07/02/2013
Buy Thermax For Target Rs.770
 
Thermax (TMX) is benefiting from few structural trends: (1) continued energy shortages and increased energy pricing, driving demand for energy efficiency products, (2) hunt for alternative energy, given demanding regulations and improving viability, (3) increased environmental concerns and stringent regulatory intervention, (4) currency depreciation leading to increased possibilities of exports (currently at 22% of revenues), etc.
* There are also initial signs that the capex environment in base sectors (like Food Processing, Pharmaceuticals, Textiles, Chemicals, Engineering, etc) is improving. Few large Cement / Refinery projects are likely to be awarded in 1HFY14, leading to improved trend in Gross Fixed Capital Formation (GFCF). * We expect TMX to report acceleration in revenue growth, driven by improvement in GFCF (particularly in base industries) and interplay of several structural trends. The company's revenues have been largely stagnant over FY11-13, impacted by
macroeconomic volatility, and we expect 15% CAGR over FY13-15. While exports would grow at 27% CAGR, the domestic business is likely to grow at 11% CAGR.
* We believe TMX is uniquely positioned to benefit from the current trends, which will enable it to make a transition to the 'Big League' in the next economic upturn. We expect TMX to report earnings CAGR of 22% over FY12-15. The stock quotes at 20x FY14E and 15x FY15E EPS. We upgrade the stock to Buy, with an upgraded price target of INR770 (upside of 33%).
 
 Buy Glenmark Pharmaceuticals Ltd. For Target Rs.608.00

 
Glenmark Pharmaceuticals Ltd, together with its subsidiaries, engages in the manufacture & marketing of pharmaceutical formulations &  active pharmaceutical ingredients in India and internationally.
* Glenmark Pharmaceuticals S.A, has entered into an agreement with Forest Laboratories, Inc. for the development of novel mPGES-1 inhibitors to treat chronic inflammatory conditions, including pain.
* During the quarter, the robust growth of Net Profit is increased by 180.64% to Rs. 1567.52 million.
* Glenmark has granted approval from USFDA for Crofelemer 125 mg tablets for the symptomatic relief of diarrhea in patients with HIV/AIDS  on anti-retroviral therapy.
* Glenmark Generics Inc., USA, has granted approval from USFDA for Rizatriptan Benzoate tablets.
* Glenmark Generics Inc., USA has been granted final ANDA from the USFDA for Montelukast Sodium Tablets, 10mg.
* Net Sales and PAT of the company are expected to grow at a CAGR of 24% and 13% over 2011 to 2014E respectively.
Outlook and Conclusion
* At the current market price of Rs.538.00, the stock P/E ratio is at 25.53 x FY13E and 22.29 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs 21.08 and Rs.24.13 respectively.
* Net Sales and PAT of the company are expected to grow at a CAGR of 24% and 13% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 17.07 x for FY13E and 15.07 x for FY14E.
* Price to Book Value of the stock is expected to be at 4.90 x and 4.02 x respectively for FY13E and FY14E.
* We recommend ‘BUY’ in this particular scrip with a target price of Rs.608.00 for Medium to Long term investment.
Buy RCF- Good Bet In Urea Segment For Target Rs.62.00

 
Rashtriya Chemicals and Fertilizers Ltd (RCF) is a leading urea player in the fertilizer industry. Urea alone contributes 46% of the top line. The company also manufactures and markets other fertilizers such as Complex Fertilizers, DAP, MOP, and SSP as well as industrial chemicals such as Methanol, Ammonia, Ammonium Nitrate Melt, Methylamines, and Ammonium bi-carbonate. Rubber, chemical, pharmaceutical, dyes, leather and real estate industries are the key customers for the industrial products.
Investment Rationale
* Capacity expansion to boost top-line growth- The ammonia and urea capacity expansion in Q1FY13 is likely to boost the company’s top-line growth FY13 onwards. In addition to that, RCF has huge capacity expansion plans in urea, ammonia, nitric acid, SSP, ammonium nitrate at Thal and Talcher, which will be funded with the combination of debt and equity.
* Government divestment is likely to improve performance as well as liquidity in the stock.
* RCF is planning to do long term contract for one of the key raw material named rock phosphate to ensure uninterrupted supply, which is likely to improve margins.
*  The expected urea investment policy is likely to encourage capital investment in the urea segment. This could reduce dependency on import that may decrease Govt expenditure too some extent.
* RCF has entered into Joint Venture with FACT in FY13 for manufacturing of plaster wall and panel which are sold mainly to the builders.
Valuation
At the CMP of `52.4, the stock discounts it’s FY13E and FY14E EPS of `5.43 and `6.92 by 9.65x and 7.57x. Due to the expected urea investment policy, Govt divestment, capacity expansion plans and looking out for long term raw material contract, we are bullish on the company, but being a PSU company and its presence in the Govt regulated industry, the implementation of projects might get delayed. Hence, keeping in view the above factors, we have assigned a P/E multiple of 11.42x to arrive at the target price of `62 for the stock. Any positive move in divestment and urea policy may change our target price in the upward direction.
Risk
* Volatility in the price of Rock Phosphate, Muriate of Potash, Mono-ammonium phosphate and natural gas and foreign currency fluctuation may impact profitability
*  Irregularity of monsoon is likely to impact the top-line of the company.
* The highly regulated industry may face risk in policy front and its implementation.
Buy Greaves Cotton Ltd. For Target Rs.85

 
GCL earnings were flat for the quarter given decline in 3W industry volumes. EBITDA margins were lower due to margin decline in core business
of engines as well as due to continued loss in infrastructure equipment division.
* Valuations are attractive for a company with high return ratios of ~ 20%. We maintain BUY with a revised target price of Rs 85 (Rs 84 earlier)
* Risks and Concerns: Upgrade by customers to 4W LCVs may cannibalise 3W LCV volumes which is the stronghold of GCL. We would remain
watchful about this emerging threat.
Valuation
GCL is currently trading at 12.0x and 11.2x FY13 and FY14 earnings respectively. While industry outlook remains weak, we believe valuations are reasonable at this price. Hence maintain BUY with an revised DCF based price target of Rs 85 (Rs 84 earlier).Buy Apollo Hospitals Enterprise Ltd. For Target Rs.945.00

 
Apollo Hospitals Enterprise Ltd. is the leading private sector healthcare provider which owns & manages specialty hospitals, clinics,
pharmacy retail outlets
* During the Second quarter ended the robust growth in the Net Profit of the company and it is rose by 49.28% to Rs. 832.40 million.
* Apollo has introduced India’s first 320-slice CT scanner.
* The company is planning to add 15 new hospitals and 3,140 owned beds by the end of the financial year 2015.
* Apollo has entered into partnership with healthcare division of Philips offer MRI guided high intensity focused ultrasound solution.
* Apollo entered into agreement with Cytori Therapeutics to offer Celution R system in India, to provide the best-in class regenerative medicine technology.
* The company signed an agreement with Govt of Tanzania to start 250-bed super-specialty hospital offers world class healthcare services.
* Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 24% over 2011 to 2014E respectively.

Outlook and Conclusion
* At the current market price of Rs.844.00, the stock P/E ratio is at 38.85 x FY13E and 32.50 x FY14E respectively.
* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.21.73 and Rs.25.97 respectively.
*  Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 24% over 2011 to 2014E respectively.
* On the basis of EV/EBITDA, the stock trades at 19.94 x for 17.41 x respectively for FY13E and FY14E.
* Price to Book Value of the stock is expected to be at 4.36 x and 3.90 x respectively for FY13E and FY14E.
We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.945.00 for Medium to Long term investment.
  Buy Castrol India For Target Rs.349

 
Geared For Growth
Castrol India has so far ably defended its market share in the lube oil industry despite its premium product offerings by leveraging on its  strong brand. We view the street’s concerns over continued pressure on volume/market share as overdone as we expect:
(1) Stagnancy in the industrial segment to be offset by robust retail demand, thus keeping overall volume stable, and
(2) Pressure on margins in the coming quarters to ease with a judicious product mix. We expect volume CAGR at 1.9% over CY11-CY14E  driven by retail/workshop channel, while adjustment in product pricing and launch of low-premium products are likely to help it recapture market share. We have assigned a Buy rating to Castrol India with a target price of Rs349 using weighted average methodology.
Renewed focus to capture market share:
Our interaction with industry experts/dealers/mechanics/lube companies revealed that the company has regained market share at ~22% in  September 2012 after shedding almost 200bps last year as a result of its premium product offerings (premium touched 30%-35%). The  gain is on account of:
(1) Premium pricing versus rivals stabilising in the band of 20%-25%,
(2) Castrol being relatively immune to cost pressures, considering the company’s positioning as price leader,
(3) Launch of low-premium products like Activ Go for bikes and RX Super for commercial vehicles to mark its presence in the mid-size segment.
Volume growth, palpable signs of recovery visible:
We expect volume to grow 2.4%/3.4% in CY13E/CY14E, respectively, after posting negative growth in CY11/CY12E. We expect it to report  volume of 208mn/213mn/220mn litres in CY12E/CY13E/CY14E, registering volume CAGR of 1.9% over CY11-CY14E compared to 0.5%  likely over CY09-CY12E. We believe volume growth would be driven by:
(1) Rising exposure of the company towards the personal mobility segment,
(2) Retail/workshop volume growth (on YTD basis volume grew 7% though industrial volume declined),
(3) The company’s renewed focus on capturing market share by offering lowpremium products,
(4) Growing penetration of Hub & Spoke  model in commercial vehicles, where volume growth in light commercial vehicles (LCVs) arrests the decline in volume from heavy commercial vehicles (HCVs), and
(5) Increased focus on small towns and rural areas, a key growth market in the personal mobility space, in conjunction with its plan to capture the business from the tractor segment.
Assign Buy rating to the stock:
We have assigned a Buy rating to the stock with a target price of Rs349 using weighted average methodology to capture medium to  longterm potential. We assign 60% weight to PE and a 20% weight each to DCF/Gordon dividend discount methodology. We believe a PE  multiple of 30xCY14E earnings (two year average of 27x) will sustain to reflect:
(1) Volume CAGR of 1.9% over CY11-CY14E compared to 0.5% over CY09-CY11,
(2) Expansion in margins of 300bps over CY12ECY14E,
(3) The company regaining market share with the launch of low-premium products and
(4) MNC parentage aiding the launch of innovative products to compete with Shell and Petronas
(5) Company’s price leadership position
(6) Earnings growth at 13%/16% in CY13/14, which would result in RoE to improve to 72.7%/78.8% compared to 69.5% in CY12E.
  Buy Dish TV India Ltd. For Target Rs.94 

 
Q3FY13 Results Highlights
Dish TV India Ltd (Dish TV) Q3FY13 performance was below the street expectations largely on all fronts. During the quarter, revenue went up by 4.5% qoq (+13.7% yoy) to Rs.5,578 mn (Bloom est. Rs.5,646 mn). This was driven by 5% qoq increase (to 10.5 mn v/s 10.0 mn) in net subscriber addition and 0.6% qoq increase (to Rs.160 v/s R.159) in ARPUs. The subscription revenue
contributed nearly 88.6% of overall revenue and grew by 4.6% qoq and 16.2% yoy to Rs.4,943 mn. Others segment contributed nearly 11.4% of the overall revenue, went up by 4.3% qoq (down 2.4% yoy) to Rs. 635 mn. Gross subscriber stood at 14.7 mn (v/s 13.9 mn in Q2FY13 and 12.5 mn in Q3FY12) leading to the gross subscriber addition of ~0.80 mn (v/s 0.50 mn in Q2FY13 and 0.76 mn in Q3FY12). EBITDA for the quarter stood at Rs.1,377 mn (Blom est: Rs1,309 mn), down 11.5% qoq (+14.6% yoy) due 11.2% qoq increase in total operating cost.
The total operating cost was led by +13.8%, +8.9%, +20.7% and +2.1% qoq increase in programming & content, others, S&D and personal costs, respectively. As a result, EBITDA margin contracted 449 bps qoq to 24.7% in Q3FY13. Depreciation went up by 11.7% qoq to Rs.1,713 mn (v/s Rs.1533 mn in Q2FY13) led by high fixed investments and change in the accounting treatment (write-off the Set-Top boxes from other expenditure to depreciation). During the quarter, DishTV reported forex gain of Rs.60 mn (v/s forex loss of Rs.110mn in Q2FY12). Other income (incl forex) went up 118.4% qoq to Rs.175 mn (v/s Rs.80 mn in Q2FY13). Interest expenditure (net forex gain) declined 9.2% qoq to Rs.288 mn (v/s Rs.317 mn in Q2FY13). The company reported net loss of Rs.449 mn (v/s net profit of Rs.551 mn in Q2FY13). Adjusting forex and other one-offs, net loss widened to Rs.509 mn (v/ s net loss of Rs.323 mn in Q2FY13).
Valuation
At the CMP of Rs.74, the stock is trading at 12.7x FY13E and 10.6x FY14E EV/EBITDA Bloomberg estimates. We like the company’s recent quarter performance on subscriber addition front and ARPU expansion along with decline in churn rate. We believe company is well placed and made all required investments to capitalise on upcoming digitisation opportunities. Further, the relaxation of FDI norm remains positive for the sector. Given its leadership position in industry, Dish TV could be the preferred pick for international investors. Any price correction from the current levels could be used as an entry point. We maintain BUY with a target price of Rs.94 per share.

VPS GROUP NEWS UPDATED  DATED 02/02/2013MARKET EYE WEEK AHEAD - Trading seen cautious; earnings awaited

 Trading is expected to remain cautious next week as a sudden slump in share price of Tata Motors and Ultratech Cement in late market hours on Friday would make investors take cautious bets.

Shares are expected to trade in a narrow range as sentiment remains muted after the central bank's comments on Tuesday and as traders watch out for earnings of auto major Mahindra & Mahindra   and cement companies including ACC .

Market participants will watch for any announcement from the government about the upcoming budget.

India's plan to raise about $2 billion through a stake sale in power producer NTPC Ltd   will likely take place on February 7, according to sources.

Events to watch:

Monday: Bank of Baroda  , United Sprits

Tuesday: UCO Bank , Apollo Tyres , HSBC Markit services PMI

Wednesday: Cipla , Tech Mahindra

Thursday: ACC , Ambuja Cement , MRF , Aurobindo Pharma
Religare Capital says tech error caused unusual trades

A technology glitch at Religare Capital Markets caused "unintended transactions", the brokerage said on Saturday, a day after deeply discounted sale of large blocks of shares in Tata Motors   and UltraTech Cement   hit the markets.

National Stock Exchange Ltd said on Friday it was investigating the block sales in two stocks, the latest in a series of unusual price movements to rattle the market.

"Religare Capital Markets Limited uses third party software for execution of orders on stock exchanges. Due to some technical issue in the software, unintended transactions got executed," the brokerage said in a statement.

"There was no broker error and no loss to any clients," it said, adding the matter was being looked into by the software provider. It said there was no impact on client business and the brokerage would operate normally on Monday.

A total of 2.07 million shares in Tata Motors were sold in six blocks at an average price of 274.92 rupees in the afternoon on Friday, well below the roughly 292 rupee level at which the shares were trading at the time.

Tata shares fell as low as 268.25 rupees before ending the session down 5.49 percent at 281.64 rupees.

Shares in UltraTech, a cement maker, ended down 3.4 percent after an earlier block sale of 41,863 shares took place at an average 1,853.80 rupees, also well below where shares were trading at the time.

Both trades took place around the same time.
 
Mahindra & Mahindra sales up 11% in January

Auto major Mahindra & Mahindra has reported a growth of 10.70 per cent in its total sales ended January 2013 at Rs 49,503 units, driven by surge in passenger vehicle segment. The company had sold 44,718 units during the same period a year ago, said Mahindra & Mahindra in its filing to the Bombay Stock Exchange on February 1, 2013. Commenting on the development, M&M Chief Executive (Automotive Division) Pravin Shah said, “We are happy to have grown in some of our major segments during January 2013... The recently announced reduction of 25 bps both in the repo and CRR rates is a positive step and is expected to bring in the much desired momentum in the market.” In the domestic market, the company registered a 15.64 per cent rise in sales to 47,841 units during the month compared to 41,369 units in the year-ago period, M&M said in its filling.
Among the passenger vehicles segment, which includes Scorpio, XUV500, Xylo, Bolero and Verito, sales shoot up by 32.94 per cent to 26,555 units against 19,975 units in January 2012. However, the company has reported 9.76 per cent decline in its total tractor sales in January 2013 at 17,473 units corresponding to 19,362 units sold in the same month last year. Meanwhile, shares of the company closed at Rs 885.95 a piece, down 0.48 per cent from previous closing on BSE.Bank of Baroda cuts base rate by 25 bps


Bank of Baroda, on Friday, said it has reduced its base rate and BPLR by 25 basis points in response to the RBI’s move to reduce the key policy (Repo) rate by 25 bps and the Cash Reserve Ratio by 25 bps in its Third Quarterly Review of Monetary Policy unveiled on January 29, 2013. The new lending rates will be effective from February 9, 2013, said Bank of Baroda in a filing to the BSE on February 1, 2013. Following the rate cut, bank’s base rate will be at 10.25 per cent and BPLR at 14.50 per cent. In line with the lending rate cut, the bank also realigned its deposit rates in the band of 15 to 20 bps in the shorter maturities.
The move follows base rate cut announced by State Bank of India, Punjab National Bank, Union Bank of India and IDBI Bank in last few hours, aimed at passing on the benefits of repo rate cut to the borrowers to spur investments and spending in the economy.Deutsche Bank to cap bonus payouts at 300,000 euros

 Deutsche Bank AG  will cap bonus payouts for 2012 at 300,000 euros per employee, a source familiar with the bank's thinking said on Friday.

However, total remuneration for 2012 will not be limited to 300,000 because the cap does not apply to deferred payouts, the source added. Employees are set to find out in the next couple of days what the extent of their remuneration will be for 2012.

Deutsche Bank unveiled a quarterly loss on Thursday after it took nearly $4 billion in charges to try and draw a line under a slew of scandals.

The bank said its bonus pool for 2012 had been cut by 11 percent to 3.2 billion euros. The number of employees in the Corporate Banking and Securities unit - the investment bank - has fallen 13 percent year-on-year.

Average compensation for Deutsche investment bankers was 332,785 euros in 2011, down 12 percent on 2010 levels.

In September, the bank said it would alter remuneration to encourage its bankers to focus on "longer-term sustainable performance". Senior managers will have to wait five years to receive bonus share awards, rather than have them staggered over three years, the bank said at the time.

Overall, Deutsche Bank's headcount had fallen 2.7 percent year-on-year to 98,219 employees at the end of 2012India to take baby steps towards gold

 The RBI plans to introduce three to four gold-linked products in the next few months, in an effort to bring 20,000 tonnes of gold held in households into the banking system, but the measure is unlikely to cut bullion imports sharply, a senior official said.

India is the largest importer of gold, which is its second biggest import item after oil and contributes around 10 percent to the total import bill.

Large gold imports are a worry for the government and the RBI, with the current account deficit shooting to a record high in the September-quarter, pressuring the rupee and adding to inflationary pressures.

The Reserve Bank of India (RBI) plans to mobilise the unused gold by lending it to importers and exporters of the yellow metal, in a move it hopes will bring down the demand for physical gold.

It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products, and extend loans against gold as collateral.

Indians own about 20,000 tonnes of gold, or three times the holdings of the U.S. Federal Reserve, in jewellery, bars and coins.

"Overnight there won't be any reduction in imports, but people need to be made curious about new products," the RBI official with direct knowledge said.

"The main conduits of gold imports are banks, forming 50-60 percent of the total imports and supplies to jewellers. The way banks are suffering from huge NPAs (non-performing assets), this is a good product to work on."

The RBI is likely to release its final report on issues related to gold imports and gold loans mid-next week, the official said.

The RBI is designing products that could replace physical gold demand to yield similar returns, with easy liquidity, and documentation.

Indian banks' total gold loans are worth 1 trillion rupees. Manappuram Finance and Muthoot Finance, two of the top gold loan financing institutions, together have loan books of 500 billion rupees, the official said, indicating a large business opportunity.

"The problem of gold imports can be solved only when the economy enjoys inflationary and macroeconomic stability," added the official.

Headline inflation has been above 7 percent in the last three years, prompting savers to invest in gold, stocks and real estate, which yielded higher returns compared with bank deposits.

The RBI estimates gold imports to fall by 25 percent in the current fiscal year ending March to 750 tonnes from a record of 1,079 tonnes in the previous year due to high import duty, a jump in prices, slowdown in economic growth, and a month-long jewellers' strike.

India's current account deficit would had been lower by $6 billion at 3.9 percent in 2011/12 instead of 4.2 percent, had imports grown by an average of 24 percent instead of 39 percent, the RBI said in a recent report.
Service tax evasion at 98 billion rupees in April-Dec

 Tax evaders deprived India's coffers of about 98 billion rupees in service taxes during April to December 2012, a finance ministry official said on Friday.

"Of the 98 billion rupees, about 20 billion rupees have been recovered," Lipika Majumdar Roy Choudhury, member, service tax, said.

The department is making efforts to recover the remainder, she added.

Battling tax evasion has become one of the key agendas of Finance Minister P. Chidambaram as he looks to keep an already bloated fiscal deficit target to 5.3 percent for the full year.

Weekly Stock Market Prediction 21st Jan 2013 – 25th Jan 2013

 

Weekly planetary position: During the week, Moon will be transiting in Taurus & Gemini. Lord Saturn & Rahu in Libra. Jupiter in Taurus. Venus & Pluto in Sagittarius. Mars, Sun & Mercury in Capricorn. Ketu in Aries.  Uranus in Pisces.  Neptune in Aquarius.
Rahu & Ketu, which are the main planets responsible for speculation / trading in stock market, have changed their houses (Rashi) on 23rd December 2012. They stay in one house for 18 months. Trade cautiously, many sectors, which were receiving astrological support due to their placement in existing houses (Rashi), will now stop getting support & the stocks from those sectors will start coming down gradually. To Many Investors/ Traders, to whom current placement was favorable, may not be beneficial in future, due to this change. It is advise able to consult your financial astrologer.

BE CAUTIOUS: Astrological position is highly deceptive. Trade cautiously & avoid carrying too much long or short positions. Deception does not mean that Nifty / Sensex will come down, but it will behave against the market expectations & that too without any solid reason.  It was predicted last week also & on 16th January 2013, Nifty was down & in panic more than 95% stocks in F.O. segment closed in red.

Following sectors will be getting astrological support & buying may be initiated on down days.

BANKING & FINANCIAL sector will continue receiving very strong astrological support. Preference should be given to PSU Banks & Housing Finance. Buy Canara Bank, Bank of India, Bank of Baroda & PNB etc in Banking & HDFC, LIC Housing, Dewan Housing & GIC Housing in Financial sector. At lower levels one can also buy IFCI, IDFC, REC & PFC.

TELECOM sector will also be getting strong astrological support. Buy Idea, Bharti & Reliance Communication on dips.

AUTO sector will be receiving astrological support. Buy Maruti, Tata Motor, Ashok Leyland, Eicher Motor & TVS Motor.

PHARMA sector too will be receiving astrological support. Buy Stride Arco, Wockhardt, Aurobindo Pharma, Glenmark, Biocon & Cipla etc on decline.
LIQUOR & PAINTS sectors will continue receiving astrological support. Buy United Spirit, TilakNagar & Asian Paints on down days.

Every year, with commencement of new Samvat, astrologically, based on planetary position, some new sectors start out performing, while others remain laggard. According to our experience of last more than 12 years, stocks of such sectors outperform resulting in exorbitant gains, irrespective of the behavior of Market. To know which stocks/ sectors will outperform in current Samvat & to achieve maximum gains please contact us.

Always be very cautious, when some main planets i.e. Rahu, Ketu, Jupiter & Lord Saturn are changing their houses. It may be that certain sectors which were continue sly getting support for long time may stop receiving support due to change in position by above planets & stocks of those sectors starts coming down, resulting in losses. This is common reason, why most people loss money.

New Samvat have started from 14th November 2012. Whenever New Samvat starts, based on planetary position / conjunction & aspect among planets, some new sectors commence out performing & many sectors, which were in momentum during last Samvat start underperforming.

It has been observed many times that investors / traders (not knowing this fact) keep investing /trading in such sectors,( whose astrological support is over) – resulting in losses. It is suggested to consult your Financial Astrologer to know about the sectors.

One should trade only in the stocks of that sectors which are getting very strong astrologically support,

Sectors which get very strong ASTROLOGICAL support are not normally affected by downfall in the market.
 

Pre-Market Call - Buy Hero MotoCorp for short-term target of 1934 with stop loss of 1825 . . . . . . . . . . Comments - From the top of 2149 to bottom of 1743, scrip was in downtrend forming lower tops & lower bottoms. From the bottom of 1743, scrip started moving in range bound zone between 1743 – 1963 levels, forming rectangle pattern. On Tuesday after making low of 1810, scrip closed positive at 1853, forming bullish engulfing pattern supported by positive indicators indicates possible 

***************************************************
 Update on One Day Call: (3:24 PM) Book entire Profits in long positions in FT Futures @ 1184 - 1180. Call Reco @ 1165. Call Closed.




BTST: BUY ARVIND AROUND 104, SL BELOW 102, TGT 106/108

!!SAI PARSADAM!!

VIKAS PARSHURAM SAMWATSARE

AND

Universal Sompo General Insurance registers 15% decline in premium collection during Nov

 

News Details
Universal Sompo General Insurance has reported a decline of 15 per cent in gross premium at Rs 36.98 crore in November 2012 against Rs 43.59 crore in November 2011. The premium collected was significantly lower than that collected in October 2012 as it had surged by 80 per cent to Rs 47.16 crore in October 2012. The insurance company’s premium collection rose by 31 per cent to Rs 331.24 crore during the period April- November 2012 against Rs 252 crore during the period April- November 2011. In November 2012, the total gross premium underwritten by the non life insurance sector stood at Rs 5,158.21 crore.
The private non life insurance sector has underwritten gross premium worth of Rs 2,338.28 crore, up 25 per cent in November 2012 while the private non life insurance sector grew by 22 per cent to Rs 18,829.02 crore during April- November 2012. Similarly, the public non life insurance sector has underwritten gross premium worth of Rs 2,819.93 crore, up 15 per cent in November 2012. The public non life insurance sector grew by 18 per cent to Rs 25,622.30 crore during April- November 2012. Universal Sompo General Insurance is a joint venture between the Allahabad Bank, Sompo Japan Insurance Inc, Dabur investments, Karnataka bank and Indian Overseas bank. The insurance company, with more than 75 general insurance products in its basket, is catering to all the needs of its promoter bankers such as Allahabad Bank, Indian Overseas Bank and Karnataka Bank Ltd.

 UBS downgrades Colgate citing higher valuations


Market Eye - UBS downgrades Colgate Palmolive India Ltd  to "neutral" from "buy", saying the stock has well outperformed the consumer sector since October 1, 2012.

However, UBS says it remains a believer in Colgate, raising its target price to 1,720 rupees from 1,600 rupees.

"Colgate India is one of the most fundamentally sound companies in the consumer space, and that its brand strength and competitive management will continue to drive growth and margin expansion," UBS says in a note dated Thursday.

Colgate has risen 27.7 percent since the close of September 2012 compared with the BSE FMCG index's 5.5 percent rise in the same period.

Colgate shares fell 1.1 percent to 1,524.75 rupees.

 HC stops Sterling Biotech from selling, mortgaging assets

 

News Details
Gelatin maker, Sterling Biotech has been prevented by the Bombay High Court from mortgaging or selling its assets. The high court has given this order on January 09 in a winding up petition filed by the holders of foreign currency convertible bonds (FCCBs) issued by the company. In the year 2007, Sterling Biotech had issued USD 250 million convertible bonds, of which the company has redeemed and converted 46 per cent of the initial issue, amounting to approximately USD 115 million. The company was supposed to repay the maturity amounting to USD 184 million on May 17, but failed to do so. In their plea, bondholders had said that in the past, the company had disposed of its interests in a Nigerian oil well to a group firm at very low prices. The bondholders added that further dilution of assets is likely to hurt the interest of lenders. “Company has already divested its substantial equity holding in Sterling Oil Resources Limited (“SORL”).
It appears that the shares have been sold at an undervalue. The Company had provided a valuation report dated 27 October, 2011 which purports to determine the fair value of the shares held by the Company in SORL,” the bond holders had said in their petition. “It (Sterling Biotech) cannot dispose of or create third party interest in its assets on one hand, while seeking adjournment in the matter for filing reply on the other hand. It will be therefore, necessary at this stage to direct the respondent Company not to create any new rights in respect of its assets, except in the usual course of business, till the next date of hearing, and it is so directed,” Justice, N M Jamdar said in his order.

  

GAIL to raise capacity at Dabhol LNG terminal

 

 MUMBAI  - GAIL Ltd  plans to raise capacity at its Dabhol LNG terminal to 7 million tonnes in two years from 5 million tonnes now, its Chairman B.C. Tripathi said on Thursday.

The state-run gas transmission company, which commissioned its 5 million tonne Dabhol liquefied natural gas (LNG) terminal on Thursday, is considering buying 6 to 7 LNG carriers and will decide on it in 3 to 4 months.

GAIL will get the first cargo to start its Dabhol LNG terminal on January 24 from Russia's Gazprom. It had signed a 20-year agreement to source LNG from Gazprom.

 

 

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RBI’s proposal to increase LTV ratio likely to assist gold loan cos

News Details
The Reserve Bank of India’s (RBI) proposal to increase the loan to value (LTV) ratio from 60 per cent to 75 per cent is expected to assist the gold loan companies in increasing their business volume, ICRA said in a report. "Standardization of valuation of gold and increase in the LTV cap from 60 per cent to 75 per cent would help gold loan companies increase business volume," the report stated. While recognizing the positive role of banks as well as non-banking financial companies (NBFCs) in monetizing gold, the report said that the gold loan NBFCs are not likely to increase their current market share as banks have a competitive advantage over such NBFCs.
"As banks enjoy a competitive advantage over NBFCs, and given the healthy risk-adjusted returns and growth prospects in the gold loan segment, banks could step up the pace of growth of gold loans. Were this to happen, the market share of NBFCs in gold loans may not increase from the current 28 per cent by FY12-end," the report added. However, the rating agency added that the growth rate of gold loan companies is likely to witness a slowdown as against the last 3 years due to their significant dependence on the wholesale funding sources. "Significant funding constraints (despite possible easing) may slow down the pace of growth of gold loan companies, as such entities are highly reliant on wholesale funding sources," the report said.
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Govt seeking to amend controversial tax rules next month

 The government is likely to approach parliament next month to water down retrospective tax rules that damaged investor confidence, two finance ministry officials said on Monday, a move that may help settle British-based Vodafone Group Plc's long-runnning $2 billion tax dispute.

Vodafone, the largest overseas corporate investor in India, has repeatedly clashed with Indian authorities over taxes since it bought Hutchison Whampoa's local mobile business in 2007.

The government was heavily criticised by the corporate sector for introducing the tough tax rules last year at a time India was suffering a sharp economic slowdown and trying to encourage investment.

Finance Minister P. Chidambaram has for several months been considering recommendations by a government panel that said past mergers and acquisitions should not be taxed.

Vodafone, the world's biggest mobile operator by revenue, said in a statement last week that it had received a reminder from Indian tax authorities on the disputed tax dues, adding it believed that no tax was payable on the deal.

"(The) Finance Minister is likely to approach the parliament next month on the retrospective issue," said a senior finance ministry official, who asked not to be identified because of the sensitivity of the issue.

He declined to say whether the government was considering a waiver of the entire tax bill or cancelling interest and penalty charges on the original tax demand.

However, the officials said Chidambaram was likely to introduce amendments in the 2013 Finance Bill to revise the amendments that were introduced last year along with the budget.

Then Finance Minister Pranab Mukherjee introduced an amendment enabling authorities to make retrospective tax claims on long-concluded corporate deals after the Supreme Court had quashed the government's tax demand on Vodafone.

A committee headed by the finance minister's economic adviser, Parthasarathi Shome, has recommended that past mergers and acquisitions should not be taxed, or the government should waive both interest and penalty.

The officials said Chidambaram was looking at the recommendations to work out a solution to the Vodafone dispute by considering its impact on revenue receipts as well as investor sentiment.

They said the government needed parliament's nod to provide tax relief to the company, as this would also affect tax demands amounting to at least $5.5 billion for other such deals.

On Saturday, the Economic Times reported that tax authorities had asked Vodafone to pay 140 billion rupees, including interest on the tax dues.

One official said the letter was just a reminder to Vodafone to pay the tax following last year's amendment in the Act. "It is not a fresh tax notice," the official said, adding the parliament could provide relief.

The official said Vodafone had also expressed willingness to hold talks, and a solution could soon be reached.

Last April, Vodafone threatened the Indian government with arbitration proceedings in its fight over the retrospective tax proposal.
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Tata Power’s subsidiary commissions fourth 800 MW unit at Gujarat power plant 

 

News Details
Tata Power said that its subsidiary has synchronised the fourth 800 MW unit of its Mundra power plant in Gujarat. The development was achieved by its wholly owned subsidiary Coastal Gujarat Power Ltd. “The synchronisation of Unit 4 of the Mundra ultra mega power project is a significant milestone given the critical power shortage situation in the country. The Mundra power plant is one of the most efficient and environment-friendly plants based on super critical technology,” said Tata Power, MD, Anil Sardana.
Prior to the development, Tata Power has commissioned the first 800 MW at the plant in March 2012, while the second and third unit was commissioned in July and October 2012 respectively. Meanwhile, with the development in place, the total thermal power generation capacity of Tata Power has reached at 6847 MW.
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Govt likely to infuse $544 mln in FY13

 The government has indicated a capital infusion of 30 billion rupees into State Bank of India in the current fiscal year ending in March 2013, the bank's chairman said on Monday.

The infusion into the country's biggest bank will be done through a preferential allotment of shares, Pratip Chaudhury told reporters.

Capital infusion plans for the next financial year have not been finalised yet, Chaudhury added.
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 RAKBANK implements Infosys’ Finacle to improve customer services

 
Talking about another milestone achieved, Infosys said that the National Bank of Ras Al-Khaimah (RAKBANK) has announced the successful implementation of Infosys Finacle core banking solution. “The bank is now harnessing the full power of Finacle to better anticipate customer needs, improve customer experience and launch innovative products faster,” said the company in a filing to Bombay Stock Exchange. With the implementation, the bank gets to enjoy the comprehensive customer information provided system and thus utilising the same in bringing new product to the markets.
Additionally, the solution also automates the core functions of the bank’s data centers ensuring reduction in manual errors and streamlined operations. “RAKBANK is one of our valued customers in the Middle East. This partnership with Infosys Finacle is just the beginning of a transformation that will help RAKBANK deliver best-in-class banking to its customers across the region,” said Infosys, Finacle, Global Head, Haragopal M.
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Consumers will adjust with fuel prices hike if done in phased manner

 
Happy with the government’s nod to let state run oil firms hike the prices of fuels in the year, Bharat Petroleum Corporation Limited (BPCL) said the hike would be done in a phased manner over a period of one year as it will help consumers adjust to the same. “We should increase it in a phased manner. It can be a rupee per month which will not be a shock to the consumer… Since the hike will happen over a period of one year, it will help consumers adjust to the hike,” said BPCL, chairman, R K Singh.
The statement was given on the back of Finance Minister P Chidambaram announcing a roadmap to decontrol diesel and other petroleum products in a phased manner. The development brought cheers to the loss making oil companies, which are incurring losses despite government compensating for subsidising diesel alone. As per the calculations, the oil companies are incurring losses of over Rs 10 on every litre of fuel sold.

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NEWS COPYRIGHT VIKAS PARSHURAM SAMWATSARE 

 
Published on Monday, January 07, 2013