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Showing posts from May, 2014

1st SUPER JUMBO LANDED IN DELHI

The first superjumbo Airbus A-380 plane landed here today from Singapore with Singapore Airlines becoming the only global carrier to launch commercial flights of the 'big birds' to India. The landing of the long-haul, wide-body and fully double -decker aircraft that can carry a total of 471 passengers, at the Indira Gandhi International Airport was preceded by a thunder storm and high-velocity winds that led to the diversion of 21 flights to nearby airports. On landing, the superjumbo was given a 'water-salute' by the fire brigade at the airport run by the Delhi International Airport Limited (DIAL) which made special arrangements to handle the large number of passengers and their baggage. The passengers were welcomed by the SIA staff with gifts and bouquets. The SIA's aircraft has a total seating capacity of 471 seats with 399 in economy, 60 in business class and 12 first class suites. Immigration and customs departments had made special arrangem…

NIFTY OUTLOOK FOR 2nd JUNE & REVIEW

BEARISH BIAS Nifty closed flat for the day and lost more than 1.75% during the week. Immediate strong support is at 7200 and Resistance at 7350  For short term,  buying may be avoided  till it closes above 7350 or gets nearer to major psychological support zone of 7000.. While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  be better during midsession and remain subdued towards close.

Nifty                               7230  -6
Review for Friday :: Bank Stocks Weak… Flat Close … … !!!
Market traded in a narrow range and closed flat for thd day while Bank stocks were the clear losers and Pharma, FMCG stocks gained smartly. 25 of Nifty stocks ended in the red and broader market too was flat  with Advance Decline ratio at about 1:1.1. Pharma, Media, FMCG, Infra dn IT indices gained while Bank Index lost considerably. Hind Unilever, M&M, NTPC contributed about 40 p…

NIFTY OUTLOOK FOR 30th & REVIEW

CLOSING SESSION SUBDUED Nifty lost more than 90 points to close below 7250, thus breaching the short term support of 7265 and becoming bearish. Derivative closing appears to have precipitated the fall.  For short term,  buying may be avoided  till it closes above 7350. While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  be better during midsession and remain subdued towards close.

Nifty                               7236  -94
Review for Thursday :: Bearish Bias … … !!!
After Two days’ of narrow movement, Market traded with clear bearish bias from the opening and closed with a loss of about 1.40%. 36 of Nifty stocks ended in the red and broader market too was negative  with Advance Decline ratio at about 1:1.4. Infy lost heavily and was the main reason for the negative sentiment in the opening session. Media, Pharma, PSU Bank  indices gained while IT, Infra, Energy…

WEB PORTAL FOR FARMERS

Leveraging information technology to provide latest agriculture-related information to farmers, Gujarat government today launched a dedicated web portal and related mobile applications for them. 'iKisan' portal and the related apps were launched by Chief Minister Anandi Patel at the inauguration of 'Krishi Mahotsav' (agriculture fair) at Morbi, about 200km from here. She also announced on the occasion that women will be given more powers to run milk producing co-operative societies in the state. The portal and apps are designed to provide important information related to agriculture loans, new farming techniques, machinery, market prices of produces, soil testing and availability of seeds, pesticides and fertilisers. This is the 10th edition of the Mahotsav, a government-organised event.

GOOGLE TO LAUNCH SELF DRIVING CARS

Google unveiled plans to build its own self-driving car that it hopes to begin testing in the coming months. "They won't have a steering wheel, accelerator pedal, or brake pedal... because they don't need them. Our software and sensors do all the work," Google's Chris Urmson said in a blog post. Urmson said Google plans to build about 100 prototype vehicles, "and later this summer, our safety drivers will start testing early versions of these vehicles that have manual controls." He added, "If all goes well, we'd like to run a small pilot program here in California in the next couple of years." For Google, the car marks a shift away from adapting vehicles made by others in its quest to pioneer individual transport that needs only a stop-and-go function. "It was inspiring to start with a blank sheet of paper and ask, 'What should be different about this kind of vehicle?'" the post said. The top speed of …

NIFTY OUTLOOK FOR 29th & REVIEW

WIDE RANGE DAY...SCRIP SPECIFIC MOVEMENTS After Two days’ of mild correction, Nifty closed with minor gains and continues to hold 7300 level. Stop loss for Nifty may be maintained at  7265 (on close basis). Scrip specific movement can be expected in view of the last day of Derivative settlement. While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  experience zigzag movement with subdued midsession. Stock specific movements can be expected in view of the last day of the derivative settlement and a wide range too can be expected in view of the narrow movement for the last Two days.

Nifty                               7330  +12
Review for Wednesday :: Lackluster Movements… … !!!
Market traded in a very narrow range and closed with minor gains for the day. 28 of Nifty stocks ended in the green and broader market too was positive  with Advance Decline ratio at about 2:1. …

FOOD RETAILERS RUN IN LOSSES

Top 10 food retailers, including Reliance Fresh, Aditya Birla Retail, Wal-Mart India and Bharti Retail, have registered accumulated losses of over Rs 13,000 crore in the last fiscal, ratings agency Crisil said today. "Accumulated losses of food retailers are estimated to have crossed Rs 13,000 crore in the last fiscal, an analysis by CRISIL Ratings of top 10 food retailers that are in gestation phase showed," a Crisil statement said. The companies analysed by Crisil are Max Hypermarket, Hypercity Retail, Aditya Birla Retail, Metro Cash & Carry India, Trent Hypermarket, Reliance Fresh, Heritage Fresh, Spencer's Retail, Bharti Retail and Wal-Mart India. Commenting on the findings, Crisil Ratings President Ramraj Pai said: "These losses reflect the challenges in the food and grocery retailing vertical. Compared with other formats, food retailing is a very local business where optimal supply chains are critical to lower costs." "The busin…

MODI CONSTITUTES SIT ON BLACK MONEY

Complying with the Supreme Court directive, the new government on its first day in office today constituted a special investigative team (SIT) headed by a former Supreme Court Judge to unearth black money, including in the case of Hasan Ali. M B Shah, head of the SIT that also comprises another retired Supreme Court judge Arijit Pasayat as vice-chairman, will be assisted by the Revenue Secretary, directors of CBI, IB, RAW and ED, the CBDT Chairman and an RBI deputy governor. The Supreme Court, which appointed the two judges, had last week granted the government one week to set up the SIT. The Union Cabinet headed by Prime Minister Narendra Modi held its first meeting today in which it named the members of the SIT. "In the first Cabinet of the new government...in the light of the directions of the SC, we have constituted an SIT for unearthing black money... This was an important issue for us," Law and Telecom Minister Ravi Shankar Prasad told reporters after…

GOWDA NON COMMITTAL ON PASSENGER FARE HIKE

A call on any passenger fare hike in trains will be taken after discussions in the Cabinet and also with Prime Minister Narendra Modi, Railway Minister Sadanand Gowda said today. "I will have a discussion with my Cabinet colleagues. I will also have discussions with railway officials. Finally I will have discussion with honourable Prime Minister and then only whatever decision," he said after assuming charge at Rail Bhawan here when asked whether Railways will go for a hike in passenger fares and freight rates as proposed by the previous government. "Unless I see the pros and cons of these things, I cannot say right now. Certainly, I need two weeks time to take stock of the situation," Gowda further said. Reeling under financial crunch, Railways had proposed 14.2 per cent hike in passenger fares and 6.5 per cent increase in freight rate on May 16. The hike was to be effected from May 20. However, Railways put the hike order notification on hold an…

PMO's TWITTER REVAMPED

The Prime Minister's Office under Narendra Modi today took control of Twitter handle @PMOIndia that was relinquished by the previous dispensation under Manmohan Singh last week and had led to a controversy with BJP terming it "disgraceful and illegal". The first tweet from the PMO was about the Prime Minister Modi offering tributes to Mahatma Gandhi with the photograph showing him paying homage to the Father of the Nation. The next tweet invited its 1.27 million followers to the revamped official webside of the PMO. The twitter handle @PMOIndiaArchive, which was created by the previous PMO and to which all previous PMO tweets were shifted, could not be traced today. "Sorry, that page does not exist!," was the message shown by Twiiter when the handle was searched. However, a tweet from @PMOIndia said all tweets posted by the Singh's office have been archived at the PMO website. "All Tweets from this account up till 26th May 2014 have …

MODI's CRACK TEAM ON ACTION

Prime Minister Narendra Modi's crack team of economic ministers led by Arun Jaitley in finance today began the Herculean task of arresting price rise, reviving investor confidence and boosting growth. Jaitley, who has also been given the Ministry of Corporate Affairs, pledged to contain the price rise, restore the confidence of investors in the economy and promote growth while keeping the fiscal deficit under check. New Telecom and Law Minister Ravi Shankar Prasad made the right noises on retrospective tax, which has been severely criticised by industry and foreign investors, and promised a stable fiscal regime to lure overseas investments. Former BJP president and party heavyweight Nitin Gadkari, who turned 57 today, will take charge of the Road Transport and Highways and the Shipping ministries on Wednesday. Three others -- Minister for Micro, Small and Medium Enterprises Kalraj Mishra, Fertiliser Minister Ananth Kumar and Heavy Industries and Public Enterprises Minister Anant G…

MODI TAKES CHARGE

Prime Minister Narendra Modi assumed office today, a day after being sworn-in by President Pranab Mukherjee. Modi was received at South block office of the PMO by newly appointed Principal Secretary Nripendra Mishra and some other officials. As soon as he entered his office, he paid obeisance to the Father of the Nation Mahatma Gandhi by offering flower tributes to his photograph. However, even before assuming charge, Modi had already began his official work last night itself by holding a meeting with top officials.
Soon after he was sworn-in as Prime Minister, Modi sought support, blessings and active participation of the people to take India's development journey to newer heights. "Together we will script a glorious future for India," he said in his first message on the relaunched PMO website. "Let us together dream of a strong, developed and inclusive India that actively engages with the global community to strengthen the cause of world peac…

HIGHEST EVER WOMEN STUDENTS IN ISB

The Class of 2015 of the Post Graduate Programme in Management (PGP) at the Indian School of Business (ISB) has the largest number of women students among premier business schools in the country.
The Class of 2015 of the PGP course at ISB has 231 women students, constituting 30 per cent of the total class size, the highest number ever since the school's inception thirteen years ago, ISB said in a statement.
The number of women students at the school has been rising steadily and has increased by almost by 120 per cent in the last seven years, it added. "This is a heartening development and is a result of the various initiatives that we have undertaken to encourage women professionals to take up management as a career, in association with the corporate world over the last few years," ISB Deputy Dean Savita Mahajan said. "We hope this increased participation of women will go a long way in meeting the need for gender diversity across sectors, Mahaj…

PREPAID ELECTRICITY METERS MAY REDUCE CONSUMPTION

Installing prepaid electricity meters in India will have a similar "transformative" effect that was seen in the telecom sector with prepaid services, as people would be able to manage their consumption better, a Sri Lankan think tank LIRNEasia today said. Discussing findings of survey on access to electricity covering India, Sri Lanka and Bangladesh, LIRNEasia, an ICT policy and regulation think tank, said that urban, low income micro-entrepreneurs (MEs) (0-9 employees) face issues in getting new connections and later on with the quality of service. "In India, six per cent of MEs who said they did not have a separate electricity connection for their business because they did not have the right documents. As a result, they obtained electricity from shared connections or illegal temporary connections, often at a high cost," LIRNEasia co-founding Chair Helani Galpaya told reporters here.
She added that this issue can be addressed using prepaid meters…

NIFTY OUTLOOK FOR 28th & REVIEW

FORENOON BETTER...PROFIT BOOKING TOWARDS CLOSE... Nifty continues correction for the Second day in a row but closed above 7300 mark. Stop loss for Nifty may be maintained at  7265 (on close basis). Scrip specific movement can be expected in view of the last Two days of Derivative settlement. While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  be generally better in the forenoon and might encounter selling pressure in the closing session.

Nifty                               7318  -41
Review for Tuesday :: Narrow Movements… General Bearish Bias… !!!
Market traded with negative bias through out the day and closed with a loss of more than 0.60%. 30 of Nifty stocks ended in the red and broader market too was weak with Advance Decline ratio at about 1:1.7. IT, Media, Metal, Pharma indices gained while PSU Bank, Energy, Realty, Auto and Infra indices closed weak for the da…

MODI SWUNG INTO ACTION

BIG RESTRUCTURING OF MINISTRIES In a restructuring of his Cabinet, Prime Minister Narendra Modi today combined 17 related ministries into seven different groups, including some infrastructure departments, in an apparent bid to ensure synergy and better results. First the Ministry of Overseas Indian Affairs, created in UPA-II, has been brought together with External Affairs Ministry under Sushma Swaraj while Corporate Affairs has been brought back to Finance under Arun Jaitley. In infrastructure sector, the Prime Minister has combined Road Transport and Highways and Shipping in the ministry to be headed by Nitin Gadkari, who had made a name for himself by adopting an innovative approach in expanding road transport network and bridges in Maharashtra when he was a minister there in BJP-Shiv Sena Government. Another important infrastructure combination is bringing together Power, Coal and New and Renewable Energy under the independent charge of Minister of State Piyush Go…

MUMBAI FAVOURITE PLACE FOR UAE NRI's

Mumbai has emerged as the top Indian city for property investments by NRIs in the UAE with Bangalore being the second most popular, according to a survey. Mumbai retained the top spot with 31.86 per cent NRIs preferring to make property investments in the city, a recent survey on Indian properties by Sumansa Exhibitions, the organisers of the Indian Property Show in Dubai, said. Bangalore came in second with 24.35 per cent preferring to invest in residential property in the coming months, the survey said. Chennai and Pune jointly hold the third place with almost equal percentage of people preferring these cities. Delhi has the fourth position followed by Cochin, Navi Mumbai, Gurgaon and Hyderabad. "Bangalore's property market bucked the trend in other metros with many new launches, good demand and resilient prices. Sector experts predict that residential property in the city will remain a good bet for 2014, too," said Sunil Jaiswal, CEO Sumansa Exhibiti…

NEXT 30 DAYS BEST FOR REALTY INVESTMENT

Nearly 60 per cent of Indians think that next one month would be a good time to buy real estate with improvement in consumer sentiments following formation of a stable government, according to a survey by global research firm Ipsos.
"Almost six in ten (57 per cent) Indians think the next 30 days will be a good time to buy real estate, such as a house, vacation property or investment property," Ipsos said in a statement.
Founded in France in 1975, Ipsos is an independent market research company controlled and managed by research professionals.
"With the formation of a new stable government at the Centre, the consumer sentiment which was low in the last 2 years has improved significantly. The stock market has already reacted in a positive manner reflecting this change, the real estate prices are expected to go northwards by the end of the year," said Bhasker Canagaradjou, Associate Director, Ipsos Business Consulting. The realtors reeling under large scale of debt ar…

NET CAPITAL INFLOWS RISE SHARPLY

The net capital inflows to India are likely to increase sharply in FY'15, buoyed by the historic victory of the BJP-led NDA headed by Prime Minister Narendra Modi, says a Nomura report. According to the global financial services firm, this historic victory has enthused investor confidence that the government will pursue reforms and policies that will put India back on high growth trajectory over the medium term. "We expect a USD 25 billion balance of payments surplus in FY'15," Nomura said in a research note. According to the report, the import bill is likely to rise slightly on gradual relaxation in gold import restrictions and the non-gold import bill may also rise slightly as growth picks up in the latter half of FY'15. The rise in import bill will be offset by strong exports on the back of higher global demand, it said. "Overall, we expect the current account deficit (CAD) to remain within sustainable levels, under 2 per cent of GDP in…

CARNIVAL ATMOSPHERE

he occasion was ceremonial but it was a carnival atmosphere as Narendra Modi was sworn in as Prime Minister before the largest-ever gathering at Rashtrapati Bhawan, which became a confluence of people as varied as Presidents, Prime Ministers, film stars, corporate and religious leaders.

Never before have well over 4000 people gathered in the forecourt of the majestic Presidential house as they did today to watch the change of guard from Manmohan Singh to the man from Gujarat for whom the oath-taking ceremony was the culmination of a breathtaking political journey.
The heat did not deter the Modi admirers who had come hours ahead. There were a few fans to cool them but they mostly depended on their invitation cards to generate some breeze till the sun set and made it bearable.
'Modi, Modi' up went the chants when the PM-designate arrived shortly before 6 PM as if this was yet another of his election gatherings that the nation had witnessed over the past…

MORGAN STANLEY PREDICT RETURN OF RETAIL INVESTORS

Domestic markets may see the return of retail investors finally as earnings from equities have turned positive in recent months, brokerage firm Morgan Stanley said in a report today. Retail investors could become net buyers soon from being net sellers for long, it said, adding that financial savings should see a boost in the coming 24 months if the government commits itself to bringing down inflation leading to a marginal rise in real rates, which in turn will help the retail segment to remain invested. The share of equities within that could also rise given the improving real return on equities and the starting point of equity ownership relative to fixed income, it added. The anchoring to physical assets, especially gold, is likely to be shaken in the coming months, the report said. Morgan Stanley said the low and negative real rates of the past four years have fuelled demand for gold and property. Gold demand has historically not been as high as it has been in the past five years. &…

MODI SWORN IN AS 15th PRIME MINISTER OF INDIA

Marking the beginning of a new era in Indian politics, Narendra Modi was today sworn in Prime Minister at the head of a 45-member coalition government after the elections threw the first government with absolute majority in 30 years.
63-year-old Modi, the first leader to get a landslide majority for BJP on its own, became the 15th prime minister in a virtual 'coronation' ceremony in the forecourt of the Rashtrapati Bhawan before a 3000-strong gathering, the largest audience at the swearing in a of new government.
Rajnath Singh, Sushma Swaraj, Arun Jaitley, M Venkaiah Naidu, Nitin Gadkari, Uma Bharti, Maneka Gandhi, Ananth Kumar, Ravi Shankar Prasad, Smriti Irani and Harsh Vardhan were among those who were sworn in as Cabinet ministers.
Ram Vilas Paswan (LJP), Harsimrat Kaur Badal (Akali Dal), Anant Geete (Shiv Sena) and Ashok Gajapathi Raju (TDP) were those from allied parties who took the oath today.
Dignitaries from politics, industry, cinema and…

DIVIDEND PAYMENTS THROUGH BORROWED MONEY

Aggressive dividend payouts by top 500 companies has seen 419 of them together borrowing around Rs 20,000 crore, while paying around Rs 1.2 trillion (Rs 1.2 lakh crore) in FY'14, according to India Ratings. "Several BSE 500 corporates, excluding banks and financial services companies, adopted an aggressive dividend payment strategy in FY'14, despite a reduction in their net profit. "We expect 419 of these corporates to have paid an aggregate dividend of Rs 1-1.2 trillion in the fiscal and availed aggregate debt of Rs 18,000-20,000 crore for the same," as per the data collated by the rating agency. The agency estimates 419 corporates availed Rs 19,180 crore of debt in FY'14 to fund the aggregate dividend payment of Rs 1,04,900 crore. The trend of dividend payment behaviour over FY'09-FY'13 suggests that in most instances cash flow from operations was adequate and instances of debt requirement declined steadily from FY'11-FY'13. "However, …

NIFTY OUTLOOK FOR 27th & REVIEW

CLOSING SESSION CRUCIAL Nifty experienced one of the huge volatile sessions and closed nearly flat amid huge selling at higher levels and short covering at lower levels. Stop loss for Nifty may be maintained at  7250 (on close basis). While Global cues, Quarterly results   and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to  encounter selling at higher levels . Monday’s  trading range (being very wide), may be kept as reference for the rest of the week.

Nifty                               7359  -8
Review for Monday :: Roller Coaster Ride …Huge Selling at Higher Levels… !!!
Market gained smartly in the forenoon session and encountered huge selling in the Second half (between 2.15pm and 2.45pm) but recovered to close nearly flat for the day. However, huge selling has shattered the confidence of the traders / investors with bullish bent of mind. 32 of Nifty stocks ended in the red and broader market too w…

RPOFIT MARGIN FALLS ASS DEMAND DECLINES

'Poor demand shaves off top cos' profit;margin by 37% in FY14' Mumbai, May 23 (PTI) India Inc witnessed a massive 37.4 per cent drop in profit growth and narrowing of margins in FY'14 due to muted investments and lower demand, says a report by Care Ratings. Net profit of 880 companies, excluding SBI (which reported its numbers earlier in the day), was up by 8.2 per cent in the recently concluded FY14, down 37.4 per cent, as against the 13.1 per cent achieved in the previous fiscal, it said in a note today. Net profit margins narrowed moderately to 9.5 per cent, as against 9.8 per cent in the previous fiscal. Net sales increased 12 per cent as against 15.3 per cent in the year-ago period, it said. "The deterioration in the overall performance has been the outcome of muted investment and lower market demand... corporate performance during the year was affected by the muted pace of economic growth." the agency said. The government expects the economy to grow bel…

VEGGIE PRICES DEFFERENCE 49%

Difference between wholesale and retail prices of essential vegetables, like onion and potato, went up beyond 49 per cent during 2013-14, a study said.
The difference underscores the widening gaps between the prices at which procurement is done from farmers and the price level for consumers, the Assocham study said.
Majority of Indian retailers, it said are selling vegetables at prices which are significantly higher than the wholesale price index (WPI).
"Normally, the difference between wholesale price (WSP) and retail prices on an average stays around 30 per cent and it has been much more as seen in the findings of paper," the chamber said.
It further said that WSP benefited multiple times middlemen and traders, particularly for sale of essential commodities and worst hit in the process remained farmer and consumer as farmers margins squeezed badly with consumers paying unreasonably higher prices.
"Due to difference in both prices of whole…

FURTHER UPSIDE IN INDIAN MARKETS

After staging impressive rallies in the run-up to elections, Indian stocks and the rupee have scope for further upside, said a report by Goldman Sachs. "The general elections in India resulted in an unequivocal verdict in favour of the opposition BJP, and there is substantial momentum behind the prospects for economic reform. "Expectations of a market-friendly outcome have seen Indian equities, the INR and INR swaps rally - and the key question now is whether these moves can extend. Our general answer to that question is a qualified 'yes'...." Goldman Sachs said in a research note. Indian equities, rupee and rupee-swaps have all seen rallies of varying intensity in anticipation of a reformist government and post elections these moves are likely to extend further, it said.
Though the large Parliamentary majority will allow the new government to undertake previously stalled reforms, transplanting the model of effective administration from Gujar…