Market Outlook - 1st Week of June 2010 - Disclaimer Post Applies

Disclaimer Post

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DENIP Consultants Pvt. Ltd.

Markets Today - 28/5/2010 - Disclaimer Post applies

Nifty futures (5037) closed at almost a 30 points discount to spot Nifty (5066.55)

Implications: We believe that with the futures trading at such a heavy discount fresh shorts will be initiated in the market on any bad news. With the debt rating on Spain being cut we believe that there will be fresh shorts initiated in the system.

Option Analysis

·         Call Writing: Fresh writing of call at higher strike prices. 5100 and 5200 added open interest of more than ~9 lakh and ~7 lakh contracts respectively. Major Concentration of open interest is observed at 5100CE of ~53 lakh shares.

·         Put Writing: On the other hand, fresh writing was observed at lower levels between 4900 and 5000. 4900PE added open interest of ~8.06 lakh contracts and 5000PE added open interest of ~6.9 lakh contracts respectively. Major concentration is being observed at 4800PE strike price of 51.47 lakh contracts.

Implications: We expect market to trade between 5100 and 4900 for short term i.e. the start of the June series. We also believe that medium to long term investors should buy in the markets at 4800 levels on the Nifty.  

FIIs and DIIs activity in capital market segment

·         FIIs were net buyers of Rs 409 crore with Gross buyers of Rs 2,501 crore and Gross Sellers of Rs 2,100 crore.

·        DIIs were net buyers of Rs 342 crore with Gross buyers of Rs 1,206 crore and Gross sellers of Rs 863.46 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 28^th May, 2010 close at 26.43 which is 8.89% lower as compared to previous close, after touching an intraday high of 28.59 and low of 26.53.

Implications: Volatility further plunged by ~10% in today’s trading session. We expect volatility to come down. Thus, our view is to go short on Volatility on every rise. However do not rule out a short term bounce back in this index.

Advise on your Investments / Savings / Finances ?? - Pay your advisor

If investors want distributors to work for them, they must learn to pay a fee for services rendered

Pay Your Advisor

There can't be much doubt any more that investments in equity funds are on a decline and the primary cause is the abolition of entry load and the lower commissions that are available to fund distributors. I still think that this change will be for the better for investors and for the fund industry in general in the long run. SEBI's goal in making these changes is to create a fund industry where no one gets rewarded for just creating a transaction, which is what upfront commissions did. However, it will take time for the business to adjust to what amounts to a completely new business model.

Still, one of the decidedly undesirable side effects of this entire business has been how everyone had decided that distributors don't need to be paid anything at all by the investors. Remember, the only thing that the new regulations have done is to abolish entry load and prevent fund companies from paying upfront commissions out of the entry load.

The fund distributor is now paid by the AMC out of its own pocket. However, the original idea was that the distributor would also be paid by the investor directly. This payment could be anything that the investor and the distributor settled mutually as the worth of the distributor's services. It could have been a percentage of the amount invested or a flat amount per transaction or, for a high-volume regular investor, even an annual retainership. But as things have turned out, none of this has happened to any significant degree. Except for large banks and some 'wealth management' style outfits, practically no distributors seems to have asked for a fee, let alone got one.

The idea that an investor could pay for services rendered was never there as part of investment framework in India, and hasn't entered it now. This is unfortunate. You, as an investor, should think about this carefully. Almost all the abusive practices in the financial realm in India come from the fact that the seller is paid by the manufacturer and therefore looks after his own and the manufacturer's interests. While commissions levels have achieved cancerous growth only in the case of ULIPs sold by India's so-called insurance industry, if investors want good advice and good service, they'll have to think about how much money the financial intermediary is getting and from where.

It is unfortunate that the concept of investors paying advisors has not been given any institutional backing. When SEBI originally aired the idea of abolishing entry loads, one of the alternatives that was thought of was that the fund application form would have a place where the investor would fill in how much commission the distributor should be paid. Another idea was that the investor would give two cheques, one for the investment and one for the commission. While these particular ideas may or may not have been practical, it would have been desirable to have some formal, official expression of the idea that investors should pay to the distributor whatever his services are worth. Not paying anything at all is OK only if you are saying that the services are worth nothing, in which case you should not be using them

Special Thanks to Mr. Dhirendra Kumar for sharing this.

Thanks,

Dewang K  Mehta

DENIP Consultants - www.denip.in

Markets Today - 27/5/2010 - Disclaimer Post Applies

Implications: For last 2 trading session market gain significantly on back of short covering. Lower call writing at 5,000, heavy put writing at lower levels and bearish view on volatility indicates “Bullish” view on the market. We expect market to ride current momentum till 5,100 and 4,900 at downside. Strategy remains the same to buy on dips and sell on rise.

Option Analysis

·         Call Writing: Fresh writing of call at higher strike prices. 5,100 and 5,200 added open interest of more than ~12.4 lakh and ~13.05 lakh shares respectively. Major Concentration of open interest is observed at 5,100 of 43.6 lakh shares.

·         Put Writing: On the other hand, fresh writing was observed at lower levels between 4,800 and 5,000. 4,800 and 4,900 added open interest of ~9.6 lakh shares and ~7.8 lakh shares respectively. Major concentration is being observed at 4,800 strike price of 50.6 lakh shares.

Implications: Lower put writing and call writing at 5,100 indicates current upside momentum to continue. So, we expect market to trade between 5,100 and 4,900 for short term an coming to June series lower end may be capped at 4,800 and upper end at 5,100.  

FIIs and DIIs activity in capital market segment

·         FIIs were net sellers of Rs 533 crore with Gross buyers of Rs 3,924 crore and Gross Sellers of Rs 4,457 crore.

·         DIIs were net buyers of Rs 410 crore with Gross buyers of Rs 1,669 crore and Gross sellers of Rs 1,258 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 27^th May, 2010 close at 29 which is 9.77% lower as compared to previous close, after touching an intraday high of 31.95 and low of 28.95.

Implications: Volatility further plunged by ~10% in today’s trading session. We expect volatility to come down. Thus, our view is to go short on Volatility on every rise.

Performance report of Reliance Equity Schemes as on 25th May 2010

Rollover Analysis - 26th May 2010

Market Snapshot for May Series – Largest loss since October 2009

Nifty registered a largest loss of 448 points or 8.5% to 4,807 since October 2009. Decline in the Nifty was mainly on account of FIIs short position built up of Rs ~5,300 crore in index future and cash based selling. Higher put writing and concentration level at lower levels indicates Nifty to settle between above 4,900.

Rollover– Double digit negative rollover cost would invite to short covering in last 3 trading sessions

Currently open position in Nifty stands at ~43 million shares which is higher as compared to April series (~30.3 million shares) and 6 months average (~31.4 million shares) indicates more volatility to seen in the of June. As compared to 3 month average and April series, Nifty rollover was higher by 600bps and 300bps to 45% with larger negative cost of ~37bps.

Outlook for May Series- Expecting more volatile ahead in June series

Major activity in put at lower levels and call activity at higher levels. On the Put options, major addition was seen at 4,700 and 4,600 of ~6.9 lacs and ~5.3 lacs respectively. On the other hand, call addition at 4,800 and 4,900 of ~6.7 lacs and ~7.6 lacs shares respectively. Major concentration of call observed at 5,100 and put at 4,700.

Sector-wise Rollovers (See: Exhibit 1&2)

Highest long Roll: Bullish Signal 

Cement (52.5%), Automobile (50.8%), Finance (49.5%)

Highest Short Roll: Bearish Signal 

Hotels (49.3%), Oil & Gas (44.2%), FMCG (40.3%)

Lowest Rollover

Metals (37.8%), Sugar (36.0%), Fertilizers (29.1%)

Stocks Rollovers (Exhibit 4-6)

Highest long Roll: Bullish Signal

GTL (85.6%), ULTRACEMCO (76.2%), BHARATFORG (63.4%)

Highest Short Roll: Bearish Signal

SEAGOA (66.3%), JSWSTEEL (62.4%), ADANIENT (59.4%)

Lowest Rollover

DCHL (11.9%), BOSCHLTD (12.0%), CONCOR (14.4%) 

Markets Today - 25/5/2010 - Disclaimer Post Applies

Implications: Nifty May series trading at premium and bearish view on volatility indicates fresh buying at current levels. So, we expect Nifty to closed above 4,800 for the month of May series. We see June series more volatile than May series on back of concentration level in options at 4,700 and 5,100. So, we would recommend   the traders can create partial long position at current levels and rest at 4,730 (worst case scenario for the month of May series)     

Option Analysis

May Series: In yesterday trading sessions, we have observed call writing at 4,800 and 4,900 strike prices while put addition was seen at 4,700. Just 2 trading sessions left for the May series, we have observed fresh call  addition of more than ~23 lacs shares at above levels. By observing concentration level, we expect may series to settle between 4,800 at lower end to 5,000 at upper end.

June Series: Major activity in put at lower levels and call activity at higher levels. On the Put options, major addition was seen at 4,700 and 4,600 of ~6.9 lacs and ~5.3 lacs respectively. On the other hand, call addition at 4,800 and 4,900 of ~6.7 lacs and ~7.6 lacs shares respectively. Major concentration of call observed at 5,100 and put at 4,700.

Implications: On back of May concentration, we expect market to settle between 5,000 and 4,800. It will be too early to comment on June range. However, wider range for the June series on back of concentration are 4,700 at lower end and 5,100 at higher end.  

FIIs and DIIs activity in capital market segment

·         FIIs were net sellers of Rs 1,464 crore with Gross buyers of Rs 1,761 crore and Gross Sellers of Rs 3,225 crore.

·         DIIs were net buyers of Rs 406 crore with Gross buyers of Rs 1,810 crore and Gross sellers of Rs 1,404 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 25^th May, 2010 close at 34.5 which is 10.3% higher as compared to previous close, after touching an intraday high of 35.85 and low of 31.05.

Implications: In today’s trading session, volatility gave a good spike till 34 levels thereby settling at 31. We expect volatility to come down. Thus, our view is to go short on Volatility on every rise.

Markets Today - 24/5/2010

Market Overview – May Series

·         In May series, Nifty registered a loss of 323 points or 6.2% to 4,931 and 12 out of 16 trading sessions FIIs were net buyers to the tune of Rs 10,742 crore.

·         Higher put writing and concentration level at lower levels indicates Nifty to settle between 4,900 at lower end and 5,200 at upper end. 

FIIs and DIIs activity in capital market segment

·         FIIs were net sellers of Rs 995 crore with Gross buyers of Rs 2,262 crore and Gross Sellers of Rs 3,257 crore.

·         DIIs were net buyers of Rs 1,107 crore with Gross buyers of Rs 1,909 crore and Gross sellers of Rs 802 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 24^th May, 2010 close at 31.3 which is 2.98% Lower as compared to previous close, after touching an intraday high of 31.3 and low of 28.37.

Implications: In Monday’s trading session, volatility plunged till 28 levels thereby settling at 31.

Monsoon & Indian stock market

1.Introduction

After the monetary policy, the markets were keenly awaiting the monsoon forecast of the India Meterological Department to gauge the impact on food prices and on companies dependent on the agricultural sector.
The IMD dispelled fears by forecasting a normal monsoon for June-September. Rainfall is expected to be 98 per cent of the long period average, significantly higher compared to last year's 77 per cent LPA.
A normal monsoon is good news as it helps bring down prices of agricultural commodities and eases cost pressures for companies which use these as feedstock.
"It is quite possible that under a normal monsoon, food inflation declines significantly to more than offset the hit from non-food categories.
A poor monsoon, on the other hand, pushes up agricultural prices due to dwindling food stocks. Last year's rainfall deficit saw the country's foodgrain production dip to 216.85 million tonnes (mt) in 2009-10 as compared to 233.9 mt in 2008-09.
This meant agricultural growth declined 0.2 per cent in 2009-10 from 1.6 per cent in 2008-09. Agricultural growth was a robust 4.7 per cent in 2007-08, when the country saw a normal monsoon.
Improved outlook:
For India, the monsoon is critical as a large part of the arable land is dependent on rain. Kharif crops, which account for 55-60 per cent of the country's foodgrain production, are sown in June and July. Adequate rain, in terms of volumes and coverage (area-wise), is critical during this period.

Historically, it is observed that after a drought year, we have normal monsoon. So, this year, there is fair chance of a better monsoon. While last year, the industry took a hit, the outlook for the current financial year should improve.

2.Sector benifiting out of good monsoon:

1. Fertilizer:
A normal monsoon means the demand will be higher and the payment cycle will improve, which will be marginally positive for fertilizer companies.
Aries Agro, which makes nutrient-based fertilizers that help improve crop yields, is looking at 25 per cent growth in turnover in 2010-11 to Rs 175 crore (Rs 1.75 billion).
"We are expecting strong volume growth in fertilizers this year as compared to single-digit growth registered by the sector last year," says Sangeeta Tripathi, who tracks the fertilizer sector at Sharekhan.
We recommend a buy for Chambal Fertilizers and Coromandel International. Companies like Coromondel Fertilizers generate almost 90 per cent of their revenues from the fertilizer segment.
Deepak Fertilizers, which is largely into the chemical business, has a marginal exposure to fertilizers. Tata Chemicals and Chambal Fertilizers are among the most diversified players in this sector but still stand to gain.

2. Agri-inputs:
Irrigation
India's monsoon, the main source of irrigation for the nation's 235 million farmers
Companies like Jain Irrigation the largest company in the drip irrigation segment, should benefit. This is due to the fact that a normal monsoon will lead to improved demand and working capital cycle, as most of its units are sold on credit.

3.Tractors
Companies in the tractors segment like Mahindra & Mahindra will also benefit considering that the company's revenues from the segment are 30-35 per cent of its auto segment revenues.

4.Seed and crop protection segments:
A normal monsoon will also mean good demand for companies in seed and crop protection segments.
These are the leading companies in these two segments
• Advanta India
• Monsanto India
• United Phosphorus
• Excel Crop Care

3.Who can benefit out of no rain

Farmers across North India may be looking up at the skies with hope but some punters on Dalal St want no rain.

• That’s because inadequate rains will fuel demand for pump sets, PVC pipes and drip irrigation systems fetching companies’ high returns. Operators on the bourses betting on deficient rain are lapping up shares of KSB Pumps, Kirloskar Brothers, Jain Irrigation, Bharat Bijlee and Finolex Industries faster.
• If India imports foodgrain, though it may not be necessary, shipping companies would be directly benefited. Lack of domestic demand for two-wheelers, tractors, especially rural demand could mean that companies will export these products to other countries.

4.list of companies

source : moneyconrtol.com

source :moneycontrol.com

source:moneycontrol.com



source :moneycontrol.com

source :moneycontrol.com

Prepared by :KARTIK GALA

(Business Development)

Standard Chartered IDR Issue.

Standard Chartered Bank

The Company operates through a number of subsidiaries including SCB, one of the leading international banking and financial services company. SCB particularly focuses on the markets of Asia, Africa and the Middle East. The Company 100% interest in SCB.

Facts and figures as of 31 December 2009:

• The Group operates in approximately 1,700 branches and outlets, 5679 ATMs in more than 71 countries – a key part of the distribution network for the Consumer Banking Business.

• The Group employed over 75,000 employees worldwide. Nearly half of the employees are women, and almost 70 nationalities are represented among the senior management.

• The Group has significant operations in the Asia region, which accounted for over 75% of its US$5,151 million total profit before taxation.

• The Company had total consolidated assets of US$437 billion, total consolidated customer loans and advances of US$198,292 million, total consolidated customer deposits of US$251,244 million and total parent company shareholders’ equity (excluding minority interests) of US$27,340 million.

• Standard Chartered’s total capital ratio was 16.5% and its Tier 1 capital ratio was 11.5%.

• 2009 is the 7th consecutive year in which the Company has demonstrated a sustained and consistent track record of delivering record operating income and record profits. Over this period, the Company achieved a CAGR of 19% for income and 22% and for profits.

• For Standard Chartered Bank, India accounted for around 21 per cent of the group’s profit of nearly $4.5 billion in 2008. India reported operating profit of $943 million for the year-ended December 2008, 37 per cent higher than the previous year. In 2008, Standard Chartered India was the largest contributor to the group profits after Hong Kong. India was also the bank’s fastest growing market after Singapore.

Strengths and Strategy

Strengths
• Longstanding presence in growth markets
• Wide ranging products and services
• Retaining and developing talent
• Strong track record of strategic acquisitions

Strategy
• Sustaining organic momentum as a priority, with growth supplemented through selective acquisitions.
• Continuously improving the way the group’s works
• Building the Group’s leadership
• Reinforcing the brand
• Consumer Banking
• Wholesale Banking

Business divisions

Consumer Banking - Provides products and services to over 14 million customers, including individuals and SMEs in Asia, Africa and the Middle East.

Products and services - Banking services, deposit-taking services, credit cards, personal loans, mortgages, auto finance, Wealth Management services.

Major Markets - Hong Kong, Singapore, Malaysia, Indonesia, Korea, Pakistan, India, Taiwan, UAE.

Principal Customers - Individuals in Asia, Africa and the Middle East SMEs in its key Asian markets offers a range of deposit -taking, trade, lending and other banking services. In 2007, Consumer Banking launched Standard Chartered Private Bank to serve the growing demand for more specialized products and services tailored for high net-worth individuals in the Group’s markets.

Wholesale Banking - Business operations located in Singapore and a delivery footprint that spans its network. Standard Chartered’s Wholesale Banking business, a client-centered business, caters to corporate and institutional clients. The Group has strong cross-border capabilities and is well positioned to capitalize on international trade flows as a result of its broad geographical footprint. The Group works with local and global corporate looking to expand across its footprint, and corporate and financial institutions eager to further penetrate its markets from OECD (Organization for Economic Co-operation and Development) countries.

Products and services - Trade finance, cash management, securities services, foreign exchange and risk management, capital raising, corporate and principal finance solutions.

Markets - The Group’s emerging market network in Asia, Africa and the Middle East. This is complemented by a sales origination platform in India, the UK, the US, Australia and Japan.

Principal Customers - Multinational and large local corporations, banks, other financial institutions and medium sized local companies.

Location and Major Shareholders

Geographic markets
The 8 main geographic markets are as follows: India, Hong Kong, Singapore, South Korea, Other Asia Pacific including Malaysia, MESA, Africa and the Americas, the UK and Europe.

Promoter
The Company has no promoters and is professionally managed by the Board.

Major Shareholders
As at May 5th 2010 the following shareholders currently hold 3% or more of the Shares of the Company:

Shareholder Percentage of Shares held
Tease Holdings (Private) Limited* 18.38%
Blackrock, Inc 6.23%
Legal & General Group Plc 3.98%

* Tease Holdings (Private) Limited’s interest is held indirectly through Fullerton Management Pte Ltd and its subsidiaries and Dover Investments Pte Ltd.

What is an IDR?

Indian Depository Receipts (IDR) are derivative instruments like Global Depository Receipts (GDRs) and American depository receipts (ADRs) that have shares as the underlying assets. Indian companies raise capital overseas through ADRs and GDRs. The IDRs would allow foreign companies to raise capital in India. Like any other depository receipts IDRs are negotiable financial instruments, issued by a local depository against the shares of the foreign company's publicly-traded securities held by it.

The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to investors in India against these shares. The benefit of the underlying shares (like bonus, dividends etc) would accrue to the depository receipt holders in India.


Stand Chart IDR Issue

Standard Chartered Bank has started the process to raise around Rs 5,000 crores through an Indian Depository Receipts (IDR) issue in the local markets.

The Indian Depositary Receipts (IDRs) of Standard Chartered Plc, the country's first such issue, will open on May 25 and will close on May 28, top officials of the Anglo-Asian bank said in Mumbai on Thursday.

Standard Chartered will issue 240 million IDRs, with every 10 IDRs representing one share of Standard Chartered Plc., according to its red herring prospectus. Standard Chartered hopes to raise about US$600mn.

Standard Chartered is currently listed in Hong Kong and London.

The bank has hired UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.

StanChart has appointed its STCI Capital Markets unit as a co-book running lead manager.

Objects of the Issue

• To provide Indian investors with an opportunity to invest in the Company and participate in its growth. The Company has been established in India for many years, is committed to India’s future and believes that India will remain a growing and key market – the Issue demonstrates that commitment.

• To increase the market visibility and brand perception of the Company in India;

• To support growth across the Company’s businesses globally. The current economic circumstances and related market dislocation have presented unique opportunities to deploy capital into selected areas where the competitive environment, pricing levels and returns are particularly attractive.

• To widen the Company’s investor base and to provide a new source of capital.

Discount of 5% to the Issue Price: Retail Individual Bidders and Eligible Employees whose Bid Amount does not exceed Rs.100, 000.

IMP points to be noted

• IDRs can be purchased by any person who is resident in India as defined under FEMA.
• Minimum application amount in an IDR issue shall be Rs. 20,000.

Investments by Indian companies in IDRs shall not exceed the investment limits, if any, prescribed for them under applicable laws.

• In every issue of IDR—

(i) At least 50% of the IDRs issued shall be subscribed to by QIBs.

(ii) The balance 50% shall be available for subscription by non‐institutional.


Source: Business Standard, India Infoline, Hindu Business Line.

Report prepared by: Mr. Chintan Dedhia & Mr. Mayur Naik (Business Development Intern)

Thanks,
DENIP Consultants Pvt. Ltd.

Markets Today - 19/5/2010 - Disclaimer Post Applies

We have Bullish View on market on account of 

a) futures turned into premium from discount with fresh built of “Long Positions”, volatility peaking out at current levels and put concentration at 5,000. 

However, major call writing at 4,900 would lead some more fresh selling at current levels. So, from current levels we do not expect major downside and staggered Buying in cash segment would be perfect options for investors.  

Option Analysis

·         Call Writing: In today’s trading sessions, major writing was seen between 4,900 to 5,100 strike prices. Following strike prices combined added ~46 lakh shares with majority at 4,900 of 17 lakh shares. In the May series, where we have observed concentration at 5,300 for most part has now shifted to 5,200.

·         Put Writing: On the other hand, in today’s trading session we have observed shedding at higher levels and writing at lower levels. Higher strike prices like 5,000 and 5,100 saw shedding of ~11 and ~12 lakh shares respectively. Despite shedding at 5,000 in last few trading sessions, concentration still at 5,000 level of 77.37 lakh shares.

Implications: We believe market has bottomed out for the month of May series on account of concentration of PE still at 5,000 levels. However, today trading sessions of heavy call writing at 4,900 may lead fresh selling at current levels but maintain our view of 4,900 to act as major support for current month. So, the strategy to be adopted by traders should be to create long positions below 4,900.

FIIs and DIIs activity in capital market segment

·         FIIs were net sellers of Rs 1,383 crore with Gross buyers of Rs 2,403 crore and Gross Sellers of Rs 3,787 crore.

·         DIIs were net buyers of Rs 56 crore with Gross buyers of Rs 1,794 crore and Gross sellers of Rs 1,738 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 17^th May, 2010 close at 32.05 which is 20.7% higher as compared to previous close, after touching an intraday high of 32.45 and low of 27.95.

Implications: As expected and mentioned in our earlier reports on volatility, it has reached to its resistance level of 30. Now, we have turned Bullish on Nifty with Short on Volatility.

Leveraged positions can be initiated but with strict stop loss.

Update on 3G Auctions!!

3G auctions end, Govt to get around Rs 70,000 cr.

The auction for 3G spectrum has ended today. According to sources the all-India licence was last bid for Rs 17,000 crore. However the winners are not announced yet.

It is learnt that after 34 days of auction, the government is estimated to garner Rs 70,000 crore surpassing its earlier expectations.

The 3G auction had commenced on 9 April, 2010 and there were nine bidders in the fray for the slots of 3G spectrum on the block. The government auctioned three slots in 17 telecom service areas and four slots in the remaining five states of Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.

Nine leading mobile operators, including Bharti Airtel, Vodafone, Reliance Communication, Tata Teleservice, are figthing to grab spectrum. The government is selling three blocks of spectrum in most of the states with four slots in five states of Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.

The bid price for Mumbai and Delhi is close to other over Rs 2,700 crore as against the reserve prices of Rs 320 crore for each circle.

The auction for the 3G spectrum allocation is over., after a fierce bidding of 34 days. The all-India licence was last bid for Rs 16,751 crore. The government has garnered revenue worth Rs 67,719 crore.

The 3G auction had commenced on 9 April and there were nine bidders in the fray for the slots of 3G spectrum on the block. The government auctioned three slots in 17 telecom service areas and four slots in the remaining five states of Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.

After 34 days of hectic bidding, the auction for the 3G spectrum allocation is over. The all-India licence was last bid for Rs 16,751 crore.

Bharti has paid the maximum amount of Rs 12,295.46 crore for 13 circles. Vodafone has got nine circles for Rs 11,618 crore. Reliance Communication has paid Rs 8,600 crore for 13 circles, Idea Cellular pocketed 13 circles for Rs 5769 crore and Tata Teleservices has got nine circles for 5864.29 crore.

In Mumbai and Delhi, R-Comm, Vodafone and Bharti are the winners. Aircel, Vodafone and R-comm are the winners in Kolkata.

It is learnt, the government is estimated to garner Rs 67,719 crore surpassing its earlier expectations.

Source: moneycontrol.com
Thanks,
Nimesh.

DSP Black Rock Focus 25 Fund - Just 3 days left for NFO to close.

The Indian equity market has historically witnessed performance divergence not only amongst sectors but also in stocks within these sectors. This makes stock selection an extremely important criterion for delivering performance over the long-term. Our equity schemes have delivered consistent long term performance, a testimony to the stock selection skills of our investment team.

DSP BlackRock Focus 25 Fund will have a portfolio of upto 25 stocks (drawn largely from the top 200 companies by market capitalisation) and will adopt a flexible investment style. The concentrated portfolio will enable the fund manager to sharpen his focus with regard to stock selection & portfolio construction and allow investors to benefit from the fund manager’s stock selection ability.

Thanks,

Nimesh.