Showing posts sorted by relevance for query TV18. Sort by date Show all posts
Showing posts sorted by relevance for query TV18. Sort by date Show all posts

Monday, October 26, 2015

TV18 Broadcast Ltd: Buy
CMP: Rs.32.75
TV18 Broadcast Ltd. is an India-based television (TV) broadcast network. The Company offers telecommunication, broadcasting and information supply services. It operates through segments, including broadcasting and content, and film production and distribution. The broadcasting and content segment consists of television content and airtime sales. The Company offers news channels, such as CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, CNN-IBN, IBN7, and IBN-Lokmat, a Marathi regional news channel. It also operates a joint venture with Viacom, Viacom18, which houses a portfolio of entertainment channels, such as Colors, Colors HD, Rishtey, MTV, MTV Indies, SONIC, Comedy Central, VH1, Nick, Nick Jr., Nick Teen and Viacom18, among others. It manages and broadcasts the channel, History TV18. It offers regional channels, such as ETV Urdu, ETV Rajasthan, ETV Bihar/Jharkhand and ETV MP/Chhattisgarh, among others. It also operates digital commerce properties, such as HomeShop18 and bookmyshow.com.
Media company Network18 Media and Investments Ltd, controlled by Reliance Industries Ltd, narrowed its loss to Rs.27.42 crore for the quarter-ended 30 September, benefiting from lower interest costs. The company posted a loss of Rs.36.46 crore in the same period last year. Revenue for the second quarter rose 8% to Rs.801.1 crore from Rs.744.8 crore.

Revenue from its subsidiary TV18 Broadcast Ltd, the company’s television and motion pictures business that also operates news channels CNN-IBN and CNBC TV18, rose 9.8% to Rs.608.5 crore from Rs.553.7 crore.

Colors Infinity, an English GEC channel, was launched during the current quarter, and incurred a loss of Rs.19 crore.

In H1 FY16, there was loss of Rs.19 crore on account of new ETV news channels; there was also a one-time expense of Rs.10 crore for rebranding ETV regional entertainment channels as Colors.

H1 FY15 profitability vis-à-vis H1 FY16 was significantly influenced by advertisement income on account of the General Elections and the Union Budget. 

This means from the following quarters we could see, some improvement in the share price of the group company TV18 Broadcast Ltd. The fall in interest rate, will also act as positive boost for the company.

It is to be noted that today, the 30 plus channels that constitute the TV18 network inform, entertain and engage with disparate audiences across genres and languages.

Moreover, according to the latest shareholding pattern, both the FIIs (from 8.84% to  8.88%) and DIIs (from  3.55% to 4.92%) have increased their stake in the company. Rekha Rakesh Jhunjhunwala holds 2.32%, while Reliance Capital Ltd holds 1.21% of the shares of the company.   

What must have attracted Rakesh Jhunjhunwala to invest in TV18 Broadcast is probably the following:

(i) Liberalized foreign investment (FDI) norms for the broadcasting sector pursuant to which the foreign investment limit has been raised from 49% to 74% in teleports (setting up up-linking HUBs/teleports), Direct to Home (DTH), Cable Networks (Multi-System-Operators operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability). Foreign investment up to 74% in mobile TV is also permissible;

(ii) Digitization of cable TV will benefit the broadcasters by boosting subscription revenues...

(iii) Reasonable valuations: A market cap of Rs.5000+ crores for a dominant player is not that exorbitant.


Meanwhile, BCG-CII report says India's media & entertainment sector is likely to expand nearly 6-fold in near future, with vast demand, growing market and tech boom...

Buy the scrip of TV18 Broadcast Ltd at the CMP of Rs..32.80, for a short term target of Rs.35-37, SL--Rs.31.70.

Friday, October 23, 2015

ZEEL, Network18, TV18 collective ad spends rise 10.8% to Rs.456 crore in Q2 
Oct 16,2015: The results of three of the top TV networks i.e. Zee Entertainment Enterprises Ltd. (ZEEL), Network18 and TV18 emerged recently. 

While ZEEL saw very good results as its profit after tax (PAT) margin rose by 17.8%, its advertising revenues grew by 35% to Rs.843.3 crore during the quarter. TV18’s quarterly operating revenues on a consolidated basis stood at Rs.608.5 crore in Q2 FY16, up 10% YoY from Rs.553.7 crore in Q2 FY15. 

Network18, on the other hand, posted a net loss of Rs.27.42 crore which is a decline in the net loss since the same quarter last year which was at Rs.36.46 crore. The total income from operations grew by 7.5% to Rs. 801.13 crore in Q2FY2016 from Rs.744.83 crore in Q2FY2015. 

During the last quarter, Q1FY2016, all the three broadcast networks had posted a double-digit growth in revenues. ZEEL’s total income from operations grew by 26.6 per cent in comparison with the corresponding quarter during the previous year. The income from operations grew in Q1FY2016 to Rs.1,339 crore from Rs.1,055 crore in Q1FY2015. 

Network18’s total income from operations grew by 12% since the corresponding quarter last year. The income from operations for Network18 in Q1FY2016 was Rs.786.1 crore and in Q1FY2015 it was Rs.699.7 crore. TV18 operating revenues grew by 13 per cent in comparison with Q1FY2015. 

In Q1FY2016 the operating revenues was Rs.596.7 crore in comparison with Rs.629.7 crore in Q1FY2015.

Ad spends matrix

The ad and promotion spends of ZEEL, Network18 and TV18 in Q2FY2016 grew by an average of 10.8% from the same quarter last year. The ad spends together accounted for Rs. 456.18 crore in Q2FY2016 from Rs.411.49 crore in Q2FY2015. ZEEL saw the maximum growth in ad spends from the same period last year. The network’s ad spends had grown by a high 64.6% to Rs.120.90 crore in Q2FY2016 from Rs.73.45 crore in Q2FY2015. TV18 however saw a smaller growth as its ad spends increased to Rs. 127.03 crore in Q2FY2016 from Rs.117.32 crore in Q2FY2015. 

Network18 on the other hand had seen a slight decline in its ad spends during this quarter in comparison to the corresponding quarter last year. Its ad spends in Q2FY2016 was Rs.208.25 crore which had declined from Rs.220.72 crore in Q2FY2015.

Lower growth of 2.8% in ad spends from last quarter

The ad spends of these three major networks however grew by a low 2.8% since the previous quarter Q1FY2016. The ad and promotion spends of ZEEL, Network18 and TV18 in Q1FY2016 amounted to Rs.443.7 crore. This has grown to Rs.456.18 crore during Q2FY2016. 

The reason for this is that, while ZEEL has had a major rise in the ad spends during this Q2 from Q1, Network18 and TV18 has seen a slide in ad spends during the quarter. ZEEL’s ad spends increased to Rs.120.90 crore in Q2FY2016 from Rs.96.6 crore in Q1FY2016. 

Network18’s ad spends declined marginally to Rs.208.25 crore in Q2FY2016 from Rs.211.2 crore in Q1FY2016. TV18’s ad spends too declined to Rs.127.03 crore in Q2FY2016 from Rs.135.9 crore in Q1FY2016.

Q1 comparison

ZEEL’s advertising and publicity expenses rose by a high double-digit in Q1FY2016 to 20% in comparison with Q1FY2015. Advertising and publicity expenses grew to Rs.96.6 crore in Q1FY2016 from Rs.80.3 crore in Q1 last year.

TV18’s marketing, distribution and promotion expenses increased significantly by 32.9% since Q1FY2015. The ad and marketing spends accounted to Rs.135.9 crore in Q1FY2016 from Rs.102.2 crore in Q1FY2015.

Network18’s ad and marketing spends grew by high single-digit of 9.8%. It increased to Rs.211.2 crore in Q1FY2016 from Rs.192.2 crore in Q1FY2015.


Wednesday, October 28, 2015

TV18 Broadcast Ltd: Latest Shareholding Pattern
CMP: Rs.32.70
You can see in the above photo, that both the FIIs and DIIs have increased their stake in TV18 Broadcast Ltd (A Mukesh Ambani Group company), in the September, 2015 quarter, speaking sequentially.

Moreover, Rekha Rakesh Jhunjhunwala, Reliance Capital Ltd and Government Pension Fund Global are holding 2.32%, 1.21% and 2.67% of the shares of the company, respectively. Also, do you know where, Pension Funds generally put their money (invest)? Please search Internet to get the answer.....

It is to be remembered that on 29 May last year, in the biggest ever deal in India's media sector, Reliance Industries acquired control in Network18 Media & Investments Ltd, including its subsidiary TV18 Broadcast Ltd, for Rs.4,000 crore. Subsequently, the company made open offers to acquire a controlling stake in media group Network18 and its subsidiaries.

In January 2012, Network18 Group and Reliance Industries had joined hands for a multi-layered deal, under which the Mukesh Ambani-led corporate giant sold part of its interest in ETV channels and got access to content and distribution assets of the electronic media group. 


The share of TV18 Broadcast Ltd (Rs.32.70) is moving up with good volume today. The total volume of the shares traded in the NSE has already crossed 1.5 million and is nearing 2 million (Current Volume: 1,807,011). 

It is to be noted that Eenadu Television sold its non-Telugu businesses to the TV18 group, now controlled by Reliance Industries Ltd’s Mukesh Ambani.

In a significant development, Petrochemical major Reliance Industries Ltd, the parent company of TV18 Broadcast Ltd, had earlier beat street expectations with its September, 2015 quarter standalone net profit rising 3.8% sequentially to Rs.6,561 crore, driven by strong operational performance in refining business.

Meanwhile, a buy call was given to the Paid Group members, on Infinite Computer Solutions Ltd on Sunday, August 30, 2015 at Rs.168.70, for a short term target of Rs.200; the scrip touched Rs.196, intra-day.  

Join the Paid Services (both Web/Net and Mobile) to make maximum from the markets. To join any of the above services, kindly send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

Saturday, February 26, 2011

In the Gyanee Family's take, CNBC TV18 shows their "Agayanata" (ignorance).....
You must have read the "Gyanee Family's" take in www.moneycontrol.com and their TV Channel, CNBC TV18. These fellows first called this Railway budget a "disaster" (the great Lata Venkatesh) and then called it "Pedestrian". Then they came out with a cartoon series probably in a hurry may be to poo pooph their critics in the form of "Gyanee Family's take"--but this unfortunately only showed their "Agayanata" on the subject. Let me explain how...Let us this one as example:
## Train fares remain unchanged leaving my travel budge intact......
The above line simply tells one part of the story. It is because in the days of cheaper air fares, it would be difficult to maintain profitably of the railways if minister after minister goes in for the hike of railway fares. The point is, "If the cows milk is available at a cheaper rate then why should one buy a cow". Similarly if the other modes of transport, especially if the travelling through air, becomes cheaper then why would a person go by train? Will he or she not opt for airlines...? Hence Mamata didi  has opted the globalization route to make the railways competitive and at the same time, she has made it affordable for the middle class. 
##More long distance express trains means I can visit my home town more often.
This one is also one part of the story as increasing the frequency of long distance trains does not only mean increase in the frequency of visit but it also reduces the load capacity per train. Those who travel from Guwahati to Kolkata too often by Saraighat Express knows why I have  mentioned that. In that route two trains plying everyday and anther plying thrice a week is not able to stop the rush of passengers. Hence this effort will not only reduce the rush of passengers but also it will make of travelling easy for those who opts for sudden visits/journeys. 
##Oh no! The railway stocks have tumbled. Mamtadidi should have announced more practical steps.
In my more than 15 years in the stock market I have never seen that stocks tumble on the basis of whether the Railway minister takes practical or non-practical steps. If even before the birth of a child, the rumours are spread that the child would be deformed, then even after a child is born normal, many people would not believe. The way negative campaigns  have been carried out by vested interest groups working against Dr.Mamata Banerjee in collusion with CNBC TV18, had only made the railway stocks tank. At least Mamata Banerjee is not Laloo Prasad Yadav, who prepared fudged accounts and balance sheets to show the railways in the profitability. It is actually the notorious power hungry, Laloo Prasad Yadav who destroyed the Railways and not Mamata didi.
But these jokers of CNBC TV 18 failed to mention two major things:  
(i) Freight loading of 993 MT and passenger growth of 6.4 per cent estimated for 2011-12. 
(ii) Gross Traffic Receipts at Rs.1,06,239 crore, exceeding one lakh crore mark for the first time estimated. SO HOW CAN THIS BUDGET BE A DISASTER....!!
##The number of local trains have been increased. Hurray! No more crowded train travel. 
In these two lines mentioned above, they might be talking of providing 47 additional suburban services in Mumbai and 50 new suburban services proposed for Kolkata. If that is the case, then I think these efforts are still indequate to control huge gush of traffic in both these cities. 
In Mumbai the traffic snarl during the peak hours is so great, especially in the Western Suburbs, that even after putting trains so frequently, make the passengers sweat their blood out, to board even the 1st class coaches. It will be good if I do not take the name of Kolkata regarding overcrowding of local trains, where people literally travel one others head during peak hours. So if Mamata didi wants to increase the frequency of local trains in these two Metros to make the life of the passengers smooth, what is the problem with CNBC TV 18 and the rest of the MPs around India??!! The things might not change overnight, but then is this not a good attempt to solve the commuting problem in these two cities-though lot of questions could be raised at where are the additional railway track to make these trains functional--however, where there is a will there is a way.  Moreover, overcrowding of local buses in Kolkata in early 1970s did not get solved by putting more buses on the road but by bringing in Metro Rail. DR.Banerjee is railway minister for India and these two cities are in India only--isn't it?!! Is Mamata didi talking of putting new local trains in Malaysia or Singapore. 
Moreover, they (CNBC TV18) brought in an official from Essar Group who said, "The revenue generation might not be practical"--the same Essar group, whose work is only to cheat the shareholders and amass wealth...so what right they have to question the revenue generation of Railway minister--it would be better if "Essar Group" fellow increase their efficieny and operating ratio levels rather than advising railway minister. 
Another two so-called experts brought by CNBC TV18, said the projects looks unimplementable.....don't know why the projects looks unimplementable..?? Is it because Mamata didi is a lady or because she is the face of North East, Orissa and Bengal...?? For your kind information let me say how the series of previous railway ministers behaved regarding one project which I covered for a newspaper in Assam in late 1990s. 
Ram Bilas Paswan, laid the foundation stone of gauge conversion of less than 400 km, from Silchar (South Assam) to Lumding in 1996 when the congress heavy weight, Mr.Santosh Mohan Dev, was MP from Silchar, Assam. Do you know what has happened to this very small project--half of it is still not completed (14 years have passed in between) due to lack of funds from Railways.  And you know in between Laloo Yadav was talking big about making railways profitable....!! So who were railways ministers after Ram Bilash Paswan;  they were Mr.Nitish Kumar, Mr.Laloo Yadav and one term of Mamata Banerjee !! The gauge conversion is still going on and no one knows when this portion would get completed. This is Indian railways which Dr.Banerjee took over from Laloo Prasad Yadav. Hence why blame Mamata Banerjee for all the rots created by the trio, Ram Bilas Paswan, Nitish Kumar and Laloo Yadav??!! Earlier, another railways minister from Bengal, (from famous mango growing district of Malda) Late Abdul Barkat Ghani Khan Choudhury also did a lot not only for Bengal but also for the rest of India--he was also an honest man like Mamata didi. 
THUS PUTTING A "GYANEE FAMILY TREE" CNBC TV18 HAS ONLY SHOWED THEIR IGNORANCE ON THE SUBJECT....!!

Wednesday, October 23, 2013

Have all approvals for QIP; need to raise Rs 900cr: IOB 
Speaking to CNBC-TV18, M Narendra, chairman, Indian Overseas Bank says that bank requires Rs 2100 crore capital and with the government giving it Rs.1200 crore, it will need to raise less than Rs 900 crore from QIPs. 

Calling the Indian government’s plan to infuse capital in PSU banks an encouraging move, M Narendra, chairman, Indian Overseas Bank  says the bank will need less than Rs 900 crore through qualified institutional placement (QIP). 

Speaking to CNBC-TV18, Narendra says that bank requires Rs.2100 crore capital and with the government giving it Rs 1200 crore, it will need to raise less than Rs 900 crore from QIPs 

Additionally, Narendra says that the bank has already received all the approvals for the same. “We had already got these approvals in the board. Now we will only have to discuss government placement and preferential allotment in the Extraordinary General Meeting (EGM). Other than that, approvals for overall capital raising are already there with us. Through our last AGM we have taken all the necessary approvals. So, that will not be difficult. Parallelly, according to the right time we may look at the other options too,” he adds. 

Below is the edited transcript to CNBC-TV18. 

Q: Have you heard anything decisive from the government and what would Indian Overseas Bank's ( IOB ) requirement be in terms of capital infusion? 

A: Yesterday there were discussions. The equity infusion is a very encouraging sign. The coming funds will help the bank also in terms of the future credit growth. Our requirement at the rate of around 14 percent credit growth maybe around Rs 2,100 crore taking into account a certain level of profit plough back. So, to that extent, we may look at other alternative options by private placement or Qualified Institutional Placement (QIP) and we will decide timing of that appropriately. 

Q: So if you all have to do a QIP it would be for the balance of Rs 2,100 crore minus whatever the government gives you. So if it is Rs 1,200 crore, it will be Rs 900 crore. 

A: Yes, depending upon our requirement, it maybe slightly lower. Rs 2,100 crore was estimated earlier. Now Rs 1,200 crore is coming. So, we may look at what extent we should go for private placement or QIP. 

Q: How soon will you all take a decision on whether you will do this private placement? When is the next board meeting etc.? 

A: We had already got these approvals in the board. Now we will only have to discuss government placement and preferential allotment in the Extraordinary General Meeting (EGM). Other than that, approvals for overall capital raising are already there with us. Through our last AGM we have taken all the necessary approvals. So, that will not be difficult. Parallelly, according to the right time we may look at the other options too. 

On October 23, 2013, Indian Overseas Bank closed at Rs 49.85, down Rs 0.5, or 0.99 percent. The 52-week high of the share was Rs 94.85 and the 52-week low was Rs 37.15. 

The company's trailing 12-month (TTM) EPS was at Rs 4.97 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 10.03. The latest book value of the company is Rs 145.63 per share. At current value, the price-to-book value of the company was 0.34. 

Courtesy: www.moneycontrol.com 

Thursday, January 05, 2012

BSE Small-Cap, Mid-Cap indices outshine Sensex
After a virtual recession in the food products side, it is now the turn of the inflation to nose-dive: Invest in Banks, Real Estate, Auto and Construction Sectors. Now I am waiting for those MORONS in the RBI to cut the Rates....

A bout of volatility was witnessed as key benchmark indices once again trimmed gains after regaining strength in afternoon trade. The market breath was strong. The barometer index, BSE Sensex, was up 53.16 points or 0.33%, off close to 44 points from the day's high and up about 61 points from the day's low. Data showing decline in food inflation in late December 2011, underpinned sentiment.
Mid-cap and Small-cap indices on BSE outperformed the Sensex. FMCG stocks fell on profit taking after recent gains. Auto stocks rose as India Auto Expo 2012 began in New Delhi today, 5 January 2012.
The market edged higher in early trade as most Asian stocks rose. The market trimmed gains after hitting a fresh intraday high in morning trade. Key benchmark indices regained strength after trimming gains after hitting fresh intraday highs in morning trade. The market strengthened further and was hovering near intraday high in early afternoon trade. A bout of volatility was witnessed as key benchmark indices once again trimmed gains after regaining strength in afternoon trade.
At 13:15 IST, the BSE Sensex was up 53.16 points or 0.33% to 15,935.80. The index rose 97.53 points at the day's high of 15,980.17 in morning trade. The index fell 7.56 points at the day's low of 15,875.08 in early trade.The S&P CNX Nifty was up 20.90 points or 0.44% to 4,770.55. The index hit a high of 4,779.80 and a low of 4,745.50 in intraday trade.
The BSE Mid-Cap index was up 0.64% and the BSE Small-Cap index was up 0.71%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,562 shares rose and 880 shares fell. A total of 101 shares were unchanged.
Among the 30-member Sensex pack, 20 rose while rest of them fell. DLF (down 3.07%), NTPC (down 0.66%), ONGC (down 0.32%), Wipro (down 0.22%), Coal India (down 0.17%) and Bharti Airtel (down 0.14%), edged lower from the Sensex pack. Jaiprakash Associates (up 5.07%), Tata Power (up 2.56%), Hero MotoCorp (up 2.41%), Bhel (up 2.09%) and Larsen & Toubro (up 1.81%), edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) was down 0.32% to Rs 713.70, off the day's high of Rs 724.85. RIL on Wednesday, 4 January 2012, said it has scheduled a planned maintenance turnaround of one of the crude distillation unit of its SEZ Refinery at Jamnagar complex for a period of approximately three weeks starting mid February 2012. This maintenance turnaround is planned for the first time after its commissioning during the Financial Year 2008-09, RIL said. This opportunity would also be utilised to take up productivity improvement related jobs in other secondary processing units as necessary, RIL said. During this period, other three crude distillation units at Jamnagar refining complex are expected to sustain normal operations, RIL added.
RIL had announced early this week that it is divesting a part of the interest in ETV channels in favour of TV18 Broadcast, a Network18 Group firm. RIL said that as a part of the deal with TV18 Broadcast, Infotel Broad Band Services (Infotel), a subsidiary of RIL, has entered into a Memorandum of Understanding with TV18 Broadcast and Network18 Media and Investments for preferential access to all content of the latter for distribution through the 4G Broadband Network being set up by RIL.
Auto stocks rose as India Auto Expo 2012 began in New Delhi today, 5 January 2012.
Tata Motors rose 2.02%, extending recent gains triggered by strong sales in the month just gone by. The company's total sales of commercial and passenger vehicles jumped 22% to 82,278 units in December 2011 over December 2010. The domestic sales of the vehicles in both categories for the month stood at 76,663 cars, a 24% jump compared to 61,685 in December 2010, the company said in a statement. However, exports declined 3% to 5,615 units compared to 5,809 in December 2010.
Mahindra & Mahindra (M&M) rose 1.37% on bargain hunting after recent losses. M&M's total automobile sales jumped 26% to 42,761 units in December 2011 over December 2010. M&M's president for automotive and farm equipment Pawan Goenka today, 5 January 2012, said that the company plans to start assembling SsangYong vehicles in China, Brazil and Russia in the next two years.
M&M last year picked up a 70.03% stake in South Korean auto maker SsangYong Motor Co. for 522.5 billion Korean won. It is slated to launch SsangYong's sport-utility vehicle Rexton in India in the second half of 2012 and the Korando C SUV in 2013.
Ashok Leyland rose 2.74%. The company reported sales of 9,088 units for December 2011 including 1,099 units of the recently launched LCV for cargo transportation -- Dost. Adjusting for Dost which was launched in October 2011, sales came in at 7,989 units, up 6% year-on-year.
However, Maruti Suzuki India declined 0.81%. The company announced during market hours today that it has unveiled XA Alpha -- a concept for a compact sports utility vehicle (SUV). Together with Ertiga to be unveiled on 6 January 2012, the XA Alpha signals Maruti Suzuki's plans to expand into the utility vehicles space, it said.
Maruti's total vehicle sales fell 7.1% to 92,161 units in December 2011 over December 2010. Domestic sales dropped 13.4% to 77,475 units. Exports surged by 50.5% to 14,686 units.
Fiat India Automobiles said early this week that it expects to conclude shortly discussions with Maruti Suzuki India for the supply of diesel engines for cars, a step that will allow the local unit of Suzuki Motor Corp. cut the waiting period on its Swift model. Maruti currently sources all its diesel engines from Suzuki Powertrain, a joint venture between Maruti and Suzuki. These engines are made using Fiat's technology.
Two-wheeler makers rose on bargain hunting after recent losses. Bajaj Auto rose 2.15%. The firm unveiled an ultra-low-cost car early this week, its first foray into the four-wheel market. The compact "RE60" boasts of high fuel efficiency and low carbon dioxide emissions, but the firm did not release a price tag.
Shares of Bajaj Auto had tumbled recently on reported comments by a company official that the company does not expect to meet its vehicle sales target for this financial year through March. The company's total sales rose 10% to 3.05 lakh units in December 2011 over December 2010. Motorcycle sales rose 8% to 2.63 lakh units and commercial vehicle sales rose 27% to 41,991 units. Exports jumped 25% to 1.19 lakh units. The company announced the monthly sales data early this week.
India's largest two-wheeler maker Hero MotoCorp rose 2.24% on reports the company will soon unveil a new petrol-electric hybrid scooter, which would deliver a fuel efficiency of 100 kilometre per litre. Meanwhile, the company on Wednesday launched two motorcycle models and one scooter model. The company will start retail sales of the 110-cubic-centimeter scooter model Maestro later this month, while that of the 110cc motorcycle model Passion X Pro and 125cc motorcycle Ignitor will happen in the remainder of the year, Chief Executive Pawan Munjal said at the launch.
However, TVS Motor Company fell 0.42%. The stock had been under selling pressure recently after the company said its total sales declined 0.79% to 1.70 lakh units in December 2011 over December 2010.
FMCG stocks fell on profit taking after recent gains. United Spirits (down 3.42%), Tata Global Beverages (down 1.63%), Hindustan Unilever (down 1.34%), Dabur India (down 0.59%), ITC (down 0.48%), Nestle India (down 0.35%), Marico (down 0.17%) and Britannia Industries (down 0.09%), edged lower.
Top gainers in the BSE Mid-Cap index were, KEC International (up 10.13%), Graphite India (up 7.04%), Zydus Wellness (up 5.90%), Puravankara Projects (up 5.84%) and Phoenix Mills (up 5.44%).
Top gainers in the BSE Small-Cap index were, Welspun Projects (up 14.70%), Brigade Enterprises (up 13.25%), Tata Metaliks (up 12.06%), CCL Products (India) (up 9.87%) and Kalyani Steels (up 9.09%).
Foreign institutional investors (FIIs) bought shares worth Rs 138.97 crore on Wednesday, 4 January 2012, as per provisional data from the stock exchanges. FII inflow totaled Rs 394.36 crore in two trading sessions on 3 and 4 January 2012, as per provisional data from the stock exchanges. Earlier, FIIs had offloaded shares worth a net Rs 1287.84 crore in three trading sessions from 29 December 2011 to 2 January 2012.
A special trading session will be held on Saturday, 7 January 2012, as the National Stock Exchange is upgrading the capacity of its Futures and Options trading system hardware and software. Trading will take place from 11:15 IST to 12:45 IST on that day. Trades done on Saturday, January 07, 2012, will be settled on Tuesday, 10 January 10, 2012, as a separate settlement, NSE said in a circular.
Market regulator Securities & Exchange Board of India (Sebi) has allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks. As per the auctioning route, a special window can be used by promoter stakeholders to sell at least 1% of the paid-up capital of a company. This will be similar to the block-deal mechanism for secondary stock market transactions, but with lesser restrictions. Under the institutional placement programme (IPP), shares can be sold only to qualified institutional buyers.
Exchanges will provide a separate window for the offer for sale of shares which will co-exist with the normal trading hours. But, promoter or promoter group of companies will not be allowed to bid for the shares. Sebi also said the auction method can be only used by promoters of top 100 companies based on average market capitalisation for sale of their stakes. The regulator said the IPP method can be used to increase public holding by 10% and could be offered to only qualified institutional buyers with 25% being reserved for mutual funds and insurance companies. Issuers will have to announce an indicative floor price or price band at least one day before the opening of the offer.
Starting off the New Year on a liberalisation note, the government on Sunday, 1 January 2012, announced its decision to allow Qualified Foreign Investors (QFIs) to directly invest in the Indian equity market from 15 January 2012. A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards. QFIs include pension funds which normally tend to stay invested for a longer period of time. QFIs do not include FIIs/sub accounts. In August last year, the government allowed foreign investors to directly invest up to $13 billion in equity and debt schemes of mutual funds.
Qualified foreign investors, or QFIs, will now be able to invest individually up to 5% of the capital of the Indian company. Cumulatively, QFIs can invest up to 10% of the capital of the company being invested in. These limits are over and above the FII and NRI investment ceilings prescribed under the PIS route for foreign investment in India, a government statement said.
The next major trigger for the market is Q3 December 2011 corporate earnings, which will start tricking from the second week of January 2012. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year. Analysts expect weak Q3 December 2011 results due to lower volume growth in a slowing economy, higher raw material costs and higher interest charges.
IT bellwether Infosys and housing finance major HDFC report Q3 results on 12 January 2012. HCL Tech unveils Q2 results on 17 January 2012. HDFC Bank and Bajaj Auto unveil Q3 results on 19 January 2012. Axis Bank unveils Q3 results on 20 January 2012. Asian Paints unveils Q3 results on 21 January 2012. Biotech major Biocon unveils Q3 results on 24 January 2012. Dabur India unveils Q3 results on 31 January 2012. Mahindra & Mahindra unveils Q3 results on 7 February 2012.
Food inflation plunged into the negative territory in the fourth week of December mainly due to base effect, data released by the Government showed on Thursday, 5 January 2011. Fuel inflation edged up though. Food inflation shrank by 3.36% in the week ended December 24, after rising by 0.42% in the preceding week. Inflation in the Primary Articles group fell to 0.1% in the week under review, from 2.7% in the week ended December 17. Inflation in the Fuel & Power group stood at 14.60% in the week ended December 24, versus 14.37% in the previous week.
The RBI is likely to begin easing monetary policy to address concerns about economic growth, Governor D Subbarao said in an interview to a foreign electronic media house, reiterating comments made by the RBI when it kept rates unchanged on 16 December 2011. At its mid-quarterly monetary policy review meet on 16 December 2011, the RBI left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. While inflation remains on its projected trajectory, downside risks to growth have clearly increased, RBI had said in a statement on 16 December 2011. From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth, RBI had said.
RBI had said inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces. RBI also said that the rupee remains under stress. The timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead, RBI said. The RBI has raised rates 13 times since March 2010.
India's services sector grew at its fastest pace in five months in December riding on a surge in new business and expansion in employment, but rising input prices will likely add to inflationary pressures in the coming months, a survey showed. The HSBC Markit Business Activity Index -- based on a survey of around 400 firms -- rose to 54.2 in December from 53.2 in November, staying above the 50 mark that separates growth from contraction for the second month in a row. In the December survey, the new business sub-index jumped to 55.7 from 52.3 in November, thanks to an improvement in demand. Both the services PMI index and the new business sub-index were at their highest levels since July.
India's manufacturing activity surged to a six-month high in December thanks to a spike in factory output and new orders from domestic and international firms, a survey of purchasing managers showed early this week. The HSBC Markit India Manufacturing PMI jumped to 54.2 from 51 in November, its biggest monthly rise since April 2009. The index has stayed above the 50 mark that separates growth from contraction for 33 months now.
The infrastructure sector output grew 6.8% in November from a year earlier, sharply higher than the annual growth of 3.7% in November last year, data released by the government early last week showed. The infrastructure sector accounts for 37.9% of India's industrial output.
India's November exports rose an annual 3.87% to $22.3 billion, while imports for the month rose 24.55% to $35.9 billion, the government said in a statement early this week. India's trade deficit in November was at $13.6 billion.
Credit rating agency Moody's Investors Service on 14 December 2011 said that the sharp decline in the value of the Indian rupee against the dollar over the past few months is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground.
India may face the risk of stagflation if the government doesn't take urgent steps to tame inflation and stimulate growth, a parliamentary panel on finance warned on 22 December 2011. The Standing Committee on Finance blamed the Reserve Bank of India's 13 interest-rate increases over the past 21 months for stalling economic growth. "Measures taken by the government and the RBI so far have squarely failed to rescue the economy from unabated inflation. Instead, monetary measures initiated for this purpose have only resulted in worsening the condition of the economy further," the report said.
The budget for 2012/13 ending March will be presented after elections scheduled in five states, Finance Minister Pranab Mukherjee said on Monday, 2 January 2012. State elections are scheduled between the end of January and early March. The annual budget is usually presented on the last working day of February. The Election Commission on 24 December 2011 announced the dates for the assembly polls in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa. Uttar Pradesh will have polling on February 4, 8, 11, 15, 19, 23 and 28, while Uttarakhand and Punjab will go to polls on January 30. Manipur will have polls on January 28 and Goa on March 3.
Most Asian shares rose on Thursday on expectations that China's central bank will cut reserve ratio for Chinese banks later this month. Key benchmark indices in Indonesia, Hong Kong, Singapore, and Taiwan rose by between 0.14% to 0.71%. Key benchmark indices in China, Japan and South Korea fell by between 0.13% to 0.97%.
France plans to raise up to 8 billion euros in long-term debt on Thursday but a key litmus test for investor confidence is next week's debt sales by Spain and Italy, the two countries most exposed to the crisis. This follows Wednesday's 10-year German Bunds auction, which drew a subdued demand of bids amounting to 1.3 times the amount offered.
French President Nicolas Sarkozy will meet German Chancellor Angela Merkel in Berlin on 9 January 2012 for talks that are likely to centre on new rules to enforce budget discipline across the European Union (EU). The two leaders are anxious to flesh out a plan agreed at a December 2011 summit by all EU members except Britain for a new treaty to forge closer fiscal integration, as Europe battles to stem a sovereign debt crisis in the euro zone.
Finance ministers from the EU's 27 members will meet on 23 January 2012 before their leaders hold a summit a week later. They will be under intense pressure to find a definitive solution to the crisis which threatens the very survival of the single currency, 10 years after it came into circulation.
Trading in US index futures indicated that the Dow could fall 22 points at the opening bell on Thursday, 5 January 2012. US stocks fared better than European peers, ending nearly flat on Wednesday after data showed new US factory goods orders rose solidly in November while business capital spend
ing cooled.

Monday, July 12, 2021

 Winning Strokes

The BSE Sensex closed flat today at 52,372.69 down 13.50 points  (-0.03%) while the Nifry50 ended the day at 15,692.60 up 2.80 points (+0.02%). The indices are likely to consolidate around the current ranges, while the action will be shifted to small and mid cap counters.

#As expected the scrip of Future Retail Ltd (Rs.66.60) hit the upper circuits today. The stock according to my estimation, should cross Rs.100 by this Deepawali. Keep accumulating in dips. 

#Those who have a portfolio size of Rs.3 lakhs plus,  can join my #Crorepati #Scheme, where you would be systematically guided, so that your portfolio reaches Rs.1 (One) crore mark. You can also join my premium service or trade through my associated brokerage house and get my premium information service free of charge. 

#The stock of Reliance Capital Ltd (Rs.21.25) could hit the upper circuit tomorrow. On 5 July,  2021, there were media reports that the private life insurer Reliance Nippon Life Insurance had come up with a total bonus of Rs.306.88 crore for its participating policyholders in 2020-21.This bonus issuance will benefit over 6,85,000 participating policyholders, as per company release.

The bonus was paid out of the profits generated by the company's participating policyholders' funds for the year FY 2020-21. It registered a profit after tax of Rs.50 crore in the year ended March 31, 2021.

Reliance Nippon Life Insurance is a joint venture between Reliance Capital and Nippon Life Insurance, Japan. As of March 31, 2021, its total assets under management (AUM) stood at a massive Rs.24,383 crore and the total sum assured at Rs.78,847 crore. The claims settlement ratio was a whooping 98.48%. Photo: Zee Business 

Meanwhile, Anil Ambani's Reliance Group company, Reliance Capital Ltd, has almost finalised buyer for its subsidiary Reliance Commercial Finance. Authum Investment and Infrastructure has emerged as the highest bidder with Rs.9017 crore.  At Rs.2,887 crore, Authum Investment and Infrastructure is also leading the race to acquire Reliance Housing Finance (RHFL), another subsidiary of Reliance Capital.

#The shares of my recommended BCPL Railway Infrastructure Ltd (Rs.58.80) today hit Rs.60.40 intrday. The stock if you remember was recommended a few weeks back at around Rs.55. You need to keep a SL at Rs.56 and keep holding. 

#Meanwhile the shares of Patel Engineering Ltd (Rs.18.95) could hit upper circuit tomorrow as it is among the 9 - companies whose loan recast has been approved by Kamath Committee, according to a report published by CNBC - TV18. 

According to the CNBC - TV18, banks referred only nine large corporate loan restructuring proposals to the KV Kamath-led Expert Committee under RBI’s resolution framework of August 2020. 

All of these nine corporate loan recast proposals were subsequently cleared by the committee ahead of its dissolution on June 30, 2021, CNBC-TV18 has learnt.

Wednesday, January 11, 2012

Realty shares rally
Buy Vijay Shanti Builders Ltd at Rs.15.50--Rs.16, T--Rs.30-31, SL--Rs.14.
A bout of volatility was witnessed in afternoon trade as key benchmark regained positive zone after reversing direction after surging to fresh one-month high in early afternoon trade. The barometer index, BSE Sensex, was up 27.98 points or 0.17%, off close to 52 points from the day's high and up close to 48 points from the day's low. The market breadth was strong. BSE Mid-Cap index and Small-Cap index rose more than 1% each, outperforming the Sensex.
Index heavyweight Reliance Industries (RIL) pared intraday gains. Interest rate sensitive realty stocks rose on expectations that the Reserve Bank of India (RBI) will start cutting interest rates in the coming months to prop up slowing economy. Metal stocks rose amid continued anticipation of further monetary policy easing from China.
The market regained positive terrain after slipping into the red after hitting one-month high at the onset of the trading session. The key benchmark indices alternately moved between the positive and negative terrain in morning trade. The market trimmed gains after strengthening in mid-morning trade. The 50-unit S&P CNX Nifty trimmed gains after hitting fresh one-month high in mid-morning trade. The market regained strength as key benchmark hit fresh one-month highs in early afternoon trade. A bout of volatility was witnessed in afternoon trade as key benchmark regained positive zone after reversing direction after surging to fresh one-month high in early afternoon trade.
At 13:16 IST, the BSE Sensex was up 27.98 points or 0.17% to 16,193.07. The index rose 79.61 points at the day's high of 16,244.70 in early afternoon trade, its highest level since 12 December 2011. The index fell 19.90 points at the day's low of 16,145.19 in early trade.
The S&P CNX Nifty was up 10.95 points or 0.23% to 4,860.50. The index hit a high of 4,877.20 in intraday trade, its highest level since 12 December 2011. The index hit a low of 4,841.60 in intraday trade.
The BSE Mid-Cap index was up 1.06% and the BSE Small-Cap index was up 1.59%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,850 shares rose and 788 shares fell. A total of 98 shares were unchanged.
Among the 30-member Sensex pack, 15 rose and an equal number of stocks fell. Mahindra & Mahindra (down 2.15%), TCS (down 1.78%), Cipla (down 1.51%), Jindal Steel & Power (down 1.44%), Tata Motors (down 1.41%), Bharti Airtel (down 1.01%), Infosys (down 0.94%) and ONGC (down 0.73%), edged lower from the Sensex pack. Hero MotoCorp (up 2.01%), Bajaj Auto (up 1.08%), Sun Pharmaceutical Industries (up 0.77%), ICICI Bank (up 0.73%) and HDFC (up 0.58%), edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) gained 0.96% to Rs 742.20, off the day's high of Rs 746. The stock extended Tuesday's near 4% rally. RIL last week said it has scheduled a planned maintenance turnaround of one of the crude distillation unit of its SEZ Refinery at Jamnagar complex for a period of approximately three weeks starting mid February 2012. This maintenance turnaround is planned for the first time after its commissioning during the Financial Year 2008-09, RIL said. This opportunity would also be utilised to take up productivity improvement related jobs in other secondary processing units as necessary, RIL said. During this period, other three crude distillation units at Jamnagar refining complex are expected to sustain normal operations, RIL added.
RIL had announced early last week that it is divesting a part of the interest in ETV channels in favour of TV18 Broadcast, a Network18 Group firm. RIL said that as a part of the deal with TV18 Broadcast, Infotel Broad Band Services (Infotel), a subsidiary of RIL, has entered into a Memorandum of Understanding with TV18 Broadcast and Network18 Media and Investments for preferential access to all content of the latter for distribution through the 4G Broadband Network being set up by RIL.
Interest rate sensitive realty stocks gained for the second straight day on expectations that the RBI will start cutting interest rates in the coming months to prop up slowing economy. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Sunteck Realty (up 12.28%), Anant Raj Industries (up 9.54%), HDIL (up 8.63%), Peninsula Land (up 6.56%), Parsvnath Developers (up 4.4%), DLF (up 3.95%), Unitech (up 3.52%), Oberoi Realty (up 3.49%), Indiabulls Real Estate (up 2.86%), Prestige Estates (up 2.7%), Sobha Developers (up 2.61%), Phoenix Mills (up 1.75%) and Godrej Properties (up 1.62%), edged higher.
India's property investments by private-equity firms rose 69% last year, according to Venture Intelligence, a research company that tracks private equity, and mergers and acquisitions. Private equity made $2.68 billion of real-estate investments through 53 transactions in the country in 2011. In 2010, they spent $1.58 billion on 55 investments.
Metal stocks rose amid continued anticipation of further monetary policy easing from China, the world's largest consumer of copper and aluminum. Sterlite Industries (up 4.43%), Hindalco Industries (up 4.27%), Sesa Goa (up 2.83%), Tata Steel (up 2.22%), Sail (up 2.04%), NMDC (up 1.18%), Nalco (up 1.14%), Hindustan Zinc (up 1.12%), JSW Steel (up 0.99%), Coal India (up 0.88%) and Bhushan Steel (up 0.82%), edged higher.
Meanwhile, US aluminium major Alcoa at the time of announcing its Q4 results on Monday said it has bullish view of the global aluminum market. The aluminum company's results were in line with expectations overall. It swung to a fourth-quarter loss as prices slumped and costs rose but it has a bullish view of the global aluminum market.
Top gainers in the BSE Mid-Cap index were, Sunteck Realty (up 13.99%), Jai Corp (up 10.41%), Anant Raj Industries (up 10.40%), Wockhardt (up 10.13%) and KSK Energy Ventures (up 9.89%).
Top gainers in the BSE Small-Cap index were, Aegis Logistics (up 20%), A2Z Maintenance & Engineering Services (up 19.99%), Ruchi Infrastructure (up 19.88%), Kanani Industries (up 17.82%) and HEG (up 16.37%).
Foreign institutional investors (FIIs) bought shares worth Rs 324.32 crore on Tuesday, 10 January 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 951.57 crore so far in January 2012, as per provisional data from the stock exchanges.
Moody's has upgraded India's rating for short-term foreign currency bank deposits from speculative to investment grade after finance ministry sought clarity from the global rating agency. Moody's has lifted the short-term country ceiling on foreign currency bank deposit from NP (not prime) to Prime (P-3), suggesting acceptable ability to repay short-term obligations. The upgrade will help the country attract overseas deposits to fill up the void created by the sharp slowdown in equity inflows. Moody's last month unified India's local and foreign currency bond ratings at Baa3 and said the outlook on the ratings was stable.
Meanwhile, state governments in India have reportedly given their in-principle approval to a proposed national goods and service tax (GST), raising hopes that the ambitious tax reform could be included in the upcoming budget. Finance ministers from different states agreed to the central government's GST proposal, but specified a list of services, such as luxury and entertainment, that would remain taxed at the state level. The GST will cut business costs and boost government tax revenue, but has missed several deadlines for implementation due to resistance from states that fear a loss of fiscal autonomy and the main opposition Bharatiya Janata Party.
The next major trigger for the market is Q3 December 2011 corporate earnings, which will start trickling in from tomorrow, 12 January 2012. The focus will be on guidance from the company managements on outlook for the remaining part of the year and for the next year. Analysts expect weak Q3 December 2011 results due to lower volume growth in a slowing economy, higher raw material costs and higher interest charges.
IT bellwether Infosys and housing finance major HDFC report Q3 results tomorrow, 12 January 2012. TCS and HCL Tech unveil quarterly results on 17 January 2012. Jindal Steel & Power announces Q3 results on 18 January 2012. HDFC Bank, Hero MotoCorp and Bajaj Auto unveil Q3 results on 19 January 2012. Wipro, ITC, Axis Bank and Jet Airways (India) unveil Q3 results on 20 January 2012. JSW Steel reports its Q3 standalone results on 20 January 2012.
Asian Paints, Zee Entertainment Enterprises and Godrej Consumer Products unveil Q3 results on 21 January 2012. L&T, Maruti Suzuki and Kotak Mahindra Bank unveil Q3 results on 23 January 2012. Cairn India and Biocon unveil Q3 results on 24 January 2012. Sesa Goa and Rural Electrification Corporation unveil Q3 results on 25 January 2012. Dabur India unveils Q3 results on 31 January 2012. Dr. Reddy's Laboratories reports Q3 results on 3 February 2012. India Cements announces Q3 results on 6 February 2012. Mahindra & Mahindra unveils Q3 results on 7 February 2012. BPCL unveils Q3 results on 10 February 2012. Aditya Birla Nuvo announces Q3 results on 11 February 2012.
The government has decided to allow Qualified Foreign Investors (QFIs) to directly invest in the Indian equity market from 15 January 2012. A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards. QFIs include pension funds which normally tend to stay invested for a longer period of time. QFIs do not include FIIs/sub accounts. In August last year, the government allowed foreign investors to directly invest up to $13 billion in equity and debt schemes of mutual funds.
Qualified foreign investors, or QFIs, will now be able to invest individually up to 5% of the capital of the Indian company. Cumulatively, QFIs can invest up to 10% of the capital of the company being invested in. These limits are over and above the FII and NRI investment ceilings prescribed under the PIS route for foreign investment in India, a government statement said.
Food inflation plunged into the negative territory in the fourth week of December mainly due to base effect, data released by the Government showed on Thursday, 5 January 2011. Fuel inflation edged up though. Food inflation shrank by 3.36% in the week ended December 24, after rising by 0.42% in the preceding week. Inflation in the Primary Articles group fell to 0.1% in the week under review, from 2.7% in the week ended December 17. Inflation in the Fuel & Power group stood at 14.60% in the week ended December 24, versus 14.37% in the previous week.
At its mid-quarterly monetary policy review meet on 16 December 2011, the RBI left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. While inflation remains on its projected trajectory, downside risks to growth have clearly increased, RBI had said in a statement on 16 December 2011. From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth, RBI had said.
RBI had said inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces. RBI also said that the rupee remains under stress. The timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead, RBI said. The RBI has raised rates 13 times since March 2010.
Data on industrial production for November 2011 on Thursday, 12 January 2012, and data on inflation for December 2011 on Monday, 16 January 2012, could provide cues on the central bank's likely policy stance at the third quarter review of Monetary Policy 2011-12 scheduled on 24 January 2012. Industrial production is seen rising 2.1% in November 2011 as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 5.1% during October 2011, snapping consistent growth for the preceding 29 months in a row.
Inflation based on wholesale price index (WPI) is seen easing to 7.4% in December 2011 from 9.1% in November 2011, per the median estimate of a poll of economists carried out by Capital Market.
Credit rating agency Moody's Investors Service on 14 December 2011 said that the sharp decline in the value of the Indian rupee against the dollar over the past few months is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground.
The budget for 2012/13 ending March will be presented after elections scheduled in five states, Finance Minister Pranab Mukherjee said on Monday, 2 January 2012. State elections are scheduled between the end of January and early March. The annual budget is usually presented on the last working day of February. The Election Commission on 24 December 2011 announced the dates for the assembly polls in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa. Uttar Pradesh will have polling on February 4, 8, 11, 15, 19, 23 and 28, while Uttarakhand and Punjab will go to polls on January 30. Manipur will have polls on January 28 and Goa on March 3.
Asian stocks advanced for a third day on Wednesday as optimism about the US economy offset a warning from Fitch Ratings that it may downgrade Italy's credit rating. Key benchmark indices in Hong Kong, Japan, Singapore, and Taiwan rose by between 0.13% to 0.77%. Key benchmark indices in China, Indonesia and South Korea fell by between 0.41% to 0.42%.
Italy faces a "significant chance" of a credit-rating downgrade by Fitch Ratings, which is reviewing all European sovereign ratings and will make a decision by the end of the month.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell on Wednesday, 11 January 2012. US stock rallied to a 5-month high on Tuesday on optimism that China may begin monetary easing and after Alcoa kicked off the earnings season on a positive note. China's reported a drop in import growth triggering speculation that monetary easing is right around the corner adding to the worldwide stock rally.

Saturday, March 08, 2014

TV18 Broadcast: Ready To Surge Ahead
CMP: Rs.22.90
TV18 Broadcast Ltd's consolidated net profit more than doubled (142% from a year earlier) to Rs.51.67 crore in the third quarter ended December 31, 2013, on a fall in programming cost and marketing, distribution and promotional expenses and as its consolidated revenue increased.

The company had posted a consolidated profit of Rs.21.27 crore in the same period a year earlier.

Total income from operations rose to Rs.525.47 crore from Rs.512.43 crore, the company said in a BSE filing. Finance costs declined 46% to Rs.17.1 crore from Rs.31.45 crore. Expenses during the quarter declined to Rs.460.12 crore from Rs.474.99 crore.


The company reported its highest ever quarterly Operating Profit (EBITDA) at Rs.77.5 crore, up 61 per cent year-on-year with both the entertainment and news businesses turning in strong quarters.

On a consolidated basis, the company’s advertising revenues grew 3% year-on-year. While the news and infotainment advertising environment continued to be sluggish, entertainment led by Colors and MTV delivered strong double digit advertising growth.

Its net distribution Income continued its steady growth at Rs.43.6 crore, a rise of 145% year on year.



Entertainment operations at Viacom18, led by Colors delivered a healthy performance even as Motion Pictures saw losses in this quarter. Infotainment operations at A+E Networks I TV18 broke into positive territory and IndiaCast continued on its robust growth trajectory.

Chartically speaking, the scrip is trading above its 100D and 200D SMA and EMA. The MACD and other parameters are more or less in the buy mode. The scrip is expected to give decent return going from here; the immediate target for the scrip seems to be Rs.25. 

Wednesday, October 22, 2008

WINNINGS STROKES: THINK DIFFERENT:
HDIL Ltd gave huge return after it was recommended to the Paid Groups. BGR Energy Ltd gave moved up by 9.87% yesterday with good volumes. The scrip is going to be multi-bagger going forward along with KEC International Ltd. In 2003 also no one looked at the scrip but when it suddenly raced and moved above Rs.50 in matter of some days from Rs.20 something, people thought it will come down and then they will invest. The same thing happened when the scrip moved above Rs.100 and so on.......some people use too much of their brains in some useless things and never make money from the markets. Then they blame everyone except themselves for the mistake they have committed.
State Bank of India Ltd and DCB Ltd reached their targets which were given some days back.
Now the real estate stocks have started to move up as the companies in this space will make huge profits due to the fall in Steel and Status Quo in the cement prices:
Investors should lap up IT counters as the rupee is depreciating and the US economy is improving. The Federal Reserve on Tuesday introduced a new program to finance the purchases of assets from money market mutual funds as the government continued to search for ways to battle a severe credit crisis. The White House said Monday that President Bush was at least willing to consider a second stimulus measure to follow a $168 billion program passed in February and a $700 billion financial system rescue plan passed on Oct. 3, 2008. Democrats say any stimulus bill would include items previously rejected by Bush such as road and bridge construction money and help for state budgets. Another round of tax rebates is possible, too, to make the measure big enough to jolt the economy, which many economists think has already slipped into recession. Wall Street pulled back Tuesday as investors decided to cash in some of the big gains of the previous session. The Dow Jones industrial average was down 245 points in early afternoon trading, a retreat following a gain of 413 points on Monday.
Yesterday as usual some big Pundits (D*na M*hta and Sandeep Par**h) came on C*BC TV18 and started giving lectures on Short Selling and its merits in the markets, as if we are all fools and want their knowledge to widen our horizon (this is the difference between arm chair analyst and astute marketmen).
YES SHORT SELLING DO CREATE A BALANCE IN THE MARKETS, BUT THEN THESE ARE TOOLS WHICH ARE TO BE USED IN NORMAL CIRCUMSTANCES AND NOT IN SOME EXTRAORDINARY CIRCUMSTANCES WHEN SOME FOREIGN ENTITIES ARE COLLUDING WITH SOME LOCAL ENTITIES TO MANIPULATE THE MARKET AND CREATE FEAR PSYCHOSIS or taking the help of global uncertinties. What will C*BC TV18, understand the plight of hapless investors who have invested in the markets and are seeing their portfolio getting depleted everyday?? Otherwise they would not have called on these irresponsible fellows (D*na Mehta was a bit better) and showed their comments on National Televisions. Did you remember how they behaved only some months back, when they called in a so-called analysts name Ashu M*dan, when the markets were correcting and who was advising all to sell everything.....We all know that the markets bounced back after that and many got exit route, with minimum loss in their portfolio.
It is my constant writings in this blog, that might have forced the SEBI Chief to come out and give stern warning to some entities who are using the unfavourable global situation to manipulate the shares in Indian markets. My Kudos to Mr.Bhave and his team of experts for timely action otherwise, the situation would have been different.
It is to be remembered that when a patient is in ICU we need NOT give him vitamin doses but the foods which can be digested easily until his condition improves. If the diagnosis of the patient is wrong, what medicines a doctor will give is known to all!!!!
It is due to my constant writing here that I get 100s of mails everyday appreciating my move against the establishment and other vested interest groups.
It is interesting to note that otherday, when I spoke about the inefficiencies of ICICI Bank, CNBC TV18 surprisingly announced a programme in which one of the ICICI Bank's lady officer was involved. These bankers are shown in such a way as if they are from heaven and we are from earth, without forgetting that these people are refined version of our Road Side "Sahukars" (money lenders) and bask on the wealth of account holders!!
I blast the inefficient bankers if I find a slight anomaly in my Bank Account or face a little difficulty in any transaction in Bank---if they cannot handle my money, I know how to deal with these people.
These Bankers know that and understand that playing with my money and bank account is more difficult than making money from the stock markets.
Oil falls below $71 as dollar gains against
Oil falls below $71 as dollar gains on euro, OPEC production cut still weighs
NEW YORK -- Oil prices slumped back below $71 a barrel Tuesday as a stronger dollar overshadowed expectations of a sizable OPEC output cut and led investors to shed commodities bought as an inflation hedge.
At the pump, consumers got another price cut as a gallon of regular gasoline lost 3.4 cents overnight to a new national average of $2.89, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices have fallen 30 percent from their July 11 peak of $4.11 a gallon and are quickly closing in on year-ago levels.
The dollar muscled higher against rival currencies as credit market conditions eased some and on speculation that the U.S. government might roll out another stimulus package in an effort to push the economy out of a deep downturn.
Investors often buy commodities like crude oil as an inflation hedge when the dollar weakens and sell those investments when the greenback rises.
Light, sweet crude for November delivery fell $3.36 to settle at $70.89 on the New York Mercantile Exchange. On Monday, the contract rose $2.40 to settle at $74.25 a barrel.
Crude oil is down 52 percent from its all-time peak of $147.27 reached July 11.
Alarmed by the rapid slide, the Organization of the Petroleum Exporting Countries, which controls 40 percent of the world's oil supply, is holding an extraordinary meeting Friday in Vienna. OPEC's president, Chakib Khelil, said Sunday the group is planning to announce an output reduction that analysts believe could total at least 1 million barrels a day.
But experts are divided over how much impact on OPEC cut will have on prices. Some believe waning global demand for energy will push prices as low as $50 a barrel, while others say a significant supply reduction could halt the downward the momentum.
"If OPEC does cut production, prices could return to the upside over the next three to six months," said Costanza Jacazio, an oil analyst with Barclays Capital in New York.
She said tighter global supplies could eventually push prices back toward the $90 range, a level believed to be favored by several OPEC members including Iran and Venezuela.
Oil-producing countries are facing steep serious budget shortfalls as oil prices come down from record levels. Khelil has said OPEC may cut output again at a meeting in December, and that the group considers the oil market oversupplied by about 2 million barrels a day.
Investors are also keeping a close eye on whether non-OPEC producers, such as Russia, will reduce supply as analysts lower price expectations for next year. Deutsche Bank on Monday cut its 2009 oil price forecast to $60 a barrel from $92 and predicted $57.50 for 2010.
"Producers are getting concerned about this downward spiral in pricing since the summer," said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore. "Some governments have based their budgets higher than current prices."
Oil market traders are also closely watching economic conditions in the U.S.
Federal Reserve Chairman Ben Bernanke told the House Budget Committee on Monday that a fresh round of government measures might help ease the country's downturn. There were also signs Tuesday of a reviving credit market as bank-to-bank lending rates eased further.
In other Nymex trading, heating oil futures fell 3.24 cents to settle at $2.1975 a gallon, while gasoline prices lost 2.82 cents to settle at $1.6919 a gallon. Natural gas for December delivery rose 10.1 cents to settle at $7.312 per 1,000 cubic feet.
In London, December Brent crude fell $2.31 to settle at $69.72 a barrel on the ICE Futures exchange.
Associated Press writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report.

Friday, September 05, 2008

Winning Strokes: Think Different:
My yesterday's recommendation of KEC International Ltd at Rs.398--Rs.402 rose to Rs.445 before cooling down a bit. The Paid Members were sent the details on this remarkable counter which was looking highly undervalued, especially when the inflation is coming down:
The Crude Oil Skid further and is about to break the next support of Rs.100. I am shocked to see the quality of analysts presented by the late night Edition of CNBC TV18. Today I got so annoyed with the comments of one over-smart anchor, Ms.Mischelle, that I switched off the TV Set. Seeing the quality of the analysts presented of this US based channel, I sometimes think that I am fortunate to study in India at such subsidised rates, because most of the analysts which proliferates on CNBC TV18 gives out very low quality contents to the audience. Either CNBC should improve its late night edition or it should simply close it down. One so called analyst came on TV in Fast money and said whatever he liked on the IT sector, but without any substance. If that analyst thinks tomorrow that the next US President will be Ms.Hillary Clinton, it will not carry any meaning, unless his thesis is backed by some solid data....??
Mischelle said, "It is a bad news that the world is cooling down". As everyone thought that the Crude Oil will cool down and the US Stock market will improve".....I mean what is new that the world economy is slowing down and who told her that US economy is not improving(Stock market is a proxy on the economy)....??? What she is interpreting is the Past Data which may or may not have any bearing on the future happenings in the US.
Further, what she forgot to mention is that is that, it is better for the world economy to cool down a bit and bring the inflation down rather than go on over -heating to such an extent that it bursts....
I do not know from where CNBC brought this oversmart rickety lady of Sh*nk*r-Sharma--variety, the latter says the US economy will improve faster than the Indian one & Mid Caps/Small Caps will never perform (Okay what is KEC International Ltd/ Kavveri Telecom Products Ltd/ Moser Baer Ltd/ Austral Coke Ltd/ Ennore Coke Ltd !!??)---a new theory (Research Report) and we will name it some day later:
The Wall Street went in for some mindless correction yesterday and it seems US citizens and those in the stock market should come to India take lesson from Indian Stock Gurus on the market movements. What I find is that as compared to the US analysts and those who show their faces on TV, their counter parts in India are much more reserved and of better quality. Look at the trivial causes, why the stocks in the US fell today:
1. "The market was already nervous as it waited for the government to release its August employment report on Friday. So news from the nation's major retailers that shoppers curtailed their spending last month due to higher gas and food prices came as a heavy blow".
2. Meanwhile, the Labor Department said new applications for unemployment insurance rose by 15,000 last week from the previous week. That broadly missed expectations for a fourth-straight week of declines, heightening worries that the average American -- already feeling the effects of the weak housing market -- will have even less means to spend.
3.........and then a pedestrian comment from someone of the name Craig Peckham who calls himself, market strategist of Jefferies & Co. "You have to have a paycheck to pay that mortgage". I do not know who gave this one a job in this firm.
An important news agency writes: "The market was so disheartened that it showed little reaction when the Institute for Supply Management said the service sector grew unexpectedly in August for the first time in three months as new orders increased and inflation moderated. The August reading of 50.6 was higher than the 50.0 expected, and the reading of 49.2 in July; but the sector's edging above the threshold between contraction and expansion was hardly a sign of a robust economy".....Who told this writer that the US economy is robust now...???? We do not need it to be robust and push the Crude Oil prices up and again wake up the inflation monster from sleep. The US press is losing all its sanity and intelligence. Is there anything new in all these lines above that the US investors should run amok and sell whatever they have in their kitties............??
It is a known fact that the US and the world economy is slowing down which is a good sign (and not a bad sign as mentioned by that fool named Mischelle of CNBC TV 18) to cool of the commodity prices and that is why Crude Oil prices are coming down....
I think the time has come to go for an IQ test of the market participants in the US and in India and I can bet that those in the US will cut a very sorry figure--not to mention about the poor quality of overseas anchors the CNBC TV18 presents everyday. Except Maria B and and one or two here and there, most of them are substandard by Indian Standards and should be sacked immediately if the quality of the programmes are to be maintained.
After my repeated write ups on Fast Money, the participants has stopped shouting a little and is maintaining a little decorum these days. Earlier it was a jungle programme with all the participants (who call themselves to be analysts) shouting all at a time creating chaos and confusion:
Yesterday I stumbled upon a beautiful programme named Unstoppable Indian, while browsing TV Channels, where Ms.Sinha took interview of the legendary singer, Ms.Lata Mangeshkar, in broken Hindi (looks like she had a Bangla accent) was a treat to watch. Many thanks to NDTV Profit for such a scintillation programme on "Lata tai", who narrated in most rustic style her bygone days and was always smiling......wonderful!!! However it was amply clear from the questions asked by the interviewer that she is not at all well versed with the Music mosaic, but managed to hid her imperfections well from ordinary mortals:
Anyway, Ennore Coke Ltd hit another buyer freeze....but why....??? Paid Members were sent the reasons for the sudden rise in the price of Ennore Coke Ltd.
My Recommended Kavveri Telecom in the last Sunday Report at Rs.118, today crossed Rs.130, giving very good gains to the investors (Paid Service):
Paid Members were asked to accumulate W S Industries Ltd at around Rs.53--Rs.55, yesterday it suddenly shot up giving handsome gains to the Paid Members:
With the Inflation rate falling further we could see a smart rally in the Indian markets tomorrow but which are the sectors to focus? Which stocks to buy for quick gains....these are for the Paid Members and for my Portfolio Management Services:
Derivatives business is full of beautiful lies’
Vivek Kaul
‘As we know, these are the known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don’t know we don’t know.’ —Donald Rumsfeld, when he was the US Secretary of Defence.
Derivatives are at the heart of most financial crises that have plagued banks and companies all across the world over the last three decades. From small-scale industrialists of Tiruppur to the banks lending to the subprime home loans market in the United States.“Derivatives business is filled with beautiful lies,” says Satyajit Das, the internationally renowned expert on financial derivatives. He has had a foot in both the sides of the derivatives equation, having worked for banks (the “sell side”) such as the Commonwealth Bank of Australia, Citicorp Investment Bank and Merrill Lynch and, as treasurer of the TNT Group, for clients (the “buy side”). Das has authored several books on derivatives including Traders, Guns & Money — Knowns and Unknowns in the Dazzling World of Derivatives (2006, FT Pearson). He speaks about the arcane world in an interview with Vivek Kaul.
How did financial derivatives become an important part of the financial system worldwide?
Derivatives aren’t new. They evolved out of agricultural futures used for hedging soft commodities for over 100 years. In the 1970s, the concept was extended to financial commodities —- initially interest rates, currencies, equities etc. The original rationale was hedging —- it’s what banks like to tell regulators and what regulators like to hear. The real impetus to derivatives from the late 1980s onwards was using derivatives to create and assume risk—- fundamentally the opposite of what derivatives originally did. Investors were looking for higher returns. So banks started to manufacture risks using derivative technology. They have many advantages —-cash settlement (you don’t have to have a position in the underlying asset and volumes are not constrained by available volumes in physical assets) and they are off-balance sheet (leverage). Deregulated banks seeking to grow their product range and profits found derivatives trading to be a new source of revenues. All these factors combined over the last 20 years to help derivatives grow into a $600 trillion market; around 10 times the world GDP.
You say in your book Traders, Guns & Money… that the derivative business is filled with beautiful lies. Could you elaborate?
Beautiful lies are the lies that we like to believe. We know they are not true but everything makes us want to believe them. The derivatives business is filled with ‘beautiful lies’ — for example, even the simple business of hedging can be a beautiful lie.
Why is hedging a true lie?
Take the example of an airline that locks in the price of its jet fuel over the next year. You get the “illusion of certainty”. You can’t hedge without knowing what is going to happen to oil prices. Locking the cost of oil through forward contracts has a cost or a benefit, the difference between the current price and the forward price. If the oil price is $100/barrel and the forward price is $110/barrel, then the cost of the forward is $10/barrel. The oil price has to rise at least $10/barrel before you gain. Does the forward guarantee certainty? The airline’s cost of oil is fixed. But its problems are not over. Assume the airline hedges but its competitors don’t. If the oil price falls then our airline’s cost of oil is fixed. But competitors benefit from lower oil prices. What happens if the competitors cut fares? Oops! Our airline is stuck with fixed oil costs so it can’t really afford to cut prices. It can cut fares and bleed to death. It can keep fares high and bleed to death. If it cuts fares then its revenue falls but its costs stay the same. If it doesn’t cut fares, customers fly with competitors with cheaper fares. Hedging provides certainty —- of death. You assume that the underlying exposure will be there. Suppose the airline gets it routes —- the underlying exposure disappears but your hedge remains. There have been quite a few notable hedging deaths over the years. In the words of a famous surgeon: “The operation was a total success but the patient died”. You say lack of transparency lies at the heart of derivative sales. Why is that?
The Chicago School and free market theocracy enshrined concepts such as efficient markets, transparency and informational symmetry. A dealer can’t get rich from that. If everybody understands the product and the price is transparent then margins narrow. The game has always been to complicate the structures making them less transparent to take advantage of informational “asymmetry”. Many clients do not understand the structures or can’t value them. They may end up overpaying for risk. Difficulties in valuation and assessing risk also affect the banks. Traders need to convince risk managers there is no risk and the product controllers that the profits they are showing are correct. In this world, sales people lie to clients. Traders lie to sales people and to risk managers. Risk managers lie to the people who think they run the place. The people who run the place lie to shareholders and regulators. Investors and corporations generally lie to themselves about their understanding of derivatives and why they are using derivatives. The recent experience of Indian companies using complex currency derivatives to hedge the rupee seems to be consistent with the global experience. What is the impact so-called ‘quants’ have had in popularising derivatives?
Financial mathematics —- much of which is reasonably trivial — is used for pricing, valuing and risk management of derivatives. Risk quantification is based on the Gaussian distribution used by Markowitz. Nicholas Nassim Taleb in The Black Swan argued that risk quantification based on this approach has problems.In the current crisis people are talking about “one in ten thousand year events”! These seem to occur every year. The concept of dynamic hedging that underlies the Black-Scholes-Merton option-pricing framework allowed banks to trade complex derivatives in the belief that they were hedged. The models assume efficient markets, no liquidity constraints and no jumps in asset prices. In practice, markets don’t behave that way particularly in periods of stress. Long Term Capital Management (where both Nobel Prize-winning economists Robert Merton and Myron Scholes were partners) used both techniques with highly unsatisfactory results. Merton ironically articulated the problems of quant models: “At times we can lose sight of the ultimate purpose of the models when their mathematics become too interesting. The mathematics of models can be applied precisely, but the models are not at all precise in their application to the complex real world. Their accuracy as useful approximations to that world varies significantly across time and place. The models should be applied in practice only tentatively, with careful assessment of their limitations in each approximation.” The speech was less than a year before the collapse of Long Term Capital Management. Keynes (John Maynard, the economist) was right when he observed: “Too large a proportion of recent mathematical economics are concoctions, as imprecise as the initial assumption they rest on, which allow the author to lose sight of the complexities and interdependencies of the real world in a maze of pretentious and unhelpful symbols.”
You have said fashion models and financial models are similar. Can you explain?
Fashion models and financial models bear a similar relationship to the everyday world. Fashion models are idealised concepts of male and female beauty. Financial models are idealised representations of the real world. Neither is real. Models don’t quite work in the way that the real world works. There is celebrity in both worlds. In the end, there is the same inevitable disappointment. Do you see credit default swaps unravelling? What are the kinds of problems you foresee there?
CDS contracts are economically similar to credit insurance. The buyer of protection (typically a bank) transfers the risk of default of a borrower (the reference entity) to a protection seller who for a fee indemnifies the protection buyer against credit losses. CDS contracts and the structured credit market were originally predicated on hedging or transferring credit risk. Over time the market changed focus —- in Mae West’s words: “I used to be Snow White, but I drifted.” The ability to short credit, leverage positions and trade credit unrestricted by the size of the underlying debt market have become the dominant drivers of growth in the market for these instruments. Documentation and counterparty risk means that the market may not function as participants and regulators hope if actual defaults occur. A significant proportion of protection sellers is financial guarantors (monoline insurers) and hedge funds. As the credit crisis deepens, the level of defaults will increase. The CDS market will be tested. While there have been a few defaults, the market has not had to cope with a large number of defaults at the same time. CDS contracts may experience problems and may be found wanting. When default occurs the hedgers might find them “naked” and “unhedged”. The intricacies of the CDS contract and its operation are not well understood by users. Credit derivative dealers talk about their market in much the same way spotty teenagers talk about sex. A lot of people profess to be accomplished experts, but when it really boils down to it, most of them are still fumbling in the dark. CDS contracts may not actually improve the overall stability and security of the financial system but create additional risks. How did the current sub-prime mess in the US start?
Sub-prime is just one example of a global problem of excessive lending against overvalued assets to borrowers who don’t have the means to service that debt. The problem was caused, in part, by the build-up of savings in the world looking for high quality debt (AAA or AA) to buy. Banks were encouraged to lend to people they probably never should have lent to on overambitious terms. The dodgy debt was converted into high-quality debt using structured finance techniques and rated by rating agencies using models whose assumptions proved to be incorrect. AAA-rated debt based on portfolio of poor quality loans made a lot of people a lot of money in the short run but the chickens are coming home to roost. Basically, a pig with lipstick is still a pig. The same business model was used in private equity loans, commercial property and infrastructure and it is all going to have to be unwound.
Where do you think the sub-prime mess will end?
The high levels of global leverage have to be reduced. The financial system is de-leveraging. Credit creation and lending is pretty much at a standstill. This will, in turn, force companies and consumers to de-leverage by selling assets or deferring investment and consumption to reduce borrowing levels. The process will be a slow one taking years. The amount of money lost (current estimates are in the range of $1-2 trillion) will beggar belief. It may also hamper global growth rates for an extended period. The Goldilocks economy is over — the bears have well and truly returned home.
Most financial crises over the last 25 years have their origins in derivatives.
Given this, why do people go back to it, not learn from mistakes?Derivatives are a tool. It is the misuse that has become problematic. Using derivatives to manage risk provided you understand what you are doing is fine. Increasingly derivatives have been used to create leverage and amplify risks. The problem is exacerbated by the lack of knowledge of many participants, the adverse incentive structures (a “heads I win, tails you lose” culture) and the fact that all the games are played with other people’s money. As for repeating the errors, that is a general human trait. As Giuseppe di Lampedusa (author of The Leopard) observed: “Everything must change so that everything can stay the same.”