Read all announcements in Trade Wings
Trade Wings: Updates on sales of equity shares by promoter
Written By Unknown on Kamis, 09 Mei 2013 | 14.02
Buy Amara Raja Batteries; target Rs 335: ICICIdirect
ICICIdirect.com report on Amara Raja:
Amara Raja Batteries is one of the leading lead acid battery manufacturers with applications in automotive and other industries like telecom, power, oil, railways and defence.
Breakout from falling channel marks end of corrective phase and start of fresh up leg
The share price of Amara Raja Batteries has been in a well established long term up trend consistently forming higher peaks and troughs on the long term price charts.
After hitting its all-time high of Rs 328 during late January 2013, the stock entered a corrective phase mainly driven by profit booking at all-time highs and corrected towards Rs 238 by mid-April 2013. The entire corrective decline has occurred in a well defined falling channel as highlighted in the adjoining weekly candlestick chart.
The key technical observation on the price charts is that the decline from all-time highs saw the stock in its last major up-leg from August 2012 to January 2013 (142-328) by precisely 50 percent. The April 2013 low of Rs 238 also rests upon the long term rising trend line in place since February 2012. The bounce back from April lows has seen the stock register a volume led breakout past the falling channel in place since January 2013.
The breach of the falling channel marks the end of a four-month corrective phase and start of a fresh upward leg, which is expected to lead the stock to fresh all-time highs in the medium term.
Volume expansion in direction of primary trend
A look at the volume behaviour further re-affirms the bullish bias in the stock as price rallies are accompanied by strong volume participation whereas sideways/corrective price actions are on the back of thin volumes. In Dowtheory parlance, volume expansion in the direction of primary trend is the sign of a healthy bull market. Among oscillators, the weekly RSI has generated a positive crossover above its nine period average, which indicates strength in the current breakout.
Strategy: Buy Amara Raja Batteries in the range of Rs 279-270 for a target price of Rs 335 with a stop loss below Rs 251 on a closing basis.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sell Allahabad Bank, says Sukhani
Sukhani told CNBC-TV18, "The Nifty is roaring up and the Bank Nifty is flat, it is hardly moving and PSU banks are in deep trouble in terms of stock price charts. There is more downside here in Allahabad Bank. At the most see what is protecting us that if the market really goes up again it will be smaller momentum now. Then PSU banks won't move, so that is a lot of protection on the upside."
He further added, "The upside is limited while once there is a choppy market, the downside could increase again. So Allahabad Bank is a selling opportunity. Some of the PSU bank sells we have given over the last few days have worked."
Global mkts in risk-on mode; Nifty may see 6150 ahead
Written By Unknown on Rabu, 08 Mei 2013 | 14.02
"We are seeing this very powerful risk-on in global markets. As long as that continues, equities should be okay," he added. Meanwhile, he sees the Nifty hitting new highs of 6,150-6200 going ahead.
Below is the verbatim transcript of Udayan Mukherjee's view on CNBC-TV18
FIIs on India
Over the last few days one can sense that expectations of global growth have started picking up. Earlier, there was a lot of apprehension but the cloud seems to have lifted a little bit.
He further says, the American investment houses have actually been deploying capital because from where they come, there has been much more confidence. The US and Japanese investors probably have been more exposed to equities over the last few months but European investors have been very cagey and cautious.
Since in the last few days, European markets have done quite well and given the US data, there is a little more confidence in the air. So, one is seeing a bit of risk-on that is throwing more money to work even in emerging markets (EMs) and that is the genesis of what is going on right now.
Even last month, the fear was that some of the data points that were coming from the US led people to believe that growth is falling off. However, in the last 10 days expectations of growth have been rekindled. Therefore we are seeing this very powerful risk-on in global markets. So, as long as that continues, equities should be okay.
A lot of people may have been left out from this rally in a sense and they have been disbelievers but some money incrementally on the margins is beginning to get to work in markets.
Indian Market
On India specifically, the kind of refrain that I keep hearing from most of these people is that a little bit of what has happened in the last few days in terms of the new money that we are getting is performance chasing.
According to a fund manager at 5,500 things were not looking great for India and it was leading to a vicious kind of mood spiral of its own. However, now with the markets having bounced back 10 percent over the last 15 odd days, more people are looking at India closely because the pullback has been as sharp as the fall had been.
People are a little baffled at these very sharp swings or mood swings in the market. Suddenly the market will go down 10 percent and then before you know it, in a fortnight the market is back where it fell from. This volatility in the Indian market seems to be baffling people a little bit. However, the recent performance has got India right back on the radar of most investors although some people are entering the party a bit late.
If you look at the performance of the last few days, some of the global plays have started doing well; IT has come back. Over the last many weeks, IT had been a bit of a dog post the results coming in. But stocks like Tata Consultancy Services (TCS), HCL Technologies had come down to very attractive levels.
Maybe the fall was because of these global concerns that we have been talking about. People did not want to be in some of these global exposures. There were also some immigration issues, which were not helping the IT story.
However, as soon as valuations became attractive for some of these high quality stocks with whom the global investors have been with for sometime, a lot of these people have topped up on IT over the last 10 days, using these corrections.
He feels, as long as the global mood remains in place, we will see some of the slack in the Bank Nifty being picked up by global IT plays. Also some of these commodity plays like Reliance Industries Ltd (RIL) coming back to Rs 825-830 and few of these other largecap names also tie-in with this global theme that has been invoked for the last few days.
It is no surprise that some of the export oriented plays have started doing quite well over these last few sessions.
Also read: FIIs may be buying; but it is not a bull market yet: Citi
RPG Life Sciences surges 16% on strong Q4 earnings
RPG Life Sciences is excited on the bourses today on the back of turnaround in Janaury-March quarter earnings. At 11:50 hrs RPG Life Sciences was quoting at Rs 72.65, up Rs 10.40, or 16.71 percent.
The pharmaceutical company reported a net profit of Rs 7.4 crore in the fourth quarter of FY13 as against a loss of Rs 5.69 crore in the year-ago period.
During the period, sales increased 37 percent to Rs 56.34 crore vs Rs 41.23 crore. The board also recommended a dividend of Rs 1.2 per share.
Meanwhile, the management has indicated that the investments made in upgradation of manufacturing facility, formulation business, during the year has constrained profitability.
Won't use QIP, preferential issue funds to cut debt: DEN
"The industry is going through a massive transition from analog to digital and thus we will require a lot of investments. Cable is the only pipe going into the consumer home, so the idea is to go offer broadband as well and drive consolidation in the sector," he said.
The company current net debt stands at less than USD 100 million, but cutting debt was the intent of this fund raising plan, he added. "We are comfortably placed when it comes to a debt equity ratio."
DEN Networks has garnered a total of USD 180 million through preferential placement and qualified institutional placement (QIP). As a part of the preferential placement, the company raised an equity investment of USD 110 million from Goldman Sachs , a leading global investment bank.
He further added that a total raising of about USD 160 million will entail a dilution of close to about 24 percent for DEN.
Below is the verbatim transcript of MG Azar's interview on CNBC-TV18
Q: With regards to the preferential allotment that you have done to Goldman Sachs and affiliates, why have you chosen to raise that capital and what would that particular process involve in terms of dilution for you?
A: The industry is going through a massive transition from analog to digital and thus we will require a lot of investments. Cable is the only pipe going into the consumer home, so the idea is to go offer broadband as well and drive consolidation in the sector.
We have taken this opportunity and done a preferential allotment to Goldman Sachs for about USD 110 million which means about 15 percent dilution in the company. All that capital will be used to drive consolidation, drive digitisation and broadband rollout for the company.
Q: You do have some debt on your books as well, will none of this money be used to retire that debt?
A: No. On a net basis, we have less than USD 100 million of debt on the company. We are not intending to retire debt. We are comfortably placed when it comes to a debt equity ratio.
Q: You have also chosen to do a qualified institutional placement (QIP), how soon will you be hitting the market with that and is Rs 217 the decided price?
A: No, we closed the QIP yesterday for USD 50 million. In aggregate we have done about USD 160 million - USD 110 million coming from Goldman Sachs as a part of preferential allotment and USD 50 million through QIP.
Q: Along with this preferential allotment and QIP, how much dilution will it involve for DEN?
A: Raising USD 160 million will entail a dilution of close to 24 percent for the company.
Q: How are things progressing in terms of digitisation moving along smoothly or are you hitting some road blocks?
A: It is absolutely smooth, much beyond expectation. In India you are looking at half the country getting digitized in a matter of 12 months. This is unprecedented and I would thank the government, the regulators for driving this through and also all the industry stakeholders for coming together and driving this process. The broadcasters, the multiple-system operators (MSOs), the direct to home (DTH) people, all of them have put in efforts to drive this process.
Q: At this point, what could you point by the end of this year in terms of subscription revenue growth and average revenue per user (ARPU) growth and will it balance off the losses you see on carriage revenue loss?
A: We have not seen any significant dip on the carriage side. The way the whole digitisation is playing out, it is benefitting the consumers with more number of channels, more options. It is impacting the broadcasters because for a typical network we would carry due to paucity of bandwidth about 20-30 percent of the channels, today all the channels are getting carried. So, the broadcasters are benefitted in reaching out to all the consumers with all the channels that they beam.
We are putting in set top boxes and cementing our partnership with local cable operators (LCOs). It is working out well for all of us and is also leading to consolidation in the market. As I see it, including consumers, broadcasters, MSOs, even the LCOs, they will benefit, so it is a win-win scenario that is playing out for all the stakeholders in the business.
HSBC sees stable rupee for next 3-6 months
Written By Unknown on Selasa, 07 Mei 2013 | 14.02
"There have been lot of inflows in the equity and the debt segment also. That gives me a confidence that rupee should be stable for the next three-six months," adds Wadhwan in an interview to CNBC-TV18.
Also read: Buy Indian Rupee above 54.12; target 54.30: ICICIdirect
On the recent monetary policy, wherein the RBI cute repo rate by 25 basis points (bps), Wadhwan expects the bond yield rate to come down over a period of time.
Below is the edited transcript of Wadhwan's interview to CNBC-TV18.
Q: How would you sum up the mood right now in the bond market especially and what kind of levels are people working with in terms of barometers even for the benchmark bond and what it could trade at?
A: With the way things are and the repo rate finally being cut, the tone was a bit neutral and it gave a sense that Reserve Bank of India (RBI) may not be cutting further. RBI has cut rates thrice in the last three months. Over a period of time, this will get transmitted to the market also. We have seen bond yields not reacting at all but I think over a period of time, as this thing sinks in, one may see yields drifting down.
Q: The first Open Market Operations (OMO) for the fiscal is out. What kind of appetite do you expect it to see? How easy do you think the RBI is going to be with OMOs this fiscal?
A: That has been one of the questions which were raised to the governor. He replied that OMOs are not necessarily the only tool. In our view, OMOs are going to be as important as the other measures of liquidity. We expect around Rs 30,000-40,000 crore of OMOs in the first quarter itself. They should be followed up as it has been done in the last year. The number could be similar to what they did last year. So, one can expect OMOs of around Rs 1,30,000-1,50,000 crore for the full year.
That should take care of lot of the frictional liquidity what he is talking about. I think OMOs would be reasonably successful. You will have to see it in the conjunction of how the data pans out as RBI is pointing out. If there are scopes of further rate cuts, then you might see the banks not tendering exactly what RBI would be expecting. So, at that time, if there are high expectations of further rate cuts with inflation lowering, you might see the tendering to be a bit on the lower side. But in the initial phase you can expect reasonable tendering in the first four-five OMOs which are going to happen in the next two months.
Q: In that context, how do you see the currency moving? There has been some relief over the last few days. Where do you think the rupee could stabilise at in the near term?
A: If one looks back at the last six months or so, ever since January, rupee has behaved quite stable. We feel that the way things are panning out even with trade deficit number of USD 12-15 billion a month which is on expected lines, the capital flows are such that they would balance it out. So, I would take a call that rupee should be quite stable in at least three-six months with the way things are looking like, the kind of capital flows what we expect and what we have seen in the last four months. There have been lot of inflows in the equity and the debt segment also. That gives me a confidence that rupee should be stable for the next three-six months.
Stuck record: Why Amartya Sen is wrong on food security
Firstpost.com
It is becoming increasingly difficult to retain respect for Nobel laureate Amartya Sen. He seems to surface in the media every time the UPA government is about to legislate its pet follies, providing intellectual succour to mindless spending and corruption wrapped up in the package of anti-poverty schemes.
Yesterday, Sen bobbed up just when the UPA under siege for every known scam in India tried to start discussions on the Food Security Bill in order to divert attention from scams. Sure enough, Sen was at hand to defend it, never mind the economic consequences.
Consider his statements against the backdrop of larger realities and facts.
First, he said that politicians who disrupt parliament should be confronted with "estimated numbers of deaths" caused by delaying the Food Security Bill.
Is that so? The BJP surely needs to be hauled over the coals for continuing its disruptions, but the Bill was moved for passing just yesterday, when the Congress was caught in a political jam. Sen should tell us how many deaths were caused since yesterday. For a UPA that has been in power for nine years, one wonders why the Food Bill needed to be brought just before the elections, and why it needed to be discussed just when corruption scandals are boiling over.
The right calculations to make, Dr Sen, are the ones put out by Sunil Jain in The Financial Express yesterday. According to Jain, nearly 40-50 percent of the food passing through the public distribution system goes to the wrong people. "If implementing the bill is to cost Rs 6 lakh crore over a three-year period, as the Commission for Agricultural Costs and Prices (CACP) reckons, that's a huge Rs 3 lakh crore to be siphoned off by various middlemen along the way."
Amartya Sen is welcome to calculate the Rs 3 lakh crore that will not go to the poor. He should first calculate the deaths caused by social spending that does not go to the real poor before talking about deaths allegedly caused by disruptions and delays in parliament however repugnant they are.
Next, he made silly claims about Manmohan Singh 's eyesight. According to The Economic Times , Sen said that "there is no evidence that he (Manmohan) cannot see" the number of likely deaths of women and children triggered by non-legislation of the bill by parliament.
Sen's ophthalmological qualifications are suspect. Manmohan Singh has been unable to "see" the scams in his own backyard from 2G to CWG to Coalgate and his ministers and officials are busy lying to the Supreme Court on his behalf to save his bacon. So the PM's ability to "see" anything beyond his own political future is in doubt. The deaths of women and children due to non-passage of the Bill are secondary.
Sen is also quoted as saying: "To capture people's attention, you have to have a number. There is something clearly wrong." Again, of course, the reference is to deaths due to delay in the Bill.
Dr Sen, how is it you cannot "see" even bigger numbers than the ones you want parliamentarians to see? How about Rs 1,76,000 crore (2G)? That's a number bigger than the Food Security Bill. How about Rs 1,86,000 crore (Coalgate)? Still unimpressed? If you look at either of these scam numbers, and there are scores like these, the Food Security Bill could have been easily financed for free even assuming the Food Bill is really a good idea (which it is not).
The Economic Times also quotes Sen as reviving the growth versus social spending debate. He said, not unreasonably, that the growth story of Asia has been led by investment in education and health. "Instead of thinking about whether you are growth or anti-growth we should think about what will lead to sustained economic growth and the big story of Asian economic development. That has (also) been the story of Japan, Hong Kong, Singapore, and now China in a big way."
What Sen forgets is that all these Asian social sector success stories were achieved in monocultural societies, and which were all non-democracies (except Japan) at the time of their major social investments. In India's diverse and democratic polity, where consensus is always difficult, we privileged state investments in public sector enterprises (most of which are draining money now) over social spending all the way through 1947-1991. It was only when we went for growth that we managed to reduce poverty.
If he is not convinced, he can read Swaminathan Aiyar on this here . He can also read this writer's summation of Jagdish Bhagwati and Arvind Panagariya's book on how the Gujarat growth model and the Kerala social model are actually driven by the same thing: growth and private spending.
It is also worth reminding Sen about his Annie Hall moment of 2005. In February 2005, Sen had extolled the China model in a speech in Hong Kong, only to be corrected on it by someone who had to face the brunt of the Communist dictatorship.
A report in The Wall Street Journal at that time reports what happened at that meeting. Sen was waxing eloquent about how China had made great strides in state-led healthcare under Mao's cultural revolution. He criticised private healthcare that a modernising China had begun to opt for.
He was stopped in his tracks by an eyewitness to Mao's follies right there. According to the Journal, Weijian Shan, who was one of Mao's "barefoot" doctors, set the record straight. "I observed with my own eyes the total absence of medicine in some parts of China. The system was totally unsustainable. We used to admire India." Shan added: "If they had made the system optional, nobody would have opted for it."
That, Dr Sen, is the reality whether you talk about Food Security or Universal Healthcare. While the state has the clear role as facilitator, people want a choice.
The Right to Food is not any more important than the Right to Choice. To force an economically unsustainable Food Security Bill, which is going to cost Rs 6,00,000 crore over three years, down the throats of two-thirds of the population is not a sign of great humanity. It is the exact opposite. It will eat away through inflation and whatever is gained in terms of cheap food delivered through a leaky system that swallows up half the grains meant for the poor.
Over the last nine years, the UPA's misguided interventions in social spending whether it is NREGA or loan waivers for farmers have more or less halted the India growth story. The only thing high state spending has achieved is bankruptcy and corruption.
This is not to deny that there are stil huge pockets of malnutrition and hunger in India. But it is surely not 65 percent of the population which is what the Food Security Bill is trying to target.
There is a story from my school days that Sen would do well to read. It seems a King of yore did not want to get his feet dirty. In order to achieve this, he ordered that his entire kingdom should be carpeted with leather. A wise man intervened to avert this stupidity and pointed out that the king could keep his feet clean by wearing shoes.
This is the underlying message. To end poverty and hunger and malnutrition, you don't need a universal Food Security Bill. You don't need to carpet two-thirds of India with cheap food. Food security should be focused on identified pockets of high poverty and malnutrition. The rest of India can take care of itself, if the growth story is restarted.
Dr Sen, maybe you don't understand politics and are unaware of the Congress' game. The Food Security Bill is not about ending malnutrition and hunger; it is about addressing Sonia Gandhi and the Congress' hunger for power, and their political insecurity.
PS: Dr Sen, just in case you are interested, the BJP is not disrupting parliament just to jettison the Food Security Bill. Bad ideas have universal acceptance among politicians.
The writer is editor-in-chief, digital and publishing, Network18 Group
MCX can move to Rs 1250-1300: SP Tulsian
Tulsian told CNBC-TV18, "My long-term view on MCX is positive, maybe with a view of about 6-12 months. I gave a recommendation when it was ruling at close to about Rs 900 or so. So I see a good potential coming in."
He further said, "Earlier you had that Commodities Transaction Tax (CTT) and all that which has been levied in this Budget. I don't think that those things are all behind, in fact in this last couple of months stock has gone under-owned. Many of the people have exited the stock. This is now seen under accumulation maybe for last about one week or so."
"The stock touched a high of Rs 1,000 a couple of days back. So I am keeping my positive stance. Maybe in the next one month or so I can see a price of close to about Rs 1,100 plus. If somebody keeps a view of about six months or so this stock can move to Rs 1,250-1,300," Tulsian added.
Banks, insurers in cahoots for money laundering: Cobrapost
Written By Unknown on Senin, 06 Mei 2013 | 14.02
Media website Cobrapost Monday said that banks and insurance companies were acting hand-in-glove to help their customers launder black money and pass it off as legitimate income.
Life Insurance Corporation, State Bank of India , Bank of Baroda , Punjab National Bank , Canara Bank , Tata AIG, Dhanlaxmi Bank , Indian Bank , IDBI Bank , Yes Bank , Federal Bank , Reliance Life Insurance, Birla Sunlife are among those alleged to be helping customers launder black money , according to Cobrapost.
Here's an extract from the Cobrapost release, on the alleged nexus between banks and insurance companies.
"Another fact that comes to the fore is a nexus between the banks and the insurance companies. If the banks don't have their own insurance companies, they have joint-ventures with private insurers. Yes Bank, for instance, has a tie-up with Bajaj Allianz, which would question an investor only when the investment crosses Rs. 1 crore, as we came to know from a Yes Bank official.
And such investments can be done in cash. Whenever we went about proposing to bankers, public or private, that we wanted to invest our black money in insurance, they immediately called the managers of their insurance associates in our presence or sought their advice on phone, making it amply clear that banks and insurance companies are hand in glove."
Also read: Offering help to launder money also punishable
Reliance Communication hikes voice call prices by 20%
The move comes as mobile phone companies in India, burdened by heavy debt and facing huge payouts for airwaves, are cutting discounts to customers, effectively increasing call prices.
Easing competition after several smaller carriers either shut down or scaled back operations is also helping the bigger carriers to be aggressive on call prices, which are one of the cheapest in the world.
The stock has more than doubled since April.
Glenmark profit may miss estimates: StarMine
StarMine's SmartEstimates, which places greater emphasis on forecasts by top-rated analysts, shows Glenmark could report a net profit of 1.56 billion rupees for the quarter, compared with a mean consensus estimate of 1.68 billion rupees.
Shares in Glenmark were up 1.3 percent at 11:34 a.m. The company will announce its earnings on Tuesday.
Hold Godrej Consumer Products, says Ventura
Written By Unknown on Minggu, 05 Mei 2013 | 14.02
During the quarter, GCPL launched a disruptive innovation in HI category (HIT Anti Roach Gel). Moreover, Godrej Consumer Products Ltd (GCPL) has displayed its consistency by clocking double digit revenue growth. We expect GCPL to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format (under hair colours category). In the international business, integration of operations in Africa and Argentina is expected to bring synergies over the next few quarters. Also, we remain positive on the Indonesian operations on the back of regular innovations and distribution expansions.
Given the fact that GCPL has a large number of brands under its umbrella (across emerging market geographies), we expect cross-pollination to play out over the next 2-3 years and add further scale to GCPL's operations. At a CMP of Rs 844, GCPL trades at a PE multiple of 33.0x and 28.1x its estimated earnings for FY14 and FY15. Given the rich valuations enjoyed by the company and limited upside from current levels, we recommend a HOLD on the stock. However, owing to the robust long term outlook for the company we recommend to add the stock on declines with a potential target of Rs 900.
GCPL continued its strong growth momentum during Q4FY13 by recording 29.7 percent YoY growth in revenues to Rs 1,715.5 crore led by robust 18.1 percent YoY growth in its domestic business (HI 26 percent YoY; Soaps 17 percent YoY with volume growth of ~4 percent and Hair Colors 27 percent YoY), which contributes ~55 percent to its consolidated revenues. Increased other expenses (+50.8 percent YoY) and higher A&P expenses (+9.5 percent of sales v/s 8.3 percent in Q4FY12) led to a contraction of GCPL's EBITDA margins to 16.2 percent (-260 bps YoY; -60 bps QoQ). While EBITDA grew by 12.2 percent YoY, PAT grew by 70 percent YoY on account of exceptional income of Rs 133.7 crore (sale of non-core food business in Indonesia) and lower provision for tax (-11.7 percent YoY).
As stated earlier, domestic business grew by 18.1 percent YoY led by robust growth in all its key segments - Home Insecticides (+26 percent YoY; ~2.1x category growth), Personal Wash Soaps (+17 percent; ~1.3x category growth) and Hair Colors (+27 percent; 2x category growth). Household Insecticides segment witnessed growth on the back of continued distribution synergy benefits and we expect this category to maintain healthy growth on the back of penetration and new innovative launches (latest launch being 'HIT Anti Roach Gel'). On the other hand, GCPL's soaps segment witnessed growth of 17 percent YoY primarily led by volume. The highlight for the quarter was Hair colors category as it witnessed strong turnaround (27 percent v/s 13 percent category growth; albeit on a low base) on the back of positive response from crème format (recent entry)," says Ventura research report.
Institutional holding more than 40% in Indian cos
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
India's rating upgrade unlikely anytime soon: SP
India's growth track record is good in current circumstances as the RBI attempts to counteract loose fiscal policy . The market has factored in one ore two rate cuts this year, the agency added.
However, S&P warn that reform announcements recently made by the government did not suffice to ensure growth. The agency also pointed out that a large number of infrastructure projects were stuck and those in the pipeline were "historically bad".
Investments must be unlocked for growth and the government must find short to mid-term solutions of problems in the infrastructure, power and coal sectors.
Offering a global perspective, S&P said that Asia-Pacific growth would not be impacted by problems in the US and eurozone and in fact, forecasts Asia Pacific economies to perform better from hereon. "Nobody expects the eurozone to recover by next year and will muddle through while the US economy will pick up going ahead," the agency said.
Taking away capital mgmt from RBI not advisable: Subbarao
Reserve Bank of India Governor Duvvuri Subbarao, who is known to have mind of his own, and has many times been at odds with the Finance Minister today voiced his discontent about the Financial Sector Legislative Reform Commission(FSLRC's) recommendations regarding capital inflows.
In an interview with CNBC-TV18's Latha Venkatesh, he stressed that taking away capital management from Reserve Bank of India is not advisable and that the central bank had made this suggestion to FSRLC when it was consulted.
"So we submitted but they have decided, the way they have decided. Now I believe the government will call for consultation and we will certainly not only put across our point but argue our point," he said.
FSLRC which was set up to rewrite and update all the archaic Indian financial sector laws has recommended that the government and not the RBI should make rules with respect to capital inflows. This recommendation is irrespective of whether the inflows are FDI, FII, forex loans or NRI deposits.
This recommendation has been strongly criticized by many economic and baking sector scholars including KJ Udeshi and YH Malegam. Subbarao said that FSLRC's argument on this is that external sector management with capital inflows has bearing on monetary policy, on financial stability and on bank regulation and hence RBI should not be handling capital inflows.
Also read: Barring FDI, RBI must control all capital flows: YH Malegam
On Friday, RBI cut the repo rate by 25 basis points and pointed that further room for monetary easing was very little. Upside risk to inflation and high current account deficit (CAD) were sighted as two key reasons by RBI for its hawkish stance.
Today, Subbarao said that CAD could come close to 5 percent in 2012-13 and stressed that any improvement below 5 percent would be a good improvement on CAD. He said although India was able to finance 6.7 percent CAD up till January due to higher liquidity in global system, we can not depend on mere foreign capital flows. "We must have low and steady CAD financed by stable flows," he added.
Diesel price hike was seen as one of the key step in controlling the twin deficit-CAD and fiscal deficit, however oil retailers have declared on three prices hike since the fuel was deregulated. Subbarao also learned that diesel price hike was deferred on the back of fall in global crude oil prices, which gave oil retailers leeway to postpone the price hike. He however said that it would have been better if scheduled rise in April was taken by oil retailers.
On the recent cobrapost expose which involved leading private sector banks like ICICI Bank, Axis Bank, and HDFC Babk, Subbarao said that RBI was determined to take strict action against erring banks and will soon introduce systematic improvement in know your customer norms.
On the new banking licenses Subbarao said that RBI would constitute committee that will vet all applications only after June. He said that RBI would issue enough licenses to instill competition but would also make sure that they don't outnumber the existing players.
Aurobindo Pharma gets USFDA nod for prostate treatment drug
Written By Unknown on Sabtu, 04 Mei 2013 | 14.02
Aurobindo Pharma on Saturday said it has received final approval from the US Food and Drugs Administration to manufacture and market Tamsulosin Hydrochloride capsules in 0.4mg strength.
The drug is a generic version of Boehringer Ingelheim Pharmaceuticals' Flomax capsules and is indicated for the treatment of symptoms of an enlarged prostate in men.
The US market size of the product was around USD 244 million for the 12-months ended September 2012, Aurobindo said, citing IMS Health data.
Further, Aurobindo Pharma has also got final approval from US FDA to manufacture and market Clindamycin Palmitate Hydrochloride for oral solution in pediatric, 75mg (base)/5 ml strength.
Clindamycin Palmitate is a copy of Pharmacia & Upjohn's Cleocin and is indicated for treating serious infections caused by susceptible anaerobic bacteria in infants.
For 12-months ended September 2012, the US market size of the drug was around USD 57 million, the company said citing IMS Health data.
The Hyderabad headquartered company now has 190 ANDA approvals from the US drug regulator. These include 163 final and 27 tentative approvals.
Aurobindo Pharma shares closed at Rs 196.65 on NSE on Friday, down 1.4 percent.
Also Read: Bharti's stake sale to help ease debt burden, say experts
Balaji Telefilms did not disclose Rs 30cr income: I-T
"After investigation, we found that Balaji Telefilms did not disclose Rs 30 crore income. By not disclosing the amount, it has evaded tax," a senior Income Tax officer told PTI. "Now, the production house has agreed to pay tax and penalty on the Rs 30 crore income. We will receive 30 percent tax on this amount and also the penalty," the officer said.
The officer further said that when Ekta Kapoor, the joint managing director of the company, was asked about tax evasion, she claimed that she is only involved in the making of films and television serials. "Hence, persons involved in the financial matters of the production house have been grilled," he added.
During the search operation on April 30, a team of over 100 officials from the department swooped down on seven locations across the city, including that of producer Ekta Kapoor and her actor-father Jeetendra's residence in suburban Juhu. Balaji Telefilms' office and studio were among the seven premises where searches were conducted, I-T sources said.
The personal offices of Ekta Kapoor, who made it big with television soaps before venturing into films, and her actor-brother Tushar Kapoor in suburban Bandra were also searched, they said. A top official of the production house refused to comment on the development. Meanwhile, 'Shootout at Wadala', produced by Balaji Telefilms, hit cinema screens across the country today.
Below Rs 189, BHEL likely to hit Rs 170: Jai Bala
Written By Unknown on Jumat, 03 Mei 2013 | 14.02
Bala told CNBC-TV18, "One can see the underperformance of BHEL, when other stocks have been performing so well this stock is doing quite poorly."
He further added, "Looking at it from a structural point, if one looks at it from October 2012 highs to the April decline, it is a very clear five down three up, this is a classic bearish setup. But here too, things can change around; so one should better wait for the stock to fall below Rs 189 and then go short."
Also Read - Capital goods to report subdued performance in Q4: Nirmal Bang
"One can place a stoploss of about Rs 197 and the stock is likely to decline to about Rs 170 if it falls below Rs 189," Bala added.
Pfizer postpone its board meeting
Read all announcements in Pfizer
Pak prisoner attacked in Jammu jail, condition serious
A Pakistani prisoner Sanaullah serving a life term was attacked inside the high-security Kot Balwal jail here by a fellow inmate this morning and his condition is stated to be serious, official sources said.
Also read: Sarabjit Singh to be cremated with state honours
It was not immediately known whether the attack on the 52-year-old convict with a sharp weapon was a backlash against the death of Indian prisoner Sarabjit Singh in a hospital in Pakistan yesterday after being comatose for nearly a week following a brutal assault by fellow inmates in a high- security Lahore jail, officials said.
Official sources said the Kot Balwal jail superintendent Rajni Sehgal has been suspended by the Jammu and Kashmir government which also ordered a probe.
The sources said Sanaullah, a resident of Pakistan, was admitted in Government Medical College hospital in an unconscious condition with serious injuries on his head after being hit by a fellow inmate in the morning. A case of assault was registered against Vinod Kumar, an ex-serviceman who is also serving a life term in the jail in the outskirts of Jammu. Kumar hails from Uttrakhand. The sources said the health condition of Sanaullah was stated to be very critical as he was hit with a very sharp weapon.
He may be shifted to Chandigarh's PGI for treatment as his Glasgow Coma Scale(GCS) was pretty low. GCS is a scale for measuring level of consciousness, especially after a head injury, in which scoring is determined by three factors: amount of eye opening, verbal responsiveness, and motor responsiveness. Sanaullah was arrested on April 1999 in connection with five cases related to terror activities.
The attack occurred ahead of Sarabjit's funeral at his native village in Punjab. Following the death of 49-year-old Sarabjit in Pakistan, Union Home Ministry had issued advisories to all states for maintaining high vigil in jails and ensure there was no attack on any Pakistani prisoner lodged there. Excluding fishermen, there are about 220 Pakistani prisoners in Indian jails. A similar number of Indians are lodged in Pakistani jails.
Official sources said the Kot Balwal jail superintendent Rajni Sehgal has been suspended by the
SKF India: Outcome of AGM
Written By Unknown on Kamis, 02 Mei 2013 | 14.02
May 02, 2013, 12.27 PM IST
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SKF India: Outcome of AGM
SKF India at its 52nd AGM held on April 30, 2013 has declared dividend on the equity shares for the year ended December 31, 2012.
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SKF India: Outcome of AGM
SKF India at its 52nd AGM held on April 30, 2013 has declared dividend on the equity shares for the year ended December 31, 2012.
Read all announcements in SKF India
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From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'
The latest earning numbers FIRST on CNBC-TV18
Sturdy Industries: Outcome of board meeting
May 02, 2013, 12.27 PM IST
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Sturdy Industries: Outcome of board meeting
Sturdy Industries shareholders have given their consent and approval for ratification of convertible warrants made on January 14, 2011 and on their conversion of 1 crore equity shares on July 02, 2012.
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Sturdy Industries: Outcome of board meeting
Sturdy Industries shareholders have given their consent and approval for ratification of convertible warrants made on January 14, 2011 and on their conversion of 1 crore equity shares on July 02, 2012.
Read all announcements in Sturdy Ind
To read the full report click here
From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'
The latest earning numbers FIRST on CNBC-TV18
Nitco: Outcome of board meeting
May 02, 2013, 12.27 PM IST
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Nitco: Outcome of board meeting
Nitco at its meeting held on April 30, 2013 has decided to seek the approval of members through postal ballot for issue of equity shares on preferential basis.
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Nitco: Outcome of board meeting
Nitco at its meeting held on April 30, 2013 has decided to seek the approval of members through postal ballot for issue of equity shares on preferential basis.
Read all announcements in Nitco
To read the full report click here
From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'
The latest earning numbers FIRST on CNBC-TV18
Gold edges down, investors cautious ahead of Fed
Written By Unknown on Rabu, 01 Mei 2013 | 14.02
The Fed's policy-making committee ends its meeting later in the day with a statement that could be dovish in response to recent weak economic data. Investors also await Friday's non-farm payrolls data, which will signal the longer-term prospects for the Fed's monetary stimulus.
Fears that central banks' money-printing to buy assets will stoke inflation have been a key driver in boosting gold, which rallied to an 11-month high last October, after the Fed announced its third round of aggressive economic stimulus.
Also read: Gold's year-end price target: What are experts betting on
Gold fell USD 2.24 an ounce to US 1,474.36 by 0331 GMT, with the market torn between hopes that the Fed will keep its current policy and daily outflows from exchange-traded funds, as investors cut their exposure.
"Accommodative policies are generally seen as supportive for gold, but as the events of the last few weeks have demonstrated, the precious metal does not always move in lockstep with simple expansion in money supply," said Edward Meir, a metals analyst at futures brokerage INTL FCStone.
"Instead, it seems to pick up steam either as a result of turmoil in the financial markets or on the back of higher inflation readings, neither of which seem to be prevalent at this particular time."
US gold futures for June delivery stood at USD 1,474.00 an ounce, up USD 1.90.
Also read: Need to resolve structural issues; gold crash helps: Gokarn
Cash gold and US futures tumbled to around USD 1,321 on April 16, their lowest in more than two years, after a drop below USD 1,500 sparked a sell-off that stunned investors and prompted them to slash holdings of exchange-traded funds.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.19 percent to 1078.54 tonnes on Tuesday, their lowest since September 2009.
But gold has recovered more than half of its USD 225 loss incurred between April 12 and 16, boosted by strong physical demand, especially in top bullion consumers China and India.
"With investment flows negative but monetary policy supportive, we think a neutral fundamental rating is the most appropriate one. In contrast to neutral fundamentals, technical indicators are clearly negative," said Credit Suisse in a report.
"The longer-term trend has been broken to the downside. This fact is significant because in a downtrend the default move of a price is lower in the absence of convincing fundamentals. With fundamentals only neutral, we think some risk still persists."
Overall trading was quiet, with most markets in Asia shut for a holiday, although Japan was open. Tokyo gold futures, which often dictate movements in cash gold and US futures, ticked higher on Wednesday, shrugging off disappointing Chinese manufacturing data.
Premiums for gold bars were little changed in Tokyo at up to $1 to the spot London prices, levels last seen in July 2012 before they were revisited two weeks ago, following a surge in physical buying.
Hong Kong and Singapore were closed for a holiday. A rush in buying of gold bars after the recent plunge in prices has led to tight physical supply in Asia.
"We have a similar tight situation in Japan, because there has been a lot of buying from China and other regions in Asia," said a dealer in Tokyo. "But at this moment, buying interest from the Japanese is not so huge," said the dealer, adding that domestic retail investors had paused for breath after recent purchases.
In other markets, the dollar eased on Wednesday as investors warily awaited the outcome of the Fed's two-day policy meeting, while the euro drifted on expectations for a rate cut when the European Central Bank meets later in the week.
No end in sight for Fed stimulus as inflation sags
But policymakers are not there yet.
At a two-day meeting that wraps up on Wednesday, the Fed is widely expected to maintain its monthly purchases of USD 85 billion in bonds to support an economic recovery that is nearly four years old but still too weak for the job market to truly heal.
With the central bank's favored inflation gauge slipping and employment growth faltering, Fed officials could again find themselves in the uncomfortable position of having to shift from talk of curbing stimulus to the possibility of doing more.
Also read: Bernanke Watch: Is he eyeing the exit?
Currently, analysts see the Fed buying a total USD 1 trillion in Treasury and mortgage-backed securities during the ongoing third round of quantitative easing, known as QE3. Until recently, analysts had believed the Fed would start taking the foot off the accelerator in the second half of the year.
Now, things are looking a bit more shaky.
The housing market continues to show signs of strength, with home prices posting their biggest yearly gain since 2006, the year the market began a historic slide that snowballed into a global financial crisis.
However, the industrial sector is not quite as perky. Durable goods orders posted their largest drop in seven months in March, while an index of Midwest manufacturing showed an unexpected contraction in the sector for April.
Economic growth did rebound in the first quarter after a dismal end to 2012, but the 2.5 percent annual rate of expansion fell short of economists' estimates, and economists are already penciling in a weaker second quarter.
At the same time, inflation has steadily been coming down. The Fed's preferred measure of core inflation, which excludes more volatile food and energy costs, rose just 1.1 percent in the year to March. Overall inflation was up just 1 percent, the smallest gain in 3-1/2 years.
The Fed targets inflation of 2 percent.
Also read: Fed doves play down threat of US inflation
CHECKING THE TOOLKIT
Despite the economy's softer tone, a wait-and-see attitude seems the most likely approach for now. The Fed is expected to nod to the economy's disappointing performance when it announces its decision at 2 p.m. (1800 GMT), even as it maintains its course.
But if the economy's fortunes do not improve, the US central bank may well look for fresh ways to boost its support to the economy - increasing the amount of assets it is buying is just one option.
The Fed could announce an intent to hold the bonds it has bought until maturity instead of selling them when the time comes to tighten monetary policy. Fed Chairman Ben Bernanke has already raised this as a possibility.
US central bankers could also set a lower unemployment threshold to signal when the time might be ripe to finally raise overnight interest rates, which they have held near zero since December 2008. Currently, the threshold stands at 6.5 percent, provided inflation does not threaten to breach 2.5 percent.
Research suggests such "forward guidance" about the future path of interest rates can have a strong impact on current borrowing costs, and one Fed official - Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank - has already suggested lowering the threshold to give the economy a boost.
"Forward guidance would be perceived as having lower costs (than bond purchases) by most, I think, and for that reason I think it could be the preferred avenue, especially if more stimulus was projected to be needed for a long period of time," said Roberto Perli, a partner at Cornerstone Macro in Washington and a former Fed economist.
Analysts generally agree that is a debate for the future, if the Fed even gets there at all.
Victor Li, a former regional Fed economist who teaches at Villanova University in Pennsylvania, said employment growth would have to be consistently below the 100,000 jobs per month pace in combination with core inflation of around 1 percent for the Fed to consider a greater easing of monetary policy.
"There is just no evidence that this is going to happen."
Others are less sanguine. Justin Wolfers, an economics professor at the University of Michigan's Gerald Ford School of Public Policy, said the risk that prices will drop persistently, causing further economic damage, cannot be ruled out.
"What's more relevant than the current inflation trend is what this means for forecast inflation," Wolfers said. "And I think even more relevant than the Fed's official point estimate for inflation is the probability that deflation looms as a real threat. Inflation rates lower than 1 percent certainly raise a greater risk of deflation."
China factory PMI raises doubts about economy's strength
The official purchasing managers' index (PMI) fell to 50.6 in April from an 11-month high in March of 50.9. Analysts had expected the April PMI to be 51.0.
The pull back on the official PMI mirrored a similar decline in a preliminary HSBC PMI last week, suggesting China's exports engine faces headwinds from the euro zone recession and sluggish growth in the United States.
China's new government has signalled it will step up infrastructure investment, which analysts said will provide support for the economy in the second quarter.
Also read: China HSBC Flash PMI eases, points to tepid Q2 recovery
"Overall, my general feel is that China is growing but slower than people expected say a month ago," said Alvin Pontoh, economist at TDSecurities in Singapore.
"But I don't think this is reason for alarm, this is probably what the new administration is looking for. Structurally, China cannot grow at 9 or 10 percent any more, so over the next few years, you'd reasonably expect growth to edge lower to say 7 percent or so".
A string of global data, including lower than expected US economic growth figures, has dented optimism seen at the start of the year that the world economy was picking up.
Market reaction to the PMI was muted as many countries in Asia and Europe are marking May 1 Labour Day holiday. China's markets are closed and will reopen on Thursday.
Benchmark three-month copper slipped and weighed on mining stocks in Australia following the PMI figures. The Australian and New Zealand dollars held their ground.
Also read: Shanghai markets to selloff post PMI data: ETX Capital
The official PMI figures showed a new orders sub-index fell to 51.7 in April from 52.3 in March, holding above 50 which separates expansion from contraction compared with a month earlier. However, the new export orders index fell to 48.6 from 50.9 in March, suggesting they were shrinking.
The input price sub index fell to 40.1 in April, its lowest in at least four years.
"The dip in April PMI shows that the foundation for China's economic recovery is still not solid," Zhang Liqun, an economist at the Development Research Centre, a top government think tank in Beijing, said in an emailed statement accompanying the index.
"All these show the possibility for China's growth to slow slightly in the future. We must work to stabilise domestic demand and make our economic recovery more sustainable," he said.
HSBC's preliminary PMI for April fell to 50.5 from 51.6 in March as new export orders shrank. The final reading is scheduled to be published on Thursday.
RECOVERY UNDER THREAT
The latest PMI adds risks to market expectations that China's annual economic expansion will pick up to 8.0 percent in the April-June quarter after it slipped in January to March to 7.7 percent from 7.9 percent in the previous quarter.
Zhiwei Zhang, a China economist at Nomura, said in a client note before the PMI figures that he expects growth to ease again in the second quarter to 7.5 percent.
Apart from expectations of more infrastructure investment, the central bank will hold rates steady throughout 2013, as it needs to tread a delicate balance between inflation and growth, a Reuters poll showed.
"We still expect major activity indicators to show a moderate growth recovery in April and 2Q. On policies, we expect overall monetary and fiscal policies to remain accommodative, though we see no need for significant stimulus," said Ting Lu, a Hong-Kong-based China economist from Bank of America Merril Lynch, in a note to clients.
Beijing is targeting 2013 growth of 7.5 percent, lower than the double digit levels of most of the past three decades as it tries to shift the economy to reduce reliance on exports and more towards consumption.
Still, the recovery from seven-straight quarters of a slowdown through the third quarter of 2012 has been uneven so far. Growth picked up in the fourth quarter but then slipped in the first quarter of this year despite a credit boom in January through March.
China's debt-ridden local governments used new lending to repay existing loans instead of channelling the money into new investment, analysts said.
The government has promised to heighten scrutiny of local government financing vehicles, wealth management products and the country's fledgling bond market.
The politburo, the top decision-making body, said in a meeting last week China would speed up the establishment of a regulatory system for local government debt financing while strengthening oversight on potential financial risks.
Shadow banking, a main driver of a credit surge in recent months, has provided a lifeline though to property funding, fuelling unwelcome housing inflation.
New home prices jumped 3.6 percent in March from a year ago, a third straight monthly increase despite an intensified government tightening campaign during the past three years.