrow asking the group to give details of the bank account numbers which are to be defreezed.

 This copy will be updated shortly

16.02 | 0 komentar | Read More

Will take time to roll out white label ATMs: Srei

Hemant Kanoria, CMD, SREI Infrastructure says it will take time to rollout the white label ATM machines. There are various operational issues in rural areas, he explains

We will be trying to concentrate on the white label ATMs in rural areas

Hemant Kanoria

CMD

SREI Infra

Srei Infrastructure  received the Reserve Bank approval to set up, own and operate white-label ATMs on Tuesday. Hemant Kanoria, CMD, SREI Infrastructure says this is a good opportunity for the company because it already has a lot of centers in rural areas through Sahaj.

However, he says it will take time to rollout the white label ATM machines. There are various operational issues in rural areas. "We would identify some of the centers and then we will go in for a full rollout because we would be trying to concentrate on white label ATMs in the rural areas only and rural areas have their own difficulties too in collecting cash and transferring them, etc," says Kanoria.

Apart from this, there have been reports that the Tata Group is mulling to exit Viom and is seeking to raise Rs 8,000-10,000 crore. But Kanoria says he hasn't heard anything from the Tata Group on the matter. Infact, he further goes on to say that he doesn't see any merit in any partner exiting Viom.

Viom is a joint venture between Srei Infra and  Tata Teleservices (TTSL). TTSL holds 54 percent stake in the JV, while Srei holds 18%.

Below is the verbatim transcript of Hemant Kanoria's interview with CNBC-TV18's Ekta Batra and Reema Tendulkar

Reema: This white label ATMs what does it mean for the company, what will be the kind of investment you will make for these ATMs and what could be the financial reward?

A: We have just got the approval from RBI yesterday so we just need to go through the entire plans, roll out and as we have been contemplating for the last few months that this is a good opportunity for us because we already have through Sahaj a lot of centers in the rural areas. So we would identify some of the centers and then we will go in for a full rollout because we would be trying to concentrate on the white label ATMs in the rural areas only and rural areas have their own difficulties too in collecting cash and transferring cash etc. So there are a lot of operational issues - we are still trying to find out ways and means to deal with it. So therefore it will take some time before we are in a position to actually rollout the white label ATM machines.

Stay tuned for more… 

SREI Infra stock price

On March 26, 2014, at 14:31 hrs SREI Infrastructure Finance was quoting at Rs 27.25, up Rs 2.00, or 7.92 percent. The 52-week high of the share was Rs 31.00 and the 52-week low was Rs 17.45.

The company's trailing 12-month (TTM) EPS was at Rs 1.35 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 20.19. The latest book value of the company is Rs 52.62 per share. At current value, the price-to-book value of the company is 0.52.

16.02 | 0 komentar | Read More

Unitech up 3%, SC refuses to cancel director's bail

CBI had alleged that Chandra had misused the relief given to him by approaching Singh and trying to "materially interfere" with the prosecution in an "attempt to influence" the conduct and outcome of the trial.

Shares of  Unitech were up 3 percent intraday on Monday. The Supreme Court has rejected the CBI plea to cancel director Sanjay Chandra's bail.

The CBI had alleged that Sanjay Chandra tried to influence the public prosecutor in the 2G  spectrum case. It had said that Chandra had misused the relief given to him by approaching Singh and trying to "materially interfere" with the prosecution in an "attempt to influence" the conduct and outcome of the trial. It has alleged that conduct of Chandra was questionable during the period of bail as he was found holding discussion with the prosecutor about crucial witnesses.

A bench headed by Justice HL Dattu turned down the plea of CBI which had approached the apex court for cancellation of bail after Chandra was allegedly caught on tape trying to influence AK Singh, the then public prosecutor in the case. The apex court said it is "not appropriate at this stage" to recall its order of November 23, 2011 by which the business tycoon was granted bail in the multi-crore scam.

At 14:01 hrs, the stock was quoting at Rs 11.96, up Rs 0.30, or 2.57 percent on the BSE.

With inputs from PTI

16.03 | 0 komentar | Read More

ONGC up 4% ahead of board meeting for interim dividend

The street is expecting a dividend of 190 percent similar to last year. ONGC has already paid a dividend of Rs 5 per share in financial year 2014 which translates to Rs 4,280 crore.

Moneycontrol Bureau

Shares of  ONGC rose 4 percent intraday on Monday ahead of a board meeting to consider second interim dividend for financial year 2013-2014.

"A meeting of the board of directors of the company will be held on March 24, 2014, inter alia, to consider payment of second interim dividend for the financial year 2013-14. Record date for determining entitlement of shareholders for payment of second interim dividend for FY 14 has been fixed on March 29. Payment of interim dividend, if declared, shall start from March 31, 2014 onwards to the shareholders," it said in a statement to the bourses.

The street is expecting a dividend of 190 percent similar to last year. ONGC has already paid a dividend of Rs 5 per share in financial year 2014 which translates to Rs 4,280 crore.

At 13:36 hrs, the stock was quoting at Rs 320.00, up Rs 11.60, or 3.76 percent on the BSE.

Posted by Nasrin Sultana

16.03 | 0 komentar | Read More

Voltas outperforms Sensex by 95%, hits 52-week high

In today's trading session Voltas made a fresh 52-week high of about Rs 155. The stock has outperformed the Sensex by close to about 95 percent.

In today's trading session  Voltas made a fresh 52-week high of about Rs 155. The stock has outperformed the Sensex by close to about 95 percent.

16.03 | 0 komentar | Read More

Nifty inches towards 6600; ONGC, ICICI Bank lead gainers

ONGC rallied 4 percent ahead of board meeting for announcement of interim dividend today. Top private sector lender ICICI Bank surged 3.6 percent on value buying while rivals State Bank of India and HDFC Bank jumped 2 percent each followed by Axis Bank with 1 percent.

14:26

Moneycontrol Bureau
Live Market Commentary The market extended upmove in afternoon trade with the Nifty inching towards the 6600 level supported by banks, oil & gas and FMCG stocks.

The Sensex rose 294.90 points or 1.36 percent to 22050.22 and the Nifty climbed 90 points or 1.39 percent to 6583.2, but the broader markets underperformed benchmarks.

The BSE Midcap and Smallcap indices gained 0.2 percent each. Declining shares outnumbered advancing ones by a ratio of 1460 to 1226 on the BSE.

ONGC rallied 4 percent ahead of board meeting for announcement of interim dividend today.

Top private sector lender ICICI Bank surged 3.6 percent on value buying while rivals State Bank of India and HDFC Bank jumped 2 percent each followed by Axis Bank with 1 percent.

13:00

According to data available in NSE, FIIs net bought Rs 4222 crore in cash market and sold Rs 784 crore in F&O market on March 22. DIIs net sold net sell Rs 4077 crore in cash market. The Sensex is up 273.78 points at 22029.10, and the Nifty up 84.95 points at 6578.15.

Read More »

12:00

Banking and financials, oil & gas, auto and capital goods see buying interest while select healthcare, metals and IT stocks are under pressure.

Read More »

11:00

Financial stocks continue to lead the rally. Reliance is up 2 percent. The rupee has risen to a near-two week high against the US dollar on custodial inflows and tracking strength in domestic share indices. IT stocks weak.

Read More »

10:00

India's largest private sector lender ICICI Bank topped the buying list, rising over 3 percent followed by HDFC Bank, HDFC and Axis Bank with 2 percent.

Read More »

09:15

Banks are on gaining while Tata Power is up 1 percent. The rupee opened higher at 60.84 per dollar, up 5 paise from Friday's closing value of 60.89 a dollar.

Read More »

16.03 | 0 komentar | Read More

Somany sees Rs 20-30 cr Q4 revenue hit from Morbi lockout

In an interview with CNBC-TV18, Somany Ceramics' Abhishek discussed the impact of the shutdown and how he sees the business for the company panning out ahead.

We are on track for what we had predicted: which is approximately a 20 percent growth for the year that might be shade off a little bit because of this hangover.

Abhishek Somany

JMD

Somany Ceramics

After ceramic units in Morbi, Gujarat, went on a one-month strike to protest various issues including state gas price hike, the impact will be felt in the current quarter results of various ceramic companies.

In an interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy,  Somany Ceramics' Joint MD Abhishek discussed the impact of the shutdown and how he sees the business for the company panning out ahead.

Also read: Q3 revenues to take 10% hit; optimistic on FY15: Kajaria

Below is the edited transcript of the interview.

Q: Last quarter the company has suffered from some production loss. What is the prognosis for this quarter and the quarters to come in terms of whether there will be any spillover effect and also what your revenue could look like?

A: The production loss was account of the shutdown we faced in the Morbi region, which is where about 600 units were concentrated in India and that was one of those very freakish moments where Morbi shut down completely.

There is going to be a spillover of about Rs 20-30 crore in this quarter because there is a backlog and we just don't have material to supply. The order book looks extremely strong but with the complete shutdown of Morbi, there is a little bit of hangover there reeling in this quarter.

Having said that, we are pretty much on track of what we have predicted, which is approximately a 20 percent growth for the year that might be shade off a little bit because of this hangover.

Q: When does this problem in Morbi ebb?

A: It has already ebbed. The shutdown was between the November 25 and December 25 and it's behind us. Going forward, things look extremely bright.

Q: You raised money by selling shares preferentially to Latinia Ltd. How much did you raise and what will that be put use to?

A: We raised about USD 8 million and that's going to be used for an aggressive acquisition and also some greenfield projects to fuel 20 percent plus compound annual growth rate (CAGR) growth for the next three years.

Somany Ceramics stock price

On February 24, 2014, Somany Ceramics closed at Rs 136.60, down Rs 1.4, or 1.01 percent. The 52-week high of the share was Rs 155.50 and the 52-week low was Rs 61.00.

The company's trailing 12-month (TTM) EPS was at Rs 6.95 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 19.65. The latest book value of the company is Rs 39.03 per share. At current value, the price-to-book value of the company is 3.50.

16.02 | 0 komentar | Read More

Congress VP Rahul Gandhi reaches out to tribal women in MP

The Congress leader told the women that he has come to listen to their problems and not to give any speech.

Facing a tough election, Congress Vice-President Rahul Gandhi today reached out to the tribal women engaged in collection of tendu leaves, and patiently heard the problems being faced by them.

The interaction, organised as a 'chaupal' (open public space in rural areas) like gathering under a tree, was held at village Patpatpara here in tribal-dominated Mandla district.

Also Read: BJP's Tamil pact 'a show of momentum': Rajdeep

Before the start of the session, Rahul spent about 30 minutes in nearby jungles where tendu leaves (used for wrapping bidis) are found. The non-wood forest produce is a key source of livelihood for tribals in the country.

The Congress leader told the women that he has come to listen to their problems and not to give any speech. "These days leaders come to a place, deliver their speech and return. In contrast to this, I have come to listen to your problems and not to deliver any speech," the Amethi MP told the gathering. One of the women, Ansuya Choudhary, told Rahul that tendu leaves collection was a tough and strenuous task which often led to neglect of children and family.

A woman complained about non-availability of water in the village. Another participant, Lamili Bai, said she gets work under the National Rural Employment Guarantee Scheme, but the wages are often less than what is prescribed under the Government-sponsored programme.

The Congress Vice-President said he was happy to note that women at the 'chaupal' were speaking without any fear. Madhya Pradesh Congress President Arun Yadav and Leader of Opposition in the State Assembly Satyadev Katare accompanied Rahul, who later left for Jabalpur.

People in large numbers had gathered on both sides of the road leading to a nearby helipad to get a glimpse of the young leader. Over the past few months, Rahul has had such interactive sessions with students and members of fishing community, among others.

16.02 | 0 komentar | Read More

Time to add cyclicals; capex cycle turning: BlackRidge

Even as defensive stocks like IT and pharma have outperformed since the crash of 2008, thanks to their resilience in a weak economy, a turning around in the investment cycle may warrant a closer look by investors, believes Arindam Ghosh.

Ghosh is the MD and CEO of BlackRidge Capital Advisors, which offers financial services offering advisory, capital markets, alternate investment and wealth management to its institutional, corporate, HNI and family-office clients. He spoke with CNBC-TV18 for its weekend show, Taking Stock.

"In addition to the export-led companies, one should look at adding cyclicals," he said. "Many of the quality, high-beta stocks should be looked at but investors should stick to the frontline cyclical names before sliding down to the lower-quality or midcap names."

Also read: Intermediate trend for Nifty is up; stay put: Sukhani

Anu Jain, director Equities, IIFL Private Wealth Management, and an expert in technical analysis, seconded the view.

Discussing her short-term trading ideas, she said she was positive on stocks such as capital goods stocks such as  Crompton Greaves and Voltas , tyre stocks  MRF and Apollo and metal stocks  Jindal Steel and Hindalco .

"For the week ahead, traders could go long Maruti , which could see a 3-4 percent upside and United Spirits , which could rise to Rs 2,780-Rs 2,820 levels," she said. Amtek India , which has about doubled to Rs 140 in the past one month, can be bought on a dip for a target of Rs 200, she said.

Below is the interview of Arindam Ghosh, MD & CEO of Blackridge Capital Advisors and Anu Jain, Director-Equities of IIFL Private Wealth Management with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.

Sonia: It has been days of consolidation that this markets have witnessed which is generally the nature of a bull market but going ahead as we head into the elections, would you still maintain your long bias in the market?

A: We would not like to qualify this as a bull market as yet. Clearly, what we have seen so far is that the economy has been running on three legs. One is the distinct improvement that we have seen in the overall macroeconomic fundamentals.

The second is the relative underperformance of the other emerging markets clearly China, Brazil and Russia in particular and more importantly I think it has been election and the possibility of stable government.

So I think market has been moving on a clear uptrend largely on account of these three factors but we need to bear in mind that whilst the risk reward is definitely favourable as of now, we need to be also mindful that expectation built up has been tremendous and that is where I think there is a clear risk, which is getting built in.

That would definitely moderated as we get beyond the elections and into the results and we have a new government settling down, a lot will depend on what kind of economic agenda is going to get pursued and then you will have the dynamics of inflation growth, interest rates all of that playing up. So we would have these intermittent periods of profit booking and consolidation but the overall trend would continue to remain positive.

Latha: What are the Nifty charts telling you, will you be able to draw in the blue skies up until mid-May?

A: The fact of the matter is that the charts are definitely on a much more positive note that you have seen over the last two-three years as long as I can remember. We are sustaining over the 6,350 so your breakout took place between that 6,320 and 6,350.

The fact that you sustained so many sessions over that, you panned up to 6,560, closer to 6,600 and then obviously there is a consolidation, the breakout is intact, you are intact for about 6,700 at a bear minimum going closer to 6,900-7,000, yes you will have consolidation period, it is a very nominal saying that every dip in this market is a buying opportunity, so whether it is for a 50 point or 100 point, I think it is a point to get into the market for people who are underinvested of what they haven't bought as yet. So I would definitely say it is a positive time to enter the market.

Latha: From what you are saying at least 5 percent more is left on the Nifty. What is the Bank Nifty, is it 10 percent more because it has been outperforming?

A: That is the dicey part. We have seen it outperformed over the last one month. It has done fabulously but obviously with results around the corner that is where you can see 5 percent cut or a 5 percent hike.

That is the only dicey place but what is giving Nifty legs is oil and gas and other sectors, which can take it irrespective of whether Bank Nifty makes it or not. So there maybe a clash in the Bank Nifty but the other sectors would definitely make up for it.

16.02 | 0 komentar | Read More

Weather conditions in Bhopal and Jabalpur during pre-monsoon season

In the transition period of March, Madhya Pradesh experiences weather induced by systems occurring in both North and Peninsular India.

In the month of March, the Western Disturbances originating in the higher reaches of North India are usually strong enough to reach till parts of Madhya Pradesh. On the other hand, any discontinuity of winds in South India also travels up to Central India, affecting the temperature and rain profile of the region.

To understand the weather conditions in this region, we will take into consideration the two cities of Bhopal and Jabalpur. Though these places are situated 200 kms apart, they experience similar weather conditions, according to latest weather update by Skymet Meteorology Division in India.

Bhopal and Jabalpur could be referred to as the rainbow cities and seven meteorological factors dominate weather here.

Slackened Pressure Gradient- In the coming days, the pressure pattern is going to change here and it will come under the low pressure belt. In April, only a single isobar and very low pressure gradient could be observed. Light wind field- The winds are predominately light during this time and might pick up at times only due to any local thunderstorms or the like. Humidity- The humidity remains less, proving some comfort in extremely hot conditions. With temperatures shooting up, it would have been unbearable if the humidity levels were high. Western Disturbance- As already mentioned, the induced low pressure of the Western Disturbance is generally strong enough to affect these cities. Discontinuity of winds- weather systems like discontinuity of winds in South India affects weather in Bhopal and Jabalpur. However, they remain aloof from any impact of systems arising in the north or south. Cyclonic circulations- At times cyclonic circulations develop in the region, giving rise to thunderstorms. Good visibility conditions- Madhya Pradesh being on the southern latitudes is not affected by the deserts of Rajasthan and visibility conditions remain fairly good. Local pollutants might affect visibility and the impact on environment is only anthropogenic and not meteorological.  Rain and temperature

Bhopal- The average maximum for the month of March in Bhopal is 33.5 but the maximum might reach 40°C. The all-time high was 40.7°C, recorded on 29th of March, 1996.  The average maximum rises to 38.4°C in April and further to 40.7°C in May.

Jabalpur- The mean average for March here is 33.6°C. The highest maximum in the last 10 years was 36.3°C, recorded on 30th of March, 2010. The temperature profile here is very similar to Bhopal and the average maximum for the month of April and May are 38.9°C and 41.4°C, respectively.

Rain in both the cities remains minimal and occasional thunderstorm activity might not bring rain always.

picture courtesy- deccanchronicle

By: Skymetweather.com

16.02 | 0 komentar | Read More

Dipan Mehta positive on Balkrishna Industries

Dipan Mehta, Member of BSE & NSE is positive on Balkrishna Industries, the second largest tyre company in terms of market capitalisation.

Dipan Mehta, Member of BSE & NSE told CNBC-TV18, " Balkrishna Industries is the second largest tyre company in terms of market capitalisation. It is complete export oriented business model and this time around the results were also fantastic and a major expansion plan is going on-stream. So I am positive on tyre companies and Balkrishna in particular."

"The other tyre companies are seeing a cyclical upmove, the business prospects have improved, raw material prices are on the lower side and pent up demand has picked up. Few select tyre companies are also tapping the export market and valuations always were cheap for the tyre companies, so we are seeing the effect of the price earning (PE) getting re-rated and the earnings also moving up," Mehta added.

16.02 | 0 komentar | Read More

Investors reshuffle portfolio aggressively now: Dipan Mehta

In an interview to CNBC-TV18's Latha Venkatesh and Sonia Shenoy, Dipan Mehta, Member, BSE and NSE gave his outlook on the market and expectations going ahead.

Also Read: Week Ahead: Here's what you should keep an eye out for

Below are the excerpts from the interview:

Latha: Just a near-term trend, do you think markets are finding a roof at 6,550? Would you want to take profits for the end of contract?

A: It is very difficult to say what end of contract traders should try and do but I think 6,350 was an important resistance level and the market having crossed that, it is stabilising at these levels. More importantly, we are seeing a lot of action coming through in the midcap stocks and smallcap stocks and FII flows continue to remain extremely robust. So, we are seeing some kind of pause after a fantastic move upwards and breaking through the multi-year resistance levels.

We are seeing a bit of a pause at present and after a few more such sideways trading sessions, maybe the primary trend which is bullish may perhaps resume. Also, the newsflow remains extremely supporting and that is also a very positive factor.

Sonia: What is your advice to the average investor or retail investor on the street now?  If you have Rs 100, how much should you wait for in terms of post election money to be pumped in? What are the key sectors one should be looking at right now?

A: Investors, at this point in time, should gradually start investing in the market and should not make any sharp move. If you say Rs 100, then maybe Rs 10-15 every fortnight or so right up to the elections then take a call after the election results are out.

As far as portfolio composition is concerned, it should still be about half-half-half being in the export oriented sectors and the other half being in the consumer oriented sectors and rather the domestic oriented sectors and within that, the consumer oriented sectors and banks, non-banking financial companies (NBFCs) should be given preference over capital goods manufactures, mine manufacturers or even more the interest rate sensitive sectors so that would be a kind of defensive strategy as far as portfolio management is concerned.

Once election results are out and we have a few more inflation numbers and we know the exact direction where the interest rates are heading, maybe then the deep preference or the allocation for interest sensitive sectors could be increased gradually but this is not the time to stay out of the market, it a time to have a good hard look at the portfolio.

Most investors have got lot of laggards and those prices may have also moved up and so, I would urge investors by and large reshuffle their portfolios in aggressive manner and be well positioned to take advantage of the rally which will certainly take place, maybe there is hiccup after the election but next two-three years certainly looks good for the stock.

16.02 | 0 komentar | Read More

Expect US market momentum to continue: Seth Freeman

In an interview to CNBC-TV18's Latha Venkatesh and Sonia, Seth Freeman, CEO and Chief Investment Officer of EM Capital Management spoke about the global flows picture and his outlook on markets

In an interview to CNBC-TV18's Latha Venkatesh and Sonia, Seth Freeman, CEO and Chief Investment Officer of EM Capital Management spoke about the global flows picture and his outlook on markets

Below is a verbatim transcript of the interview

Sonia: The markets have pretty much shrugged off the hawkish comments from the new Federal Reserve Chairman. Going ahead, do you expect this momentum to continue in the US markets?

A: I do expect it to continue until we get past the earnings announcements.

Latha: What is the sense you are getting about flows with respect to emerging markets? Developed markets have attracted most of the funds in the past several months. Do you think that trend to continue?

A: Yes, I think this momentum that we are seeing here in the US is positive for emerging markets.

Latha: At the moment, we have been seeing outflows from emerging markets. Do you expect that to plateau off and see some inflows?

A: Yes, we do. Although, the interest in EM debt is likely to continue, it will be more in income-related products more than necessarily equities.

16.02 | 0 komentar | Read More

Brent WTI may advance if US growth remains stable: Pro

In an interview with CNBC-TV18, David Lennox, Analyst at Fat Prophets feels that Brent coupled with WTI may inch higher if US growth remains stable.

He also believes that stabilization witnessed in the WTI after some volatility was due to the Chinese data.

Below is the verbatim transcript of the interview:

Q: What is the sense you are getting about gold, do you think this USD 1,350 per ounce has been conquered and it goes on to USD 1,400 per ounce from hereon?

A: Certainly we think that when the Crimean situation started escalating to dissension part of events, we did see gold prices being sold as a safe haven and that pushed the price of gold upwards. Unfortunately, we didn't see Janet Yellen come out and suggest that QE taperings would continue and then she also suggest that for some time in 2015, we would see interest rates rise in US. Unfortunately, that put a bit of a spiral under the gold price and we saw a drop back to now where it is trading around about the USD 1,330 per ounce level.

A speculate event has come out of the markets now and we think that gold will probably start to range trade somewhere between this USD 1,350 per ounce to USD 1,300 per ounce region before perhaps rallying into the end of the year up to USD 1,400 per ounce.

Q: What about crude because it has been a fourth weekly loss for Brent now and sitting at around USD 107 per barrel. Is it just a seasonal slump in demand that we are seeing or do you see some other triggers that could take Brent lower in the near-term?

A: Brent prices probably reacted fairly well to a lot of the news that we have seen circulating through the channels. We saw both Brent and crude come off when the Chinese export data came out and showed a significant drop a couple of weeks ago and that did spook the market about global growth and sent both the Brent and the WTI prices lower. Those prices have now stabilized somewhat. WTI especially, because we have seen crude inventories in the US rising.

In fact, when you have a look at what is happening in the wholesale area in the US, we are still seeing wholesale or the finished product in the US actually still been drawn down. So that has kept the WTI price from probably collecting to a lot lower levels and where it is at the moment.

Brent on the other hand, hasn't got that same picture. There is a little bit of pressure in Libya, we are not quite sure if they are exporting or they are not, so that is keeping that pressure on Brent price. Going forward, we will see both WTI and Brent if we are right with global growth starting to pick up and the US especially we could see that process start to rise a little towards the end of this year.

Also read:  Macro scenario in EMs not improving, may see outflows: Citi

16.02 | 0 komentar | Read More

Claris Life jumps 8% on shareholders' nod for buyback offer

Claris Lifesciences received approval from shareholders for buyback of up to 92.5 lakh shares (representing 15 percent of the paid up capital) at Rs 250 apiece.

Moneycontrol Bureau

Shares of  Claris Lifesciences rallied 8 percent intraday to Rs 195.05 after the the company received approval from shareholders for buyback of up to 92.5 lakh shares (representing 15 percent of the paid up capital) at Rs 250 apiece.

The healthcare company has fixed April 02 as the record date for purpose of determining entitlement and names of equity shareholders, to whom the letter of offer and tender form will be sent and who are eligible to participate in the buy back offer.

It aims to raise Rs 231.25 crore through this buy back offer.

"The buy back is proposed to be implemented by the company through tender offer process from equity shareholders on a proportionate basis," the company said in its filing.

Promoters Athanas Enterprises and Abellon Energy hold 49.49 percent and 10.73 percent stake in the company as of December 2013.

At 14:08 hours IST, the stock rose 2.02 percent to Rs 184 amid large volumes on the BSE.

Posted by Sunil Shankar Matkar

16.02 | 0 komentar | Read More

Go long in Havells, advises Aditya Agarwal

Aditya Agarwal of Way2Wealth recommends going long in Havells India as the stock may test Rs 890.

Aditya Agarwal of Way2Wealth told CNBC-TV18, " Havells India is almost trading at all time high levels. On Tuesday, it gave a breakout above its crucial resistance of Rs 850 and is trading above that only for last four trading sessions. We are expecting that the stock may see more rally from these levels and in next in one or two trading sessions the stock may test Rs 890."

"With a very short-term perspective one can make long position at current levels keeping a stoploss at Rs 852 and for today's perspective target will be Rs 890. If one can hold for 10-15 days then we are expecting targets of Rs 920-940 also," he said.

16.02 | 0 komentar | Read More

Kellton Tech Solutions' board meeting on March 28, 2014

Kellton Tech Solutions� board meeting will be held on March 28, 2014, to consider the matter of issue & allotment of equity warrants of the company on Preferential basis to Promoters and other investors and also as may be required, to fix up the date, time and venue of the Extraordinary General meeting of the members of the Company for this purpose

Kellton Tech Solutions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 28, 2014, inter alia, to consider the matter of issue and allotment of equity warrants of the company on Preferential basis to Promoters and other investors and also as may be required, to fix up the date, time and venue of the Extraordinary General meeting of the members of the Company for this purpose.Source : BSE

Read all announcements in Kellton Tech

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Grasim Industries may test Rs 2825: Kunal Bothra

Kunal Bothra of LKP is of the view that Grasim Industries may rally by Rs 70-80 and test Rs 2825.

Kunal Bothra of LKP told CNBC-TV18, " Grasim Industries has just come out of a consolidation range for the last 2-3 days and has come out of a rectangle pattern on the hourly chart trading just around Rs 2750 odd levels. So there could be at least Rs 70-80 odd rally on Grasim, stoploss could be extremely tight at Rs 2710 with target at Rs 2825."

At 14:14 hrs Grasim Industries was quoting at Rs 2,742.30, up Rs 19.30, or 0.71 percent. It has touched an intraday high of Rs 2,761.50 and an intraday low of Rs 2,728.

The share touched its 52-week high Rs 3,159 and 52-week low Rs 2,121 on 20 May, 2013 and 04 September, 2013, respectively. Currently, it is trading 13.19 percent below its 52-week high and 29.29 percent above its 52-week low. Market capitalisation stands at Rs 25,181.47 crore.

16.02 | 0 komentar | Read More

Great time to exit Polaris; buy TCS: Ambit Capital

Ankur Rudra of Ambit Capital recommends buying TCS, despite the management lowering its estimates on the revenues and margins.

Polaris  has been a very painful stock for investors and one should look at exiting the company at the current levels, says Ankur Rudra of Ambit Capital.

Speaking to CNBC-TV18's Reema Tendular and Anuj Singhal, Rudra says the market expects some value to be unlocked through its demerger plans , but that doesn't change the company's business reality.

"We are pessimistic on the company's services business. It hasn't grown much. Furthermore, its product business continues to be a challenge as it hasn't generated free cash flows yet," says Rudra, recommending a sell on the stock.

Additionally, Rudra recommends buying TCS , despite the management lowering its estimates on the revenues and margins.

 "We expect TCS to grow the most once recovery returns. It will also be benefited by growth in Europe. Besides, the revision is only for Q4 and the company is poised to do well in Q1. Q2 FY15," highlights Rudra.

16.02 | 0 komentar | Read More

Matru Smriti Traders' director Reshamsingh Pyarasingh Saini resigns

Matru Smriti Traders board has accepted the resignation of Mr. Reshamsingh Pyarasingh Saini as Director of the Company with immediate effect.

Matru Smriti Traders Ltd has informed BSE that the Board has accepted the resignation of Mr. Reshamsingh Pyarasingh Saini as Director of the Company with immediate effect.Source : BSE

Read all announcements in Matru-Smriti

16.02 | 0 komentar | Read More

Prefer SBI, says Dipen Shah

Dipen Shah, Senior VP & Head-PCG Research at Kotak Securities is of the view that one may prefer State Bank of India from the PSU banking space.

Dipen Shah, Senior VP & Head-PCG Research at Kotak Securities told CNBC-TV18, "We think that the stock price on PUS banks have moved up quite a bit whereas the fundamentals, we do not see too much of an improvement there. The rally has been once again on hope that the growth rates will improve and the NPAs will come off but as far as the PSU banks are concerned, we still see that the NPA levels are not yet reduced also the corporate sector, the credit growth is yet to pickup in a big way."

"On the other hand if we see that most of the banks will be in need of capital with a view to meet the Basel II norms and that will put some further pressure on the banks in terms of raising more capital, so these are some of the issues which we think will impact the performance of the PSU Banks going ahead and especially after the stocks have moved up quite a bit between 10-20 percent, we would rather wait and watch for some decline before accumulating these stocks," he added.

"Within that SBI looks to be the better pick largely because of the recognition of NPAs which has already happened, they have been pretty aggressive in recognising NPAs. So, within that space we will go with  SBI but otherwise we would rather prefer private sector banks to PSUs as of now."

16.02 | 0 komentar | Read More

Riba Textiles clarifies on increase in price

With reference to the increase in price, Riba Textiles has clarified that, the stock/share is a market driven instrument and we have absolutely no knowledge of its going up or down. We inform you that neither Directors/Promoters nor any other person acting in concert has purchased or sold any share in the last few months.

With reference to the Increase in Price, Riba Textiles Ltd has clarified to BSE as under:"The stock/share is a market driven instrument and we have absolutely no knowledge of its going up or down. We inform you that neither Directors/Promoters nor any other person acting in concert has purchased or sold any share In the last few months. We may further inform you that neither there is any event which has a bearing on the operation/ performance of the company nor we have intimated any information/announcement to this effect."Source : BSE

Read all announcements in Riba Textiles

16.02 | 0 komentar | Read More

Forex - Japanese yen weakens against dollar as Ukraine tension brews

Investing.com - Investing.com - The Japanese yen weakened against the dollar in Asian trade on Monday as Crimea's vote to break away from Ukraine and join Russia prompted President Barack Obama to warn that the United States and Europe are "prepared to impose additional costs" on Russia for its actions.

USD/JPY traded at 101.51, up 0.15%, while safe haven Swiss franc traded at 0.8730, up 0.09%, and EUR/USD traded at 1.3908, down 0.04%.

Last week, the yen rose against the dollar as safe haven demand was bolstered by fears over an economic slowdown in China and tensions over the crisis in Ukraine, ahead of the referendum in Crimea.

At the weekend, China widened the range in which the yuan can fluctuate against the U.S. dollar, signalling it could accept more volatility for the exchange rate and challenge the perception that the currency is a one-way bet.

Investor sentiment last week was hit as weak economic reports from China raised fresh concerns over the strength of the world's second-largest economy. On Thursday, Chinese Premier Li Keqiang warned that the economy faced "severe challenges" in 2014.

But the market focus is now on the result from the Crimea, where voters Sunday reportedly voted an overwhelming thumbs up, more than 90%, to break away from Ukraine and join Russia, according to Russian news outlets.

Obama spoke with Russia President Vladimir Putin again Sunday, the White House said in a statement, adding that a de-escalation of the crisis cannot take place while Russian troops remain on the peninsula.

At the end of last week, traditional safe haven Swiss franc was also stronger against the dollar, with USD/CHF down 0.26% to 0.8721 on Friday, not far from Thursday's low of 0.8698, the weakest level since October 2011.

The euro moved higher against the dollar on Friday, with EUR/USD up 0.33% to 1.3913 at the close, holding below Thursday's peaks of 1.3966, the strongest level since October 31, 2011.

The euro lost ground against the dollar and the yen on Thursday after European Central Bank President Mario Draghi said the strong euro was putting downward pressure on euro zone inflation.

In the week ahead, investors will be looking ahead to Wednesday's monetary policy announcement by the Federal Reserve. The central bank is also to publish its economic forecasts.

The euro zone is to produce the closely watched ZEW index of German economic sentiment, while the U.K. is to release data on employment.

Ahead of the coming week, Investing.com has compiled a list of these and other On Monday, the euro zone is to release data on consumer price inflation, which accounts for the majority of overall inflation.

Canada is to produce data on foreign investments.

The U.S. is to publish data on manufacturing activity in the Empire State, as well as reports on industrial production and long term securities transactions.

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16.03 | 0 komentar | Read More

Forex - China widens yuan trading band to 2% at weekend

Investing.com - Investing.com - China widened the range in which the yuan can fluctuate against the U.S. dollar at the weekend, signalling it could accept more volatility for the exchange rate and challenge the perception that the currency is a one-way bet.

The People's Bank of China said Saturday the yuan will be allowed to move 2% either side of the central parity against the dollar starting from Monday, doubling the previous 1% range.

China has pledged to make the yuan more flexible since 2005 when the currency was originally unshackled from its dollar peg and the country has a longer-term aim for a fully convertible yuan that was enshrined by the Communist Party at a meeting last November.

The government is committed to gradually dismantling China's capital account regime, but foreign exchange reserves are expected to rise sharply again this year, from $3.8 trillion to well over $4 trillion.

The weekend move was the third since July 2005 and follows a widening from 0.5% in April 2012.

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16.03 | 0 komentar | Read More

NYMEX crude oil prices up in Asia as Crimea annexation looks inevitable

Investing.com - Investing.com - Crude oil prices rose marginally in Asia on Monday as an annexation of the Crimean region looked inevitable after a vote on Sunday, promting President Barack Obama to warn Russia President Vladimir Putin again that the United States and Europe are "prepared to impose additional costs" on Russia for its actions.

On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at $98.68 a barrel, up 0.12%, after ending last week at $98.89 a barrel.

The U.S. and Europe have said they would impose economic and diplomatic sanctions on Russia, the world's top oil exporter, next week, if the vote took place. On Sunday reports said an overwhelming majority supported the referendum to join Russia with celebrations underway. Official results are due within the day.

Oil prices received an additional boost lst week after the International Energy Agency raised its forecast for global oil demand this year. The IEA increased its forecast by 95,000 barrels to 1.4 million a day, citing stronger economic growth.

Despite Friday's gains, U.S. crude futures, also known as West Texas Intermediate or WTI, fell 3.59%, or $3.69, on the week amid concerns over a slowdown in demand in the U.S. and China, the largest and second-largest oil consumers.

In the week ahead, investors will be looking ahead to Wednesday's monetary policy announcement by the Federal Reserve amid speculation the central bank is likely to continue to scale back its stimulus program.

The Fed is also to publish its economic forecasts and Fed Chair Janet Yellen will hold a press conference.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in New York-traded oil futures in the week ending March 11.

Net longs totaled 328,095 contracts, down 5.3% from net longs of 346,469 in the preceding week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for May delivery added 1.21%, or $1.29, on Friday to settle the week at $108.21 a barrel.

Despite Friday's gains, the May Brent contract declined 0.52%, or $0.57 cents, on the week. Meanwhile, the spread between the Brent and the WTI crude contracts stood at $9.32 a barrel by close of trade on Friday.

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Asian share markets slip as Ukraine tensions weigh on sentiment

Investing.com - Investing.com - Stocks in Japan and Hong Kong slipped on Monday as investors nervously awaited the West's response to Crimea's vote to break away from Ukraine and join Russia, which has drawn international condemnation.

Stock markets across Asia Pacific were mixed after the referendum Sunday in Crimea, the latest development in the volatile region, amid rising worries over another possible military incursion into Ukraine by Russia. Tensions there have weighed on global markets in recent weeks.

Japan's Nikkei lost 0.4%, while Australia's benchmark S&P ASX 200 shed 0.2% and South Korea's Kospi gained less than 0.2%. In China, the Hang Seng Index in Hong Kong lost 0.4% and the Shanghai Composite was flat.

However, business proceeded in the region with Taiwanese insurer and a Chinese private-equity firm pledging to buy a big portion of Chinese lender Harbin Bank's initial public offering, which is expected to raise around US$1 billion when it is launched Tuesday.

Fubon Life Insurance Co., an insurance unit of one of Taiwan's biggest financial firms by assets, Fubon Financial Holding Co., and Citic Capital Holdings Ltd. are among seven cornerstone investors, and have committed to buying a total of 43% of the institutional tranche of Harbin Bank's IPO, people familiar with the situation said Monday.

But the drops in Asia mirrored the mood on Wall Street Friday. At the close of U.S. trading last week, the Dow Jones Industrial Average fell 0.27%, the S&P 500 index fell 0.28%, while the Nasdaq Composite index fell 0.35%. European indices, meanwhile, finished largely lower.

After the close of European trade on Friday, the EURO STOXX 50 fell 0.53%, France's CAC 40 fell 0.80%, while Germany's DAX 30 rose 0.43%. Meanwhile, in the U.K. the FTSE 100 fell 0.40%.

Investors were also looking at China after the People's Bank of China said over the weekend that it has decided to widen the yuan's daily trading band, allowing it to move up or down by 2% from the daily rate set by the central bank.

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Dynamics of Indian indices: Motivators dampeners

Prashant Sharma
Max Life Insurance

India's equity markets have witnessed extreme volatility in the last six months. While flows and sentiments deteriorated during the first half of this fiscal, a slew of measures announced by RBI governor Dr. Raghuram Rajan, positive performance of China's economy and deferment of QE tapering by the US Fed raised investor sentiment in later months. However, the sharp market rally in a relatively short period of time is more based on sentiments and hope.

Domestic Dynamics
India is among the five largest economies on the basis of purchasing power parity. Its economy is much more integrated with the world economy than in the past and it is no longer possible to remain insulated from developments in the global market. Most countries – developed nations of Europe or emerging economies like China are facing slowdown in their economic growth rates. All these developments have adversely affected India too. Indian economic growth hit a low of 5% in the financial year ended March 31, 2013 and further slowed in the first quarter of FY14. Inspite of that, India has the highest growth rate after China among the large economies.

Key risks to India's economy are high inflation, high interest rates, and lower economic growth. Inflation is particularly high in agricultural commodities owing to factors such as structural changes, supply-side issues and higher aspirations.

Apart from agriculture, core inflationary levels are within the RBI's comfort zone and we expect the trajectory to move downwards in the short-term. A key positive in the second half of FY14 would be  pick-up in rural economy due to increased agricultural production aided by good monsoons which will also help in lowering agricultural inflation. With the rupee stabilizing and RBI's recent actions, India's macro-economic environment is showing some signs of recovery. In the immediate term, slowdown risks could come from the Government contracting spending to contain its fiscal deficit and a lack of pick up in Industrial and service sectors.

While the measures announced by the RBI are intended to achieve the dual objectives of economic growth and inflation control, it will take some time before we can see some tangible results.

External Cues
The Federal Reserve deferred QE tapering, which has caused a rally in risky assets including emerging markets equity. Flows from Foreign Institutional Investors (FIIs) have improved substantially following the deferment of tapering. FIIs have invested USD 2 billion each in September and October 2013. A large proportion of these flows are consequent to their increased allocations in emerging markets ETF investments.

Whenever the US Fed decides to taper, investors will be less worried about the consequences as India's foreign vulnerability has reduced since July 2013 as current account deficit (CAD) has significantly contracted and foreign exchange reserves have been boosted through FCNRB swaps and other instruments.

Future Upbeat
Long term prospects of Indian economy remain strong. Stock markets however are susceptible to volatility in the run-up to the general elections in May 2014. Although markets and investors are party-agnostic, a stable political landscape lends itself to optimal performance. If the upcoming elections are successful in achieving this objective, we can expect increased inflows from institutional investors, both foreign and domestic.

Economic activity is forecasted to pick-up in the second half of the financial year owing to better agricultural output. The macro-economic environment is recuperating against the backdrop of improved global cues. We see value in selective IT, infrastructure and media stocks and are underweight on FMCG stocks.

(Prashant Sharma is Chief Investment Officer Max Life Insurance; the views expressed by the author are his own and do not in any way reflect the views of the company)

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Finer points for deduction for specific medical expenses

The figure rises to Rs 60,000 if the person undergoing the treatment is a senior citizen and hence the changed figure would have to be considered. In the midst of all this there are several other points that need attention because of the fact that this is important to enable the benefit to be taken.

Arnav Pandya

There is a tax deduction that is available to an individual when they make an expense in respect of medical treatment for specified causes. The list for the various types of diseases is specified and if there is an amount spent here then a sum of Rs 40,000 or the actual amount that is spent whichever is lower would be allowed as a deduction. The figure rises to Rs 60,000 if the person undergoing the treatment is a senior citizen and hence the changed figure would have to be considered. In the midst of all this there are several other points that need attention because of the fact that this is important to enable the benefit to be taken.

Individual
When it comes to the question of the individual who can take the benefit under this specific section (Section 80DDB) then it has to be a resident individual. The main point here being that the conditions for being a resident have to be fulfilled. A non resident individual would thus not be able to get the deduction for the same expense that they would have made and hence this is something that has to be kept in mind by the person making the expense.

Actual expenditure
The second condition that comes along with the resident condition is that there has to be actual expenditure that has to be incurred on the treatment of specified diseases. The actual expenditure needs to have happened and just suffering from the specific disease is not enough to be able to get the benefit of the deduction. This is the reason why the benefit is restricted to the actual amount that has been spent or Rs 40,000 or Rs 60,000 as the case may be depending upon the person who is getting the treatment.

Persons covered
In terms of the people whose treatment would be covered this would cover the individual or wholly/mainly dependent husband or wife. Others who would also get the benefit include the children of the individual plus parents, brothers and sisters of the individual. Looking at this list it is quite clear that the scope of coverage is quite wide as there are several people who would be included in the whole list and hence claiming the benefit for any of them would be possible.

Insurance
There can also be a condition wherein after the treatment is taken by the individual there is an insurance claim that is possible and this is made for the treatment. If this is the case then the deduction would have to be reduced by the amount received from the insurance company. Even if the amount is received from the employer then the amount would have to be reduced. This quite clearly states that any recovery would go on to reduce the deduction and hence the total transaction has to be considered.

Other conditions
There are also some other related conditions that need to be kept in mind by the individual while they are making the claim. The first thing is that there has to be a certificate in the prescribed form that needs to be obtained. This would have to be done from a specified doctor who is a specialist in the area where the expense is being allowed so this also needs to be undertaken. At the same time this has to be from a doctor working in a government hospital. The term here is working and not an employee and hence the term is quite wide in the context of its implementation and understanding which the individual needs to keep in mind.

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How the week was for commodity markets?

Later in the week, Fed will further taper USD 10 billion from its stimulus and likely offer fresh guidance on when it may raise interest rates. Gold prices could jump higher and cross the USD 1400 level if risk aversion continues and we would advise against searching for selling opportunities.

Navneet Damani
Motilal Oswal

Precious metals continued their spectacular run last week as persistent worries about the situation in Ukraine and worries about corporate defaults in China pushed prices higher. Gold is now near its six month highs and is up more than 14% so far this year. Also a wave of risk aversion globally pushed safe haven assets like the yen and gold higher and pulled equities lower. Next week is going to be very eventful for precious metals as investors will focus on Ukraine and the FOMC. A vote is planned for Sunday on whether Ukraine's Crimea should join Russia. Russia has shipped more troops into Crimea and if the situation worsens, it is likely lead to big spikes in gold and silver. Later in the week, Fed will further taper USD 10 billion from its stimulus and  likely offer fresh guidance on when it may raise interest rates. Gold prices could jump higher and cross the USD 1400 level if risk aversion continues and we would advise against searching for selling opportunities. 

Crude oil prices declined sharply last week as supply side factors started to weigh on prices and growth concerns from China further added to the selling pressure. Additionally a test sale of 5 million barrels from the U.S Strategic Petroleum Reserve triggered a sharp selloff in crude oil prices. Crude oil inventories also rose sharply last week adding to supply side pressure even as the OPEC and IEA raised their demand forecasts for this year. Natural gas prices meanwhile declined almost 4% last week on reports of moderating weather and a sharp fall in consumption. The markets will keenly eye the developments in Ukraine over the weekend and any uptick in geopolitical risks could potentially trigger a rally in oil prices as well. Surprisingly, the oil markets have still not reacted to the Russia-Ukraine concerns but there is a risk of this happening if the conflict results in sanctions related to oil and gas from Russia. 

Last week was a mournful one for copper bulls, as copper prices tumbled down to touch a four-year low of USD 6376 levels. What was sparked by China's first bond default is likely to deteriorate further once the butterfly effect of the first default starts to manifest in the markets. The economic numbers from China last week did not offer reprieve either, nor did data from the US. In other metals, aluminum continues to be well supported with the dollar strength and consumer buying. Nickel was again the standout performer last week as all other base metal prices fell but nickel climbed. The Indonesian ban on exports of unprocessed ores has coincided with a rise in demand from stainless steel manufacturers as melt rates improve. In the week ahead, markets will majorly concentrate on the FOMC meeting which will likely see another cut in the monthly-stimulus funded by the US Central bank. Until there is more clarity on Russia-Ukraine, geopolitical concerns will continue to be a headline risk for all industrial metals. Concerns over China's credit risk will continue to be under focus next week, until there is some assurity given by the Chinese government which seems unlikely after the first default. On the price front, we expect copper prices to see some relief rally before some the next round of selling begins. We expect 395 to act as a strong support on the downside, whereas pullback could extend towards 412-415 in coming days.

Oilseeds markets shown divergent trend. Soybean futures recovered on bargain hunting and tightness in physical market. Delivery period is going on and front month March contract is traded in premium and further tightness is expected. Seed quality beans are in extreme scare supply. Seed quality beans are quoted at Rs 4450 for Tikamagadh. April Soybean may face resistance at 4280-4330 while 4170 is strong support. Bias is mild positive. RM seed edged lower as arrivals increased. If temperature rises above 35 degree and stay above 30, arrivals may rise. Crop damage story is now losing momentum subject to no further hailstorms. Soy oil ruled choppy and random. We prefer to stay sideline for a while.

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India welcomes the spring festival with rising temperatures

Holi is the most vibrant of all the festivals celebrated in India. Filled with fun and frolic, the joy of this Hindu festival of colour knows no bound. Holi marks the beginning of the spring season and is famous as Basant Utsav in rural India. Winter has receded from most parts of the country and with temperatures soaring, it wouldn`t be cruel to get your loved ones soaked in a pool of coloured water. The weather will remain dry and thus, not dampen the spirits of people.

The spirit of Holi is remarkable across the country and brings an essence of enthusiasm among people of all ages. Let's find out how this festival is celebrated in different parts of the country and the weather in India during Holi.

Celebrations in Delhi

Dilwalon ki Dilli rules the roost when it comes to Holi. It is a boisterous affair in the national capital and be prepared to get hit by few water balloons even few days before Holi. It's worth going for the Holi Cow festival held in periphery of Delhi. It's special because only non-toxic colours are provided in this festival. This year the organisers promise a bigger, better and louder party with exciting disc jockeys, lots of food and maybe evenbhang.

According to the latest weather update by Skymet Meteorology Division in India, winter has receded here as well and you could expect the day temperature to reach 32°C on the 17th of March. We cannot rule out the possibility of someisolated rain but only towards late evening.

Celebrations in Goa

The lively people of Goa do not lag behind in celebrating the spring festival called Shigmo. The festival is celebrated with vibrant colours of gulal and followed by epic enactment of mythology. The Shigmotsav Samiti also parades and the various temples also engage in preparations for more than a week for Holi celebrations.

It's worth visiting Panaji, Mapusa, Vasco Da Gama and Margao during this time if the soaring temperatures with maximums hovering around 37°C, is not a cause of concern for you.

Celebrations in Kolkata

This festival has a different charm in West Bengal. Nobel Laureate Rabindranath Tagore started the celebration of Basanta Utsav in the Vishva Bharati University of Shantiniketan. This Small town near Bolpur is approximately 180 kilometres north of Kolkata. Students here organise cultural programs and it is a treat to watch them perform Rabindra Nitya on his songs. It is followed by playing with abeer. Rain is not likely in this part of the country during this annual function.

picture courtesy- festivals advices

By: Skymetweather.com

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Unfazed Kejriwal fires yet another salvo at media

Speaking to reporters before launching his roadshow in Bangalore, he accused the media of not bringing out the "truth" about the Gujarat Chief Minister before the people. "Will the media have the courage to show Gujarat's true story to the people of the country? There is a big question mark," said Kejriwal.

Unfazed by the criticism of his attack on media, Aam Aadmi Party leader Arvind Kejriwal today fired yet another salvo, questioning whether the media had the courage to show the "true story" about Narendra Modi's Gujarat.

Speaking to reporters before launching his roadshow in Bangalore, he accused the media of not bringing out the "truth" about the Gujarat Chief Minister before the people. "Will the media have the courage to show Gujarat's true story to the people of the country? There is a big question mark," said Kejriwal whose comments against the media have brought him in the line of fire from media and political parties alike.

Kejriwal had sparked a controversy with his remarks that the whole media is "sold out" and media people would be sent to jail after an inquiry into the issue if AAP comes to power were aired. During the two-day tour, Kejriwal is also attending a Rs 20,000 per person dinner to raise funds for AAP. He will hold a roadshow in Chikkaballapur tomorrow before concluding the visit with a rally in Bangalore.

Charging the BJP's prime ministerial candidate with "cheating" people during his rallies, he said "that is what the people are saying. So far, the media has not brought out the truth about Modi before the people."

Asked about the evidence to back his allegations about Modi, he said, the condition of farmers was "pathetic" as their land had been snatched. "There is a publicity going around that Modiji is a saviour of farmers. No Modiji is not the saviour. The country's farmers have been told a lie."

"If the farmers come to know of it, none of them will vote for Modi. I am not generalising. I have seen it myself in Gujarat. Therefore, I ask the media to show the truth." Kejriwal said the media should show the "real conditions" prevailing in Gujarat. "They should show the rule of corruption and bribe in Gujarat. Before Delhi (Assembly) elections, the media had done a sting operation against us.

Did we say anything. Modiji is telling big lies to the nation which is a very big conspiracy." Asked to name the channels which he had alleged were being paid for Modi's coverage, he refused to answer.

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Maize is cultivated inIndiain both summer and winter, but most of the output comes from the summer crop

Maize is cultivated inIndiain both summer and winter, but most of the output comes from the summer crop. Rains and hailstorm are likely to push back the suppli ...

Maize is cultivated inIndiain both summer and winter, but most of the output comes from the summer crop. Rains and hailstorm are likely to push back the supplies from the winter-sown maize crop, and may also hit the quality. Maize futures rose, as rains and unfavourable weather in many parts of the country are expected to delay arrivals.By: Skymetweather.com

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Maruti’s Investors: Legal Options?

Published on Sat, Mar 15,2014 | 14:09, Updated at Sat, Mar 15 at 14:09Source : CNBC-TV18 |   Watch Video :

It all started in January when Maruti announced that instead of it building a manufacturing facility in Gujarat, it will sell the land to a 100% subsidiary of parent Suzuki. The Suzuki Gujarat plant will supply Maruti cars at cost of production plus cash adequate to cover incremental capital expenditure. A group of institutional investors opposed the plan calling it unfair to Maruti. Their concern is that this arrangement will shift value from Maruti to the Suzuki Gujarat subsidiary and that Maruti would indirectly be paying for subsequent expansion of the plant. They asked for more information but Maruti has failed in quelling their concerns. Last week more investors joined the battle.

MARUTI'S GUJARAT MODEL!
Jan 28th, 2014

Maruti says
Suzuki to build Gujarat plant via 100% subsidiary
Suzuki Gujarat will supply cars to Maruti
Maruti will pay only cost of production + cash to cover incremental capital expenditure

MARUTI'S GUJARAT MODEL!
Feb 13th, 2014

'Moving this critical and highly profitable project into a 100% subsidiary of Suzuki instead of Maruti is neither fair nor in the interest of Maruti and its shareholders and will lead to significant erosion of value for Maruti and its shareholders'
-          Group of 7 Mutual Fund Managers

MARUTI'S GUJARAT MODEL!
Feb 26th, 2014

Maruti says
Capex needs of the Gujarat Sub would be met by
i) the depreciation amount available with the Sub
ii) by an amount generated as net surplus from the car pricing 
iii) by Suzuki infusing fresh equity

MARUTI'S GUJARAT MODEL!
March 5th, 2014

'The decision of the Maruti Board is ill-conceived in its entirety…'
'Intriguing that….Maruti's directors have chosen to lend themselves to such a blatantly wrong and value eroding, oppressive transaction…'
'Suzuki had tried this very contrivance in 2004…'
-          Group of 16 Insurance & MF Fund Managers

In a rare show of strength 16 institutional investors have taken on the Maruti management - they are fighting against what they call a 'value eroding oppressive transaction' which is 'ill-conceived' 'blatantly wrong' and a 'contrivance'. Will letter writing be enough? Well the Maruti management shows no signs of capitulation. Then what legal action can Maruti's investors take? To discuss that I am joined by Anil Singhvi, Founder, IiAS; Anand Desai of DSK Legal; Mohit Saraf of Luthra & Luthra; and Virendra Jain of Midas Touch Investor Forum.

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Maruti blinks: Not to fund Suzuki Gujarat plant

After the Suzuki plant issue was discussed at its board meeting, Maruti Suzuki has decided it would not just tweak the most contentious points -- of funding incremental capex of the plant and transfering the plant to Maruti in case of the deal's expiry -- but also seek approval of minority shareholders.

Under fire for its plan to have parent company Suzuki Motor set up a manufacturing plant in Gujarat, Indian automaker  Maruti Suzuki has agreed to tweak key terms of the proposed deal that would likely make it tenable to opposing institutional investors.

After the issue was discussed at the board meeting that was attended by Suzuki chairman Osamu Suzuki, the carmaker has decided it would not just tweak the most contentious points -- of funding incremental capex of the Suzuki plant and transfering the plant to Maruti in case of the deal's expiry – but also, "as a measure of good corporate governance", seek approval of minority shareholders.

In January, Maruti had announced a deal in which a 100 percent subsidiary of Suzuki would set up a manufacturing plant on land owned by Maruti and which the latter intended to develop. The plant would manufacture cars for the Indian carmaker and as per its requirements.

But the terms of the deal said that Suzuki would infuse only the initially Rs 3,000 crore equity required while further expansion would be funded through an "incremental capex cost" Maruti would pay as an additional markup cost for vehicles produced -- over and above the cost of production.

The deal met with intense hostility from top mutual fund managers in the country, who together hold about 5.5 percent stake in the company and who said that the deal was "value erosive" for Maruti and was unnecessary since the company had the means to build the plant itself.

Maruti has now decided that the cost of capex would be funded by the plant's depreciation and only by further equity infusion by Suzuki itself, chairman RC Bhargava said.

The Indian carmaker would now essentially buy vehicles from the Gujarat plant only at manufacturing cost.

The backtracking in the company's stance -- which had earlier expressed its intention to go ahead even in the face of stringent opposition from investors -- would be seen as major win for institutional investors in the country, who went up in arms in a rare show of united strength on a corporate-governance issue.

Maruti also agreed to tweak the clause of the transfer of the plant in case the manufacturing agreement was not to be renewed at the end of its 15-year stint. Now, the plant would be transferred at a book value rather than "fair value" as was decided earlier.

The company will also seek approval from minority shareholders, three-fourth of whom will have to give their assent via a postal ballot, for the deal to go ahead.

The construction of the plan, which is slated to manufacture 1.5 million vehicles per year when complete in in 2017-2018, is expected to start this year itself, Bhargava said, who added that the plant will operate at a "no-profit-no-loss" basis and profits for Suzuki would be routed through its 56 percent stake in Maruti.

Maruti Suzuki stock price

On March 14, 2014, Maruti Suzuki India closed at Rs 1737.10, down Rs 9.6, or 0.55 percent. The 52-week high of the share was Rs 1864.00 and the 52-week low was Rs 1217.00.

The company's trailing 12-month (TTM) EPS was at Rs 106.68 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 16.28. The latest book value of the company is Rs 615.03 per share. At current value, the price-to-book value of the company is 2.82.

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