TATA MOTORS
HDFC
About Me
- Jagruti Fadia
- Mumbai, Maharashtra, India
- Besides being a CHARTERED ACCOUNTANT from Institute of Chartered Accountants of India,SAP certified consultant(FICO) and A Director in an advertising Company,I am a BSE certified stock analyst(technical) and I trade regularly on Bombay stock exchange.Do you like to have some free reliable stock trading tips ??? Visit my blog daily and follow my research.
Friday, July 31, 2009
GOOD MORNING
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GOOD MORNING.
GLOBAL CUES ARE POSITIVE TODAY BUT OUR MARKET DOES NOT SHOW GREAT STRENGTH. LET US ANALYSE OUR OTHER INDICES TODAY. ACCORDINGLY, INFRA LOOKS VERY WEAK AND BANKING VERY STRONG. CAPITAL GOODS, CONSUMER DURABLES WEAK. FMCG , METAL , REALTY, SMALL CAP AND HEALTHCARE WEAK TOO. IT AND OIL AND GAS WILL EMERGE TO BE GOOD.
HENCE, BASED ON THE ABOVE, ONE CAN GO LONG IN INDIAN OIL, ICICI,SBI, HDFC, TCS, WIPRO, MPHASIS ETC. ALSO REMEMBER THAT IT IS FIRST DAY OF THE NEW SERIES AND IT IS FRIDAY , THE LAST TRADING DAY OF THE WEAK,WHERE CHANCE IS THAT POSITIONS WILL BE CLOSED AT THE END OF THE DAY.
HAVE A NICE TRADING DAY,
JAGRUTI.
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Thursday, July 30, 2009
GOOD MORNING
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MARKET VERY VOLATILE BEING LAST DAY OF F N O EXPIRY.
INTRA DAY TRADERS STAY AWAY, POSITIONAL TRADERS BUY ON DIPS.
HAVE A NICE DAY,
JAGRUTI.
Wednesday, July 29, 2009
Sensex
India's Sensex Stock Index Declines, Led by Tata Motors, DLF
July 29 (Bloomberg) -- Indian stocks fell for a third day, led by Tata Motors Ltd. and DLF Ltd. after investors judged recent gains excessive.
Tata Motors, India's biggest truckmaker and owner of Jaguar Land Rover Ltd., sank 5.3 percent, paring its year-to-date gain to 146 percent. DLF Ltd., the biggest real estate developer, slumped, lowering this month's advance to 28 percent. Tata Steel Ltd. sank 6.5 percent after it reported a worse-than-expected 47 percent drop in first-quarter profit.
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 200.64, or 1.3 percent, to 15,131.30, according to preliminary closing prices. The gauge changed direction at least six times. The S&P CNX Nifty Index on the National Stock Exchange lost 1.4 percent to 4,500.20. The BSE 200 Index retreated 1.4 percent to 1,856.63.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
July 29 (Bloomberg) -- Indian stocks fell for a third day, led by Tata Motors Ltd. and DLF Ltd. after investors judged recent gains excessive.
Tata Motors, India's biggest truckmaker and owner of Jaguar Land Rover Ltd., sank 5.3 percent, paring its year-to-date gain to 146 percent. DLF Ltd., the biggest real estate developer, slumped, lowering this month's advance to 28 percent. Tata Steel Ltd. sank 6.5 percent after it reported a worse-than-expected 47 percent drop in first-quarter profit.
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 200.64, or 1.3 percent, to 15,131.30, according to preliminary closing prices. The gauge changed direction at least six times. The S&P CNX Nifty Index on the National Stock Exchange lost 1.4 percent to 4,500.20. The BSE 200 Index retreated 1.4 percent to 1,856.63.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
GOOD NIGHT
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HELLO,
WE HAD A NERVE CRACKING AND A VERY VOLATILE SESSION TODAY. MARKET SLIPPED TODAY AND IT WILL BE DRAGED TO 14000 AND THEN IF NOT SUPPORTED 13500. TOMORROW IS THE EXPIRY OF F N O JULY SERIES. MARKET WITNESSED SELL OFF IN MID TIME DUE TO SELL OFF IN CHINESES MARKET. THEN , SHORT COVERING GAVE LITTLE UPLIFT BUT TREND IS DOWNWARD TILL THE SUPPORT COMES. BUYING IN THE SHARES WHICH LOST HEAVILY AND SHARPLY CAN BE CONSIDERED, AS GENERAL BUYING TIME IS YET AWAY. ONE NEEDS TO BE STOCK SPECIFIC OR SHORT SELL NIFTY.
TOMORROW'S BUYS:
BAJAJ HINDUSTAN
MPHASIS
GAMMON INDIA
GOOD NIGHT AND SEE YOU TOMORROW ON MARKET OPENING,
JAGRUTI.
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Good morning.
Global cues are not very positive. Market may open little gap down and intermittant down trade is visible. Psychological level of 15600 on index and 4600 on nifty is very strong and hard to break, is my observation. One needs to be stock specific and little cautious till Friday. Lets meet on market opening and find out today's picks,
Have a nice day,
Jagruti.
Sensex Stock Index Target
Sensex Target Raised to 17,000, Credit Suisse Says
July 29 (Bloomberg) -- India's Bombay Stock Exchange Sensitive Index may rise to 17,000 by the middle of 2010, helped by the availability of capital, Credit Suisse Group AG said.
The target is higher than the brokerage's earlier forecast of 13,500, analysts Nilesh Jasani and Arya Sen said in a report. Still, they don't rule out a decline of 15 percent to 20 percent at the end of 2009 should the central bank tighten its monetary policy, before the index rebounds, the report added.
The Sensex yesterday slipped 0.3 percent to 15,331.94, trimming its rally this year to 59 percent. India is the world's fifth-best performer, helped by optimism that the election victory of the ruling Congress Party will allow Prime Minister Manmohan Singh to introduce reforms to stimulate economic growth.
"As the market turns more positive on future and return- on-equity projections are ratcheted up, we think earnings per share forecasts for fiscal 2011 could be raised by over 15 percent compared with the levels now," the analysts wrote. "At Sensex level of 17,000, the market may not appear as expensive one year hence."
Credit Suisse is raising its target for the Sensex following an upgrade to its estimates for regional stocks. The MSCI Asia excluding Japan Index may rise to 500 by July 2010 as earnings per share jump 30 percent next year, Credit Suisse strategist Sakthi Siva wrote in a July 27 research note.
The brokerage's Sensex forecast is lower than an April 2010 target of 18,000 set by Macquarie Group Ltd. earlier this month. Nomura Holdings Inc. estimated on June 26 that the Sensex will rise to 16,400 in the next 12 months.
Return on Equity
The "low cost of risk capital" should help Indian companies boost their return on equity to 21 percent in the fiscal year ending March 2011, compared with 18.5 percent currently, the Credit Suisse analysts said.
The Reserve Bank of India yesterday kept borrowing costs unchanged, signaling an end to its deepest round of interest- rate cuts on concern that inflation will "creep up" from October. The central bank raised its inflation forecast for the year to March 31 to around 5 percent from an April estimate of 4 percent and said it may soon need to "reverse" the loose monetary policy of the past ten months.
India's stocks may fall "only for a few months and rise again to higher levels as long as growth hopes are not shattered" in the event of a tightening in monetary policy, increase in interest rates, "reform disappointments or primary market equity issuance pressures or occasional regional and global market corrections or fiscal deficit worries," the analysts wrote.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
July 29 (Bloomberg) -- India's Bombay Stock Exchange Sensitive Index may rise to 17,000 by the middle of 2010, helped by the availability of capital, Credit Suisse Group AG said.
The target is higher than the brokerage's earlier forecast of 13,500, analysts Nilesh Jasani and Arya Sen said in a report. Still, they don't rule out a decline of 15 percent to 20 percent at the end of 2009 should the central bank tighten its monetary policy, before the index rebounds, the report added.
The Sensex yesterday slipped 0.3 percent to 15,331.94, trimming its rally this year to 59 percent. India is the world's fifth-best performer, helped by optimism that the election victory of the ruling Congress Party will allow Prime Minister Manmohan Singh to introduce reforms to stimulate economic growth.
"As the market turns more positive on future and return- on-equity projections are ratcheted up, we think earnings per share forecasts for fiscal 2011 could be raised by over 15 percent compared with the levels now," the analysts wrote. "At Sensex level of 17,000, the market may not appear as expensive one year hence."
Credit Suisse is raising its target for the Sensex following an upgrade to its estimates for regional stocks. The MSCI Asia excluding Japan Index may rise to 500 by July 2010 as earnings per share jump 30 percent next year, Credit Suisse strategist Sakthi Siva wrote in a July 27 research note.
The brokerage's Sensex forecast is lower than an April 2010 target of 18,000 set by Macquarie Group Ltd. earlier this month. Nomura Holdings Inc. estimated on June 26 that the Sensex will rise to 16,400 in the next 12 months.
Return on Equity
The "low cost of risk capital" should help Indian companies boost their return on equity to 21 percent in the fiscal year ending March 2011, compared with 18.5 percent currently, the Credit Suisse analysts said.
The Reserve Bank of India yesterday kept borrowing costs unchanged, signaling an end to its deepest round of interest- rate cuts on concern that inflation will "creep up" from October. The central bank raised its inflation forecast for the year to March 31 to around 5 percent from an April estimate of 4 percent and said it may soon need to "reverse" the loose monetary policy of the past ten months.
India's stocks may fall "only for a few months and rise again to higher levels as long as growth hopes are not shattered" in the event of a tightening in monetary policy, increase in interest rates, "reform disappointments or primary market equity issuance pressures or occasional regional and global market corrections or fiscal deficit worries," the analysts wrote.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
Tuesday, July 28, 2009
India's Interest Rates Unchanged
India Leaves Rates Unchanged on Inflation Concerns
July 28 (Bloomberg) -- India's central bank kept borrowing costs unchanged, signaling an end to its deepest round of interest-rate cuts on concern that inflation will "creep up" from October.
The Reserve Bank of India held its reverse repurchase rate at 3.25 percent, according to a statement in Mumbai today. The central bank raised its inflation forecast for the year to March 31 to around 5 percent from an April estimate of 4 percent and said it may soon need to "reverse" the loose monetary policy of the past ten months.
Inflation risks increased after Finance Minister Pranab Mukherjee this month unveiled plans to raise spending and widen the budget deficit to a 16-year high to bolster growth. Policy makers from Tokyo to London, who in some cases cut interest rates to close to zero, have started to discuss when they will exit from the emergency measures employed to ease a global credit freeze.
"Central banks need to put in place now a timely, smooth and systematic exit from the monetary easing," said Siddhartha Sanyal, an economist at Edelweiss Capital Ltd. in Mumbai. "For India, it would be difficult to continue pursuing the current low-rate regime beyond six to nine months."
Governor Duvvuri Subbarao said the central bank will maintain an "accommodative monetary stance" until there are "definite and robust" signs of recovery.
Policy Reversal
"This accommodative monetary stance is, however, not the steady state stance," he said in today's statement. "On the way forward, the Reserve Bank will have to reverse the expansionary measures to subdue inflationary pressures while preserving the growth momentum."
Stocks narrowed losses after the central bank decision, which was expected by 20 of 23 economists in a Bloomberg News survey. The Sensitive stock index fell 0.4 percent to 15,312.63 on the Bombay Stock Exchange at 11:20 a.m. The benchmark 10-year government bond yields rose 1 basis point to 6.96 percent while the rupee was little changed at 48.225 against the dollar.
India, which releases final inflation numbers after a two- month lag, raised its estimate for the benchmark wholesale price index in the week ended May 16 to 1.65 percent from 0.61 percent, indicating that price gains are gathering pace.
Consumer price indexes that measure the cost of living for industrial and farm workers were running at between 7 percent and 10 percent in May, driven by high food costs.
'Danger Zone'
"The continuation of the monetary-fiscal stimuli is now hitting the danger zone," S. S. Tarapore, a former deputy governor of the central bank, said in Mumbai on July 16. "Given the budget is strongly expansionary, the RBI has little option but to gradually withdraw the monetary accommodation."
Mukherjee on July 6 announced plans to borrow a record 4.51 trillion rupees ($94 billion) to fund spending on roads, power and aid for the poor. The budget shortfall is forecast at 6.8 percent of GDP in the year to March 2010.
The central bank today estimated policy measures since September including lower interest rates and a reduced cash reserve ratio were worth 6 trillion rupees. It said a prolonged budget deficit can "crowd out" private investments and trigger inflation, and urged the government to lay out a roadmap to trim the budget shortfall, including details on revenue and expenditure targets.
Growth Forecast
The "immediate challenge" before the central bank is to provide ample cash in the banking system for companies and government borrowings to support growth, while at the same time control the "potential build-up of inflationary pressures on the way forward," Subbarao said in today's statement.
Inflation is showing signs of picking up elsewhere, with China's central bank today forecasting price gains to rebound in the second half of the year. The Organization for Economic Cooperation and Development expects U.K. inflation will be the highest among Group of Seven nations next year.
Subbarao today also raised the central bank's growth forecast for India in the year to March 2010 to 6 percent "with an upward bias" from the 6 percent estimated in April because of favorable funding conditions for companies and a revival in industrial production.
He said an "uptrend in growth momentum" is unlikely before September and that less-than-adequate monsoonal rainfall could reduce farm output. The rains, which start in June and last until September, were 17 percent deficient as of July 24.
India's $1.2 trillion economy, Asia's third largest, expanded 6.7 percent in the year ended March 31, the weakest pace since 2003.
Reliance Industries Ltd., India's most valuable company, on July 24 reported an 11 percent fall in net income in the three months to June 30 as the global recession curbed fuel demand.
Subbarao also backed Mukherjee's goal to boost growth to a 9 percent pace each year and sustain that momentum to cut poverty in the South Asian nation.
"The clear message seems to be that growth will be the main priority," said Finance Secretary Ashok Chawla. "But they're also going to watch how inflation plays out."
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
July 28 (Bloomberg) -- India's central bank kept borrowing costs unchanged, signaling an end to its deepest round of interest-rate cuts on concern that inflation will "creep up" from October.
The Reserve Bank of India held its reverse repurchase rate at 3.25 percent, according to a statement in Mumbai today. The central bank raised its inflation forecast for the year to March 31 to around 5 percent from an April estimate of 4 percent and said it may soon need to "reverse" the loose monetary policy of the past ten months.
Inflation risks increased after Finance Minister Pranab Mukherjee this month unveiled plans to raise spending and widen the budget deficit to a 16-year high to bolster growth. Policy makers from Tokyo to London, who in some cases cut interest rates to close to zero, have started to discuss when they will exit from the emergency measures employed to ease a global credit freeze.
"Central banks need to put in place now a timely, smooth and systematic exit from the monetary easing," said Siddhartha Sanyal, an economist at Edelweiss Capital Ltd. in Mumbai. "For India, it would be difficult to continue pursuing the current low-rate regime beyond six to nine months."
Governor Duvvuri Subbarao said the central bank will maintain an "accommodative monetary stance" until there are "definite and robust" signs of recovery.
Policy Reversal
"This accommodative monetary stance is, however, not the steady state stance," he said in today's statement. "On the way forward, the Reserve Bank will have to reverse the expansionary measures to subdue inflationary pressures while preserving the growth momentum."
Stocks narrowed losses after the central bank decision, which was expected by 20 of 23 economists in a Bloomberg News survey. The Sensitive stock index fell 0.4 percent to 15,312.63 on the Bombay Stock Exchange at 11:20 a.m. The benchmark 10-year government bond yields rose 1 basis point to 6.96 percent while the rupee was little changed at 48.225 against the dollar.
India, which releases final inflation numbers after a two- month lag, raised its estimate for the benchmark wholesale price index in the week ended May 16 to 1.65 percent from 0.61 percent, indicating that price gains are gathering pace.
Consumer price indexes that measure the cost of living for industrial and farm workers were running at between 7 percent and 10 percent in May, driven by high food costs.
'Danger Zone'
"The continuation of the monetary-fiscal stimuli is now hitting the danger zone," S. S. Tarapore, a former deputy governor of the central bank, said in Mumbai on July 16. "Given the budget is strongly expansionary, the RBI has little option but to gradually withdraw the monetary accommodation."
Mukherjee on July 6 announced plans to borrow a record 4.51 trillion rupees ($94 billion) to fund spending on roads, power and aid for the poor. The budget shortfall is forecast at 6.8 percent of GDP in the year to March 2010.
The central bank today estimated policy measures since September including lower interest rates and a reduced cash reserve ratio were worth 6 trillion rupees. It said a prolonged budget deficit can "crowd out" private investments and trigger inflation, and urged the government to lay out a roadmap to trim the budget shortfall, including details on revenue and expenditure targets.
Growth Forecast
The "immediate challenge" before the central bank is to provide ample cash in the banking system for companies and government borrowings to support growth, while at the same time control the "potential build-up of inflationary pressures on the way forward," Subbarao said in today's statement.
Inflation is showing signs of picking up elsewhere, with China's central bank today forecasting price gains to rebound in the second half of the year. The Organization for Economic Cooperation and Development expects U.K. inflation will be the highest among Group of Seven nations next year.
Subbarao today also raised the central bank's growth forecast for India in the year to March 2010 to 6 percent "with an upward bias" from the 6 percent estimated in April because of favorable funding conditions for companies and a revival in industrial production.
He said an "uptrend in growth momentum" is unlikely before September and that less-than-adequate monsoonal rainfall could reduce farm output. The rains, which start in June and last until September, were 17 percent deficient as of July 24.
India's $1.2 trillion economy, Asia's third largest, expanded 6.7 percent in the year ended March 31, the weakest pace since 2003.
Reliance Industries Ltd., India's most valuable company, on July 24 reported an 11 percent fall in net income in the three months to June 30 as the global recession curbed fuel demand.
Subbarao also backed Mukherjee's goal to boost growth to a 9 percent pace each year and sustain that momentum to cut poverty in the South Asian nation.
"The clear message seems to be that growth will be the main priority," said Finance Secretary Ashok Chawla. "But they're also going to watch how inflation plays out."
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
BE CAUTIOUS
BOOK IF YOU HAVE SUBSTANTIALPROFITS ON LONGS
MARKET WILL SLIP OFF AFTER CREDIT POLICY IT SEEMS.
MARKET WILL SLIP OFF AFTER CREDIT POLICY IT SEEMS.
Global markets
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Dow(C):9108(+0.1%)
Nasdaq(C):1967(+0.1%)
Nikkei:10116(+0.2%)
HangSang: 20247(-0.02%)
SGXNifty:4585(+0.1%)
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Good Morning
Image via Wikipedia
How are you all doing with the blog? Your comments about posts give me sense of appreciation and I sincerely thank my readers for the same .
Today, at 11;00am the credit policy will be announced. Market does not look bad and global cues are not negative too. Market will rise , but 15600 is the strong resistance as I have kept on saying all the time. Sensex daily chart may complete inverted head and shoulder and may give lift the market, but all ifs and buts...We have to wait for F n O expiry on thursday and then look for the next month's trend.
More on market opening,
Have a great day, friends,
Jagruti.
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India Central Bank
India May Signal End to Sharpest Round of Rate Cuts
July 28 (Bloomberg) -- India's central bank may signal that its sharpest round of interest-rate cuts has come to an end by keeping borrowing costs unchanged at a meeting today.
The Reserve Bank of India will hold its reverse repurchase rate at 3.25 percent, according to 20 of 23 economists in a Bloomberg News survey. The central bank, which cut borrowing costs six times between October and its last quarterly meeting in April, will release its decision at 11:15 a.m. in Mumbai.
Governor Duvvuri Subbarao is preparing the ground to gradually tighten monetary policy as consumer demand and investments revive. Inflation risks have increased after Finance Minister Pranab Mukherjee this month announced plans to raise spending and widen the budget deficit to a 16-year high to shield India from the worst global recession since World War II.
"We see monetary policy moving to a neutral phase before tightening begins," said Mridul Saggar, chief economist at Kotak Securities Ltd. in Mumbai. "Inflation may be at 8 percent by March," double the central bank's forecast made in April, Saggar said.
India, which announces final inflation numbers after a two- month lag, raised its estimate for the benchmark wholesale price index in the week ended May 16 to 1.65 percent from 0.61 percent, indicating the gathering pace of price gains.
Consumer price indexes that measure the cost of living for industrial and farm workers were also running at between 7 percent and 10 percent in May, stoked by high food costs.
'Danger Zone'
"The continuation of the monetary-fiscal stimuli is now hitting the danger zone," S. S. Tarapore, a former deputy governor of the central bank, said in Mumbai on July 16. "Given the budget is strongly expansionary, the RBI has little option but to gradually withdraw the monetary accommodation."
The yield on India's benchmark 10-year bond, which has risen 1.65 percentage points this year, was unchanged at 6.91 percent in the past week.
Mukherjee on July 6 announced plans to borrow a record 4.51 trillion rupees ($94 billion) to fund spending on roads, power and aid for the poor. The budget shortfall is forecast at 6.8 percent of GDP.
Prior to the budget, the central bank estimated its policy measures, along with increased government spending and tax cuts, was worth as much as $85 billion, or almost 7 percent of GDP.
Tushar Poddar, a Mumbai-based economist at Goldman Sachs Group Inc., said the challenge facing Subbarao is to boost demand in the "near term" while containing inflationary pressures in the "medium term."
Monsoon Rains
"In the din created in the name of growth, the RBI has to realize that if inflation accelerates, the blame will rest squarely on it," Tarapore said. "The RBI should give a warning storm signal that inflation will pick up in the foreseeable future."
Subbarao may revise the central bank's inflation and growth forecast by taking into account higher energy prices and less- than-adequate monsoonal rainfall, which could reduce farm output and increase food costs. The rains, which start in June and last until September, were 17 percent deficient as of July 24.
In April, Subbarao forecast inflation at 4 percent and growth at 6 percent by the end of March 31. The economy grew 6.7 percent in the year ended March 31, the weakest since 2003.
Central banks from Tokyo to London have stopped cutting rates as evidence is mounting that the world's biggest economies are emerging from recession and inflation is showing signs of accelerating.
OECD Forecasts
The Organization for Economic Cooperation and Development said June 24 that GDP in its 30 industrialized member countries will increase 0.7 percent next year after shrinking 4.1 percent in 2009. The U.K. inflation rate will be the highest in the G-7 next year, OECD said.
Mukherjee wants to boost growth to a 9 percent pace and sustain that momentum to cut poverty in the South Asian nation. The minister said July 14 that the monetary and fiscal stimulus have shown positive results, though the economy is still "not out of the woods."
Reliance Industries Ltd., India's most valuable company, yesterday reported an 11 percent fall in net income in the three months to June 30 as the global recession curbed fuel demand. Tata Motors Ltd., which began selling the world's cheapest car this month, unexpectedly reported a jump in profit after a change in accounting rules.
Saumitra Chaudhuri, a member of the planning agency that sets India's development agenda, said formulating monetary policy for the next three to six months will be difficult, as it will be hard to decide when rates should be increased.
"Demand isn't so strong. Inflation has picked up a head of steam -- though it's not alarming, it certainly can't be ignored," said Chaudhuri, a former adviser to Prime Minister Manmohan Singh. "Still, at this point to try and switch to a tighter policy may not be prudent." To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
July 28 (Bloomberg) -- India's central bank may signal that its sharpest round of interest-rate cuts has come to an end by keeping borrowing costs unchanged at a meeting today.
The Reserve Bank of India will hold its reverse repurchase rate at 3.25 percent, according to 20 of 23 economists in a Bloomberg News survey. The central bank, which cut borrowing costs six times between October and its last quarterly meeting in April, will release its decision at 11:15 a.m. in Mumbai.
Governor Duvvuri Subbarao is preparing the ground to gradually tighten monetary policy as consumer demand and investments revive. Inflation risks have increased after Finance Minister Pranab Mukherjee this month announced plans to raise spending and widen the budget deficit to a 16-year high to shield India from the worst global recession since World War II.
"We see monetary policy moving to a neutral phase before tightening begins," said Mridul Saggar, chief economist at Kotak Securities Ltd. in Mumbai. "Inflation may be at 8 percent by March," double the central bank's forecast made in April, Saggar said.
India, which announces final inflation numbers after a two- month lag, raised its estimate for the benchmark wholesale price index in the week ended May 16 to 1.65 percent from 0.61 percent, indicating the gathering pace of price gains.
Consumer price indexes that measure the cost of living for industrial and farm workers were also running at between 7 percent and 10 percent in May, stoked by high food costs.
'Danger Zone'
"The continuation of the monetary-fiscal stimuli is now hitting the danger zone," S. S. Tarapore, a former deputy governor of the central bank, said in Mumbai on July 16. "Given the budget is strongly expansionary, the RBI has little option but to gradually withdraw the monetary accommodation."
The yield on India's benchmark 10-year bond, which has risen 1.65 percentage points this year, was unchanged at 6.91 percent in the past week.
Mukherjee on July 6 announced plans to borrow a record 4.51 trillion rupees ($94 billion) to fund spending on roads, power and aid for the poor. The budget shortfall is forecast at 6.8 percent of GDP.
Prior to the budget, the central bank estimated its policy measures, along with increased government spending and tax cuts, was worth as much as $85 billion, or almost 7 percent of GDP.
Tushar Poddar, a Mumbai-based economist at Goldman Sachs Group Inc., said the challenge facing Subbarao is to boost demand in the "near term" while containing inflationary pressures in the "medium term."
Monsoon Rains
"In the din created in the name of growth, the RBI has to realize that if inflation accelerates, the blame will rest squarely on it," Tarapore said. "The RBI should give a warning storm signal that inflation will pick up in the foreseeable future."
Subbarao may revise the central bank's inflation and growth forecast by taking into account higher energy prices and less- than-adequate monsoonal rainfall, which could reduce farm output and increase food costs. The rains, which start in June and last until September, were 17 percent deficient as of July 24.
In April, Subbarao forecast inflation at 4 percent and growth at 6 percent by the end of March 31. The economy grew 6.7 percent in the year ended March 31, the weakest since 2003.
Central banks from Tokyo to London have stopped cutting rates as evidence is mounting that the world's biggest economies are emerging from recession and inflation is showing signs of accelerating.
OECD Forecasts
The Organization for Economic Cooperation and Development said June 24 that GDP in its 30 industrialized member countries will increase 0.7 percent next year after shrinking 4.1 percent in 2009. The U.K. inflation rate will be the highest in the G-7 next year, OECD said.
Mukherjee wants to boost growth to a 9 percent pace and sustain that momentum to cut poverty in the South Asian nation. The minister said July 14 that the monetary and fiscal stimulus have shown positive results, though the economy is still "not out of the woods."
Reliance Industries Ltd., India's most valuable company, yesterday reported an 11 percent fall in net income in the three months to June 30 as the global recession curbed fuel demand. Tata Motors Ltd., which began selling the world's cheapest car this month, unexpectedly reported a jump in profit after a change in accounting rules.
Saumitra Chaudhuri, a member of the planning agency that sets India's development agenda, said formulating monetary policy for the next three to six months will be difficult, as it will be hard to decide when rates should be increased.
"Demand isn't so strong. Inflation has picked up a head of steam -- though it's not alarming, it certainly can't be ignored," said Chaudhuri, a former adviser to Prime Minister Manmohan Singh. "Still, at this point to try and switch to a tighter policy may not be prudent." To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
Monday, July 27, 2009
Indian Home Loan rates
India Cuts Home Loan Rates, Some Taxes to Boost Growth Further
July 27 (Bloomberg) -- India's Finance Minister Pranab Mukherjee today lowered the interest rate on some home loans and reduced the tax burden for select industries, adding to four stimulus packages to revive a slowing economy.
The government will provide an interest-rate subsidy of 1 percent for loans of as much as 1 million rupees ($20,800) given for homes that don't cost more than 2 million rupees, Mukherjee said, announcing amendments to the budget that was approved by parliament today.
The stimulus comes after Mukherjee's July 6 budget that provided more funds for building roads, ports, utilities and reduced the tax burden on individual incomes to buoy demand and spur an economy growing at the slowest pace since 2003.
The central bank, which has reduced interest rates six times since October last year, will review monetary policy tomorrow in Mumbai.
"In the medium term, we must enhance internal demand," Mukherjee said, replying to the budget debate in parliament in New Delhi today. "The fiscal stimulus which we have provided to confront the situation has paid dividends."
India also extended a tax break for companies engaged in building industrial parks by two years to March 31, 2011, and exempted companies engaged in the repair and maintenance of roads from paying service tax.
India's $1.2 trillion economy may expand 7 percent in the year to March 2010, the finance minister said July 6. Higher government spending resulted in the Indian economy stabilizing in the first quarter, maintaining the 5.8 percent pace of expansion recorded in the preceding three months.
Central Bank's Forecast
India's economy may grow at a faster pace than earlier forecast this year, the central bank said today.
Asia's third-largest economy may expand 6.5 percent in the year ending March 31, the Reserve Bank of India said, citing a survey of eight estimates it conducted in June from agencies including the World Bank and the Asian Development Bank. The survey in March had estimated a 5.7 percent gain.
"We have chosen the path of higher spending to ensure that we can have a reasonable growth rate in the current year and return to a higher growth trajectory," soon, Mukherjee said.
India needs 4 percent farm growth to achieve a 9 percent economic growth, the minister said.
India's economy grew 6.7 percent in the year to March 2009, the slowest pace of expansion since 2003. Growth averaged 8.5 percent in the previous five years.
Mukherjee eased the tax burden on consumers and companies and boosted government spending to increase rural jobs in his July 6 budget to protect the economy from the impact of the worst global economic recession since the Great Depression.
The government also announced a tax holiday on profits from housing projects approved between April 1, 2007, and March 31, 2008, provided they are completed on or before March 31, 2012.
"I expect the developers to pass on the benefit of tax holidays to the buyers of these houses," Mukherjee said.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .
July 27 (Bloomberg) -- India's Finance Minister Pranab Mukherjee today lowered the interest rate on some home loans and reduced the tax burden for select industries, adding to four stimulus packages to revive a slowing economy.
The government will provide an interest-rate subsidy of 1 percent for loans of as much as 1 million rupees ($20,800) given for homes that don't cost more than 2 million rupees, Mukherjee said, announcing amendments to the budget that was approved by parliament today.
The stimulus comes after Mukherjee's July 6 budget that provided more funds for building roads, ports, utilities and reduced the tax burden on individual incomes to buoy demand and spur an economy growing at the slowest pace since 2003.
The central bank, which has reduced interest rates six times since October last year, will review monetary policy tomorrow in Mumbai.
"In the medium term, we must enhance internal demand," Mukherjee said, replying to the budget debate in parliament in New Delhi today. "The fiscal stimulus which we have provided to confront the situation has paid dividends."
India also extended a tax break for companies engaged in building industrial parks by two years to March 31, 2011, and exempted companies engaged in the repair and maintenance of roads from paying service tax.
India's $1.2 trillion economy may expand 7 percent in the year to March 2010, the finance minister said July 6. Higher government spending resulted in the Indian economy stabilizing in the first quarter, maintaining the 5.8 percent pace of expansion recorded in the preceding three months.
Central Bank's Forecast
India's economy may grow at a faster pace than earlier forecast this year, the central bank said today.
Asia's third-largest economy may expand 6.5 percent in the year ending March 31, the Reserve Bank of India said, citing a survey of eight estimates it conducted in June from agencies including the World Bank and the Asian Development Bank. The survey in March had estimated a 5.7 percent gain.
"We have chosen the path of higher spending to ensure that we can have a reasonable growth rate in the current year and return to a higher growth trajectory," soon, Mukherjee said.
India needs 4 percent farm growth to achieve a 9 percent economic growth, the minister said.
India's economy grew 6.7 percent in the year to March 2009, the slowest pace of expansion since 2003. Growth averaged 8.5 percent in the previous five years.
Mukherjee eased the tax burden on consumers and companies and boosted government spending to increase rural jobs in his July 6 budget to protect the economy from the impact of the worst global economic recession since the Great Depression.
The government also announced a tax holiday on profits from housing projects approved between April 1, 2007, and March 31, 2008, provided they are completed on or before March 31, 2012.
"I expect the developers to pass on the benefit of tax holidays to the buyers of these houses," Mukherjee said.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .
Tata Motors
Tata Motors Net Beats Estimate on Accounting Change
July 27 (Bloomberg) -- Tata Motors Ltd., the Indian truckmaker that owns Jaguar and Land Rover, unexpectedly reported a jump in profit after a change in accounting rules and lower commodity prices helped mask a fall in demand.
Net income rose 58 percent to 5.14 billion rupees ($107 million) in the three months ended June, Mumbai-based Tata Motors said in a statement today. That exceeded the 994 million rupees median estimate in a Bloomberg survey of nine analysts. The earnings don't include the Jaguar and Land Rover luxury units, which Tata bought last year.
Spending on raw materials, Tata Motors's biggest expenditure, fell 24 percent in the last quarter as commodity prices eased. The $2.5 billion acquisition of the U.K.-based luxury units pushed the company to its first consolidated loss in at least seven years. Chairman Ratan Tata introduced the Nano, the world's cheapest car, this month to spur sales.
"There are signs of a possible recovery," said Sapna Jhaveri, a Mumbai-based analyst at K.R. Choksey Shares and Securities Pvt., who has a 'buy' rating on Tata Motors. "The volumes from Nano will kick in from the second half of this year. The government's spending on infrastructure will also help the commercial vehicles."
Tata Motors rose 0.3 percent to close at 374.1 rupees in Mumbai trading, after falling as much as 4.4 percent. The stock has more than doubled this year.
Rule Change
The company's notional exchange loss during the quarter declined to 55.4 million rupees compared with 1.62 billion rupees a year earlier, according to the statement. That was because of a change in accounting rules by the government, which in March allowed companies to alter provisions for mark-to- market losses on foreign currency loans.
Spending on raw materials declined to 38 billion rupees, the company said. Benchmark hot-rolled steel averaged 26,000 rupees a metric ton in the quarter, compared with 40,000 rupees a year earlier, according to Niraj Shah, an analyst at Centrum Broking Pvt. in Mumbai.
Operating profit in the last quarter improved to 4.88 billion rupees from 3.03 billion rupees a year earlier.
"The first quarter has shown signs of improvement," Chief Financial Officer C. Ramakrishnan told reporters in Mumbai. "The availability of finance has considerably eased now."
Tata Motors sold its stake in Tata Steel to pay $150 million of debt used to purchase Jaguar and Land Rover, Ramakrishnan said. Income from businesses other than manufacturing gained 1 percent to 3.19 billion rupees, according to the statement.
That masked a 4.3 percent slump in vehicle sales in the quarter as freight operators bought fewer heavy trucks and a weaker economy damped car demand. Total sales fell to 127,340 from 133,079, the company said.
'More Pain'
"There could be some more pain left for commercial vehicle manufacturers," said Viswanathan Vasudevan, who helps manage about $250 million at Aquarius Investment Advisors Pte. in Singapore. "The economy can't turn around in just six months. When it comes to big spending, everybody is still cautious."
India's $1.2 trillion economy grew 5.8 percent in the quarter ended March, compared with an average of about 9 percent between 2004 and 2009. Prime Minister Manmohan Singh's government is boosting spending to speed up growth.
"Infrastructure spending is very crucial for the recovery in commercial-vehicle sales," said Gopal Agrawal, head of equities at Mirae Asset India Investment Co. in Mumbai. "It will take another five to six months to see an uptrend."
Tata Motors started selling the world's cheapest car, the Nano, this month. It selected the first 100,000 owners through a lottery from the 206,703 orders it got for the car during the initial sales period in April.
The first Nanos are being built at a plant in Pantnagar, northern India, which can produce 60,000 units a year. Annual output will increase by a further 350,000 when a facility in Sanand, western India, is completed at the end of this year. The cheapest version of the Nano retails for 123,360 rupees in New Delhi.
To contact the reporter on this story: Vipin V. Nair in Mumbai at vnair12@bloomberg.net .
July 27 (Bloomberg) -- Tata Motors Ltd., the Indian truckmaker that owns Jaguar and Land Rover, unexpectedly reported a jump in profit after a change in accounting rules and lower commodity prices helped mask a fall in demand.
Net income rose 58 percent to 5.14 billion rupees ($107 million) in the three months ended June, Mumbai-based Tata Motors said in a statement today. That exceeded the 994 million rupees median estimate in a Bloomberg survey of nine analysts. The earnings don't include the Jaguar and Land Rover luxury units, which Tata bought last year.
Spending on raw materials, Tata Motors's biggest expenditure, fell 24 percent in the last quarter as commodity prices eased. The $2.5 billion acquisition of the U.K.-based luxury units pushed the company to its first consolidated loss in at least seven years. Chairman Ratan Tata introduced the Nano, the world's cheapest car, this month to spur sales.
"There are signs of a possible recovery," said Sapna Jhaveri, a Mumbai-based analyst at K.R. Choksey Shares and Securities Pvt., who has a 'buy' rating on Tata Motors. "The volumes from Nano will kick in from the second half of this year. The government's spending on infrastructure will also help the commercial vehicles."
Tata Motors rose 0.3 percent to close at 374.1 rupees in Mumbai trading, after falling as much as 4.4 percent. The stock has more than doubled this year.
Rule Change
The company's notional exchange loss during the quarter declined to 55.4 million rupees compared with 1.62 billion rupees a year earlier, according to the statement. That was because of a change in accounting rules by the government, which in March allowed companies to alter provisions for mark-to- market losses on foreign currency loans.
Spending on raw materials declined to 38 billion rupees, the company said. Benchmark hot-rolled steel averaged 26,000 rupees a metric ton in the quarter, compared with 40,000 rupees a year earlier, according to Niraj Shah, an analyst at Centrum Broking Pvt. in Mumbai.
Operating profit in the last quarter improved to 4.88 billion rupees from 3.03 billion rupees a year earlier.
"The first quarter has shown signs of improvement," Chief Financial Officer C. Ramakrishnan told reporters in Mumbai. "The availability of finance has considerably eased now."
Tata Motors sold its stake in Tata Steel to pay $150 million of debt used to purchase Jaguar and Land Rover, Ramakrishnan said. Income from businesses other than manufacturing gained 1 percent to 3.19 billion rupees, according to the statement.
That masked a 4.3 percent slump in vehicle sales in the quarter as freight operators bought fewer heavy trucks and a weaker economy damped car demand. Total sales fell to 127,340 from 133,079, the company said.
'More Pain'
"There could be some more pain left for commercial vehicle manufacturers," said Viswanathan Vasudevan, who helps manage about $250 million at Aquarius Investment Advisors Pte. in Singapore. "The economy can't turn around in just six months. When it comes to big spending, everybody is still cautious."
India's $1.2 trillion economy grew 5.8 percent in the quarter ended March, compared with an average of about 9 percent between 2004 and 2009. Prime Minister Manmohan Singh's government is boosting spending to speed up growth.
"Infrastructure spending is very crucial for the recovery in commercial-vehicle sales," said Gopal Agrawal, head of equities at Mirae Asset India Investment Co. in Mumbai. "It will take another five to six months to see an uptrend."
Tata Motors started selling the world's cheapest car, the Nano, this month. It selected the first 100,000 owners through a lottery from the 206,703 orders it got for the car during the initial sales period in April.
The first Nanos are being built at a plant in Pantnagar, northern India, which can produce 60,000 units a year. Annual output will increase by a further 350,000 when a facility in Sanand, western India, is completed at the end of this year. The cheapest version of the Nano retails for 123,360 rupees in New Delhi.
To contact the reporter on this story: Vipin V. Nair in Mumbai at vnair12@bloomberg.net .
India's Economy
India's Economy May Grow 6.5% This Year, RBI Says
July 27 (Bloomberg) -- India's economy may grow at a faster pace than earlier forecast this year, the central bank said, reducing the chance of a cut in the key policy rates tomorrow.
Asia's third-largest economy may expand 6.5 percent in the year ending March 31, the Reserve Bank of India said, citing a survey of eight estimates it conducted in June from agencies including the World Bank and the Asian Development Bank. The survey in March had estimated a 5.7 percent gain.
"The macroeconomic outlook of the Indian economy, based on various business expectation surveys indicates that the earlier decline in overall business sentiment has reversed," the central bank said in a report on the economy ahead of the monetary policy announcement tomorrow. "Emerging lead information indicates firming up of inflation over time."
The central bank's report on growth and inflation suggests Governor Duvvuri Subbarao may not lower interest rates further from the current record lows. The bank slashed rates six times since October while the government cut taxes and stepped up spending to support the local economy as the global economy sunk deeper into a recession.
"The RBI's key interest rates look set to remain unchanged for some time," said Robert Prior-Wandesforde, a senior economist at HSBC Holdings Plc in Singapore. "The expansionary budget and prospect of a pick up in wholesale prices in the months ahead makes a near term rate cut unlikely."
In its latest inflation reading last week, the government raised its final wholesale price inflation estimate for the week ended May 16 to 1.65 percent from 0.61 percent, indicating the gathering pace of price gains.
Base Effect
The inflation rate has been subdued because prices rose faster in the same period last year, the central bank said, adding that the outlook could change "with the waning of last year's high base effect".
"The monetary response to these developments would require continuous coordination with fiscal policy," the central bank said in its report.
Finance Minister Pranab Mukherjee's budget for the year to March 31 has added to inflation risks. Mukherjee, who wants to spur growth to 9 percent a year, on July 6 stepped up spending on roads and aid to poor, widening the budget deficit to 6.8 percent of gross domestic product. It would result in record borrowings of 4.51 trillion rupees ($94 billion) this year, the finance ministry estimates.
The economy grew 6.7 percent in the year ended March 31, the weakest pace since 2003.
"While the fiscal stimulus raised aggregate demand, there is a need to address the challenges for fiscal consolidation with a view to returning to the high growth path at the earliest," the central bank said today.
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
July 27 (Bloomberg) -- India's economy may grow at a faster pace than earlier forecast this year, the central bank said, reducing the chance of a cut in the key policy rates tomorrow.
Asia's third-largest economy may expand 6.5 percent in the year ending March 31, the Reserve Bank of India said, citing a survey of eight estimates it conducted in June from agencies including the World Bank and the Asian Development Bank. The survey in March had estimated a 5.7 percent gain.
"The macroeconomic outlook of the Indian economy, based on various business expectation surveys indicates that the earlier decline in overall business sentiment has reversed," the central bank said in a report on the economy ahead of the monetary policy announcement tomorrow. "Emerging lead information indicates firming up of inflation over time."
The central bank's report on growth and inflation suggests Governor Duvvuri Subbarao may not lower interest rates further from the current record lows. The bank slashed rates six times since October while the government cut taxes and stepped up spending to support the local economy as the global economy sunk deeper into a recession.
"The RBI's key interest rates look set to remain unchanged for some time," said Robert Prior-Wandesforde, a senior economist at HSBC Holdings Plc in Singapore. "The expansionary budget and prospect of a pick up in wholesale prices in the months ahead makes a near term rate cut unlikely."
In its latest inflation reading last week, the government raised its final wholesale price inflation estimate for the week ended May 16 to 1.65 percent from 0.61 percent, indicating the gathering pace of price gains.
Base Effect
The inflation rate has been subdued because prices rose faster in the same period last year, the central bank said, adding that the outlook could change "with the waning of last year's high base effect".
"The monetary response to these developments would require continuous coordination with fiscal policy," the central bank said in its report.
Finance Minister Pranab Mukherjee's budget for the year to March 31 has added to inflation risks. Mukherjee, who wants to spur growth to 9 percent a year, on July 6 stepped up spending on roads and aid to poor, widening the budget deficit to 6.8 percent of gross domestic product. It would result in record borrowings of 4.51 trillion rupees ($94 billion) this year, the finance ministry estimates.
The economy grew 6.7 percent in the year ended March 31, the weakest pace since 2003.
"While the fiscal stimulus raised aggregate demand, there is a need to address the challenges for fiscal consolidation with a view to returning to the high growth path at the earliest," the central bank said today.
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net
HEAVY SELLING OFF
EXIT LONGS ,BOOK SHORT TERM PROFITS.
TOMORROW CREDIT POLICY, HDFC ,ICICI , SATYAM,TECH MAH, ABAN, SELLING OFF
TOMORROW CREDIT POLICY, HDFC ,ICICI , SATYAM,TECH MAH, ABAN, SELLING OFF
GOOD MORNING
MARKET OPENED GOOD INSPITE OF BAD RESULTS BY GOOD COMPANIES.
TODAY'S PICK;
ONGC
ACKRUTI
MPHASIS
INFY
TITAN
IBULL REALTY
TODAY'S PICK;
ONGC
ACKRUTI
MPHASIS
INFY
TITAN
IBULL REALTY
Global markets
27/07/09:Glbl Mkt @9AM
Dow(C):9093(+0.2%)
Nasdaq(C):1965(-0.3%)
Nikkei:10130(+1.8%)
HangSang: 20325(+1.7%)
SGXNifty:4605(+0.5%)
Dow(C):9093(+0.2%)
Nasdaq(C):1965(-0.3%)
Nikkei:10130(+1.8%)
HangSang: 20325(+1.7%)
SGXNifty:4605(+0.5%)
Saturday, July 25, 2009
Reliance
Reliance Net Falls on Lower Margins; Misses Estimate
July 24 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, said profit declined for the third straight quarter, missing estimates, as the global recession curbed fuel demand and refining margins narrowed.
Net income dropped to 36.4 billion rupees ($754 million), or 23.1 rupees a share, in the three months ended June 30, from 41.1 billion rupees, or 28.30 rupees, a year earlier, the Mumbai-based oil refiner and explorer said in a statement today. The median estimate of 13 analysts surveyed by Bloomberg was for profit of 40 billion rupees. Net sales fell 23 percent.
Demand for gasoline and diesel has slumped as the deepest recession since World War II forces consumers to reduce spending on goods and travel. The lower refining profit highlights the need for Chairman Mukesh Ambani, India's richest man, to expand natural gas sales from the country's largest field.
"Refining was the major setback," said Vinay Nair, a Mumbai-based analyst with Khandwala Securities Ltd. "Now it will be full priority for the oil and gas sector."
Reliance shares fell 1.2 percent to 2,016.85 rupees in Mumbai trading before the announcement, giving the company a market value of $66 billion. The benchmark Sensitive Index, which gained 1 percent today, has advanced 59 percent this year.
Margins are declining as refiners, including Reliance, bring new capacity online. About 6 million barrels a day of oil- refining capacity will come on stream globally by 2015, the Organization of Petroleum Exporting Countries said July 8 in its World Oil Outlook report.
Surplus Capacity
That will create a surplus of more than 4 million barrels a day by 2010, rising to about 5 million barrels a day two years later, where it will remain for "some years," OPEC said.
Reliance earned $7.5 on every barrel of crude processed into fuels compared with $15.7 a barrel a year earlier, the company said. Refining accounted for 65 percent of revenue in the quarter ended June, while the oil and gas business contributed 5 percent, Reliance said in the statement.
Reliance joins SK Energy Co., the biggest South Korean fuel producer, in reporting profit that missed analyst estimates on lower demand for oil products. SK Energy reported net income of 301.4 billion won ($242 million) today, below the median estimate of a 350.8 billion-won profit in a Bloomberg survey of nine analysts.
Global profits from turning crude into oil products fell to an average $4.98 a barrel in the quarter ended June 30 from $8.25 a year earlier, according to BP Plc data.
Sales Agreements
Reliance invested $4.7 billion in the KG-D6 gas field in the Bay of Bengal's Krishna Godavari basin, which started production on April 2. Reliance has signed agreements to sell about 15 million cubic meters a day of the fuel to fertilizer companies and as much as 18 million cubic meters a day to power producers nominated by the government.
Peak production at the field may climb to 80 million cubic meters a day by December, P.M.S. Prasad, president and chief executive officer of Reliance's oil and gas business, said March 27, doubling the availability of gas in the country.
Mukesh Ambani, ranked seventh in the Forbes 2009 listing of world billionaires with a net worth of $19.5 billion, is fighting a lawsuit in the Supreme Court over the supply of gas to Anil Ambani's Reliance Natural Resources Ltd.
Court Hearing
The younger Ambani, ranked 34 on the Forbes list with a net worth of $10.1 billion, wants to enforce a 2005 agreement requiring Reliance Industries to sell gas at 44 percent less than the government-set price. The court has scheduled the next hearing on Sept. 1.
Reliance shares have fallen 15 percent since the Bombay High Court ruled last month that Reliance Industries must honor the accord that split the family empire. The court lifted the ban on gas sales from the KG-D6 field in January.
The agreement requires Mukesh's company to sell the gas to Reliance Natural at $2.34 per million British thermal units. Reliance Industries says the fuel can't be sold below the $4.2 per million Btu level set by the government in 2007.
Selling the gas at $2.34 per million Btu may lower the value of the total gas reserves at KG-D6 by as much as $3 billion to $13 billion, Nomura Financial said in a June 15 research note.
Domestic Sales
Reliance Industries exports most of its refinery products and plans to counter declining overseas demand by selling fuels in India, the second fastest-growing major economy. It started sales to state-run refiners including Indian Oil Corp., the nation's largest, after giving up the export-only status of its first refinery at Jamnagar in Gujarat state, capable of processing 33 millions tons of crude a year.
In December, Reliance started operating a 29 million ton-a- year oil refinery adjacent to the older unit. The new plant can produce high-quality fuels using low-grade crude and shift production among products based on market prices.
Refining capacity worldwide will increase by 7.6 million barrels a day between 2008 and 2014, with 54 percent of the new capability in Asia, the International Energy Agency said June 29. Demand for oil is projected to rise by 3.2 million barrels a day, the Paris-based organization said.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .
July 24 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, said profit declined for the third straight quarter, missing estimates, as the global recession curbed fuel demand and refining margins narrowed.
Net income dropped to 36.4 billion rupees ($754 million), or 23.1 rupees a share, in the three months ended June 30, from 41.1 billion rupees, or 28.30 rupees, a year earlier, the Mumbai-based oil refiner and explorer said in a statement today. The median estimate of 13 analysts surveyed by Bloomberg was for profit of 40 billion rupees. Net sales fell 23 percent.
Demand for gasoline and diesel has slumped as the deepest recession since World War II forces consumers to reduce spending on goods and travel. The lower refining profit highlights the need for Chairman Mukesh Ambani, India's richest man, to expand natural gas sales from the country's largest field.
"Refining was the major setback," said Vinay Nair, a Mumbai-based analyst with Khandwala Securities Ltd. "Now it will be full priority for the oil and gas sector."
Reliance shares fell 1.2 percent to 2,016.85 rupees in Mumbai trading before the announcement, giving the company a market value of $66 billion. The benchmark Sensitive Index, which gained 1 percent today, has advanced 59 percent this year.
Margins are declining as refiners, including Reliance, bring new capacity online. About 6 million barrels a day of oil- refining capacity will come on stream globally by 2015, the Organization of Petroleum Exporting Countries said July 8 in its World Oil Outlook report.
Surplus Capacity
That will create a surplus of more than 4 million barrels a day by 2010, rising to about 5 million barrels a day two years later, where it will remain for "some years," OPEC said.
Reliance earned $7.5 on every barrel of crude processed into fuels compared with $15.7 a barrel a year earlier, the company said. Refining accounted for 65 percent of revenue in the quarter ended June, while the oil and gas business contributed 5 percent, Reliance said in the statement.
Reliance joins SK Energy Co., the biggest South Korean fuel producer, in reporting profit that missed analyst estimates on lower demand for oil products. SK Energy reported net income of 301.4 billion won ($242 million) today, below the median estimate of a 350.8 billion-won profit in a Bloomberg survey of nine analysts.
Global profits from turning crude into oil products fell to an average $4.98 a barrel in the quarter ended June 30 from $8.25 a year earlier, according to BP Plc data.
Sales Agreements
Reliance invested $4.7 billion in the KG-D6 gas field in the Bay of Bengal's Krishna Godavari basin, which started production on April 2. Reliance has signed agreements to sell about 15 million cubic meters a day of the fuel to fertilizer companies and as much as 18 million cubic meters a day to power producers nominated by the government.
Peak production at the field may climb to 80 million cubic meters a day by December, P.M.S. Prasad, president and chief executive officer of Reliance's oil and gas business, said March 27, doubling the availability of gas in the country.
Mukesh Ambani, ranked seventh in the Forbes 2009 listing of world billionaires with a net worth of $19.5 billion, is fighting a lawsuit in the Supreme Court over the supply of gas to Anil Ambani's Reliance Natural Resources Ltd.
Court Hearing
The younger Ambani, ranked 34 on the Forbes list with a net worth of $10.1 billion, wants to enforce a 2005 agreement requiring Reliance Industries to sell gas at 44 percent less than the government-set price. The court has scheduled the next hearing on Sept. 1.
Reliance shares have fallen 15 percent since the Bombay High Court ruled last month that Reliance Industries must honor the accord that split the family empire. The court lifted the ban on gas sales from the KG-D6 field in January.
The agreement requires Mukesh's company to sell the gas to Reliance Natural at $2.34 per million British thermal units. Reliance Industries says the fuel can't be sold below the $4.2 per million Btu level set by the government in 2007.
Selling the gas at $2.34 per million Btu may lower the value of the total gas reserves at KG-D6 by as much as $3 billion to $13 billion, Nomura Financial said in a June 15 research note.
Domestic Sales
Reliance Industries exports most of its refinery products and plans to counter declining overseas demand by selling fuels in India, the second fastest-growing major economy. It started sales to state-run refiners including Indian Oil Corp., the nation's largest, after giving up the export-only status of its first refinery at Jamnagar in Gujarat state, capable of processing 33 millions tons of crude a year.
In December, Reliance started operating a 29 million ton-a- year oil refinery adjacent to the older unit. The new plant can produce high-quality fuels using low-grade crude and shift production among products based on market prices.
Refining capacity worldwide will increase by 7.6 million barrels a day between 2008 and 2014, with 54 percent of the new capability in Asia, the International Energy Agency said June 29. Demand for oil is projected to rise by 3.2 million barrels a day, the Paris-based organization said.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .
Friday, July 24, 2009
Global markets
Dow(C):9069(+2.1%)
Nasdaq(C):1973(+2.4%)
Nikkei:9921(+1.3%)
HangSang: 19893(+0.3%)
SGXNifty:4566(+0.5%)
Nasdaq(C):1973(+2.4%)
Nikkei:9921(+1.3%)
HangSang: 19893(+0.3%)
SGXNifty:4566(+0.5%)
GOOD MORNING
Image by jesuscm via Flickr
HI FRENZ,
YESTERDAY, WE HAD A SPECTACULAR RALLY IN OUR MARKET AS WELL AS US MARKET. ASIAN MARKETS GOOD TODAY TOO..
TODAY, OUR MARKET MAY OPEN GAP UP BUT WE ARE SKAPTICAL WHETHER WE MAINTAIN UP MOVE INTRA DAY. LAST DAY OF THE WEEK , PEOPLE WOULD CLOSE THEIR POSITIONS, F & O EXPIRY NEARING, WE MAY SEE DECLINE AT THE END TODAY. EXIT LONGS. PROFIT BOOKING WILL BE SEEN FOR SURE.
RELIANCE IND RESULTS AFTER MARKET HOURS TODAY
TODAY'S PICK :
TATA POWER
HINDUSTAN ZINC
DLF
AREVA
UFLEX
JINDAL STEEL N POWER
ANSAL INFRA
LET'S MEET ON OPENING BELL,
JAGRUTI.
Thursday, July 23, 2009
Good morning
Hi all,
23/07/09:Glbl Mkt @9AM
Dow(C):8881(-0.3%)
Nasdaq(C):1926(+0.5%)
Nikkei:9848(+1.2%)
HangSang: 19697(+2.3%)
SGXNifty:4447(+0.7%)
Market looks flat or slide more at the end. Opening may be good. Exit
longs. Sell on rise just for a few days for positional traders.
More on market opening,
Jagruti.
Wednesday, July 22, 2009
MARKET SELLING OFF
EXIT LONGS: BOOK PROFIT/LOSS
DONT SHORT RIGHT AWAY.
MARKET WILL GIVE SHARP FALL IN A FEW DAYS.
MARKET F/O EXPIRY ON 30TH JULY, WILL BE VERY VOLATILE, STAY AWAY FOR A DAY.
DONT SHORT RIGHT AWAY.
MARKET WILL GIVE SHARP FALL IN A FEW DAYS.
MARKET F/O EXPIRY ON 30TH JULY, WILL BE VERY VOLATILE, STAY AWAY FOR A DAY.
Global trends
21/07/09:Glbl Mkt @9AM
Dow(C):8848(+1.1%)
Nasdaq(C):1909(+1.2%)
Nikkei:9522(+1.3%)
HangSang: 19434(-0.3%)
SGXNifty:4488(-0.3%)
Dow(C):8848(+1.1%)
Nasdaq(C):1909(+1.2%)
Nikkei:9522(+1.3%)
HangSang: 19434(-0.3%)
SGXNifty:4488(-0.3%)
GOOD MORNING
Image by Smithsonian Institution via Flickr
A VERY GOOD MORNING. WE MISS SUNNY DAY TODAY.
HEARTY WELCOME TO THE NEW FAN CLUB MEMBER, MR.ROHIT.
TODAY, MARKET WILL BE FLAT OR DECLINE ON PROFIT BOOKING. ONE NEEDS TO BE STOCK SPECIFIC RATHER THAN TRADING IN INDEX.
CALLS OF BTST YESTERDAY, ARE BUY CALLS FOR TODAY TOO. METAL AND PHARMA LOOK GOOD, SPECIFICALLY, GLENMARK, RANBAXY, DR. REDDY'S, PUNJ LLOYD, BHUSHAN, JINDAL STEEL AND POWER, SESA GOA.
BANKING ALSO LOOKS GOOD. FRESH BUYING IS TO BE HAULTED TILL SENSEX CROSSES 15600 AND STAYS THERE.HOLD ON TO LONGS. DO NOT CREATE SHORTS YET.
MORE ON THE OPENING BELL,
REGARDS,
JAGRUTI.
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Tuesday, July 21, 2009
Global markets
21/07/09:Glbl Mkt @9AM
Dow(C):8848(+1.1%)
Nasdaq(C):1909(+1.2%)
Nikkei:9522(+1.3%)
HangSang: 19434(-0.3%)
SGXNifty:4488(-0.3%)
Dow(C):8848(+1.1%)
Nasdaq(C):1909(+1.2%)
Nikkei:9522(+1.3%)
HangSang: 19434(-0.3%)
SGXNifty:4488(-0.3%)
GOOD MORNING
Image by Martin_Heigan via Flickr
A VERY GOOD MORNING AND A HEARTY WELCOME TOU OUR NEW FAN CLUB MEMBER, MR. PRAKASH.
YESTERDAY, MARKET GAVE A BREAK OUT FROM 50DAYS MOVING AVERAGE AND LOOKS GOOD NOW, BUT YET THE LEVEL OF 15600 IS VERY CRUCIAL. THE WAY MARKET HAS RISEN IN A FEW DAYS, IT SEEMS THAT IT WILL BREAK THIS RESISTANCE AND TRADE UPWARDS. THE GLOBAL CUES ARE VERY SUPPORTIVE. HOWEVER, OUR MARKET IS IN OVERBOUGHT ZONE AND ANYTIME CAN SEE SELL OFF. PERIODICAL PROFIT BOOKING IS MUST.
LET'S MEET WHEN MARKET OPENS,
REGARDS,
JAGRUTI.
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Monday, July 20, 2009
IMPORTANT
MARKET FINDIND STRONG RESISTANCE AT 15000. AVOID GOING LONG UNLESS IN RECOMMENDED STOCK AT THIS POINT..DO NOT GO SHORT UNLESS RECOMMENDED.
WAIT FOR THE MARKET TO STAY ABOVE 15600 CONVINCINGLY OR IT WILL DECLINE AGAIN.
WAIT FOR THE MARKET TO STAY ABOVE 15600 CONVINCINGLY OR IT WILL DECLINE AGAIN.
Global markets
20/07/09:Glbl Mkt @9AM
Dow(C):8743(+0.3%)
Nasdaq(C):1886(+0.08%)
Nikkei:9395(+0.5%)
HangSang: 19624(+4.3%)
SGXNifty:4454(+1.27%
Dow(C):8743(+0.3%)
Nasdaq(C):1886(+0.08%)
Nikkei:9395(+0.5%)
HangSang: 19624(+4.3%)
SGXNifty:4454(+1.27%
Friday, July 17, 2009
SENSEX
HOLD ON TO LONGS, YET TIME TO CREATE SHORT. UPSIDE OF AROUND 500 -1000 POINT THERE.
BTST:
HERO HONDA
CANARA BANK
REL INFRA
APTECH
BTST:
HERO HONDA
CANARA BANK
REL INFRA
APTECH
Sensex Rises
Indian Stocks Rise, Set for Biggest Weekly Advance Since May
July 17 (Bloomberg) -- Indian stocks rose, set for the biggest weekly gain since May, after the government said it will sponsor new laws to reform the banking and pension industries and allow greater foreign investment in insurance.
ICICI Bank Ltd., the second-biggest lender and owner of the No. 1 private insurer ICICI Prudential Life Insurance Co., jumped more than 5 percent after Finance Secretary Ashok Chawla told reporters the ministry will introduce seven bills in parliament. State-run NMDC Ltd., India's largest iron-ore producer, gained as much as 10 percent after Chawla said the government will sell stakes in listed companies to raise funds.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 285.29, or 2 percent, to 14,535.54 at 11:57 a.m. in Mumbai. The gauge has gained 8.3 percent this week, recovering most of the 9.5 percent loss last week after Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state assets.
"Had these announcements been made in the budget, the markets would have jumped that day itself," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $100 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "The concerns that were there just after the budget are now going away."
The S&P CNX Nifty Index on the National Stock Exchange added 2.1 percent to 4,319.1. The BSE 200 Index increased 2 percent to 1,779.4.
ICICI, State Bank
ICICI Bank rose 5.5 percent to 732.25 rupees. State Bank of India Ltd., India's biggest lender, advanced 3.7 percent to 1,664 rupees. NMDC jumped 7.6 percent to 385.65 rupees after the Press Trust of India reported India plans to sell stakes in four state-run companies including NMDC.
India's record borrowing in the financial year ending March 31 will only have a "marginal impact" on yields and won't drive interest rates too high, Chawla said in New Delhi.
The time is not ripe to reverse the expansionary monetary policy and the government's aim is to keep interest rates benign, he said. India will start to reduce its budget deficit from next year, and the worst case for the shortfall in the current year is 7 percent of gross domestic product, he said. Finance Minister Pranab Mukherjee's July 6 budget had estimated 6.8 percent of GDP.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
July 17 (Bloomberg) -- Indian stocks rose, set for the biggest weekly gain since May, after the government said it will sponsor new laws to reform the banking and pension industries and allow greater foreign investment in insurance.
ICICI Bank Ltd., the second-biggest lender and owner of the No. 1 private insurer ICICI Prudential Life Insurance Co., jumped more than 5 percent after Finance Secretary Ashok Chawla told reporters the ministry will introduce seven bills in parliament. State-run NMDC Ltd., India's largest iron-ore producer, gained as much as 10 percent after Chawla said the government will sell stakes in listed companies to raise funds.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 285.29, or 2 percent, to 14,535.54 at 11:57 a.m. in Mumbai. The gauge has gained 8.3 percent this week, recovering most of the 9.5 percent loss last week after Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state assets.
"Had these announcements been made in the budget, the markets would have jumped that day itself," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $100 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "The concerns that were there just after the budget are now going away."
The S&P CNX Nifty Index on the National Stock Exchange added 2.1 percent to 4,319.1. The BSE 200 Index increased 2 percent to 1,779.4.
ICICI, State Bank
ICICI Bank rose 5.5 percent to 732.25 rupees. State Bank of India Ltd., India's biggest lender, advanced 3.7 percent to 1,664 rupees. NMDC jumped 7.6 percent to 385.65 rupees after the Press Trust of India reported India plans to sell stakes in four state-run companies including NMDC.
India's record borrowing in the financial year ending March 31 will only have a "marginal impact" on yields and won't drive interest rates too high, Chawla said in New Delhi.
The time is not ripe to reverse the expansionary monetary policy and the government's aim is to keep interest rates benign, he said. India will start to reduce its budget deficit from next year, and the worst case for the shortfall in the current year is 7 percent of gross domestic product, he said. Finance Minister Pranab Mukherjee's July 6 budget had estimated 6.8 percent of GDP.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
GOOD MORNING
Hi Frendz,
Let me first welcome our new fan club member, Mr.Rakesh.
Global trends are good and looking at all the cues our market will remain positive during the day, very volatile too. May decline at the end but intermittant trend looks positive till sensex trades around 15500.
Best buys:
TVS
rEL ind infra
more on opening,
Jagruti.
Let me first welcome our new fan club member, Mr.Rakesh.
Global trends are good and looking at all the cues our market will remain positive during the day, very volatile too. May decline at the end but intermittant trend looks positive till sensex trades around 15500.
Best buys:
TVS
rEL ind infra
more on opening,
Jagruti.
Global market
17/07/09:Glbl Mkt @9AM
Dow(C):8711(+1.1%)
Nasdaq(C):1885(+1.1%)
Nikkei:9400(+0.5%)
HangSang: 18519(+0.8%)
SGXNifty:4275(+1.06%)
Dow(C):8711(+1.1%)
Nasdaq(C):1885(+1.1%)
Nikkei:9400(+0.5%)
HangSang: 18519(+0.8%)
SGXNifty:4275(+1.06%)
Stocks in U.S.
U.S. Stocks Rise as Roubini Reiterates That Recession Is Ending
July 16 (Bloomberg) -- U.S. stocks rose for a fourth day, the longest streak in six weeks, as economist Nouriel Roubini said the worst of the financial crisis is over and reiterated that the recession may end this year, while takeover speculation lifted commodity shares.
Mosaic Co. rallied 12 percent, the most since December, on a report Vale SA may bid $25 billion for the fertilizer maker. United Parcel Service Inc. and General Electric Co. led industrial shares to the best gain among 10 groups as Roubini, the New York University professor who predicted the financial crisis, said a second government stimulus plan would help broaden the economic recovery.
The S&P 500 increased 0.9 percent to 940.74 at 4:05 p.m. in New York, capping its best four-day rally since March. The Dow Jones Industrial Average added 95.61 points, or 1.1 percent, to 8,711.82. European and Asian shares advanced.
"The optimism that people are starting to embrace is that the recession may be months away from ending," said David Goerz, who oversees $17 billion as chief investment officer at Highmark Capital Management in San Francisco. "Even the most bearish forecasters are starting to capitulate."
Financial shares led the market lower earlier on concern commercial lender CIT Group Inc. will have to file for bankruptcy protection and after JPMorgan Chase & Co. said its credit-card business probably won't make money next year. The S&P 500 reversed its loss as Roubini said the world's largest economy will recover from the recession by the end of 2009.
No Train, For Once
"The freefall of the economy has stopped," Roubini said at a Chilean investors' conference in New York. "There is light at the end of the tunnel. And the light at the end of the tunnel for once is not the one of an incoming train."
Roubini said July 9 that the recession would last another six months. He spoke at an event held at Bloomberg News's headquarters in New York. After the close of trading, Roubini said his comments today were a reiteration of his view that the contraction would last 24 months.
The gains added to yesterday's rally that sent the Dow up 3.1 percent, its steepest advance in three months, after Intel Corp. forecast sales that beat analysts' estimates and gauges of manufacturing improved. The S&P 500 has risen 7 percent so far this week as better-than-estimated retail sales boosted consumer shares and results at companies from Goldman Sachs Group Inc. to Johnson & Johnson beat analysts' estimates.
Beating Estimates
Earnings have topped estimates by an average of 24 percent for the 28 companies in the S&P 500 that released results since July 8. Analysts estimate profits fell an average 35 percent in the second quarter and will decrease 21 percent from July through September, according to data compiled by Bloomberg. The S&P 500, the benchmark index for U.S. equities, has rallied 39 percent from its 12-year low on March 9 amid speculation the economy is recovering.
Mosaic, which is majority owned by Cargill Inc., surged 12 percent to $49.98 as O Estadao de S. Paulo reported Vale SA, Brazil's largest mining company, is considering bidding for the North American fertilizer producer in a deal valued at $25 billion. BHP Billiton Ltd. also is interested in buying the company, the paper reported without saying where it got the information.
Freeport-McMoran Copper & Gold Inc. gained for the fourth straight day. The world's biggest publicly traded copper producer added 5.7 percent to $53.82.
Rally by Technology
Technology shares climbed as a group for a seventh straight day, the longest streak since September 2007. SanDisk Corp., the biggest maker of flash-memory cards used in digital cameras and mobile phones, added 9.1 percent to $17.67. The company will benefit from increasing demand for mobile Internet devices, said CNBC's "Mad Money" host Jim Cramer, who recommended the shares. Broadpoint AmTech also increased its share-point estimate on SanDisk to $21 from $19.
Shares of CIT, the 101-year-old commercial lender, tumbled 75 percent to 41 cents. The company said "there is no appreciable likelihood of additional government support being provided over the near term." The New York-based company, once the biggest independent commercial lender, may need as much as $6 billion to avoid seeking bankruptcy protection, CreditSights Inc. said.
JPMorgan Chase & Co. slipped 0.4 percent to $36.13. The second-largest U.S. bank probably won't make money from its credit card business next year, Chief Executive Officer Jamie Dimon said on a conference call. Credit card services account for about a quarter of the company's revenue, according to Bloomberg data.
Investment Banking
JPMorgan shares fell even after the bank reported better- than-expected second-quarter results. Profit climbed 36 percent, surpassing analysts' estimates, as investment-banking fees rose to a record.
Bank of America, which is set to report results tomorrow, slid the most on the Dow, losing 1.9 percent to $13.17. The biggest U.S. bank by assets said net charge-offs on its credit- card trust rose in June. Financial shares in the S&P 500 declined 0.2 percent collectively.
Motorola Inc. slumped 4.2 percent to $6.33. The biggest U.S. mobile-phone maker was downgraded to "neutral" from "buy" by Goldman Sachs Group Inc., which said the stock's price already reflected the prospect that the company's handset business may break even next year.
Finnish rival Nokia Oyj, the world's largest mobile-phone maker, reported sales that trailed analysts' estimates, sending its U.S. shares down 14 percent.
Stock futures rallied in pre-market trading after a Labor Department report showed the number of Americans filing claims for unemployment benefits fell last week to 522,000, the lowest level since January and lower than forecast. A separate report showed manufacturing in the Philadelphia region shrank at a faster pace than forecast.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .
July 16 (Bloomberg) -- U.S. stocks rose for a fourth day, the longest streak in six weeks, as economist Nouriel Roubini said the worst of the financial crisis is over and reiterated that the recession may end this year, while takeover speculation lifted commodity shares.
Mosaic Co. rallied 12 percent, the most since December, on a report Vale SA may bid $25 billion for the fertilizer maker. United Parcel Service Inc. and General Electric Co. led industrial shares to the best gain among 10 groups as Roubini, the New York University professor who predicted the financial crisis, said a second government stimulus plan would help broaden the economic recovery.
The S&P 500 increased 0.9 percent to 940.74 at 4:05 p.m. in New York, capping its best four-day rally since March. The Dow Jones Industrial Average added 95.61 points, or 1.1 percent, to 8,711.82. European and Asian shares advanced.
"The optimism that people are starting to embrace is that the recession may be months away from ending," said David Goerz, who oversees $17 billion as chief investment officer at Highmark Capital Management in San Francisco. "Even the most bearish forecasters are starting to capitulate."
Financial shares led the market lower earlier on concern commercial lender CIT Group Inc. will have to file for bankruptcy protection and after JPMorgan Chase & Co. said its credit-card business probably won't make money next year. The S&P 500 reversed its loss as Roubini said the world's largest economy will recover from the recession by the end of 2009.
No Train, For Once
"The freefall of the economy has stopped," Roubini said at a Chilean investors' conference in New York. "There is light at the end of the tunnel. And the light at the end of the tunnel for once is not the one of an incoming train."
Roubini said July 9 that the recession would last another six months. He spoke at an event held at Bloomberg News's headquarters in New York. After the close of trading, Roubini said his comments today were a reiteration of his view that the contraction would last 24 months.
The gains added to yesterday's rally that sent the Dow up 3.1 percent, its steepest advance in three months, after Intel Corp. forecast sales that beat analysts' estimates and gauges of manufacturing improved. The S&P 500 has risen 7 percent so far this week as better-than-estimated retail sales boosted consumer shares and results at companies from Goldman Sachs Group Inc. to Johnson & Johnson beat analysts' estimates.
Beating Estimates
Earnings have topped estimates by an average of 24 percent for the 28 companies in the S&P 500 that released results since July 8. Analysts estimate profits fell an average 35 percent in the second quarter and will decrease 21 percent from July through September, according to data compiled by Bloomberg. The S&P 500, the benchmark index for U.S. equities, has rallied 39 percent from its 12-year low on March 9 amid speculation the economy is recovering.
Mosaic, which is majority owned by Cargill Inc., surged 12 percent to $49.98 as O Estadao de S. Paulo reported Vale SA, Brazil's largest mining company, is considering bidding for the North American fertilizer producer in a deal valued at $25 billion. BHP Billiton Ltd. also is interested in buying the company, the paper reported without saying where it got the information.
Freeport-McMoran Copper & Gold Inc. gained for the fourth straight day. The world's biggest publicly traded copper producer added 5.7 percent to $53.82.
Rally by Technology
Technology shares climbed as a group for a seventh straight day, the longest streak since September 2007. SanDisk Corp., the biggest maker of flash-memory cards used in digital cameras and mobile phones, added 9.1 percent to $17.67. The company will benefit from increasing demand for mobile Internet devices, said CNBC's "Mad Money" host Jim Cramer, who recommended the shares. Broadpoint AmTech also increased its share-point estimate on SanDisk to $21 from $19.
Shares of CIT, the 101-year-old commercial lender, tumbled 75 percent to 41 cents. The company said "there is no appreciable likelihood of additional government support being provided over the near term." The New York-based company, once the biggest independent commercial lender, may need as much as $6 billion to avoid seeking bankruptcy protection, CreditSights Inc. said.
JPMorgan Chase & Co. slipped 0.4 percent to $36.13. The second-largest U.S. bank probably won't make money from its credit card business next year, Chief Executive Officer Jamie Dimon said on a conference call. Credit card services account for about a quarter of the company's revenue, according to Bloomberg data.
Investment Banking
JPMorgan shares fell even after the bank reported better- than-expected second-quarter results. Profit climbed 36 percent, surpassing analysts' estimates, as investment-banking fees rose to a record.
Bank of America, which is set to report results tomorrow, slid the most on the Dow, losing 1.9 percent to $13.17. The biggest U.S. bank by assets said net charge-offs on its credit- card trust rose in June. Financial shares in the S&P 500 declined 0.2 percent collectively.
Motorola Inc. slumped 4.2 percent to $6.33. The biggest U.S. mobile-phone maker was downgraded to "neutral" from "buy" by Goldman Sachs Group Inc., which said the stock's price already reflected the prospect that the company's handset business may break even next year.
Finnish rival Nokia Oyj, the world's largest mobile-phone maker, reported sales that trailed analysts' estimates, sending its U.S. shares down 14 percent.
Stock futures rallied in pre-market trading after a Labor Department report showed the number of Americans filing claims for unemployment benefits fell last week to 522,000, the lowest level since January and lower than forecast. A separate report showed manufacturing in the Philadelphia region shrank at a faster pace than forecast.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .
Thursday, July 16, 2009
MARKET VOLATILE
MARKET VERY VOLATILE, HOLD ON TO LONGS.
PROFIT BOOKING AT HIGH WITNESSED BUT AT THE SAME TIME BUYING COMES AT LOWER LEVEL.
BUY ON DECLINE OR NOW:
RELIANCE
BAJAJ AUTO
ABAN
DLF
PROFIT BOOKING AT HIGH WITNESSED BUT AT THE SAME TIME BUYING COMES AT LOWER LEVEL.
BUY ON DECLINE OR NOW:
RELIANCE
BAJAJ AUTO
ABAN
DLF
WELCOME
HI MS.RAVI,
WELCOME TO THIS BLOG AND THANKS FOR JOINING THE FAN CLUB. HOPE YOU WILL BE BENEFITTED FROM THE MATERIAL PUBLISHED HERE.
WELCOME TO THIS BLOG AND THANKS FOR JOINING THE FAN CLUB. HOPE YOU WILL BE BENEFITTED FROM THE MATERIAL PUBLISHED HERE.
Global market
16/07/09:Glbl Mkt @9AM
Dow(C):8616(+3.07%)
Nasdaq(C):1862(+3.5%)
Nikkei:9468(+2.1%)
HangSang: 18641(+2.09%)
SGXNifty:4288(-0.2%)
Dow(C):8616(+3.07%)
Nasdaq(C):1862(+3.5%)
Nikkei:9468(+2.1%)
HangSang: 18641(+2.09%)
SGXNifty:4288(-0.2%)
Hurrey !!
Friends,
Looking at the global cues, US rally last night, approval of the
budget, buyings by FIIs , we must look forward to another gap up
opening and upward rally. Market has come back in just a few sessions.
Party folks !!
More on market opening, all yesterdays recommendation continue today
too.
Have a best trading day,
Jagruti.
Sterlite Industries
India's Sterlite to Sell About $1.5 Billion of ADSs
July 15 (Bloomberg) -- Sterlite Industries India Ltd., the nation's biggest copper producer, plans to sell American depositary shares worth about $1.5 billion to help fund its power generation business in India and make acquisitions.
Vedanta Resources Plc, which holds 61.7 percent of Sterlite, intends to buy $500 million of shares, Mumbai-based Sterlite said in a Business Wire statement.
"Sterlite intends to use the net proceeds from the offering for the further development of its power generation business in India, planned capital expenditures, planned and potential acquisitions and or general corporate purposes," the company said in the statement.
JPMorgan Chase & Co. and Morgan Stanley are acting as joint book runners for the offering, it said. The underwriters have an over-allotment option equivalent to 15 percent of the offering size, excluding any portion of the offering allocated to Vedanta.
To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net
July 15 (Bloomberg) -- Sterlite Industries India Ltd., the nation's biggest copper producer, plans to sell American depositary shares worth about $1.5 billion to help fund its power generation business in India and make acquisitions.
Vedanta Resources Plc, which holds 61.7 percent of Sterlite, intends to buy $500 million of shares, Mumbai-based Sterlite said in a Business Wire statement.
"Sterlite intends to use the net proceeds from the offering for the further development of its power generation business in India, planned capital expenditures, planned and potential acquisitions and or general corporate purposes," the company said in the statement.
JPMorgan Chase & Co. and Morgan Stanley are acting as joint book runners for the offering, it said. The underwriters have an over-allotment option equivalent to 15 percent of the offering size, excluding any portion of the offering allocated to Vedanta.
To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net
Union Budget
Indian Lawmakers Approve Budget as Minister Vows to Cut Deficit
July 15 (Bloomberg) -- India's parliament approved this year's budget as Finance Minister Pranab Mukherjee vowed to trim the fiscal deficit after economic growth picks up.
"What is required right now is to achieve high growth in the shortest possible time," Mukherjee told lawmakers today in the upper house, urging them to support the finance bill. "This level of deficit is not sustainable and we shall correct it soon." The lower house passed the budget yesterday.
Financial markets are concerned the record 4.51 trillion rupees ($92 billion) borrowing may leave little money for private companies for investments, with the key bond yield rising 24 basis points since the budget was presented on July 6. Mukherjee said he plans to trim the deficit to 5.5 percent of gross domestic product by March 2011 and to 4 percent in the following 12 months.
Mukherjee forecast higher spending for infrastructure and the rural poor will see the budget deficit widen to 6.8 percent of gross domestic product in the year ending March 31, from 6 percent in the previous year. He is betting on faster economic expansion to raise tax revenue and step up allocations for roads and the poor, and trim the budget deficit in the coming years.
The finance minister said the widening of the deficit won't "crowd out" borrowing needs of private companies, adding that the government "working in tandem" with the central bank will ensure enough money is available with the nation's banks.
Reviving Demand
Prime Minister Manmohan Singh's government, which won re- election in May for a second term, is focused on reviving consumer and investment demand as the nation's $1.2 trillion economy, pummeled by the global recession, is forecast to grow 6.7 percent this year, the weakest since 2003.
"Higher growth is essential because it means higher tax incomes -- and this is no longer a theoretical proposition," Mukherjee said. India's record growth of close to 9 percent in the five years ended March 31 helped tax revenue more than double since 2004, he said.
The minister said the government's fiscal stimulus since December is showing positive results, though the economy is still "not out of the woods."
In June, steel and cement production grew by 13 percent each from a year earlier, while mobile-phone connections in May rose by 12 million, a 49 percent increase from the year before, the minister said.
Fiscal Discipline
"These are small beginnings that show that our strategy to generate internal demand is responding," Mukherjee said. "In the medium term, we should have clear objectives and come back to the path of fiscal discipline."
He said he plans to tap revenue from the sale of stakes in state-run companies and generate more revenue from the introduction of a goods and service tax from April 1 that will subsume all indirect taxes and will levy only value-added production so that manufacturers don't pay taxes twice.
Indian state-owned companies NHPC Ltd. and Oil India Ltd. will sell shares to the public this year, Mukherjee had told lawmakers earlier in the day. NHPC is India's largest hydroelectric power generator while Oil India is the country's second-biggest government-owned energy explorer.
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net .
July 15 (Bloomberg) -- India's parliament approved this year's budget as Finance Minister Pranab Mukherjee vowed to trim the fiscal deficit after economic growth picks up.
"What is required right now is to achieve high growth in the shortest possible time," Mukherjee told lawmakers today in the upper house, urging them to support the finance bill. "This level of deficit is not sustainable and we shall correct it soon." The lower house passed the budget yesterday.
Financial markets are concerned the record 4.51 trillion rupees ($92 billion) borrowing may leave little money for private companies for investments, with the key bond yield rising 24 basis points since the budget was presented on July 6. Mukherjee said he plans to trim the deficit to 5.5 percent of gross domestic product by March 2011 and to 4 percent in the following 12 months.
Mukherjee forecast higher spending for infrastructure and the rural poor will see the budget deficit widen to 6.8 percent of gross domestic product in the year ending March 31, from 6 percent in the previous year. He is betting on faster economic expansion to raise tax revenue and step up allocations for roads and the poor, and trim the budget deficit in the coming years.
The finance minister said the widening of the deficit won't "crowd out" borrowing needs of private companies, adding that the government "working in tandem" with the central bank will ensure enough money is available with the nation's banks.
Reviving Demand
Prime Minister Manmohan Singh's government, which won re- election in May for a second term, is focused on reviving consumer and investment demand as the nation's $1.2 trillion economy, pummeled by the global recession, is forecast to grow 6.7 percent this year, the weakest since 2003.
"Higher growth is essential because it means higher tax incomes -- and this is no longer a theoretical proposition," Mukherjee said. India's record growth of close to 9 percent in the five years ended March 31 helped tax revenue more than double since 2004, he said.
The minister said the government's fiscal stimulus since December is showing positive results, though the economy is still "not out of the woods."
In June, steel and cement production grew by 13 percent each from a year earlier, while mobile-phone connections in May rose by 12 million, a 49 percent increase from the year before, the minister said.
Fiscal Discipline
"These are small beginnings that show that our strategy to generate internal demand is responding," Mukherjee said. "In the medium term, we should have clear objectives and come back to the path of fiscal discipline."
He said he plans to tap revenue from the sale of stakes in state-run companies and generate more revenue from the introduction of a goods and service tax from April 1 that will subsume all indirect taxes and will levy only value-added production so that manufacturers don't pay taxes twice.
Indian state-owned companies NHPC Ltd. and Oil India Ltd. will sell shares to the public this year, Mukherjee had told lawmakers earlier in the day. NHPC is India's largest hydroelectric power generator while Oil India is the country's second-biggest government-owned energy explorer.
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net .
Adlabs
Spielberg, Anil Ambani Plan $825 Million Film Funding
July 15 (Bloomberg) -- Steven Spielberg's new film studio will have about $825 million in financing once the initial funding is completed, according to its biggest investor, Reliance Anil Dhirubhai Ambani Group.
DreamWorks SKG, formed in November by Spielberg and Indian billionaire Anil Ambani, will receive equity from Reliance and bank loans, according to an e-mailed statement today from Ambani's Reliance BIG Entertainment, the distributor for India. Walt Disney Co., which will release films elsewhere, is also providing funding, according to the statement.
DreamWorks plans to start production this year and release its first movie in 2010, according to the statement. The Los Angeles-based studio seeks to make five to six films a year. The initial funding is expected to close shortly, Reliance said, without offering details. In December, Spielberg delayed a plan to raise about $700 million in debt, in addition to equity, a person with knowledge of the situation said at the time. The funding was previously targeted for January, the person said.
"We welcome the opportunity and freedom they have given us to make the films we want to make," Stacey Snider, chief executive officer of DreamWorks, said in the statement.
Spielberg broke away from Viacom Inc.'s Paramount Pictures in September. He spent $26.5 million of his own money to buy rights to 17 films from Paramount, Variety reported in January.
In February, Disney agreed to distribute DreamWorks films to theaters and to provide the studio with loans that may total as much as $200 million, two people with knowledge of the deal said at the time.
Burbank, California-based Disney will receive fees and increase its release schedule with the DreamWorks agreement.
Disney, the world's biggest media company, rose 97 cents, or 4.2 percent, to $24.08 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 6.1 percent this year.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
July 15 (Bloomberg) -- Steven Spielberg's new film studio will have about $825 million in financing once the initial funding is completed, according to its biggest investor, Reliance Anil Dhirubhai Ambani Group.
DreamWorks SKG, formed in November by Spielberg and Indian billionaire Anil Ambani, will receive equity from Reliance and bank loans, according to an e-mailed statement today from Ambani's Reliance BIG Entertainment, the distributor for India. Walt Disney Co., which will release films elsewhere, is also providing funding, according to the statement.
DreamWorks plans to start production this year and release its first movie in 2010, according to the statement. The Los Angeles-based studio seeks to make five to six films a year. The initial funding is expected to close shortly, Reliance said, without offering details. In December, Spielberg delayed a plan to raise about $700 million in debt, in addition to equity, a person with knowledge of the situation said at the time. The funding was previously targeted for January, the person said.
"We welcome the opportunity and freedom they have given us to make the films we want to make," Stacey Snider, chief executive officer of DreamWorks, said in the statement.
Spielberg broke away from Viacom Inc.'s Paramount Pictures in September. He spent $26.5 million of his own money to buy rights to 17 films from Paramount, Variety reported in January.
In February, Disney agreed to distribute DreamWorks films to theaters and to provide the studio with loans that may total as much as $200 million, two people with knowledge of the deal said at the time.
Burbank, California-based Disney will receive fees and increase its release schedule with the DreamWorks agreement.
Disney, the world's biggest media company, rose 97 cents, or 4.2 percent, to $24.08 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 6.1 percent this year.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
Asian Stocks
Asian Stocks Rise for Third Day on Growth Optimism; BHP Gains
July 16 (Bloomberg) -- Asian stocks advanced for a third day, led by automakers and mining companies, as an improvement in U.S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering.
Toyota Motor Corp., which gets 31 percent of sales from North America, gained 2.9 percent. Komatsu Ltd., the world's No. 2 maker of earthmoving equipment, jumped 5 percent. BHP Billiton Ltd., the world's biggest mining company, rose 2.3 percent on higher oil and copper prices. Canon Inc., the world's largest camera maker, climbed 3.3 percent after the Nikkei newspaper reported earnings will rise.
The MSCI Asia Pacific Index advanced 1.8 percent to 103.43 as of 11:27 a.m. in Tokyo, taking its three-day gain to 5.5 percent. The gauge has rallied 47 percent from a more than five- year low on March 9 amid optimism government stimulus policies around the world will revive the global economy.
"This upward trend will continue for some time, as economic indicators have confirmed the economy is recovering," said Harvey Chang, a SinoPac Securities Investment Trust Co. fund manager who helps oversee about $1.5 billion. "There's plenty of money in the market."
Japan's Nikkei 225 Stock Average jumped 2.2 percent, while Hong Kong's Hang Seng Index rose 1.8 percent. South Korea's Kospi Index gained 0.7 percent. China's Shanghai Composite Index added 0.3 percent as the country's statistics bureau said the economy grew 7.9 percent in the second quarter.
Copper, Oil
Futures on Standard & Poor's 500 Index lost 0.5 percent as lender CIT Group Inc. said it probably won't receive a federal bailout. The S&P 500 climbed 3 percent in New York yesterday after Federal Reserve figures showed industrial production shrank 0.4 percent last month, the least in eight months. The New York Fed's Empire Index rose to minus 0.6 this month, the highest level since April 2008.
Optimism the expansion of manufacturing will boost demand for materials lifted prices for copper and oil. Copper futures leapt 4.1 percent in New York, the most since June 9. Crude oil jumped 3.4 percent, the steepest climb since June 23.
BHP Billiton rose 2 percent to A$34.97. Rio Tinto Ltd., the world's third-largest mining company jumped 4.2 percent to A$52.17. Mitsubishi Corp., which gets almost half of its sales from commodities, climbed 5.9 percent to 1,716 yen in Tokyo.
Toyota gained 2.9 percent to 3,570 yen. Honda Motor Co., which makes 45 percent of its revenue in North America, advanced 2.7 percent to 2,510 yen. Komatsu, which gets 25 percent of its sales from the Americas, jumped 5.1 percent to 1,451 yen.
Economic Improvements?
Japanese exporters also rose as the yen weakened to as low as 94.45 per dollar from 93.57 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen raises the value of overseas revenues that are repatriated back into the local currency.
The MSCI Asia Pacific index is heading for its first weekly gain in three amid signs Asian economies are rebounding. Stocks on the gauge are valued at an average 43 times reported earnings, up from the 15 times stocks were trading at during the market's trough in March. Companies on the S&P 500 are currently at 14.8 times profit.
Singapore on July 14 forecast a narrower contraction in its gross domestic product this year. New home sales in the city- state jumped 9.1 percent last month, government data released yesterday showed. Australian business sentiment turned positive in June for the first time since December 2007, a National Australia Bank Ltd. index released on July 14 showed.
"A rebound in the economy won't be very fast but we don't have to be too pessimistic in that the situation is getting better," said Mitsushige Akino, who oversees the equivalent of $522 million at Ichiyoshi Investment Management Co. "I'm expecting relatively good earnings reports from companies because they have finished clearing inventories."
Baltic Dry
Canon climbed 3.3 percent to 3,130 yen. The company will likely report about 30 billion yen ($319 million) in operating profit for the three months to June, a 50 percent increase from the previous quarter, the Nikkei newspaper reported today. Demand for cameras grew, while that for office equipment remained weak, the newspaper said.
Shipping stocks gained after cargo rates rose. The Baltic Dry Index, which measures the cost of shipping commodities, climbed 7.3 percent in London yesterday, taking gains in the past two days to 12 percent.
STX Pan Ocean Ltd., South Korea's biggest bulk carrier, gained 2.3 percent to 11,200 won in Seoul. Mitsui O.S.K. Lines Ltd., the world's largest operator of iron-ore vessels, advanced 4.4 percent to 599 yen in Tokyo.
To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net Weiyi Lim in Taipei at Wlim26@bloomberg.net .
July 16 (Bloomberg) -- Asian stocks advanced for a third day, led by automakers and mining companies, as an improvement in U.S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering.
Toyota Motor Corp., which gets 31 percent of sales from North America, gained 2.9 percent. Komatsu Ltd., the world's No. 2 maker of earthmoving equipment, jumped 5 percent. BHP Billiton Ltd., the world's biggest mining company, rose 2.3 percent on higher oil and copper prices. Canon Inc., the world's largest camera maker, climbed 3.3 percent after the Nikkei newspaper reported earnings will rise.
The MSCI Asia Pacific Index advanced 1.8 percent to 103.43 as of 11:27 a.m. in Tokyo, taking its three-day gain to 5.5 percent. The gauge has rallied 47 percent from a more than five- year low on March 9 amid optimism government stimulus policies around the world will revive the global economy.
"This upward trend will continue for some time, as economic indicators have confirmed the economy is recovering," said Harvey Chang, a SinoPac Securities Investment Trust Co. fund manager who helps oversee about $1.5 billion. "There's plenty of money in the market."
Japan's Nikkei 225 Stock Average jumped 2.2 percent, while Hong Kong's Hang Seng Index rose 1.8 percent. South Korea's Kospi Index gained 0.7 percent. China's Shanghai Composite Index added 0.3 percent as the country's statistics bureau said the economy grew 7.9 percent in the second quarter.
Copper, Oil
Futures on Standard & Poor's 500 Index lost 0.5 percent as lender CIT Group Inc. said it probably won't receive a federal bailout. The S&P 500 climbed 3 percent in New York yesterday after Federal Reserve figures showed industrial production shrank 0.4 percent last month, the least in eight months. The New York Fed's Empire Index rose to minus 0.6 this month, the highest level since April 2008.
Optimism the expansion of manufacturing will boost demand for materials lifted prices for copper and oil. Copper futures leapt 4.1 percent in New York, the most since June 9. Crude oil jumped 3.4 percent, the steepest climb since June 23.
BHP Billiton rose 2 percent to A$34.97. Rio Tinto Ltd., the world's third-largest mining company jumped 4.2 percent to A$52.17. Mitsubishi Corp., which gets almost half of its sales from commodities, climbed 5.9 percent to 1,716 yen in Tokyo.
Toyota gained 2.9 percent to 3,570 yen. Honda Motor Co., which makes 45 percent of its revenue in North America, advanced 2.7 percent to 2,510 yen. Komatsu, which gets 25 percent of its sales from the Americas, jumped 5.1 percent to 1,451 yen.
Economic Improvements?
Japanese exporters also rose as the yen weakened to as low as 94.45 per dollar from 93.57 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen raises the value of overseas revenues that are repatriated back into the local currency.
The MSCI Asia Pacific index is heading for its first weekly gain in three amid signs Asian economies are rebounding. Stocks on the gauge are valued at an average 43 times reported earnings, up from the 15 times stocks were trading at during the market's trough in March. Companies on the S&P 500 are currently at 14.8 times profit.
Singapore on July 14 forecast a narrower contraction in its gross domestic product this year. New home sales in the city- state jumped 9.1 percent last month, government data released yesterday showed. Australian business sentiment turned positive in June for the first time since December 2007, a National Australia Bank Ltd. index released on July 14 showed.
"A rebound in the economy won't be very fast but we don't have to be too pessimistic in that the situation is getting better," said Mitsushige Akino, who oversees the equivalent of $522 million at Ichiyoshi Investment Management Co. "I'm expecting relatively good earnings reports from companies because they have finished clearing inventories."
Baltic Dry
Canon climbed 3.3 percent to 3,130 yen. The company will likely report about 30 billion yen ($319 million) in operating profit for the three months to June, a 50 percent increase from the previous quarter, the Nikkei newspaper reported today. Demand for cameras grew, while that for office equipment remained weak, the newspaper said.
Shipping stocks gained after cargo rates rose. The Baltic Dry Index, which measures the cost of shipping commodities, climbed 7.3 percent in London yesterday, taking gains in the past two days to 12 percent.
STX Pan Ocean Ltd., South Korea's biggest bulk carrier, gained 2.3 percent to 11,200 won in Seoul. Mitsui O.S.K. Lines Ltd., the world's largest operator of iron-ore vessels, advanced 4.4 percent to 599 yen in Tokyo.
To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net Weiyi Lim in Taipei at Wlim26@bloomberg.net .
Wednesday, July 15, 2009
GOOD EVENING
Image by Axel-D via Flickr
HOW WAS D DAY ? HAPPY TRADING ? PROFITABLE ? YES, WAS LITTLE VOLATILE TOO.
YOU MUST HAVE NOTICED TODAY AND YESTERDAY THAT ALMOST ANY STOCK THAT YOU WOULD HAVE BOUGHT HAS RISEN AS SENSEX GAVE SHARP RISE OF ALMOST 500 POINTS EACH DAY. IN THAT CASE, IT BECOMES VERY IMPORTANT TO PICK THE BEST ONES WHICH RISE THE MOST. MY EFFORT THROUGH THIS BLOG IS TO GIVE YOU THE PICKS WHICH HAVE GREAT MOMENTUM , WHICH RISE WITH SPEED AND YOU HAVE RETURN OF ALMOST 20% IN 2-3 DAYS SPAN.
LET US EVALUATE TODAY'S PICKS GIVEN BY MY BLOGPOSTS TIMEWISE :
BUY , PRICE AT RECOMMENDATION , HIGH OF D DAY
BHEL 2088 , 2185
LT 1409 , 1438
REL IND INFRA 808 , 912
TECH MAH FAILED
FINANCE TECHNO 1219 , 1272
Posted by Jagruti Fadia at 10:13 AM
MARKET GOOD
BUY ANY BEATEN DOWN STOCK.
ABAN 825 , 851
EDUCOMP 3874 , 4044
ICICI 688 , 706
PUNJ LLOYD 210 , 219
ACKRUTI 470 , 519
IBULL REALTY 199 , 224
TITAGARH WAGON 310 , 323.50
Posted by Jagruti Fadia at 10:05 AM
I EVALUATED A FIRST FEW , YOU CAN ANALYSE OTHER PICKS GIVEN DURING THE DAY TOO AND SEE THE RESULT , AMAZED !! THEN ACKNOWLEDGE, PAL !! APPRECIATE, COMMENT, JOIN FAN CLUB AND RECOMMEND.
THE PICKS WHICH HAVE NOT WORKED WELL TODAY HAS THE CHANCE TO WORK WELL TOMORROW. MARKET WILL REMAIN GOOD ATLEAST TILL 15500 INDEX.
GOOD NIGHT,
JAGRUTI.
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Global market
15/07/09:Glbl Mkt @9AM
Dow(C):8359(+0.3%)
Nasdaq(C):1799(+0.3%)
Nikkei:9307(+0.4%)
HangSang: 18090(+1.1%)
SGXNifty:4153(+0.4%)
India Will Outperform
India Will Outperform Emerging Markets, Asilis Says
July 15 (Bloomberg) -- Indian stocks will outperform other emerging markets because of the Asian nation's economic and earnings growth prospects, according to Carlos Asilis, the new chief equity strategist at Mumbai-based Prabhudas Lilladher Pvt.
"Growth is increasingly becoming a scarcer commodity," said Asilis, 47, a former global chief investment strategist at JPMorgan Chase & Co. "That's the reason why over the last four or five years I have become increasingly involved with the India market."
India's economic growth may accelerate to as much as 7.75 percent this year, the finance ministry said this month. The economy grew 6.7 percent in the year ended March 31, the slowest pace since 2003.
Asilis's hiring is part of the brokerage's efforts to tap into rising interest from international investors in Indian stocks. The Bombay Stock Exchange's Sensex Index has rallied 44 percent this year, spurred by foreign-fund inflows as the Indian economy rebounds from the financial crisis.
Overseas funds bought $4.8 billion more Indian equities this year than they sold, according to data released by the Securities and Exchange Board of India on June 30. They dumped a record $13.3 billion in 2008.
The "stability" of Indian earnings and competitiveness of the rupee should also allow Indian stocks to outpace rivals, Asilis said in a phone interview from Miami, where he manages Glovista Investments, a firm he founded in 2007. He will be based in New York and travel to India four to six times a year. He had been on the investment committee of ICICI Bank Ltd., India's second-largest lender.
Asilis is also a former economist at the International Monetary Fund who has worked at Merrill Lynch & Co., UBS AG and Credit Suisse Group AG, according to a press release.
To contact the reporter on this story: Allen Wan in New York at awan3@bloomberg.net
July 15 (Bloomberg) -- Indian stocks will outperform other emerging markets because of the Asian nation's economic and earnings growth prospects, according to Carlos Asilis, the new chief equity strategist at Mumbai-based Prabhudas Lilladher Pvt.
"Growth is increasingly becoming a scarcer commodity," said Asilis, 47, a former global chief investment strategist at JPMorgan Chase & Co. "That's the reason why over the last four or five years I have become increasingly involved with the India market."
India's economic growth may accelerate to as much as 7.75 percent this year, the finance ministry said this month. The economy grew 6.7 percent in the year ended March 31, the slowest pace since 2003.
Asilis's hiring is part of the brokerage's efforts to tap into rising interest from international investors in Indian stocks. The Bombay Stock Exchange's Sensex Index has rallied 44 percent this year, spurred by foreign-fund inflows as the Indian economy rebounds from the financial crisis.
Overseas funds bought $4.8 billion more Indian equities this year than they sold, according to data released by the Securities and Exchange Board of India on June 30. They dumped a record $13.3 billion in 2008.
The "stability" of Indian earnings and competitiveness of the rupee should also allow Indian stocks to outpace rivals, Asilis said in a phone interview from Miami, where he manages Glovista Investments, a firm he founded in 2007. He will be based in New York and travel to India four to six times a year. He had been on the investment committee of ICICI Bank Ltd., India's second-largest lender.
Asilis is also a former economist at the International Monetary Fund who has worked at Merrill Lynch & Co., UBS AG and Credit Suisse Group AG, according to a press release.
To contact the reporter on this story: Allen Wan in New York at awan3@bloomberg.net
Tuesday, July 14, 2009
Reliance Industries Ltd.
Reliance Seeking to Sell Fuel on Its Own in the U.S.
July 14 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, is seeking to sell fuel on its own in the U.S. from its Gujarat refinery, a company official said.
Mukesh Ambani-controlled Reliance is currently selling fuel through Hess Corp., the fifth-biggest U.S. oil company, said the official, who spoke on condition of anonymity. Mumbai-based Reliance has leased storage space from Hess, he said, without giving capacity details.
Reliance is selling fuels overseas because it is unable to compete with India's state-run refiners, which sell gasoline and diesel below cost. India's government subsidizes state refineries with oil bonds to partly offset their revenue losses, while non-state refiners including Reliance and Essar Oil Ltd. do not get any such benefit.
Reliance started a 580,000 barrels-a-day crude processing unit at Jamnagar in the western state of Gujarat in December. Along with the adjacent 660,000 barrels-a-day refinery, it is the largest refining complex in the world, according to Reliance.
Shares of Reliance climbed 47 percent this year, compared with a 44 percent rise in the benchmark Sensitive Index of the Bombay Stock Index. The stock today gained 3.6 percent, the most since June 26, to 1,814.05 rupees.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
July 14 (Bloomberg) -- Reliance Industries Ltd., India's most valuable company, is seeking to sell fuel on its own in the U.S. from its Gujarat refinery, a company official said.
Mukesh Ambani-controlled Reliance is currently selling fuel through Hess Corp., the fifth-biggest U.S. oil company, said the official, who spoke on condition of anonymity. Mumbai-based Reliance has leased storage space from Hess, he said, without giving capacity details.
Reliance is selling fuels overseas because it is unable to compete with India's state-run refiners, which sell gasoline and diesel below cost. India's government subsidizes state refineries with oil bonds to partly offset their revenue losses, while non-state refiners including Reliance and Essar Oil Ltd. do not get any such benefit.
Reliance started a 580,000 barrels-a-day crude processing unit at Jamnagar in the western state of Gujarat in December. Along with the adjacent 660,000 barrels-a-day refinery, it is the largest refining complex in the world, according to Reliance.
Shares of Reliance climbed 47 percent this year, compared with a 44 percent rise in the benchmark Sensitive Index of the Bombay Stock Index. The stock today gained 3.6 percent, the most since June 26, to 1,814.05 rupees.
To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net
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